Mining Ethereum: Are you a small miner and are looking for eth pools that has the lowest minimum payout, with zero withdrawal fees? Are you looking for pools with alternative payout methods such as instead of Ethereum mainnet wondering how to get paid via Polygon (Matic) L2? Is the mining pool fee and gas fee eating your total earnings? Not to worry, the following post is for you.
Here we’ll list out pools with lowest minimum payout so you can withdraw your Ethereum mining balance daily. We’ll take a look at pools that cover the withdrawal transaction fee. Also we’ll show you how to receive payments on the layer 2 Polygon network as a Wrapped Ether (WETH). This way you can receive frequent, zero fee payouts.
First of all compared to Bitcoin, Ethereum mining is simple and has a lower barrier to entry. Anybody with a graphic card can start mining Ethereum. It doesn’t matter whether you have a large mining farm, few mining rigs or a single GPU gaming PC. You still got plenty of time to obtain ETH via mining before it completely switches over to PoS. Especially if you got a relatively cheap source of electricity then you can gain substantial return on your investment.
Second there are plenty of mining pools available for Ethereum. Here you can check out the list of best ETH mining pools. Other than our list you can also check out https://miningpoolstats.stream/ethereum for a complete list of mining pools. It also displays the pool hashrate, fee, min pay and other statistics.
In general you can stick to any one of the top 10 pools. At the end of the day / week/ month all pools average out to paying the same. Just keep in mind that lots of hash = more blocks found, but less rewards due to lots of participants on the pool. A pool with medium to lower hashrate finds less blocks, but you’ll receive more rewards because of massive rewards being split between very few miners. But anyways your earnings averages out with higher hash pool. Other than these factors there are some pools that sometimes have luck on their side.
Anyways don’t stick to lesser known pools with very little hash that takes more than a day to find a block. They might have low payout thresholds but there are some risks like exit scam. Also as a small miner you’ll actually lose.
So what is the recommended pool for an entry-level Ethereum miner and what is the most affordable way to cash out the Ethereum mining rewards?
Pool Fee, Min Pay and Withdrawal Fees
Majority of mining pools either uses PPS or PPLNS and their fees ranges between 0.5% to 2%. Other than pool fees you also need to consider minimum payout threshold and the withdrawal fees.
Back then pools had a minimum payout of 0.01 ETH. Actually they allow you to set a minimum payout threshold of 0.05 ETH and Max: 10 ETH with 0.01 being the lowest threshold. If your unpaid balance is greater than your configured payout threshold then you’ll be paid out during the next payout round. If you don’t hit the minimum payout threshold then you’ll be paid out weekly if your balance is over 0.01 ETH. At current difficulty one could easily hit the 0.01 ETH mark in a week with a single 3060TI.
Also previously pools use to cover the withdrawal fees by mining their own transactions. That is all the transaction fees related to pool payouts are paid by the mining pool. But that’s not the case anymore.
After EIP 1559 pools can no longer cover the transaction fees. Now miners are only responsible for paying their transaction fees. But here is the problem.
Small miner problems:
Currently there are no mining pools that allows you to set a minimum payout to less than or equal to .01. Most pools current minimum payout is .1 ETH and .05 ETH. This is done to greatly reduce the network congestion. There are some with 0.01 but such pools have hard time finding blocks due to their low hashrate.
With pools having a minimum payout of 0.1 and 0.05 ETH it takes weeks or more than a month to get a payout. This increase in minimum pay greatly affects the small miners.
Also not to mention the fees to withdraw your mining balance. With gas prices so high it could eat up atleast a day or two of your mining profits. So how to avoid paying fees and how to receive frequent payouts?
Frequent payouts & no cost payout pools
To receiving frequent payouts you need to find a pool with low minimum payouts. As we said most pools minimum pay is 0.1 and 0.05. You got Flux Pool and Mining pool hub with a minimum payout threshold of 0.01 ETH. Once your unpaid balance reaches 0.01ETH your entire balance will be paid in the next payout round. But the thing is they don’t cover the transaction fees for mining payouts.
You’ll have to set the gas price limit for your own transactions. Check out https://ethgasstation.info/ for current GAS prices. The fee usually varies between 120 GWEI to 40 GWEI depending on the network traffic. To reduce transaction costs you can set a lower gas price limit but you may not receive any payouts until the networks priority fee reaches your gas price limit.
If you are a small miner then we strongly recommend you setting a transaction fee limit lower to avoid loss on the network fees. Also its better to set a higher payout limit to reduce the total number of payout transactions. Lesser the transactions; lesser the amount lost in network fees.
So If you can wait a long time and don’t care getting paid out every few weeks or monthly then this is the way. However if you are looking for regular payouts and no cost for payout then there are other pools and alternate payout solutions.
Pools to check out:
HiveOn pool – A pool that is designed for Hive OS users. 0% pool fee and they also take care of the transaction fee. You pay nothing for withdrawals. However the minimum payout is 0.1 ETH.
2 Miners – 2 Miners has a minimum payout value of 0.01 ETH. Also you can avoid ETH transaction fees by getting paid out in BTC or NANO. For Payout fees in BTC its less than $0.5. For NANO its absolutely free ($0). This is a good pool for regular payouts where the pool fee is 1 percent and there is no cost for payout when you withdraw in other coins.
