Mining is a term describing “production” of cryptocurrency. It involves specially configured computer software, solving math problems. Cryptocurrencies are received as a reward to “miners”.
Some years ago anyone could have mine using their own personal computers. Today, the difficulty became so high, that most of mining is done in mining farms, where hundreds (or even thousands) of computers are all working together to mine.
This means that mining became nearly impossible to a regular person and this is how mining pools came to life.
The idea of a mining pool is quite simple. A mining farm can rent out a portion of their computing power to anyone who would like to invest in it and the investor receives mined coins. There are usually small fees charged to cover the costs of running and maintaining the equipment.
Mining can be very profitable, especially since the overall cryptocurrency market is growing rapidly and is predicted to grow for many more years to come.