There are various methods for profiting from the crypto market and making some serious financial gains. Generally, there are four ways to capitalise on crypto: you can invest fiat currency in crypto and hold your coins, hoping they increase in value over time; you can stake crypto in various DeFi projects and earn interest; start trading crypto on various crypto exchange platforms; or engage in crypto mining.
On the one hand, mining digital currencies requires the least amount of crypto market knowledge among these four methods, but on the other, beginning your own mining operation can be quite expensive, especially if you choose to mine Bitcoin (BTC). You can mine many altcoins, such as Dash (DASH), Monero (XMR), Litecoin (LTC), and Ethereum (ETH), but Bitcoin mining can bring you the largest rewards thanks to the coin’s leading market position and highest price per coin.
In order to efficiently mine BTC and earn serious money, you typically need to utilise the computing power of strong mining hardware. However, there are also ways to efficiently mine BTC without actually owning a mining rig. Did you know you can actually mine Bitcoin on your smartphone?
Let’s take a look at how the BTC blockchain operates, how the Bitcoin mining process works, and how you can mine BTC using your Android smartphone.
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The BTC Blockchain Basics
The Bitcoin blockchain’s specific network architecture is what makes BTC mining possible. Bitcoin uses a Proof of Work (PoW) blockchain algorithm, just like many early altcoins which copied the BTC blockchain. PoW networks have a decentralised blockchain system that relies on independent network nodes for validating transactions and processing them to their destination addresses. Instead of a centralised, closed network similar to those of traditional banks or fiat currency payment service providers, PoW blockchains rely on a decentralised consensus model to make sure every transaction is legit before it gets approved and processed.
This model enables PoW cryptos like Bitcoin to be extremely reliable because the transaction approval process is depersonalised and no one has central control over the network, making it virtually impossible to process and approve fake transactions or double-spending attempts.
Another key safety aspect of the BTC blockchain is that the approved transactions are immutable. Once a transaction is approved, it’s final, and there’s no way someone can change the destination address of a transfer or reverse it, except if they get control of at least 51% of all BTC network nodes. The risk of a 51% network node takeover of the BTC blockchain by hackers is very unlikely since it would require a massive, globally coordinated effort to take control of thousands of BTC nodes.
The blockchain itself is structured as a long line of data blocks that are set from first to last, in a chronological manner, with each block housing around 1MB of transaction data. The transactions have unique transaction IDs (TXID) and timestamps that enable users to track their transfers through blockchain explorer platforms. Since there’s no central authority responsible for validating transactions on the BTC blockchain, the network nodes are responsible for doing it with their computing power.
The Bitcoin network nodes that process transactions are actually BTC miners with their mining rigs. The main incentive for miners to participate in the system as nodes is block rewards, which are freshly mined bitcoins awarded to miners each time a new block of transactions is approved and added to the chain.
The whole process begins when you send out a transaction from your Bitcoin wallet’s public address to another address. Your transfer first goes into the BTC blockchain memory pool (mempool) where it waits along with other pending transactions to get picked up by a miner. It’s important to note that miners choose transfers based on the included transaction fee, so always include at least an average miner fee with your transfer to get processed within the usual 5 to 10 minute Bitcoin transaction time.
Once a miner starts processing your transaction, their mining computer or mining rig starts trying a huge amount of 64-digit combinations of letters and numbers, in order to find the right transaction hash that proves the validity of your transaction. This requires a lot of computing power, known as hashing power, which is why BTC mining consumes a lot of electricity and requires the use of strong GPU mining rigs with high hash rates.
After a miner finally finds the 64-digit hash that fits your transaction, they disseminate the hash to the rest of the BTC network nodes as proof of work. The Bitcoin consensus mechanism requires each transaction hash to be checked by multiple additional network nodes just in case to make sure it’s legit before your transaction receives the final approval and gets processed to its destination address.
When your transaction gets approved and added into the next block of the BTC blockchain, the miners involved in the validation of the transaction get their award of newly mined bitcoins. That’s how the BTC mining mechanism works.
Mining Rigs and ASIC Miners
The only efficient way for directly mining Bitcoin is with strong mining hardware that can produce high hashing power for trying out huge amounts of hash combinations per second. Bitcoin mining equipment can be very expensive, and it’s quite easy to end up spending several thousands of US dollars on setting up a mining operation.
Although it’s definitely possible to mine BTC with a personal computer, Android, or an Apple iOS smartphone using only their CPU, it’s very inefficient since CPUs have a low hash rate, unfit for any profitable large-scale BTC mining. That’s why CPUs were replaced with GPUs because they have much higher hash rates.
