ADA has been on the investor’s radar as of 2021. The popular altcoin, Cardano (ADA) is the 6th 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? You can find answers to all these questions in this article. As Kriptokoin.com, we have prepared it for you.
How to mine ADA coin?
ADA mining is done differently from 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 such as 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 get the whole prize.
Cardano network, unlike its competitors, uses a Proof-of-Stake (PoS) consensus mechanism. In such networks, mining is done through a compatible wallet via staking. ADA coin holders can verify transactions on the network and earn ADA through staking. Staking means you lock ADA into your compatible online wallet via a certain 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 according to 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 assets through Venus. As a result, users can earn ADA coins by earning interest on the people they lend. Among the advantages of ADA coin mining is the ability to transfer ADA between continents. Also, due to the PoS mechanism, you do not need to buy expensive computer hardware.
Which wallets are used for ADA mining?
To mine ADA coin, you need to have Cardano, hence a Proof-of-Stake compatible wallet. In addition, you should use the Ouroboros algorithm, which is located in the Cardano network and allows staking. The Wallet will be the place to lock and store your ADAs. Ouroboros is the software that will earn you ADA coins. Popular among ADA mining Cardano wallets are; Guarda is Infinito, Daedalus, Atomic. You can download any of these wallets from the website.
You downloaded the wallet you wanted, installed it and created an account by following the steps. Now you have to transfer the ADAs you have from your exchange account to your Cardano wallet. If you do not have an 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 maturity and lock it. After locking your cryptocurrencies, at maturity, you earn mining rewards based on Cardano and the amount of ADA you lock.
How to mine ADA coin with Venus Protocols?
Venus platform announced that it will add ADA in 2021. Accordingly, you can mine ADA through Venus Protocols. You do not need expensive and powerful computers in this type of mining either. However, you still need to have a Cardano wallet with ADA in it. Venus Protocols differs from staking in that instead of locking assets, you lend them to other users. Accordingly, ADA holders can lend their assets to people who request loans and earn interest on them. ADA holders wishing to mine with this method must log into Venus Protocols on Binance Chain.
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