Cardano ADA is a very promising cryptocurrency, attracting a lot of attention since the day it was founded. Many people are hopeful it is next-generation blockchain technology, able to balance sustainability, decentralization, and value.
Because of great interest, a lot of crypto enthusiasts decide to give it a try and want to learn how to mine Cardano ADA.
The rumour has it that some people mine Cardano on their mobile devices. Really? Can you mine Cardano ADA? You will find the answer to this question and much more useful Cardano coin mining information on Cardano in this guide.
Cardano Android mining guide
So, let’s get straight to the point. Firstly, we will dive deeper into Cardano’s history, technology, and idea. Then, you will learn about how you can mine some ADA coins at home, on your phone.
What is Cardano cryptocurrency?
Cardano is a Proof-of-Stake (POS) blockchain platform, whose native token is ADA [eɪdə]. Therefore, it is much better to say that the cryptocurrency is ADA, running on the Cardano network. Still, the terms “Cardano coin” and “Cardano crypto” are very popular although not entirely correct, so we will use them here as well.
The official name of Cardano coin, ADA, comes from 19th-century mathematician lady Ada Lovelace. She was the daughter of the famous British poet Lord Byron and is believed to be the world’s first programmer.
The basic idea of Cardano’s PoS consensus algorithm is to provide a better and more efficient alternative to Bitcoin’s PoW (Proof-of-Work). Namely, Cardano seeks to cut energy overconsumption with a more sustainable, scalable, and interoperable algorithm.
Cardano had been developed for two years before it was finally launched in 2017. It was funded through ICO, starting at a market cap of $600 million and reaching $33 billion in 2018.
The master mind behind Cardano is Charles Hoskinson, a former co-founder of Ethereum. Hoskinson is a mathematician and a well-known and appreciated personality in the crypto circles. His blockchain systems are based on academic research and are famous for safety.
There are two main organizations behind Cardano. The first one is IOHK (Input Output Hong Kong), founded by Hoskinson in 2015. This organization develops Cardano, spreads the word about blockchain, and uses academic knowledge to improve Cardano technology. EMURGO is IOHK’s partner, whose role is to secure the project’s place in the world market.
Five phases of Cardano development
The Cardano platform is supposed to evolve through five stages:
2. Decentralization (current)
3. Smart Contracts
These five stages have special names, according to the world’s famous writers, painters, and philosophers (Byron, Shelley, Goguen, Basho, and Voltaire).
How is Cardano blockchain working?
As is well-known, what creates every blockchain is an algorithm, whose main purpose is to make data blocks and validate transactions. The process in which this algorithm works and operates is known as mining.
The first such blockchain algorithm was Bitcoin’s PoW. At the time it was invented, the scale of Bitcoin network was minimal, so there weren’t many concerns about it. However, as the Bitcoin network grew, this algorithm started showing some flaws. In order to function, PoW requires huge energy consumption and causes environmental issues. At the moment, the Bitcoin mining farms consume energy that would supply a country as big as New Zealand.
Another issue with Bitcoin are mining pools. PoW ensures safety by giving the opportunity to all peers to decypher the block and agree on each transaction. However, only those who do it first, get awarded in a certain amount of crypto coin. Furthermore, if individual peers join and cluster into pools, misuses are possible and decentralization is brought into question. It would take only several larger pools to join to go rogue and overtake the entire blockchain.
What is different about Cardano?
Cardano’s algorythm is completely different. Unlike PoW consensus protocol, which requires all peers to compete, PoS uses a random selection system. Instead of asking every node (or peer, or user) to validate each and every transaction, a random node is chosen to do it. Although, the selection is not entirely random – those nodes that have larger stakes (a.k.a. hold more coins) are more likely to get the chance to decypher and be awarded next.
It might sound like an unfair system, in which those who have more gain more, and it partially is true. However, if we compare it to Bitcoin, the situation is quite similar. Although Bitcoin’s algorythm makes no difference among peers, in reality these differences still exist. For example, those who have better computers will decypher the block first and outrun those who don’t.
Therefore, how to mine Proof-of-Stake based crypto is the wrong question. It is clear that in case of PoS based platforms, such as Cardano, there is no mining in original sense of the term. Instead, we are talking about staking and validation.
Although most people today believe it was Hoskins who invented PoS system, this is actually not true. The first mention of an algorithm that could precede PoW was in 2011, on a BitcoinTalk forum.
How many Cardano coins can be mined and what is its value?
ADA miners often wonder how many cardano coins there are. The maximum amount of ADA coins that can be mined is 45 billion. For now, only around 33 billion are circulating the market. It is considered to be one of the world’s top 5 most promising cryptocurrencies, although its value is only $2.15 at the moment. The current ADA market cap is around $70 billion.
Once its smart contract was lanunched and ADA mining (or better, staking) became possible, the price of ADA coin was bellow $0.2. In less than a year, the value increased over 1500%, to $3.10, only to drop to the current level.
Mining Cardano: How does it work?
ADA coin mining is quite easy. We will continue using the term “mining” due to its general usage, although the more suitable term would be “staking”.
So, as we know what Cardano is and how its PoS algorithm works, we can understand what it takes to mine ADA coin.
The first step for every Cardano miner is to get a wallet, a place where to store ADA coin. We will give a little more details about that later on. Then, you just need to apply as a validator.
And that’s it. As of Shelly lanunching, you don’t even have to be online thanks to a new feature called delegated staking. This means in case your node gets selected for participating in the protocol, you can hand it over to someone else for a fee. It’s a win-win for both of you.
Mining cryptocurrency from your phone: Pros and Cons
Staking or mining Cardano from your phone is possible, although there are things to consider before you do it. Unless done with precaution, it can result in wasted time and effort.