There are also other pools with minimum payout of 0.005 ETH which you can easily hit in less than a week using a single GPU. Also the network TX fees are paid by the pool. But you need to choose the payment via Polygon L2 (MATIC) network.
ETH L2 MATIC pools
Check out: Fluxpool.io and Ethermine.org. If you choose L2 as payment method then there is no cost for payout and the minimum pay is only 0.005 ETH.
Layer 2 payout methods
Due to network congestion and high gas fees on the Ethereum mainnet many pools started adding alternate payment methods. Some of the major pools have the option to pay your mining rewards in layer 2 Polygon (previously known as Matic). This is to reduce mainnet congestion and to improve earnings for smaller miners.
You can choose between conventional payouts on ETH mainnet or the L2 Polygon network. If you are a small miner then we highly recommend to use Polygon (Matic) network to receive your payouts promptly. If you just want to accumulate ETH without losing your mining earnings on fees then this is the way to go.
Payouts on Polygon side-chain enables frequent, zero fee payouts for small miners. Also there are other advantages of getting paid on Polygon network solution.
L2 Polygon payout benefits:
There are 3 reasons to choose L2 Polygon as payment method instead of receiving it over the Ethereum mainnet.
- Lower pay threshold: MIN – 0.005 ETH which is great for people only hitting less than 0.01 per week.
- Zero fees – You no longer have to mess with the gas price limit as the pool takes care of your transaction fees. This is again beneficial for the small miners.
- DeFi opportunities: By utilizing the DeFi protocols on the Polygon network you can make additional gains with your earnings while mining. Once you get your money on the Polygon chain you can stake your coins, there is liquidity farming and many other new reward utilization opportunities.
You can keep your mining rewards on the Polygon chain and earn some extra passive income or you can decide to cash out whenever you wish.
So what is Polygon and how the Polygon payout works?
Polygon L2 (MATIC)?
Polygon previously known as MATIC is a layer 2 solution for Ethereum’s scalability problem. It is a side chain that simply enables users to carry out transactions quickly and at low fee.
Every ETH transaction has fees. On L2 Polygon network the fee is very low. So it is the best way to get your mining payouts paid out quickly and at zero cost. But instead of ETH you’ll receive wrapped ETH to your Polygon wallet address. That is instead of sending ETH on mainnet the pool will send $WETH (Wrapped ETH) over L2.
The L2 Polygon networks Wrapped Ether (WETH) is worth the same as ETH. The only difference is that $wETH is an ERC20 token on Polygon network. If you want to cash it out then you’ll have to jump through some additional steps to get your money. We’ll explain that soon. Also you’ll need the MATIC token to move or liquidate WETH. MATIC is the native token which is used for gas on Polygon network; similar to ETH being used as gas on the Ethereum network.
To receive L2 Polygon payouts on Ethereum pool you need a Polygon wallet with support for Wrapped ETH token. Next on the pool you need to choose Polygon option as the preferred payout network. After that all your ETH mining payouts will be sent over to your Polygon address as a Wrapped Ether (WETH) token.
Now before you start using Polygon L2 as your payout option make sure that your wallet or exchange supports the Polygon L2 Wrapped Ethereum. Otherwise your payout will be lost forever.
Wrapped ETH (Polygon L2) Exchanges
You can mine directly to your exchange address. But first make sure the exchange supports wETH token deposits on the Polygon network.
As of now Binance do not support direct deposit of wETH via Polygon network. Also not sure about Kucoin, Crypto.com and other exchanges. They might support Matic network but not sure about the Polygon network’s wETH token. We suggest you to verify this on your own before you use the exchange address to receive mining payouts.
Also to cash out you might be using exchanges like Coinbase / Kraken and Bitfinex. All these exchanges do not support direct ETH (wETH token) deposits via polygon network. So you’ll have to use the Matic bridge to exchange wETH for ETH and only then you can transfer it to your exchange ETH deposit address.
Wallets with wETH (Polygon L2) support
If you are looking to hold ETH for a long time and don’t like to use exchange services then we suggest you to find a wallet that supports wETH on Polygon.
Trust wallet supports wETH on Polygon. Its same as your ETH receiving address.
Exodus also supports Polygon MATIC network. You can use it to send, receive and store ETH ERC20 and MATIC ERC20 tokens. The both exist alongside on the same address.
There are many other wallets with support for Matic wETH. But note that some wallets do support Matic but not the tokens on Matic network. So we suggest you to do your research on this.
After setting up Metamask for Ethereum you need to add the Polygon network to Metamask. By default it only shows MATIC. You’ll have to add the wETH token to see the Wrapped Ether under assets section.
Here is the Polygon networks Wrapped Ether token contract details: https://polygonscan.com/token/0x7ceb23fd6bc0add59e62ac25578270cff1b9f619
Once all these steps are done you can use your Metamask ETH receiving address to receive wETH L2 payouts via Polygon network. Also as we said before you’ll need a little MATIC token on your wallet to carry out transactions.
