Dogecoin mining is favorable for them, those who couldn’t mine Bitcoin much further. Its popularity has expanded worldwide for a few years. Dogecoin is one of the altcoins which has large liquidity and trading volume.
Everyone seemingly wanted to get on top of the cryptocurrency world. Like Bitcoin, you can also mine Dogecoin to get more and more Dogecoin rewards.
Here, we’ve designed this guide for you to learn easily how to mine Dogecoin. By reading our guide, you’ll aware of which kind of mining hardware and software you need to start dogecoin mining as a beginner.
So, To start from the beginning, let’s first start with its history.
Table of Contents
Brief History of Dogecoin
The founder of Dogecoin is Jackson Palmer and Billy markups. Jackson Palmer is a member of Adobe Systems in Sydney and Billy Markus is a programmer, leaves in Portland. Both are friends because of both like Cryptocurrencies. They want to create a fun cryptocurrency that gets more demographic than Bitcoin.
Firstly, only a splash screen is added on the domain with the coin’s logo. Initially, Dogecoin gets popularity on social media. After getting popularity, Dodger and Sodogetip tip bot provide entertainment and informatic content and also allow people to share.
Officially Dogecoin is launched on 6 December 2013. Initially, the Dogecoin network planned to produce 100 million coins, but later he announced that the Dogecoin network would produce infinite Dogecoin.
Dogecoin value is increased 300% within 72 hours on 19 December 2013. Now Dogecoin is the 20th position to other cryptocurrencies.
What is Dogecoin Mining?
Dogecoin mining is work on the Scrypt algorithm. Scrypt ASIC miner use for Dogecoin mining and can also be use for mine Litecoin. It’s a process of being rewarded with new Dogecoin for verifying transactions on Blockchain.
So, Dogecoin uses proof of work like Bitcoin mining which makes mining a precious process in terms of both time and energy. In this mining, transactions are recorded in a block and Dogecoin miners then verify these transactions through proof of work.
If no double-spends are detected, A block is created with new transactions by the miners and it added to the existing Dogecoin blockchain. Then, each new block is sent to other online nodes present on the network and these nodes use the miners’ work to verify transactions across the network.
Dogecoin mining requires vast amounts of time and electricity, and specific hardware, software which isn’t cheap. The Dogecoin reward is paid to miners for each block mined, which gives an incentive for miners to share their hashing power to the network.
Types of Dogecoin Miner
There are two different types of dogecoin miners. The first is Solo Miners and the second is Pool Miners.
Solo miners work alone and provide hashing power themselves, plus they get all the Dogecoin when the block is confirmed. Solo mining is very difficult to get a new coin. Mostly solo miner is the CPU miner because they use his personal computer to mining dogecoin.
The pool is a group of miners instead of a single miner. In this, if the new block is confirmed, the new Dogcoin is divided equally between the pool members.
The probability of obtaining a new coin in a pool mine is higher than in a solo mine. So if you are a beginner, then you must be tried as a pool mining.
Here, we’re providing some basic mining comparison of Dogecoin with other cryptocurrencies like Litecoin and Bitcoin. Remember that Litecoin and Dogecoin both use Scrypt hashing algorithms. This association has enabled centralized mining between the two coins and allows for Dogecoin and Litecoin to be mined together. It’s like receiving two for the price of one.
Dogecoin mining is different from other cryptocurrencies mining in these important areas-
Algorithm: Cryptocurrencies have some protocols for mining new currency and these protocols are known as mining or hashing algorithm.
Difficulty: The mining difficulty is calculated by the formula. It shows how much time is required to mine a coin. Also, it depends on many factors such as hash rate, etc and mining difficulty will increase and decrease over time on the bases of miners on the network.
Block Time: A average length of time for a new block to checked and added to the blockchain in the process of transactions.
Block Reward: Miners are verifying the transaction and create a new block in the blockchain. So, the miner awarded some coin or currency to create a new block. This is known as Block Reward.
There is a table is given mining comparison between Dogecoin Vs Bitcoin Vs Litecoin.
|Current Coin Supply**
How to Mine Dogecoin?
As discussed earlier, you’ll need Dogecoin hardware, software as well as a Dogecoin wallet or a multi-crypto wallet for storing dogecoin when its mined. let’s discuss all of these ones by one:-
Dogecoin Mining Hardware
Dogecoin mining and any other mining needs to some powerful processing hardware. Because the hashing algorithm is used lots of processing power. So you need to choose the best hardware to mine doge.
Dogecoin and Bitcoin use different proof of work function. It is quite difficult for Bitcoin miners to mine Dogecoin. You can mine dogecoin with CPU and GPU, you can choose one of them.
PC’s CPU: For mining with PC’s CPU, may sure to your PC’s CPU processing in powerful to mine Dogecoin.
However, we will not recommend you to mine Dogecoin with your PC. Because Mining requires a lot of energy and computing power which cases your PC will damage due to overheating.
GPUs: GPUs mining you use Graphics cards to improve computing power and Hashrate to mine Dogecoin.
There are lots of GPUs are available that you can choose. But some of these are given below and you can choose one of them as a beginner.
Scrypt ASIC Miner: Scrypt ASIC miners hardware is mainly used and programmed for Scrypt based currencies like Litecoin and Dogecoin etc. The Scrypt ASIC miner hardware is very expensive but very powerful. Here’s some for you:
Dogecoin Mining Software
Whether you are using CPU, GPU or ASIC mining, you will need some mining software packages to start dogecoin mining.
