Mining bitcoin and other cryptocurrencies that work on the same principle is a fairly complicated process that requires a lot of computing power. For this reason, most new tokens are mined in large specialised farms. But do not let that put you off. You do not need a high-performance computer, a smartphone is enough.
If you do not know how mining bitcoin and other cryptocurrencies works, we strongly recommend starting with our article on bitcoin mining.
You need an app to mine
To get started at all, you need to download a particular app or program. Both the App Store and Google Play are removing mining apps from their stores. The best-known apps are MobileMiner and CryptoTab, and they are only available to Android users on Google Play. Apple is stricter about mining apps, and you will not find them on its platform. However, this does not mean you cannot mine with your iPhone. You can access the program through the app’s website.
How do you join a mining network?
By registering in the app, you join collective mining, known as a mining pool. This is a group of users who work together, which gives each individual a better chance of receiving a share of the coin they mine together.
If you decided to work on your own, your chance of mining a coin would be much lower. Today, given the overall strength of the network, it could be considered practically impossible. On the other hand, if you did succeed, you would receive a reward of 12.5 bitcoin, which at the current price (bitcoin at $23,500) is an incredible about 310,000 USD.
However, the vast majority of coins are mined by mining pools. In a pool, this amount is split among thousands of miners. As a result, they have a much more regular income, which works in their favour.
Risks and profitability
And this is where the big catch comes in. Most people are interested in mining mainly for the profit.
And in this case, the profit is in the low hundreds of CZK for a whole year of mining. Even so, an extra about 14 USD is not bad. You might think, why not?
This brings us to two big warning signs:
The first problem is that you have to keep your phone charging so that it can work. Mining itself is quite a demanding operation and uses a lot of electricity. The device will also heat up, so consumption will rise further because of cooling. In the end, you will pay much more for electricity than you actually mine.
The second problem is that mining seriously damages your device. This is exactly why Apple and Google are removing these apps from their platforms.
Another drawback is the ever-increasing difficulty of mining and the competition, which your phone simply cannot match (for example, huge mining halls full of super-powerful computers in China, etc.).
Summary
When I add up all the pros and cons I have mentioned, I do not really see any reason to start mining on a mobile phone. You will expose yourself to more trouble than your eventual profits are worth.
If mining still appeals to you, though, you could consider buying a similar mining machine (see the picture above). They are available at various second-hand marketplaces and in Facebook groups (you will find them listed as mining rigs), and prices start at around about 920 USD. The price naturally rises with performance. But even in this case, check carefully what kind of contract you have with your electricity supplier, for example, so that mining is actually profitable for you!
If cryptocurrencies appeal to you but you would rather get into them in a simpler way, you can read the article How to buy Bitcoin without fees and as cheaply as possible or the one on hardware wallets for cryptocurrencies.
