Developing a crypto mining pool can bring big advantages like boosting your brand’s recognition in the cryptocurrency space and connecting with a global community of users. However, these benefits are only possible if everything is set up correctly.

As the cryptocurrency world continues to expand, crypto mining pool development has become a highly profitable and in-demand niche. Still and all, the process comes with its fair share of challenges and even the smallest mistake can render all your efforts futile.

But if building a cryptocurrency mining pool is something you are aiming for and you want the process to go as smoothly as possible, you have come to the right place.

In this guide, we will share valuable tips based on our real-life experience with the PegaPool and ProPool mining projects. We will highlight the essential features to include and the steps necessary to take in order to create a successful crypto mining platform.

Let’s start!

What are the benefits of developing a crypto mining platform?

Before we delve into how to create a crypto mining pool, let’s see what particular benefits it can bring.

Revenue generation

Running a crypto mining platform can be a great way to build a steady revenue stream. Each time your users successfully mine a block, the platform earns a small fee. As your mining pool grows, those fees increase, which provides you with reliable income that scales with your user base.

We put this into practice with our ProPool project where the platform owner can set the percentage of transaction fees they receive from miners. Plus, we integrated features like merged mining, auto-switching, and crypto exchange arbitrage, which can boost profits by up to 5%.

Similarly, in our PegaPool solution, we implemented a commission fee system where the platform earns a percentage of each mined block’s value.

Brand visibility

Having your own cryptocurrency mining platform places your business front and center in the crypto industry. It helps build credibility and recognition among crypto enthusiasts and professionals alike. And the more your platform grows, the more your brand becomes associated with reliability and innovation in the crypto and blockchain space.

Global reach

One of the best parts of developing a crypto mining platform is the ability to attract users from all corners of the world. The global nature of cryptocurrency means that your mining pool isn’t limited by geography — in fact, miners from any country can join, which broadens your business network as well as boosts user diversity and engagement.

Blockchain ecosystem expansion

When you run a mining platform, you are becoming a part of the entire blockchain ecosystem. This opens the door to partnerships with other crypto projects, collaborations with blockchain developers, and opportunities to expand into different areas like staking or DeFi.

Innovative leadership

Creating a crypto mining platform also gives you the opportunity to shake things up with bold and forward-thinking ideas.

If you have an unconventional concept or want to approach things differently, your mining pool solution could become a leader in innovation as well as make a real impact and attract a dedicated user base.

Take PegaPool, for example. Our client came to us with a request to develop a mining pool that would operate entirely on renewable energy. As a result, not only did PegaPool stand out from the crowd but it also achieved an impressive 1,409 tons of annual CO2 offset, which has been highly valued by the platform’s users.

What features to consider and include in a crypto mining pool?

When setting up a crypto mining pool, having the right features can significantly enhance your platform’s effectiveness and appeal to users.

Below, we will delve into the features that our development team has integrated into our mining pool projects and explain why and how these functionalities can contribute to the overall success of any mining solution.

Flexible payout and reward mechanisms

Offering a variety of payout options like pay-per-share (PPS) and pay-per-last-n-shares (PPLNS) caters to different preferences and risk levels. This lets miners choose the payout method that best fits their needs and goals and makes your pool more appealing to a broader audience.

However, it is important to remember that each mining project may have its own unique needs and requirements. That’s why doing some preliminary research to identify the most suitable option is obligatory.

For example, in ProPool, we integrated proportional, PPS, and PPLNS rewards, with fees and payouts managed through individual wallets.

In PegaPool, we decided to incorporate a pay-per-share model for instant payouts based on the expected number of shares needed to find a block.

Robust security measures

Prioritizing security helps build trust and ensures that miners feel safe using your platform. To achieve this, consider implementing measures like two-factor authentication (2FA) and encryption methods to protect both your platform and its users from potential breaches.

Support for multiple cryptocurrencies

Your mining pool can get more appealing when it supports multiple cryptocurrencies. This way, miners interested in different coins will find value in your platform, which in turn will enable you to attract a diverse user base and expand your pool’s reach.

In the ProPool project, we took it a step further by providing support to the classic LTC/DOGE merged mining approach: both cryptocurrencies can be mined simultaneously without impacting the overall efficiency of the mining pool.

Transparent reporting

In both the ProPool and PegaPool mining pools, our developers added statistical modules that let users see real-time stats on their performance, revenue, and expenses, which makes it super easy for them to keep track of their mining activities.

