I’m guessing that you came here because you’ve heard about digital currency and you’re interested in trying it, right? If you are someone who likes to be involved in a community, then Dogecoin mining is the perfect topic for you!
Bitcoin was the first digital currency to appear in 2009, and now there are hundreds of types of digital currency.
Some of these new coins (which operate on their own blockchain) are also referred to as altcoins or alternative coins.
One of the popular altcoins is Dogecoin. Altcoins can be bought, sold, and exchanged, just like Bitcoin. Dogecoin can also be mined!
So, what is Dogecoin mining?
Until you finish reading this article, then you will know how to mine Dogecoin and what Dogecoin actually is.
You will know the tools and software that must be used to start mining Dogecoin. You will also be able to determine whether you are suitable to be a Dogecoin miner.
So, where do you want to start? From the beginning? Good. Now we will take a quick look at how Dogecoin first appeared.
A Brief History of Dogecoin
In 2013, an Australian named Jackson Palmer and an American named Billy Markus became friends. The two of them became friends because they loved digital currencies so much.
However, they felt that the topic of Bitcoin was getting too serious so they finally decided to create their own digital currency.
Palmer and Mark wanted to create a digital currency that was fun and friendly compared to other crypto coins.
They want people who normally don’t care about crypto money to get interested in using it too. They ended up using a popular meme as their mascot, a Shiba Inu dog.
Dogecoin was launched on December 6, 2013. Since then, Dogecoin has become more and more popular due to its good-humored nature, just like its mascot!
Dogecoin is becoming increasingly popular due to its use for charities and online tips.
In 2014, the digital currency Dogecoin of $50,000 was donated to the Jamaican Bobsled team so that they could compete in the Olympics.
Dogecoin has also been used to build wells in Kenya. How cool is that!
Users of social media platforms such as Reddit also use Dogecoin to give gifts or tips if a Redditor posts good content.
So, Dogecoin is a popular altcoin, known to be very fun, friendly, and kind. Dogecoin is a digital currency with the image of a dog as the mascot! You like it, right?
Next, I will discuss how Dogecoin mining takes place.
What is Dogecoin Mining?
To understand what Dogecoin mining is, you must understand how digital currencies work. Crypto money is a peer-to-peer digital currency.
That means, crypto money can transfer money from one person to another without having to use a bank.
Every digital currency transaction is recorded in a large database called the blockchain.
These databases are stored on thousands of computers called nodes. Nodes record new transactions and then add them to the blockchain. This group of transactions is referred to as a block (block).
Each transaction block must be checked by every node on the network before it can finally be entered into the blockchain.
If nodes don’t evaluate transactions, then people can pretend they have money even though they don’t (I’d fake it if possible!).
Each transaction confirmation (mining) requires a large amount of computing power and electricity, so this process can be very expensive.
Blockchain doesn’t have to pay employees as banks do. So they offer a reward to the users who can confirm the transaction.
The reward for confirming the transaction is in the form of digital currency. This process of awarding digital currency is what we call mining.
This process is called mining because the process is the same as mining gold or diamonds. You don’t mine with a shovel for gold, instead, you mine with a computer for crypto!
There are a variety of mining techniques with a variety of different coins that also provide a variety of different rewards.
Then what about Dogecoin mining? How to Mine Dogecoin? Let’s see.
What Is Dogecoin Mining Like?
Dogecoin mining is a process of getting Dogecoin after you have successfully verified transactions in the Dogecoin blockchain. Simple, right? No, it’s not that simple, nothing is that simple!
Mining Dogecoin is like entering a lottery. You have to work hard to enter this lottery.
Well, it’s actually your computer (or node) that does the hard work! This job involves confirming and verifying transactions as I discussed in the previous section.
There are many computers that do transaction verification in the same block but only one computer will succeed in getting coins.
The only computers that will get the new coins are the nodes that successfully add a new transaction block into the old transaction block. This process is carried out using very complex mathematical equations.
The computer node that can solve the math equation the fastest is the node that wins! The node will add a new block of verified transactions to the blockchain.
Most digital currency mining processes will happen like this. However, Dogecoin mining is somewhat different from other coins in several ways, namely:
- Algorithm: Each crypto currency has its own rules regarding the mining process. These rules are also known as mining/hashing algorithms.
- Verification Time: This is the average time it takes to verify a block of transactions and add it to the blockchain.
- Difficulty Level: This section is a representation of the difficulty level for mining Dogecoin. You can use this lift as a reference to see how big your chances of winning the lottery are. The difficulty level can go up or down depending on how many Dogecoin miners there are. This difficulty level can also be set with a protocol to ensure that the verification time remains the same.
- Reward: This is the number of digital currency numbers that will be earned by successful miners.
Now we will try to compare the Dogecoin mining process with Litecoin and Bitcoin.
|Verification Time (in minutes)||2.5||10||1|
|Reward (Per block)||25||12.5||10,000|
|Reward (Per Block in USD)||3,027.35||86,391.63||27,36|
Bitcoin uses SHA-256 to manage the mining process while Litecoin and Dogecoin use Scrypt.
This is an important difference because the Scrypt algorithm requires less power and is computationally faster than SHA-256. This algorithm makes the mining process easier for miners who have less sophisticated computers.
Litecoin and Dogecoin users feel that these two digital currencies are fairer than Bitcoin because the opportunities for mining are greater.
Note: In 2014, Litecoin and Dogecoin merged their mining process. That means you can mine both in the same process.
Dogecoin mining is becoming connected with Litecoin mining. It’s like two football teams playing home games in the same stadium!
Mining Dogecoin is much faster than Litecoin or Bitcoin. Even the prizes are bigger!
