What Is Solo Mining? - FAQ

Solo mining has become the topic because a Solo Miner recently solved one block unit and received about 6.2 BitCoins, which he didn’t have to share with pool miners.

So, What Is Solo Mining?

Solo mining is a technique where a single entity(person/miner) works independently of any other entities(persons/miners) to complete the process of crypto mining.

Solo Mining Means One Miner?

No, Solo Mining does not mean only using one miner. Even in a small-time operation, an experimental project with my son, we used several miners to crypto mine at home.

Now, these were small USB AntMiners, but people who crypto mine usually do so with multiple miners.

Solo Mining Use Different Miners, Vs. Pool Mining?

No, mining is conducted the same way: a block is solved, and cryptocurrency is released and rewarded to the person who solved it.

Therefore, miners are needed in both solo mining and pool mining.

The difference is that with pool mining, any coins released go to a pool wallet, which is under the control of the pool administrator.

With solo mining, crypto coins are released to your wallet. (minus any transaction fees, which will be discussed later.)

Mining is like making the money come to you.

Benefits Of Solo Mining?

Well, one obvious one is that, as a solo miner, you do not have to share with other miners.

Another benefit of being a solo miner is that you are in charge of your mining operation. Meaning there are no pool outages to deal with. There are no pool fees to deal with.

Drawbacks Of Solo Mining?

Limited resources are one.

It means that teamwork is dream work.

With pooling mining, you share the workload and contribute to the cause; total hash rates are combined, contributing to completing more blocks and receiving more block rewards.

So, we might have to share the rewards, but in reality, there should be more block rewards to share with the combined higher hash rate.

Erratic Rewards With Solo Mining.

Solo Mining has a hit/miss methodology, like winning the lottery. Why do some call solo mining “Lottery Mining”?

Pools can grow to the size they are coming to the mining process, and there is a steady stream of block awards that is diluted down to all the pool members. It’s almost steady and predictable.

With Solo Mining, you can predict the odds but might not even see a steady income stream to predict future income.

Is Solo Mining Better Than Pool Mining?

You can calculate return on investment with crypto mining and play a numbers game that is constantly changing(increasing miners, more complicated blocks, and cryptocurrency changes like BitCoin halvings).

Still, I can share my own experiences.

With Pool Mining, I had a steady stream of block rewards, cryptocurrency like BitCoin, coming into my account. However, since it was a small operation with only a handful of miners, I received a small percentage of the block reward.

I’ve never pulled the money out of the pool since a fee is associated with withdrawals, and my balance can’t cover it. :/

I am looking into Solo Mining( Solo Mining Bitcoin For Passive Income? ). I have leftover USB AntMiners, an old Raspberry Pi, and SDcards. I can build a solo miner and watch it chug away. At this point, I’ll be only paying for the electricity till I can afford to add additional miners to my operation.

So….. they gave up on crypto mining for years, from poor results and even poorer pool fees. Solo mining for crypto sounds like the next adventure in passive income generation through crypto mining.

When I start my mining rig, I plan to solo mine for BitCoin—the OG of crypto coins.

See you then!

Tom, Growing His Passive Income Generators.

What Is Solo Mining? – FAQ