Cryptocurrencies are created through a process called mining, criticized for its environmental impact due to high electricity consumption.
Mining involves using specialized equipment to create new cryptocurrencies, and it’s not feasible on simple devices like smartphones.
What Is Cryptocurrency Mining?
Crypto mining generates new cryptocurrencies like Bitcoin and Ethereum by adding transaction data to the blockchain.
Miners use specialized software to solve mathematical equations, proving their computational work.
Once the miner finds a correct solution, they add a new block to the ledger and receive newly minted cryptocurrency and transaction fees as a reward.
This process continues as miners constantly work to add new blocks.
Why Is Cryptocurrency Mining Bad for the Environment?
Not all crypto mining is energy-intensive; the issue lies in the Proof of Work (PoW) method used by major cryptocurrencies like Bitcoin and Ethereum.
Bitcoin alone consumes more electricity than entire countries such as Argentina and the Netherlands.
The PoW process generates significant carbon emissions, comparable to developing economies.
To combat this, many cryptocurrencies are shifting to more eco-friendly methods like Proof of Stake (PoS), which is less resource-intensive.
Alternative validation methods like Proof of Burn, Proof of History, Proof of Capacity, and Proof of Elapsed Time are also being developed, avoiding excessive computing power use.
It’s unfair to condemn all crypto mining processes; the problem mainly lies with Bitcoin and Ethereum’s PoW approach.
How Would Cryptocurrency Mining on a Phone Work?
Mining cryptocurrencies on a smartphone is discouraged due to two main reasons: it significantly stresses the device, reducing its lifespan, and the returns are minimal.
Smartphones lack the power of computers, making them unprofitable for mining popular cryptocurrencies like Bitcoin or Ethereum, which use the energy-intensive Proof of Work model.
Additionally, both Apple and Google banned mining apps in 2018 from their app stores due to the strain these apps put on device components and the battery.
Cloud mining apps and apps managing mining pools are exceptions allowed by Google.
Options for Mining Cryptocurrency Using a Smartphone
While solo mining on smartphones is discouraged, there are alternative options for crypto mining.
Specialized cryptocurrencies like Pi coin and AntCoin are designed for mobile devices.
Cloud mining allows users to pay a company to mine cryptocurrencies using their rigs, with management apps available on app stores.
Sideloading mining apps, although possible, is generally not recommended due to security concerns.
The next section will explore these options in detail.
Mining Cryptocurrencies Designed for Phones
Numerous mobile-based cryptocurrencies promise free coins for daily app logins or referrals, often lacking real value.
These projects share similar whitepapers and offer no substantial benefits.
Free coins aren’t listed on markets, development teams are anonymous, and apps collect significant user data.
Exercise caution as these schemes may be scams.
Examples are provided below; however, no endorsement is given, and installation is at your own risk.
Pi Coin
Pi coin is the native cryptocurrency of the Pi Network, a mobile mining platform.
Users play roles, like validating new users, to earn Pi coins.
Unlike many, Pi Network’s team isn’t anonymous; two PhD holders from Stanford lead it.
The app is available on iPhone and Android, making it seemingly legitimate among mobile-based cryptocurrencies.
Bee Network
Bee Network is a phone-based cryptocurrency similar to Pi Network, but it operates independently.
Accessible on iPhone and Android, the app offers a gamified experience where users earn BEE coins through tasks like logging in daily.
Referral marketing rewards existing users for bringing in new ones.
The project plans to introduce more earning opportunities in future phases, as outlined in the whitepaper.
AntCoin
AntCoin (ANC) is the official cryptocurrency of the Ant Network, aiming to create a privacy-focused advertising and social media sharing platform.
Utilizing a mobile mining system, it claims to be eco-friendly, requiring no energy consumption.
However, the project lacks detailed information in the vague whitepaper, and its developers remain anonymous.
Eagle Network
Eagle Network is a mobile crypto mining simulator akin to Bee Network and Pi Network, allowing users to mine by tapping a button hourly.
It employs a referral model for higher earnings.
Similar to Ant Network, Eagle Network faces issues: its whitepaper resembles Pi Network, the development team is anonymous, and its currency isn’t tradable.
Users were once offered upgrades for more currency, a risky move considering its lack of public trading.
While the option was removed, caution is advised when using the app.
Cloud Mining Using a Smartphone
Cloud mining using a smartphone is a much more legit method of earning newly minted cryptocurrency.
They connect users to legitimate cloud mining services and make it easy to track remote mining operations and make quick changes on the fly.
Below are some examples of cloud mining apps.
ECOS
ECOS is a crypto investment platform with services like a wallet, exchange, portfolio tools, and cloud mining.
They offer contracts from $50, accessible via their Android and iPhone app for tracking mining and trading on their exchange.
Stormgain
Stormgain provides a range of services, including Bitcoin cloud-mining contracts at various prices.
Their all-in-one app allows trading and managing accounts, eliminating the need for personal resources in mining.
However, there is no Stormgain app available on the Apple App Store.
Bitdeer
Bitdeer offers cloud-mining plans for cryptocurrencies like Bitcoin, Bitcoin Cash, Zcash, and Filecoin.
Users can start mining with a single click.
They also provide merchant contracts for miners to sell their hashrate.
The platform is accessible via Android and iPhone apps, enabling users to manage mining operations and revenue globally.
BeMine
BeMine is a cloud-mining platform providing contracts for various ASIC mining devices.
Sign up, choose a contract, and start mining.
They offer four contracts with different hash rates and a profit calculator for estimates.
The platform has an official Android app for user convenience.
Sideloading Cryptocurrency Mining Apps on Your Phone
The final option involves sideloading crypto mining apps, meaning installing software bypassing official app stores like Google and Apple.
Sideloading is the only way to install these apps since both Apple and Google banned cryptocurrency mining apps for smartphones.
For Android, you can use F-Droid, a catalog of free software.
iOS lacks a similar option due to Apple’s strict control over software installations, requiring jailbreaking for unknown sources.
Conclusion
Mining cryptocurrency on smartphones is challenging due to bans by Google and Apple.
Sideloading poses security risks.
Mobile-based cryptos like Pi, BEE, or ANT exist but come with reputation concerns.
Cloud-mining platform apps are safer but carry market fluctuation risks; profits today might turn into losses during market downturns.