Mining rigs are computers specifically built for crypto mining, and they usually have multiple GPUs that are interconnected between themselves to pool together their hash rates. These GPUs are then connected to a CPU and a motherboard in order to manage the rig, and they are often fitted into a huge steel mining rig frame. Since rigs generate enormous amounts of heat due to their high electricity consumption, miners need to provide sufficient cooling to prevent the rig from malfunctioning. This often means several GPU cooling fans or even the use of external cooling devices to maintain a low temperature in the room where the rig is operating.
Besides rigs, there’s an even more efficient, and of course, more expensive, method for mining Bitcoin – the ASIC (application-specific integrated circuit) miner machines. These machines can best be described as hardware devices programmed to do only one thing – mine Bitcoin or other specific cryptocurrencies.
Unlike mining rigs, which can be custom-built by miners from different computer components, ASICs can only be bought from companies that specialise in manufacturing crypto mining hardware. Individual Bitcoin miners rarely have ASIC miners because of their extremely high cost and power consumption.
Even if you manage to set up a strong rig to mine Bitcoin, you need to join a mining pool to really maximise your profits. When you’re acting on your own as a solo miner, it can take quite some time to actually earn a block reward because you’re competing with thousands of other miners who might have stronger rigs than yours, and you’re also competing with specialised mining companies that use loads of ASICs to mine BTC.
That’s why it’s highly advised to join a strong Bitcoin mining pool with thousands of members because you’ll secure yourself a steady stream of BTC income in proportion to the hashing power you’re contributing to the mining pool.
Although using a GPU mining rig or an ASIC machine is physically the only solution for mining high amounts of Bitcoin, you don’t need to personally own such hardware in order to profit from BTC mining. It’s entirely possible to generate Bitcoin mining income remotely without investing thousands of USD in expensive machines and having to maintain them all the time.
This is possible through cloud mining services where companies who run massive BTC mining operations on so-called mining farms, with a multitude of rigs and ASIC machines, rent out hashing power to users online.
These services allow you to pay for a certain amount of hashing power and get an upfront estimate of how much BTC you will earn through the cloud mining service. Depending on the company, you’ll get regular payouts to your private crypto wallet on a daily, weekly, or monthly basis.
This is a super convenient way for crypto enthusiasts without mining hardware to remotely run their BTC mining operation.
How to Mine Cryptocurrency on an Android Smartphone
You can start mining various cryptocurrencies, including Bitcoin, with the help of your Android device through third-party mining services.
Although it’s possible to mine BTC with the computing power of your smartphone alone, you should keep in mind that mobile phones have much lower hash rates than any GPU mining rig or ASIC miner. That’s why the best solution for crypto mining with an Android or iOS smartphone is to use a cloud mining service with a reliable mobile app that lets you manage your whole mining operation remotely.
With mobile-friendly cloud mining apps, you can have full control over your crypto mining business while on the move, and you don’t need to personally supervise the work of a mining rig or ASIC machine because you’re just buying a certain amount of hashing power from a third party.
Mobile mining enables crypto enthusiasts who don’t have the resources to invest in mining hardware or the technical expertise to maintain a mining rig to participate in crypto mining with just a few clicks while utilising third-party resources for a fee.
Android BTC and Crypto Mining Apps
There are various options for mining Bitcoin with an Android phone, but you definitely need to be careful which platform and app you choose for starting a mining operation. There are a bunch of scammer apps on the market that promise high returns but fail to deliver the paid hash rate.
It’s best to stick with the most popular Android mining platforms that already have a solid base of satisfied users.
ECOS is a multifunctional crypto service provider that offers asset exchange services, crypto wallet hosting, cloud mining, and asset management resources. The platform is great for crypto beginners who want to start mining Bitcoin because it has a very well designed Android app, with an intuitive user interface. The software is also compatible with Windows, Linux, and iOS operating systems. ECOS was launched in 2017, and it has a base of more than 100,000 miners across the globe.
You can start mining Bitcoin with as little as 50 USD for a basic mining contract, and there’s also a very handy profitability calculator on the platform that shows you exactly how much BTC can you earn based on the amount of hashing power and the associated costs.
Apart from BTC, you can also mine Ethereum (ETH) and Litecoin (LTC). The mining rewards are distributed on a daily basis to your crypto wallet. You can choose to have your earnings sent to a third-party wallet or your own ECOS crypto wallet, which is a highly secure, multicurrency, digital storage solution that also offers portfolio management tools, such as dividing your portfolio into several wallet accounts.
