Why miners use pools
Bitcoin pays one miner per block, about every ten minutes. A single Antminer S21 (200 TH/s) against a network of about 950 EH/s would expect to find a block roughly every 90 years. A pool turns that rare, large win into a small, regular income: every machine sends "shares" that prove its work, and the pool pays each miner in proportion.
How pools pay: FPPS, PPS and PPLNS
| Method | How you are paid | Who carries the luck | Suits |
|---|---|---|---|
| FPPS (full pay per share) | A fixed amount per share for the block subsidy and the expected transaction fees | The pool | Anyone who wants a steady, predictable income |
| PPS (pay per share) | A fixed amount per share for the subsidy only; fees kept by the pool or paid separately | The pool | Similar to FPPS, slightly less when fees are high |
| PPLNS (pay per last N shares) | A share of each block the pool actually finds, by your recent shares | You | Miners who accept ups and downs for a lower fee |
| Solo | The whole block, if and when you find it | You, entirely | A bet, not an income, for a single machine |
Under FPPS what you earn tracks the hashprice, before the pool’s fee; today’s hashprice, when the live feed has it, is shown below. Under PPLNS the average is similar over time, but individual days swing with the pool’s luck.
- Hashprice
- $0.0357 per TH/s a day
Pool fees and payouts
- Fees typically run from about 1% to 4% depending on the method; FPPS costs more than PPLNS because the pool takes the luck. SegPool, Segments’ pool, pays FPPS for a 1% fee.
- Payouts go to your own wallet once your balance passes the pool’s minimum. Check the minimum and how often the pool pays before you choose.
- Your address, your coins. With a pool you choose, mined bitcoin goes to a wallet you control; nobody in between holds it.
Solo mining: the odds in numbers
| Hashrate | Chance of a block in a day | Expected wait for one block |
|---|---|---|
| 200 TH/s (one S21) | about 1 in 33,000 | about 90 years |
| 1 PH/s | about 1 in 6,600 | about 18 years |
| 10 PH/s | about 1 in 660 | about 1.8 years |
Over the long run solo mining earns the same as a pool before fees, but almost all of it arrives as rare, large wins. Treat it as a lottery ticket you can afford to lose, not as income.
How to choose a pool
- Pick the payout method you want: FPPS for steady income, PPLNS for a lower fee and more variance.
- Compare the fee and the minimum payout.
- Check that the pool shows your workers and hashrate clearly, so you can verify what your machines deliver.
- Prefer a pool with servers close to your machines; lower latency means fewer stale shares.
Machines hosted at Segments can mine to any pool you name, or to SegPool. See how long it takes to mine one bitcoin for the maths behind a pool payout, and hosting for plans.
Questions
- What is the best Bitcoin mining pool payout method?
- FPPS for most miners: it pays a steady amount per share including expected transaction fees, and the pool carries the luck. PPLNS can earn the same on average for a lower fee, but your daily income varies with the pool’s luck.
- How much do Bitcoin mining pools charge?
- Typically about 1% to 4%, depending on the payout method. SegPool pays FPPS for a 1% fee.
- Is solo mining worth it?
- Only as a bet. A single 200 TH/s machine would expect one block about every 90 years at October 2026 network hashrate; it might come early or never.
- Do I need a pool if my miner is hosted?
- Yes, the miner mines to a pool. With Segments hosting you choose the pool, your own or SegPool, and payouts go to your own wallet.