Is Mining Cardano Profitable? Is mining Cardano worth it?

Cardano (ADA) is currently ranked 6th on Coinmarketcap under Solana, Is Mining Cardano Profitable?

Cardano’s growth may not be as good as Solana’s, but this cryptocurrency is still among the top ten largest cryptos on rank sites. The price of ADA as of writing $2.04 is down 0.37% with the price range in the last month between a low of $1.9 and a high of $2.35.

ADA is fairly volatile because it is traded on crypto exchanges. Market cap of 67 billion USD, indicating ADA adoption has a high demand with an average daily volume of 1 billion USD.

What is Cardano mining?

Mining Cardano is different from Bitcoin. Because it uses a Proof of Stake mechanism. While Bitcoin uses a Proof of Work which consumes greater energy consumption.

Proof of Stake has a way of working where token holders verify and generate new blocks in the blockchain. While Proof of Work has a way of working miners solve complex mathematical problems to generate new blocks in the blockchain.

Cardano is more similar to Ethereum which also uses Proof of Stake, so there is no Cardano mining, there is Cardano staking.

How does Cardano mining work?

Since mining Cardano is impossible, this is because it uses Proof of Stake consensus. Here the ADA token holder has the right to take part in the Staking process to verify transactions in the blockchain, for which he will be rewarded.

In this process ADA token holders lock their tokens in the pool, the more tokens are locked, the more likely the reward will be.

The Cardano network has two layers. The first layer is the Cardano Settlement Layer (CSL) and the second layer is the Cardano Computational Layer (CCL). CSL serves to record transactions in the blockchain and CCL is a smart contract that works as an automated transaction layer.

Cardano ensures that the network is easily scalable, so it is designed for faster transactions and lower fees.

Who mines Cardano?

Mining Cardano does not rely on hardware as in bitcoin mining where hardware with high hash rates will produce better results than hardware with low speeds.

Mining Cardano is the user who owns the ADA token which is the native token in the Cardano network. So ADA token holders have the right to participate in the staking pool to earn rewards.

If one wants to earn rewards from staking he must have ADA tokens, otherwise have to buy them first on the exchange.

How to do Cardano mining?

Since mining Cardano is impossible because it uses Proof of Stake consensus, the most common way to generate ADA is by staking.

This model is different but the goal is the same, to prepare for ADA staking requires a wallet that supports it.

Staking ADA

To start staking ADA, there are two ways you can choose, using an on-chain wallet and using a crypto exchange. For ADA staking using an on-chain wallet supports Yoroi and Daedalus is a crypto wallet that can be used for ADA staking.

Yoroi staking ADA

Yoroi is a browser extension wallet that supports Firefox, Chrome, and other browsers in general, to get started you need to install it on your browser. Then set up your wallet to start staking, requiring ADA in your wallet. If you don’t have ADA coins you have to buy them.

If it is available, click Delegate list and look for a staking pool that has good growth, because you only delegate your coins for staking, the quality of the delegator determines the staking results.

Daedalus staking ADA

Daedalus wallet is a desktop wallet, you have to download and install it on your computer and start setting up your wallet.

After you have configured your wallet with Daedalus wallet, which is a full node wallet, then go to the Delegation center and click Staking pool to find the pool that you think is growing well. Keep note you must have ADA in your wallet to stake.

Staking ADA through Crypto exchange

Those who have no experience of staking with on-chain wallets can opt for staking with crypto exchanges. This is an easy way and you don’t have to think about which staking pool gives the best rewards. However, one exchange may give different annual yields.

One of the exchanges where you can stake ADA is Binance. You can start from this exchange. If you are not registered, the first step is to register. You may want to read a review about Binance here.

After registering and verifying the account, then buy ADA or transfer it to your account on Binance. Look for ADA and choose a staking duration of 30, 60, or 90 days.

Another exchange where you can stake ADA is Kraken, it’s pretty much the same as Binance, you have to register, verify your account, buy ADA and start staking.

Mining Cardano calculator

To estimate the reward you will get from Staking ADA, you can use the staking calculator provided by Cardano. Even though it’s only an estimate and there may be deviations in value, at least you get a chance to get a reward.

Calculate your Cardano mining.

Cardano mining algorithm

Cardano uses Proof no Stake consensus with an algorithm called Ouroboros. This algorithm combines unique technology with a verified mathematical mechanism which makes it a combination of psychology and economic philosophy that provides protocol security.

