Mining pools combine hashrate from many miners and split rewards. The payout method matters:
- PPS (Pay Per Share) β fixed payout per share. Stable but lower returns.
- PPLNS (Pay Per Last N Shares) β higher returns but variable. Rewards loyalty.
- Solo β you keep 100% of the block reward if you find one, but variance is huge.
Most small miners prefer PPLNS for better long-term returns.