Company updates

What are Multipools and How Do They Work?

, April 19, 2014

Multipools in cryptocurrency mining are basically used to take out a lot of guess work involved with figuring out which cryptocurrency should be mined at any given time. The most profitable cryptocurrency for miners can change by the second, so it’s important for a miner to be on top of these changes in the market. While Dogecoin could be the most profitable coin to mine right now, it may actually be better to mine Worldcoin at a point later in the day. To get the most out of one’s mining hardware, it’s always a good idea to switch between different coins as one becomes more profitable than another.

Why is One Coin Better Than Another? 

The main reason that the most profitable cryptocoin at any one time can change so often is due to the changing prices on the altcoin exchanges. It takes a certain amount of resources to mine cryptocurrencies, so the profitability of mining a certain coin depends on the difference between the amount of resources it takes to mine that coin and the current sell price of that coin. In other words, the profitability of mining a certain cryptocurrency goes up as the current value of that cryptocurrency goes up. Since these changes can happen with each passing second, it’s a good idea to have this process completely automated. That is where multipools come in to pick the right coin to mine for you.

Popular Multipools

Much like regular mining pools, there are actually a good number of different multipools to choose from when someone wants to start mining in this manner. Factors such as fees, level of support, available cryptocurrencies, and other features definitely come into play when choosing the right multipool, but trademybit.com and multipool.us have been two of the most popular options up to this point. Middlecoin is another multipool that people often bring up when it comes to this type of mining, but the problem there is that you don’t really know what you’re mining as its happening. Some pools will also allow integration with exchanges, such as Cryptsy, which means the coins will also automatically be sold on an exchange once they have been mined. In other words, these multipools literally take all of the extra work out of the mining process.

The Ghash.IO Multi Pool Pro

Ghash.IO has become the largest Bitcoin mining pool rather quickly, and they are now ready to take their excellence in mining to other coins with the Multi Pool Pro. They are attempting to maximize the profits for scrypt miners in their pool, and the fact that Ghash.IO has shared credentials with CEX.IO allows for the opportunity of gaining additional profits on the price difference.

This multipool is going to start exchanging cryptocurrencies through Cryptsy, but other exchanges are going to be added in the near future. Coin switches can take place every thirty seconds, which means miners have ultimate flexibility when it comes to mining the most profitable coin at any given time. Read more about GHash.IO Multipool Pro here.

Related

CEX.IO News Company updates

Ethereum Network Overload

Currently, Ethereum memory pool is experiencing very high load due to the launch of a new CryptoKitties app. An Ethereum-based app uses the tokens to trade digital cats. It has gained extreme popularity among the users and led to the congestion of the blockchain. As a result, we are

Dec 08, 2017 | 2 min read
Company updates

CEX.IO Joins TaxBit Network for User Tax Solutions

CEX.IO is excited to announce its partnership with TaxBitCom. As a member of their network, we can now offer a no-cost tax solution to U.S. users.

Feb 24, 2022 | 3 min read
Company updates

Xapo公司推出首张比特币借记卡

尽管比特币已在全球金融领域显示了高潜力的发展趋势,却仍然在不少国家遭受阻碍。比特币持有者经历到的其中一个主要问题是,如何在日常生活中使用这种数字式货币,例如购买巧克力圣代,来为生活增添小乐趣。 现阶段,要购买物品的话,您需要用您的智能手机扫描QR代码,或用电子邮件发送比特币地址给售货商。对多数人而言,使用比特币购物比使用Visa或MasterCard要复杂得多。

May 08, 2014 | min read