NiceHash is one of the best-known cloud mining platforms on the market. With NiceHash, you can start earning Bitcoin in just a few minutes after selecting an appropriate mining contract. NiceHash is a two-way platform where you can both sell your hashing power or buy some from other users. That’s why the platform is often described as a marketplace for Bitcoin hashing power.
Users looking to buy some computing power can do it through the NiceHash marketplace, where they actually buy power from other NiceHash users by placing bids. This means that you can often broker a better deal for hashing power on the marketplace because you can place a relatively low bid and then gradually increase the amount of money you’re prepared to pay until someone accepts your offer. The downside is that it might take a while before you find someone who matches your offer, but if you’re looking to pay less and still get reliable, high-quality mining services in return, it’s definitely worth trying NiceHash.
The platform has a very user-friendly Android app version, downloadable from Google Play Store. Users can control their mining operation through the app, without the need for logging into their platform account through a desktop or laptop computer.
Bitdeer is a very popular crypto mining service provider with reliable service that delivers users exactly what they paid for. Bitdeer has a network of mining farms in different global regions. The company is from Singapore, but it operates in various global regions, including Europe and the US.
With Bitdeer you can start mining BTC with as little as 21 US dollars. You can select the exact amount of hashing power that fits your budget and create a steady stream of passive income into your crypto wallet. Apart from Bitcoin, users can also mine Zcash (ZEC), Bitcoin Cash (BCH), Filecoin (FIL), and various other altcoins. The platform uses a highly secure and trustworthy software called Minerplus, which allows users to easily manage their mining operation and allocate their earnings as they wish.
Bitdeer’s services are fully transparent, and you’re always paid out your mining rewards directly to your wallet, without Bitdeer acting as a middleman. Basically, Bitdeer brokers your mining deal and charges you for the hash power, but the rewards are directly facilitated through transactions between mining pools and users. A huge advantage of Bitdeer over other cloud mining platforms is their highly efficient support team available to users 24/7.
Shamining is a veteran, UK based cloud mining service provider established in 2018. The platform is specially focused on enterprise-level clients, such as small and medium businesses, as well as large-scale corporations that want to engage in Bitcoin mining on a massive scale with the help of Shamining’s BTC mining farm infrastructure.
Shamining only provides Bitcoin mining services and it has a very flexible contract policy that allows users to select the exact amount of hashing power they wish to purchase, denominated in Giga hashes per second (GH/s). You can enter the amount of hashing power you wish to purchase and see a projection of your daily, monthly, and annual profitability. The available hashing power is divided into beginner GPU rigs, pro GPU rigs with high hashing power, and ASIC miners with the highest hash rates and profitability.
Compared to other cloud mining service providers, Shamining has a considerably higher minimum investment amount of 250 USD, but that’s still quite low considering the fact that the platform mainly targets corporate clients. The platform offers constant customer support to users, and its Android app is very easy to use, with a smooth design that lets you manage your mining operation with just a few clicks.
The company itself is fully transparent and run by blockchain experts from various parts of the world. Shamining runs its operations out of three global data centres located in London, San Jose, and Cape Town.
CryptoTab isn’t really a Bitcoin mining app for Android, but it’s worth mentioning as a free alternative to the above-described apps. CryptoTab is an Android-compatible web browser app that also has a built-in crypto wallet and Bitcoin mining features. All you need to do is install the browser on your Android mobile device and turn on the BTC mining feature. The app uses the computing power of your mobile device to mine Bitcoin and directly send the mining rewards to your wallet.
Using CryptoTab is free, but honestly, you won’t get rich from its mining feature because mobile devices have very low hash rates. CryptoTab is more of an app for crypto enthusiasts who want to casually earn small amounts of BTC on a daily basis and participate in the Bitcoin ecosystem than for miners who want to earn serious amounts of coins from their mining operations.
A Few Ending Words…
Bitcoin mining doesn’t always need to be complicated and time-consuming because there are various platforms that offer reliable BTC cloud mining services. Most of these platforms enable users to quickly select or create their own mining service package, pay for it with a credit card, debit card, or bank account transfer and start receiving fresh BTC to their private crypto wallets.
The only thing you need to be careful with when it comes to mining with your Android phone is the choice of mining apps. You should never give your trust to cloud mining services without a proven track record of customers satisfied with the provided services.