The existence of the ouroboros algorithm defines the parameters for scalability, secure and effective energy consumption. With this feature, Cardano dares to guarantee the security of up to 51% of staking.

Cardano mining device

Because the Cardano mining process uses Proof of Stake consensus, it can be done without using hardware for mining Bitcoin which requires GPU and ASIC miners. As explained earlier by using on-chain wallets and crypto exchanges you can already participate in ADA staking. Just choose stake pool and delegate your ADA.

However, if you run a staking pool, it requires the following requirements for the operating system:

Linux (2.6.18 or later).
BSD (NetBSD 8.x and FreeBSD 12.x).
OSX (10.7 Lion or later).
Windows 10.

To operate this staking pool it must be running 24/7 operating day of the node network. This requires special skills to keep the network safe, stable, and reliable.

Cardano mining difficulty

A common difficulty is choosing an oversaturated staking pool because not only does one operate the ADA staking pool, there is also competition between staking pools.

And herein lies the challenge and difficulty, because of the competition to run all nodes perfectly. This requires special technical expertise to keep the network secure.

Cardano mining pool

Cardano mining pools are divided into private and public pools. The private pool is to operate a pool and earn rewards for itself. While the public pool is an open pool where someone can delegate to the manager and get a share of the profit sharing.

ADA holders can choose a public pool and delegate some of their ADA and get rewarded according to the number of tokens they spend to staking.

Best Cardano mining pool

Choosing a staking pool, the ADA holder will determine the amount of reward he will receive. Staking pool operators will maximize resources and computing to get rewards. The amount of rewards that will be received depends on the size of the stake given to the pool.

The larger the staking pool, the higher the chance of getting a reward, conversely the smaller the staking pool, the less chance of getting a reward.

Some of the staking pools you might consider such as Adavault, Cardanode, AzureADA, Staking247, and Flowr.

Cardano mining smartphone

Staking Cardano with android, maybe you can try by installing Minergate on google play store. Register an account and try mining Cardano using the app.

This app was released on April 17, 2019, but some users are facing failed login issues.

Cardano mining unmineable

Unminenable is a cryptocurrency mining site, there are many coins to choose from including ADA, Pancakeswap, Solana, and so on. But we can’t verify if this site is legit or a scam, because you don’t have to register to use it.

How to find ADA, type ADA in the search box and will be left ADA displayed then you click to display the mining page.

Cardano mining Raspberry pi

Mining Cardano using Rasberry pi can use Berrypool.io, the required specifications are

Raspberry Pi 4 8 GB RAM.
Ubuntu 20.04 LTS OS.
UFW Firewalls.
SanDisk SSD Plus 240GB
100 MBit/s, 10ms latency.

Cardano mining computer

You might try using a computer to Stake Cardano. First, you have a wallet, recommended by Dev. to use Daedalus or Yoroi. Next is to download XMRig MSVC from the official site or the Github repository.

In the next step, you can read the guide from DEV. Using the CPU to mine Cardano doesn’t cause any damage to the computer, but it’s always a good idea to check the temperature of the computer, to make sure it’s safe.

Cardano mining profitability

Talking about ADA’s profitability staking, it’s still not over, the token price that has gone up thousands of percent indicates that this is something to be taken into account. Currently, the total tokens on the market have reached 71% of the maximum supply of 45 billion tokens. The price tends to fluctuate.

Although long-term profitability is still a mystery, it still allows users to get rewards that are distributed en masse.

Is mining Cardano worth it?

Staking Cardano requires low electricity costs, it is still worth it if users participate in ADA staking. The increase in trading volume on global exchanges, allows the price of ADA to increase to become very volatile.

In November this ADA coin price jumped very high up to thousands of percent. But then fell and is currently included at the lowest price point.

Getting rewarded by Staking has a lower risk than trading in spot trading. You just need to lock the ADA token with the amount you want and then get the reward. it just waits after the setup is done. Trading is only one way to make a profit, buy low and sell high. And that’s a much higher risk.

Final thought

Staking Cardano still allows users to earn ADA rewards. ADA holders can participate using a supported wallet to start staking. Even though ADA has other crypto competitors, Cardano’s ranking is still in the top ten, still giving hope for Cardano’s future.

Is Mining Cardano Profitable?