You can use the Polygon faucet for this: https://faucet.polygon.technology/
Ledger and Trezor wETH Polygon support?
How to receive Layer 2 payouts on Polygon?
Note: Before changing payment method it is recommended that you complete your current pending payout on the Ethereum mainnet to your exchange or wallet address first. Also if you are looking to switch over to other pool then reach the current mining payout threshold and withdraw the coins from your current pool.
To change your payment method you actually don’t have to edit the ETH address in your .bat file. Since the address for both ETH and Polygon is same (starts with 0x) you can keep the same ETH address as long as you are using the right wallet. If you are going to use another wallet or exchange address then you need to edit the batch file and change the address.
Now before switching networks please make sure you understand how all of this works. For starters we recommend Metamask setup. You can either use Ethermine or Flex Pool to receive L2 payouts.
Use your Metamask ETH address and start mining on Flexpool. Next go to Flexpool.io and enter your Metamask address. The pool will display your balance, hashrate and other mining statistics.
Next to your address you’ll see settings. Click on settings and choose Network as Polygon L2 and change the payment threshold to 0.005 ETH. The 0.005 ETH per day is the minimum payout threshold and you can’t go less than that.
Once done enter your mining rigs IP address for verification, acknowledge that your wallet supports L2 network and click apply changes.
That’s it! From now your your payments will be processed in wETH and the payout will be sent via Polygon (L2).
Ethermine and Metamask / Polygon
On Ethermine you have the option to directly connect your Metamask wallet.
At the top right corner you’ll see connect wallet. Click connect wallet and choose Metamask. A notification window will open asking you to choose the address / accounts. Select the address, click next and connect to Ethermine.org.
After connecting at the top you’ll see your wallet address. Make sure your miner.bat file uses the same address before you begin mining.
To change the payment method on Ethermine drop down your address and go to dashboard. Next navigate to settings and click on the payment method tab.
Choose L2 Polygon (MATIC) and click Sign & Save settings. Metamask notification window will now open for signature request. Click sign and allow ethermine.org to add Polygon network if you have not added already. If you have already added then switch over to Matic network. It will also automatically add the wETH token to your Metamask account.
That’s it! You’ve completed the Ethermine Polygon payout setup and you can now start mining. Make sure your mining rigs are pointed to the correct address on Polygon.
On Ethermine you’ll start receiving automatic payouts if your balance is above 0.005 ETH. You can edit this.
Note: if you don’t see your Ethermine payouts to your Polygon address then make sure you’ve added the wETH token.
Here is how to add custom token to your Metamask.
wETH custom token contract address: https://polygonscan.com/token/0x7ceB23fD6bC0adD59E62ac25578270cFf1b9f619
Visit this link for detailed Ethermine Polygon Guide – https://support.bitfly.at/support/solutions/articles/8000093699-ethermine-introductory-polygon-guide-new-
With L2 Polygon as payment method there is no cost for transfers and you’ll also get paid quickly. But still if you want to transfer wETH as ETH over to the Ethereum mainnet then it can get quite expensive.
L2 payout withdrawal tips and FAQ:
Firstly note that the Wrapped Ether on Polygon is an ERC20 token and an Ether that is on the Polygon chain which is distinct and separate from the Ethereum mainnet. You can’t send your wETH tokens directly to most of the exchanges as they don’t support direct Polygon network transactions yet.
Please do NOT send wETH directly from the Polygon network unless that exchange supports Polygon deposits for that particular token. If you transfer it by mistake then your coins will be lost.
To send your wrapped ETH to an exchange or any ERC20 wallet you’ll need to bridge assets over to Ethereum mainnet first. Also note that MATIC is the native currency on the Polygon chain. So to transfer / exchange or swap assets on the Polygon network you’ll need some Matic tokens.
Once you have MATIC you can use https://wallet.polygon.technology/bridge/ to bridge wETH from Polygon to ETH on Ethereum Mainnet. Here this guide should help you with bridging assets. But the problem with this method is high transaction fees utilized by the Ethereum chain which is the main reason why we went through this all of this.
A good way to avoid fees is by keeping the tokens on the Polygon network until you wish to cash out. When you decide to sell then instead of bridging wETH to Ethereum mainnet you can bridge to BSC (Binance Smart Chain) network. BSC is faster and cheaper and major exchanges like Binance do support direct deposits of wETH tokens on the BSC chain.
Or you can swap your mined Ethereum for Matic on Polygon chain and transfer the Matic to exchange via Polygon chain. Then on exchange you can convert your Matic back to ETH. This way you can skip the transaction fees altogether.
All this Layer 2 Polygon stuff may seem quite confusing at the beginning. But once you get used to it and figure out these side chains and other L1’s it’ll change the way you trade and interact with blockchains.
Is MetaMask mandatory to receive payouts via Polygon?
No, you can use any ETH wallet to receive 0x Polygon payouts. You got Trust wallet, Coinomi and many others which you can connect via WalletConnect. Just make sure the wallet or exchange address supports wETH tokens via the Polygon chain before you mine.
We’re done! If you got any mining questions regarding L2 Payouts then let us know in the comments below.