Here is a quick guide that will take you through everything you need to know about Dogecoin Mining.
By the end of this guide, you will learn how to mine Dogecoin, understand the hardware and software involved, dogecoin cloud mining etc. It might even help you decide if it’s suitable for you.
Table of Contents
What is Dogecoin? A Brief
Dogecoin is an open-source digital currency that works on the blockchain network. It aims to provide a private, decentralized and secure space for transactions.
A couple of software engineers, Jackson Palmer and Billy Markus, started it as a joke. They became friends only because of their mutual interest in cryptocurrencies.
When things got more serious in the crypto space, they decided to create their own cryptocurrency. They wanted to make it fun and friendly, so they decided to use the Shiba Inu dog (a popular meme) as their mascot.
Dogecoin has grown popular among users for its utility in charitable acts and donations. Currently, the coin stands 6th in terms of market capitalization.
There is over 130 billion DOGE in circulation today. The best part is there is no cap on the supply of Dogecoin, meaning you can mine as much as Dogecoin possible as its supply is unlimited.
Simply put, Dogecoin is a crazily popular altcoin. It is fun, friendly and has a dog as its face. Loving it already? Here’s how you can make some on your own.
The process of earning new dogecoins by verifying transactions on the blockchain is called dogecoin mining.
You can earn cryptocurrencies by verifying transactions on the blockchain network through a complex process called cryptocurrency mining. Most cryptocurrencies that are in circulation, including Dogecoin, can be mined.
For context, each crypto transaction is stored in humungous digital ledgers called the blockchain network. This database (ledgers) is stored across several computers called nodes. Whenever you make a transaction, the nodes add them to the blockchain network in groups or blocks. The nodes then verify each transaction on the block.
As a reward for confirming transactions, you will be eligible to earn a bonus in the form of new cryptos. The process of making new crypto coins for verifying transactions is termed ‘Mining’.
Note: Cryptocurrency mining is very similar to mining precious metals like gold, silver etc. The only difference is instead of digging the ground; you need to search your computer for new coins.
Dogecoin mining happens similarly, although it differs from other coins in certain areas. Some of the areas in which it differs from other coin mining are:
Algorithm: There is a set of rules for mining each cryptocurrency called a mining or hashing algorithm.
Block Time: The average time is taken to add a new block of transactions to the blockchain network.
Difficulty: This number represents the level of difficulty to mine a particular. It may vary for every cryptocurrency based on the number of miners trying to mine the currency. However, it can also be adjusted by the algorithm to ensure that the block time remains constant.
Reward: The number of new cryptocurrencies awarded for mining.
Dogecoin Mining vs Bitcoin and Ethereum Mining
SHA – 256
Types of Mining processes for Dogecoin
There are three methods in which you can do dogecoin mining:
When you do all the mining processes by yourself, it is termed dogecoin solo mining. Choosing to mine solo may put you at the risk of waiting a long time to confirm and verify a block due to immense competition. Your first block could take weeks or even months to mine.
On the flip side, when you get to mine a block of transactions, the whole reward will be yours. You won’t be required to share it with anyone.
When you share your computing power with a group of other miners to mine Dogecoin, it is called pooled mining. If you choose a dogecoin mining pool, you will be required to pay a small fee. Joining a pool is highly recommended for new miners.
Since pooled miners share their resources, there are more chances of mining dogecoin when compared to solo miners increasing your chance of earning a reward. However, each miner in the pool will be entitled to a fraction of the total compensation.
Some of the popular dogecoin mining pools in 2021 are:
What if you don’t want to invest in all the tech but are interested in mining Dogecoin? There is an option called ‘Dogecoin Cloud Mining’.
In this method, you can skip the mining process and rent a vast data centre’s computing resources to conduct mining for you. The data centre will do dogecoin mining and send your share of the reward to you.
It is a low cost and much less technical way to mine dogecoins. But, it would be best if you were extra careful while choosing your data centre since they can trick you into paying more rent for a subpar contract.
There are several factors to consider before you start mining. Some of the basics you will need are:
A good internet connection
A personal computer with Windows, OS X or Linux operating system.