First of all, you should understand that mining is a demanding process. You should attune your mining ambitions to the CPU capabilities of your phone. Many miners buy another, the stronger phone just to be able to mine crypto.
The idea is to use our phones for crypto mining while we don’t need them, or buy another phone with a strong processing power just for that purpose.
While there are some crypto that have their own mining platforms (like Pi network), you will need a phone mining app for other crypto, ADA included. Some of the most popular are MinerGate App and ARM Mining Bitcoin.
Potential perks of mining Cardano and other crypto from your phone are:
- no need for significant investments and infrastructure
- mining apps are usually not demanding in terms of memory space and processing power
Potential risks are as follows:
- the earnings will probably be low
- the mining will become even more demanding as blockchain networks grow
- you are risking a malicious software
- the phone and its battery might be destroyed due to overheating
- the phone’s operating system could crash
Although there are apps for iOS as well (NiceHash, CryptoTab), three years ago Apple invited their users not to mine through their iPhones. The company later banned all mining apps unless they use the cloud to run. Google did the same for Android phones.
Luckily, in the case of ADA Cardano and other crypto-based on PoS protocols, there is no need to worry about this. If you do it through wallets or exchange platforms, staking Cardano has minimal risks for your phone and data protection.
How to mine Cardano from your phone – Checklist
In case you decided to stake for Cardano ADA on your phone, here is a step-by-step guide.
#1 Find a good phone
Don’t start mining unless you have a powerful machine. Otherwise, you risk destroying your phone before you get anything out of mining.
Although staking through crypto exchange (i.e. Kraken) and wallets isn’t demanding, for them to work smoothly, your phone still needs a good processing power.
For example, the Kraken app requirements are iOS 11 or up, and Android 7.0 or up.
#2 Install and sign up for a wallet or crypto exchange
There are two ways to store and stake ADA coins: through a crypto exchange or a wallet.
Using crypto exchange
This is an easier option, suitable for beginners. Most beginners know about Kraken and Binance, for example. Different platforms have different terms, but you can count your APY will be somewhere around 5%.
In order to install an exchange app, you can choose the one you prefer and download it from either the Google Store or App Store.
For the sake of this guide, we will go through the application process on Kraken. To use this crypto exchange, you will need to
- create an account: enter your e-mail, username and password. You will receive an email with an activation code.
- secure the account: you can additionally secure the account with Autheticator app, YubiKey, or MasterKey
- get verified: Kraken needs to know you are a genuine person and older than 18. To proove that, you will need to provide documents, usually a proof of physical address.
- trade: finally, you will have to enter your credit card details, in order to be able to buy and sell crypto.
Once you have ADA stored in Kraken wallet, you will be able to put ADA coins into your Kraken Staking Wallet. To do that, navigate to the option “Staking”, find Cardano (ADA) and click “Stake”.
The process might be different with other exchanges, but all these major steps will be pretty much the same. If you are using another exchange, just find the “Staking” option and you’re good to go.
Using crypto wallets for Cardano staking
Crypto wallets may come in different forms: desktop software, browser extensions, or hardware. Whichever it is, their function is the same, and the choice is a matter of personal preference. Most people prefer Yoroi as their mobile phone Cardano/ADA wallets, though.
Once you install the wallet, it will require:
- your name
- spending password, and
- recovery phrase.
The spending password and recovery phrase are VERY important information, so you probably want to write down and keep it somewhere safe. Preferably in a safe.
You need to provide the spending password to authorize transactions, control stake pool delegation, and vote. On the other hand, the recovery phrase is a code you will need to use your wallet on different devices. If you lose that one, you won’t be able to access your funds ever again.
Once you’re in, deposit a certain amount and you will get some ADA coins. Once you do, find the “Staking” or “Delegating” option on your wallet/exchange platform, and click to start staking. The app will then ask you to decide the amount of ADA coins you want to stake, the Cardano mining pool, and the desired staking time.
If you are using wallets, the app will ask you whether you want Shelley or Byron era wallets. You will click on the Byron era only if you already traded with Cardano before. In case you are new to Cardano, choose the current, Shelley era wallet.
#3 Earn your first passive income in Cardano ADA!
Once you’re a validator, you will be awarded a certain amount of coins as a reward for your staking.
How to buy Cardano ADA?
The best and safest way to buy Cardano is through some of the crypto exchange apps of your choice. Some of the most popular are Kraken, eToro, Coinbase, etc.
Where can I buy Cardano?
Currently, the only way to buy Cardano ADA is online, through an exchange app.
Which are fastest coins to mine?
This is a tough question to answer because the speed of your mining depends on the computer characteristics. Still, if we’re looking at algorithms, then
What is Cardano price prediction?
According to some predictions, Cardano ADA is expected to be worth around $3.18 by the end of 2022.
Which are the easiest coins to mine in 2022?
The easiest crypto to mine in the following year are:
- Pi network
- Cardano ADA
What coins can you mine even if you’re not online?
Some of the cryptos you can mine even if you’re not connected to the Internet are Ethereum, Pi network and Cardano ADA
What is the best wallet for staking ADA?
The best and most popular wallets to stake Cardano are Yoroi and Daedalus. Other than that, you can use AdaLite, Infinito, or else some exchange.
As you could see, Cardano ADA crypto mining is more or less a piece of cake. This brilliant crypto is predicted to raise its value in the following year and is most certainly worth our attention.
The most important thing you can take from this guide is that ADA crypto mining is actually better named “staking” or “validating”. Regardless of which word we use, we should bear in mind what makes Cardano so easy to mine: its PoS blockchain protocol. Once it’s understood, there should be no doubts as to how to mine Cardano ADA coins and can you mine Cardano on your phone. The answer is simple: download an exchange or wallet on your phone and put some ADA coins at stake!
Disclaimer: All information contained here should not, under any circumstances, be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.