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.

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