But don’t get excited just yet (sorry!). Dogecoin has a lower value than Bitcoin and Litecoin.
Ten thousand Dogecoins are worth less than thirty US dollars. While 12.5 Bitcoin is worth 86,391.63 USD!
However, Dogecoin is actually not that bad. The difficulty level of Dogecoin mining is one million times easier than Bitcoin mining.
That means you have a much greater chance of getting rewards if you do Dogecoin mining.
After I tell you what Dogecoin mining is and how it works, do you want to give it a try?
So now let’s see what you need to become a Dogecoin miner.
How to Mining Dogecoin
There are two ways to do Dogecoin mining, namely solo (alone) or joining a Dogecoin mining pool.
Note: The Dogecoin pool is a group of Dogecoin users who share computing power with each other to increase the chances in the race to verify transactions. When a node in the pool successfully confirms a transaction, the Dogecoin reward will be divided equally among the pool participants.
Dogecoin Mining: Solo vs Pool
When you mine Dogecoin in a pool, you have to pay a participation fee. When the pool successfully verifies a block then you will get a very small prize.
It’s just that, a pool can do mining faster when compared to solo mining. So, your chances of getting a prize (even if the prize is divided equally) increase. This option can give you consistent Dogecoin rewards.
If you choose to mine Dogecoin solo, then you take the risk of waiting longer to confirm the transaction because the competition is fierce.
You may have to wait weeks or even months to get your first block! It’s just that if you win, the entire Dogecoin mining result will be yours. You don’t have to share it with anyone else or pay a participation fee.
If you are a beginner, I recommend that you join a pool. That way, you don’t have to wait a long time to be able to verify your first block.
You’ll also feel like you’re part of a community, and in fact, that’s what Dogecoin mining is all about!
What You Need For Dogecoin Mining
Before you dive into Dogecoin mining, there is some basic equipment that you must have:
- A PC with the operating system Windows, OS X, or Linux.
- Internet Connection
- You will also need a digital wallet to store the Dogecoins you have earned. Visit the official Dogecoin website and download a digital wallet.
Note: A digital wallet is like an email account. The wallet has a public address for sending and receiving Dogecoin and requires a private key to access it. The private key is the same as your email password. This key is very important and should be kept very securely.
There are two types of digital wallets; light wallets and full wallets. To do Dogecoin mining, you need a full wallet. This digital wallet is called Dogecoin Core.
Once you have a digital wallet, then you need software and hardware.
Dogecoin Mining Equipment
You can mine Dogecoin by:
- CPU: The CPU of your computer may be powerful enough to mine Dogecoin. I just don’t recommend this. Mining Dogecoin can make computers heat up quickly and break down quickly.
- GPU: GPU or graphics card is used to improve the graphics of your computer display. GPU can also be used to earn Dogecoin. There are several GPUs you can use and here are the GPUs you can choose to get started with: SAPPHIRE Pulse Radeon RX 580 ($426.98), Nvidia GeForce GTX ($579.99), or ASUS RX Vega 64 ($944.90)
- Scrypt ASIC Miner: ASIC is an electronic device designed for one purpose. Scrypt ASIC miners are programmed to mine digital currencies that use the Scrypt algorithm such as Litecoin and Dogecoin. ASICs are very expensive, very noisy, and can get very hot! Here are some ASIC products that you can check out: Innosilicon A2 Terminator ($760), Bitmain Antminer L3 ($1,649), BW L21 Scrypt Miner ($7,700)
Dogecoin Mining Software
If you are using ASIC, GPU, or CPU, you will need software. You must use software that can work according to the hardware you are using. The following is a shortlist of various free software according to each hardware.
- CPU: If you just want to try Dogecoin mining, then your computer’s CPU is sufficient. The software I recommend to do Dogecoin mining using CPU is CPU miner which you can download for free here.
- GPU: If you are mining Dogecoin using a GPU then the following is a selection of software that you can use. CudaMiner (Most compatible with Nvidia products). CGminer (Best compatible with GPU hardware). EasyMiner (User-friendly, so most suitable for use by beginners).
- Scrypt ASIC miner: MultiMiner (It is suitable for mining cryptocurrencies that use the scrypt algorithm such as Litecoin and Dogecoin. MultiMiner can also be used for SHA-256 cryptocurrencies such as Bitcoin). CGminer and EasyMiner can also be used with ASIC miners.
If you are a beginner, then don’t worry too much! If you are new to Dogecoin mining, then I suggest you use a GPU such as the Radeon RX 580 using EasyMiner software.
I suggest you join a Dogecoin mining pool. The best pools you can enter are multi-currency pools like example AikaPool.
If you are interested in Dogecoin mining but you don’t want to spend money to buy all these technologies, then there is one other option…
Dogecoin Cloud Mining
Cloud mining is mining without mining! In simple terms, you just need to rent a computer for a month or year. Dogecoin will be mined by the computer and the proceeds will be shared with you.
All you need for Dogecoin mining is a Dogecoin digital wallet.
There are pros and cons about mining Dogecoin through the cloud:
- Much cheaper than putting together the equipment alone.
- You also don’t have to deal with hot and noisy hardware in your home!
- As a beginner, you don’t have to deal with complicated technical stuff.
- You will earn Dogecoin consistently every month.
- Cloud mining pools do not share information about themselves or how they work.
- You just rent a computer.
- If the price of Dogecoin drops, then you will still have to pay the same rental fee.
- The Dogecoin pool has inflexible contracts, even though the crypto world can change very quickly.
- You can be stuck in a contract that costs you two years!
- It’s no fun having someone else do your job!
Now you know all the different ways to mine Dogecoin. Now we can move on to the most important question: Can you get rich by mining Dogecoin?