After selecting the specific hardware, you will need some software that works with the hardware. You should use the software that works best with your selected hardware devices. Here are some of the best free software for each choice of mining hardware for free dogecoin mining:
CPU Mining: If you are using your computer’s CPU to mine dogecoin then you need a CPU mining Software and you can download CPU miner for free.
GPU Mining: Mining with GPUs, there are more software options such as;
Scrypt ASIC miner:
MultiMiner– Best for Scrypt based currencies like Litecoin and Dogecoin.
You’ll also need somewhere to keep the Dogecoin that you mined. For that, you can go to the Dogecoin’s homepage and download a wallet. Furthermore, you can also choose the best multi-crypto wallet to keep it.
Dogecoin Solo Mining
Solo mining is free dogecoin mining. If you want to do Solo mining, you need high-performance hardware. Follow these steps to mine Dogecoin solo:-
- Download the installer file from there website dogecoin.com
- Install it in your compute
- Copy file “dogecoin.conf” form the working directory “C:\Users\YOURNAME\AppData\Roaming\Dogecoin”
- Go to Dogecoin install directory (“C:\Program Files (x86)\Dogecoin\”)
- Than execute dogecoin-qt.exe
- Sit back and wait until your system synchronized with the network
- Execute file “SoloMineWithCPU.bat” to mine dogecoin with the CPU folder.
Now your computer starts dogecoin mining. It will take lots of time to mine dogecoin. If you are very lucky then it can be mined within a second, but it’s impossible.
Well done! You’ve learned how to start the Dogecoin mining solo.
Dogecoin Mining Pool
A dogecoin mining pool is a group of miners that mine together to find coins faster. So, your chance of earning a reward is increased in pool mining. First, you need to choose the best website to find some good pools. You can choose any of these pools-
Here, we taking CGMiner for an example. Let’s see how to set up-
- Select any one pool as you want to and then create an account.
- Log in your account and go to the workers’ tab in the dashboard.
- Create a worker separately for every computer that you’re using on a pool and go to your software folder like the CGMiner folder.
- Here, open your text editor and copy your call on this file.
- Now, go back to your pool and create a URL in command liner instructions. By this URL your miner will navigate to start mining.
- Save your file as a dot bat file and double click on this bat file to start your mining.
- Setting up your hardware and go back to your pool. Here, you’ll need to open up your wallet and click on the much-received tab.
Well done! You’ve learned how to start the Dogecoin mining pool. You can also be mining solo but there is a risk waiting a long time to confirm a transaction. It could take weeks or even months before you mine your first block.
There is another option for mining if you don’t want to purchase hardware and software. You can join a Dogecoin cloud mining.
Dogecoin Cloud Mining
Cloud mining is an easier method to mine Dogecoin. It lets you rent the hardware from a larger data center and they run the mining for you. Cloud mining can be a great option for anyone not looking to be committed to hardware or involved in managing the mining.
However, it can be risky since most contracts are time lock. That means if you take a one-year contract for Dogecoin mining and the price of Doge falls. We’re recommending to you to figure it out, but your ROI might take a hit.
You can get Scrypt mining contracts from hashing power marketplaces like NiceHash. It’s slightly different from the other cloud mining pools which join hashing power with buyers. So, cloud mining is a cool option but a little tougher to get a handle on the bidding and pricing.
There are some pros and cons to Dogecoin cloud mining;
- It’s cheaper because you don’t need to set up your mining hardware equipment.
- Mining hardware creates lots of noise, so it is noiseless.
- Get a constant supply of mined Dogecoins at the end of every month.
- Cloud mining pools don’t share much information regarding themselves and how they work.
- You are only hiring computer power. If the price of Dogecoin goes down, you’ll still have to pay the same amount for something worthless.
- It has fixed contracts and the world of crypto can change very quickly. You could be stuck with an unprofitable contract for a long time.
Is Dogecoin Mining Profitable?
To make your mining more profitable, you’ll need to select more efficient equipment. Then find out roughly the total profit by using the Dogecoin profitability calculator. Many Dogecoin mining calculators are available to determine the potential profitability of hardware.
These days mining requires many resources, expensive equipment, and much more.
However, your success will depend on your Dogecoin mining equipment that is hash power of your hardware, hardware efficiency. Another thing that you can need to consider is the cost of electricity.
Dogecoin mining is possible in three different ways. First is Solo mining, in this mining is done by the involvement of a single person. Second is Pool mining, in this type of mining group of persons and computers, are use to mine a coin. The third and last is Cloud Mining, in this mining you pay for hardware borrow for mining.
Dogecoin mining is profitable if you choose the most efficient method of mining. You should need to be aware of regulations and taxes in your country and avoid scams to make your mining safe.
Hope! this guide helped you to understand what is Dogecoin mining and also, we’ve discussed easy steps to mine Dogecoins.
If you have any queries, feel free to tell us in the comment section. We are happy to help you.
**Note: Information contained in this guide is not an offer or solicitation to buy, hold, or sell any security. We’re not financial advisors and are simply providing information for educational purposes. Investing in ICO involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment.
Investors should consult their financial advisor before investing in ICOs. Furthermore, the SEC has warned investors residing in the United States and other jurisdictions that ICOs may constitute securities.