This guide delves into the practice of mining Proof of Work (PoW) coins as part of a group, something commonly referred to as mining pools.
We discuss how to participate in mining pools if you reside in any European country such as Germany and list some of the leading options at your disposal.
Additionally, we will consider what matters when it comes to choosing a mining pool and how to cash out your returns once you start mining coins.
Does Location Matter When Mining? Why?
When it comes to mining in a pool, location is one of the most important factors to consider. Ideally, you want to connect to a server that is closest to the location of your mining rig.
For instance, if you are setting up your rig in Germany, you should be connecting to a mining pool server within the EU; if you are in the United States, connect to a server located in North America; if in China, find a local server or one located within the eastern parts of Asia.
Proximity to server location is important because distance affects latency metrics. Theoretically, the same equipment deployed at the same time with the same hash rate but located differently will have varying pool mining results depending on their proximity to the server.
The rig closest to the server will be more efficient compared to its counterpart. It will typically receive and submit assigned work faster which reduces the chances of submitting outdated or ‘stale’ work which does not count and will not be rewarded.
Is Mining Profitable In Germany?
Mining in Germany may not be profitable because mining costs are typically higher within the country compared to other locations.
According to a survey by Statista in December 2020, Germany ranked highest in terms of electricity cost at $0.37/kWh. In comparison, electricity costs $0.15, $0.09, and $0.06/kWh in the US, China, and Russia, respectively.
Assuming that the same mining rig is deployed in all four countries, and assuming that all other factors are kept constant including revenue, it is easy to see that profit from the rig located in Germany will be the lowest.
6 Best Mining Pools To Mine From Germany
Even though Germany may not be the most profitable country to mine cryptocurrencies, some investors may find it strategic to do so given its proximity to multiple mining pool servers.
Most of the leading pools have some of their servers within the Eurozone making it ideal to set up mining rigs within the country.
The following list includes some of these leading mining pools for anyone based in Germany or its environs:
F2Pool is a Chinese-based cryptocurrency mining pool with servers across the world including Europe, North America, and Asia.
Launched in 2013, the pool now accounts for a significant portion of the Bitcoin hash rate and most other supported coins including Dogecoin, Verge, Litecoin, Ethereum, and VCash.
Mining pool fees – 2.5%
Based in China, AntPool is a mining pool run by Bitmain, the manufacturer of AntMiner ASIC machines popularly used to mine Bitcoin. The pool is so large that it accounts for about 14% of the entire Bitcoin network hash rate.
AntPool has its servers located in multiple locations including the United States, Russia, Germany, Hong Kong, Dubai, England, Beijing, Shenzhen, Qingdao, and Hangzhou.
Mining pool fees – 2.5%
Poolin is another China-based mining pool contributing significant hash rate toward the Bitcoin network and a few others including Dash, Decred, Namecoin, ZCash, and Dogecoin.
The pool was established in 2017 and has seen impressive market share growth in a relatively short amount of time.
Poolin has servers located in Beijing and Chengdu, China; Virginia, United States; and Frankfurt, Germany.
Mining fees are about 2.5% and it supports 14 different cryptocurrencies.
4. Slush Pool
Launched in 2010, SlushPool is the oldest cryptocurrency mining pool still in existence. However, despite its old age, it has been surpassed by other pools in terms of market share. This doesn’t mean that the pool is not worth your time.
SlushPool is among the leading mining pools for Bitcoin and ZCash cryptocurrencies. The pool only supports these two assets and members are charged a 2% commission for the services.
Its servers are based in multiple locations including Europe, the USA (East Coast), Brazil, Canada, Singapore, Japan, Russia, and Kazakhstan.
KanoPool may be one of the least known pools in this list, but it has been around since 2014 offering several benefits that larger and more popular mining pools don’t. For instance, it charges the least fees of most larger pools at 0.9%.
Additionally, KanoPool users enjoy the ease of signing up because new members don’t have to register. Just connect your mining rig to any of the six available servers and provide a Bitcoin wallet address.
The six servers are located in New York, Oregon, the Netherlands, Phoenix, Los Angeles, and Japan.
BTC.com mining pool is part of the ubiquitous Bitcoin.com property owned by the same company.
The pool joins the other services offered including a peer-to-peer exchange, an innovative Bitcoin wallet, and a blockchain explorer.
BTC.com pool was established in 2016 with servers located in the EU (Germany), the United States, and China. There are several other coins supported by the pool other than Bitcoin and Bitcoin Cash including Litecoin, Ethereum, Decred, and Dogecoin.
How Do I Cash Out Bitcoins In Germany?
There are several ways to cash out your BTC in Germany. They include using:
- Bitcoin ATMs;
- LocalBitcoins peer-to-peer exchange;
- Other brokerage platforms such as Coinbase.
If you reside in Germany, there are several options at your disposal if you desire to start mining within a pool. The same case applies when it comes to cashing out your mining rewards. Check out our detailed guide on how to cash out BTC (and other coins) in Germany for more details.