A dog ( What?? Just kidding!)
To run the computer, you need to ensure that you have a steady electricity supply wherever you mine the coins.
Before you begin, you can use a dogecoin mining calculator to calculate your mining profit. By entering your mining hash rate, power consumption in watts, and fees, you will be able to tell if it will be profitable for you or not.
Once you have decided to start mining either solo or in pools, there is a range of equipment you need to get started.
What do you require to start mining Dogecoin?
Dogecoin Mining Hardware
You can mine Dogecoin with any of the following:
CPU: You may be wondering, “how to mine dogecoin with CPU?”. Well, your computer’s central processing unit, a.k.a; the brain of your computer, has enough power to mine Dogecoin. However, it is the least recommended since mining can cause overheating and damage the system.
GPU: A graphics processing unit is more powerful than the CPU. Although it is used to enhance a computer’s graphics, you can also use it for dogecoin mining.
Scrypt ASIC: The Scrypt application-specific integrated circuit is designed for miners to mine scrypt based cryptocurrencies such as Litecoin and Dogecoin. It is far superior and powerful than a GPU. However, they are expensive, loud and generate immense heat.
Dogecoin Mining Software
Whether you pick CPU, GPU or ASIC as your mining hardware, you will also require software (dogecoin mining app) to do the job.
Here are some dogecoin mining app suggestions for each hardware:
CPU – TheCPU Miner by pooler is a free dogecoin mining site for those who want to give mining a quick shot.
GPU – If you chose to mine with GPU, there are several options available.EasyMiner works well for beginners, andCGminer works with all types of GPU’s.
Scrypt ASIC – CG miner and Easyminer are compatible with ASICs, but most ASIC miners prefer to useMultiMiner.
Note: If you choose to do dogecoin cloud mining, you do not require the hardware and software. All you need is a Dogecoin crypto wallet.
After you successfully mine dogecoins and earn the reward, you will need a secure place to store them. You can choose to keep your DOGEs online, software or hardware wallets. While online wallets are considered less safe, software and hardware wallets may be a good choice in this case.
Note: A crypto wallet carries a public key address for transactions and a private key address to access it. Make sure you keep your private key safe without sharing it with anyone.
Can you profit from mining Dogecoin?
That depends on whether the value of Dogecoin is high or low. However, the more straightforward answer is not really. Dogecoin mining, unlike Bitcoin mining, is not a very profitable business.
Since it is currently valued at just ~₹20, even if you mine solo and get a reward of 10,000 DOGE, the amount spent on electricity and equipment may surpass your profit from mining. You can use a Dogecoin calculator to know your profits in advance.
But don’t get us wrong, we are not discouraging you from mining dogecoin. If you want to be a part of the Dogecoin family, mining is a great way to enter the community. By mining, you will be contributing to all the social and charitable causes that the currency supports. And last, of all, it is so much fun to mine cryptocurrencies.
Still, if your sole purpose is to make more money from Dogecoin, the simpler way is to start trading on a dogecoin cryptocurrency exchange like CoinSwitch Kuber.
How Dogecoin Mining Works?
It requires miners to add blocks of transactions to their decentralized ledgers using the ‘Proof of Work’ mechanism. As a reward, the miners get paid in DOGE.
What Does Mining Dogecoin Do?
It ensures that miners verify all the transactions entered in the blockchain.
What Is A Dogecoin Mining Contract?
It is an agreement where a person pays for the output of mining power from hardware placed in remote data centres. It is used in Cloud Mining.
How Long To Mine 1 Dogecoin?
At the current difficulty level, it could take nearly 0.02 days to mine 1 Dogecoin.
Can Dogecoin Be Mined?
Yes, absolutely. Dogecoins can be mined. There are even some free dogecoin mining sites online to get you started.
When will Dogecoin Mining End?
There is no cap on the supply of Dogecoins. Hence, there may not be an end date for mining it.
How Long To Mine Dogecoin?
The block-time for mining Dogecoins is 1 minute.
Is Dogecoin Worth Mining?
A Dogecoin calculator can help you decide if it is worth mining.
P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.