We did this because clear and detailed reports on mining performance and payouts help users understand exactly how their earnings are calculated and how their efforts are rewarded. Plus, this kind of transparency builds trust and users feel more confident and informed about their decisions within the app.

Intuitive and user-centric design

It might seem like a small and obvious detail but let’s stress it again: having a clean and intuitive design truly makes a huge difference. It’s about making sure that buttons, icons, sliders, and layouts all look good and work together smoothly, so everything feels natural and easy to use.

For our mining pool apps, we chose a soothing color scheme and crafted a UI that’s easy to use. We also focused on making navigation simple so users can quickly find what they’re looking for without any confusion. The result is that both apps are not only effective but also genuinely enjoyable to use, which has made the overall experience smoother and more satisfying for everyone.

Autoconversion

Autoconversion is a fantastic feature that takes the hassle out of managing mined coins. It automatically exchanges your mined coins at the best rates from multiple exchanges.

In ProPool, our developers made sure this feature works well. Mined coins are quickly converted to Bitcoin or stablecoins, so users don’t have to worry about handling this themselves. Once the conversion is done, the funds are ready for withdrawal to a wallet, making everything smooth and hassle-free.

This feature is a big part of why ProPool has hit the milestone of 2,000 miners worldwide and an impressive 288 PH/s hashrate.

How to create a mining pool in 7 steps?

We don’t believe in a one-size-fits-all approach and our development team treats each project as unique. However, from our hands-on experience with creating PegaPool and ProPool mining solutions, we have identified some common steps that guide the process.

Keep in mind that some of the steps might be adjusted or additional ones might be needed to tailor the solution to your specific needs. For expert advice and guidance, feel free to reach out to our blockchain consulting experts.

Now, let’s dive into the 7 key steps on how to create a pool for mining.

1. Start with research

Every successful mining pool project starts with solid research and we have seen firsthand how important this is.

By digging into market trends, exploring various cryptocurrencies, and understanding what miners are looking for, you will be able to lay the groundwork for a pool that hits the mark and stands out.

So, don’t overlook the importance of preliminary research. The time you invest in the beginning will save you a lot of effort down the road and make future development much smoother.

2. Plan your infrastructure

Next, think about your technical setup. This step is predominantly about building a strong foundation that can handle the load and grow with your pool. From choosing the right servers to setting up network configurations, getting these things right from the start will keep things running well as your pool expands.

In ProPool, we took it a step further by adding overheating control and device temperature monitoring. The feature helps keep everything running at peak performance and prevents any slowdowns or hiccups.

3. Design a reward mechanism

Aim for a reward structure that is fair and appealing as well as encourages miners to join and stay with your pool.

A compelling reward system can make or break your mining pool. Whether you go with proportional, PPS, or PPLNS, the key is to design a model that draws in miners and keeps them motivated.

4. Build core features

Your mining pool needs solid core features, including smooth and user-friendly onboarding, easy registration, effective mining management, reporting and statistics modules, and performance tracking.

And remember the research step we talked about earlier — always do your homework before developing any additional features. You might find that your pool doesn’t need some functionalities you originally planned or that you need to include others you hadn’t considered.

5. Focus on security

Security is a big deal for any mining pool, so it is important to set up strong protections like encryption and two-factor authentication to keep your platform and users safe.

We also recommend using third-party services for added security. For instance, in PegaPool, we used Twilio and Mailjet for SMS and email verification to make sure user accounts stay secure and protected.

6. Create user-friendly interfaces

Put your heart into designing user-friendly dashboards and tools that work well for both newcomers and seasoned miners alike. The goal here is to make navigation easy and enjoyable so that users are drawn to your mining pool rather than put off.

To get it right, collaborate closely with your UI/UX design team and make sure that they get your vision and can fine-tune it to deliver the best results.

7. Test and launch

Testing allows you to examine every part of the platform and catch any issues that could otherwise impact performance and user satisfaction.

Hand this task over to experienced QA and software testing professionals who will examine your platform and make sure your mining pool is bug-free.

Closing thoughts

Creating a successful mining pool is both a challenging and rewarding endeavor. By following the steps we outlined and using insights from real-life case studies, like those we have shared in this article, you can create a mining pool that stands out and meets the needs of your users.

At PixelPlex, our mining pool development team guided many clients through this process and turned complex ideas into thriving crypto solutions.

If you are ready to take the next step and need a partner to help you build your own crypto mining pool, we are here to assist.

Get in touch with us and let’s work together to bring your vision to life.