How is ADA coin mining done?
ADA has been on investors’ radar since 2021. Popular altcoin Cardano (ADA) is the sixth largest cryptocurrency according to available data. So how can you get ADA other than buying ADA from crypto exchanges? How is ADA coin mining done? What is ADA staking? Find answers to all these questions in this article. As Kriptokoin.com we have prepared it for you.
How to mine ADA coins?
ADA mining is done differently than older and popular blockchains like Bitcoin and Ethereum. The reason for this is related to the mechanism that ensures the security of the Cardano network. Accordingly, legacy blockchains like Bitcoin use the proof-of-work consensus mechanism, which is based on the processing power of computers. Users with the most powerful computer in this mechanism will get the entire prize.
The Cardano network, unlike its competitors, uses a Proof-of-Stake (PoS) consensus mechanism. In such networks, mining is done via a compatible wallet via staking. ADA coin holders can verify transactions on the network and earn ADA through staking. Staking means staking ADA into your compatible online wallet via a specific algorithm. Accordingly, it is possible to earn passive income by locking your assets in smart contracts and never touching them. The mentioned passive income varies depending on the amount of ADA you lock.
However, staking is not the only way to mine ADA coins. You can also earn ADA through a platform called Venus Protocols. Accordingly, ADA holders can lend their wealth through Venus. As a result, users can earn ADA coins by earning interest for the people who lend them. The benefits of ADA coin mining include the ability to transfer ADA between continents. Also, because of the PoS mechanism, you don’t need to buy expensive computer hardware.
What wallets are used for ADA mining?
To mine ADA coins, you need Cardano, which is a Proof-of-Stake compatible wallet. You should also use the Ouroboros algorithm, which is located in the Cardano network and allows staking. The wallet is the place where you can lock and store your ADAs. Ouroboros is the software you use to earn ADA coins. Popular with ADA mining Cardano wallets are; Guarda is Infinito, Daedalus, Atomic. You can download any of these wallets from the website.
You have downloaded the wallet you want, installed it and created an account by following the steps. Now you need to transfer the ADAs you have from your exchange account to your Cardano wallet. If you don’t have ADA, you can buy it by opening an account on almost all cryptocurrency exchanges. After transferring your ADAs to your wallet, you need to set a term and lock it. After you’ve locked your cryptocurrencies, you’ll earn mining rewards at maturity based on Cardano and the amount of ADA you’re locking.
How to mine ADA Coins with Venus Protocols?
The Venus platform announced that it will add ADA in 2021. Accordingly, you can mine ADA via Venus protocols. Also with this type of mining you do not need expensive and powerful computers. However, you still need to have a Cardano wallet with ADA in it. Venus Protocols differs from staking in that you don’t lock assets, you lend them to other users. Accordingly, ADA holders can lend their assets to loan seekers and earn interest in return. ADA holders wishing to mine using this method must subscribe to Venus Protocols on Binance Chain.