Binance pool: how does the Binance Mining Pool work?
Binance is more than just a crypto exchange: it offers a wide range of crypto services. One example of such a service is the Binance Mining Pool. In this article, we will discuss what the Binance Mining Pool is and how it works.
What is a mining pool?
Mining is an essential part of many cryptos. Many cryptos work according to the Proof-Of-Work concept. Within this concept, miners are responsible for validating transactions, thereby guaranteeing the reliability of the blockchain. Miners receive compensation for this in the form of crypto.
Nowadays, even with powerful equipment, it is impossible for an individual to mine a block. Miners therefore regularly join forces in a mining pool. Within a mining pool, the contribution of each user is considered. If rewards are won, these are distributed among the users according to their individual efforts.
How can you participate in the Binance Smart Pool?
Before you can mine, you need powerful hardware with which you can contribute computing power. If your hardware is weak, you will not be able to contribute much to the mining activities and your fees will be very low.
You must connect the miner to the following Pool URL:
Within your mineral configuration, you fill in the URL and under worker you set the user. The format for the user is <username.miner_ID>, where username is your Binance username.
How to earn from the Binance Smart Pool?
Binance uses the Pay Per Share (PPS) principle for the Binance Smart Pool. Binance pays a fixed fee for each pool; for BTC this is 2.5% and for ETG 0.5%. Binance does not check whether a block can actually be mined. Regardless of the result, Binance pays this fixed fee to its miners.
The amount you receive ultimately depends on the computing power you contribute to the pool. If you manage to contribute more computing power, you will also receive a higher absolute compensation. Be aware of your electricity bill when you are mining within the Binance Smart Pool, as this can mount up considerably and negatively influence your results.
You can see your earnings from the Binance Smart Pool under Earnings within the pool in which you are active. Your earnings are automatically credited to your Binance wallet daily.
Is Binance Smart Pool a good opportunity?
You will have to get serious about mining if you want to get a good return from the Binance Smart Pool. For example, investigate which ASICs (hardware you use for mining) will give you the best results. Take the purchase costs, energy costs and depreciation costs of the equipment into account. By doing so you can calculate whether Binance Smart Pool is a good opportunity for you.
Do you want to read more about Binance?
- Read this Binance review to find out if Binance is a good exchange.
- Discover more ways to make money with crypto here
- In the extensive Binance manual you will learn everything about Binance & crypto