Dogecoin is one of the top 15 cryptocurrencies with a market cap of over 8 billion dollars. The popularity of dogecoin, which started as a meme coin, was ignited by influencers like Elon Musk and Mark Cuban.
The dogeminers' population has also grown significantly as more miners are switching to mining DOGE for increased chances to gain profits. This article will define dogemining and explain all you need to know about mining doge.
What is Dogecoin mining?
Dogecoin mining is the process through which the doge network uses the proof-of-work consensus to validate transactions and release new dogecoins.
Dogecoin is an open-source cryptocurrency with a distinct peer-to-peer feature. Jackson Palmer and Billy Markus created it as a meme coin based on the Shiba Inu dog. Today, Dogecoin has evolved to be one of the most popular coins among crypto investors.
Dogecoin was created as a fork of Litecoin, and Litecoin was created as a fork of Bitcoin. Hence, Dogecoin was built using a source code with a root in bitcoin. The major difference between Dogecoin and bitcoin is the several changes made to bitcoin's source code.
Like bitcoin, Dogecoin was built to operate via a decentralized web of nodes instead of one through a single entity. Accordingly, the release and distribution of dogecoins occur in a decentralized manner.
How Dogecoin Mining Works
Dogecoin mining is the process of adding new blocks to the blockchain containing valid transactions. Those who participate in the consensus processes are called miners and represent an integral part of the Dogecoin network.
Miners aim to find a new block using specific mining equipment to figure out a particular code. When a miner finds the code, a new block is added to the blockchain, and its pending transactions are marked as valid. The network then rewards the miner with some number of dogecoins.
Although the code miners have to figure out is usually random, which makes it difficult, Dogecoin is the best coin to mine compared to some other crypto coins. Dogecoin mining legit has some of the best profit numbers and is less saturated than bitcoin.
Dogecoin mining equipment
There are different hardware you can leverage to profit from mineable coins. The requirements for mining dogecoin are not as high as that of bitcoin. With entry-level equipment like your computer or laptop, you can get started with dogemining. Dogecoin can be mined using:
While it's possible to mine Dogecoin using your computer, it is less effective as the CPU components are easily subject to overheating and fast reduction in lifespan. However, you can get started with dogecoin mining via CPU using cpuminer.
Dogecoin mining using GPU is more functional and efficient than CPU. Although advanced CPUs can manage the stress associated with Dogecoin mining, GPUs are more suitable. The best GPUs to consider for dogecoin mining include:
- Nvidia GeForce GTX
- ASUS RX Vega 64
- SAPPHIRE Pulse Radeon RX 580
The most effective of the three hardware options are ASICs. An ASIC miner is an application-specific integrated circuit designed for the sole purpose of mining crypto coins from a specific blockchain algorithm. For example, Dogecoin operates using a Scrypt algorithm, so if you're interested in getting an ASIC, you'll need a Scrypt-based ASIC miner.
Cloud Mining Dogecoin
You can also earn DOGE by cloud mining dogecoin. Here, you don't need to own hardware or mining equipment. Instead, cloud mining dogecoin involves renting computing power from a hosting service. The hosting service has a mining pool that works together to mine Dogecoin and rewards are distributed and delivered to you based on the computing power purchased.
How much can you earn mining Doge?
As a doge miner, how much you earn depends on several variables like hash power, energy cost, the block reward, and the current price of Dogecoin. The most important factor to consider is energy costs. Because electricity prices vary across different geographical locations, the profitability of Dogecoin is impacted accordingly.
Therefore, miners tend to concentrate in places where electricity costs are usually lower to reduce losing a significant portion of profits to electricity costs. Aside from electricity costs, the remaining three variables are similar for all dogecoin miners.
- Profitability of GPUs
For miners who use GPU to mine Dogecoin, their profitability when using the best GPU is around $0.25 and $2 per day. However, the profitability price range varies with the market price of DOGE.
Because of the importance of a GPU hashrate in securing block rewards, choosing the right GPU model is important. Some of the newer Nvidia models provide less hashrate than older versions, making them less effective for mining.
- Profitability of ASIC miners
ASIC miners have better-optimized equipment to enhance their earning potential. Miners can make about $10-$40 daily with the latest ASIC models. It takes about one to two years to realize enough profits to cover the price of the ASIC before beginning to make net profits.
Miners receive DOGE into their dogechain wallet after successful mining operations. Although some are exploring mining dogecoin android apps, they've proven not to be quite as efficient as other means.
How long does it take to mine 1 Dogecoin?
Dogecoin network awards a lump of 10,000 DOGE for each block added to the blockchain. The time taken to find a block is approximately one minute, meaning 1440 new blocks are added to the dogecoin chain daily.
To get the total number of dogecoins mined each day, we'll multiply the block reward by the number of blocks per day.
10,000 doge (reward per block) x 1, 440 (number of blocks per day) = 14, 400,000 doge every 24 hours.
With each block reward being ten thousand dogecoins, doge mining legit has the potential of becoming increasingly profitable if the price of dogecoin increases.
The time it takes a dogecoin miner to mine one dogecoin depends on the hash power the miner provides to the network. For example, the latest ASIC miners can mine about 7 DOGE per hour with each ASIC.
GPUs do not give as many results as ASIC miners. When mining with GPUs, you'll be able to mine about 0.5 DOGE to 2 DOGE on average. This number is much lower, and joining a mining pool is more beneficial.
Dogecoin Mining Pools
Entering a mining pool can provide a steady income compared to solo mining which can be quite difficult for the solo miner. Mining pools have an advantage over the solo miner as the population can contribute hash power and increase the odds of finding a block.
The time it takes each mining pool to mine one dogecoin depends on the quantity of hash power they can generate. There are several dogecoin mining pool sites with free mining doge offers ranging from free withdrawal to free registration. Some of them include:
How to Mine Dogecoin?
Like other forms of crypto mining, Dogecoin mining requires a steady internet connection, a reliable source of electricity, and competent mining equipment. Follow this step-by-step guide to learn how to mine Dogecoins.
1. Purchase mining equipment.
The best mining equipment for mining Doge coin is ASIC miners. Scrypt-based ASIC miners are designed to mine coins using the Scrypt algorithm, including Dogecoin and Litecoin. You can also find CPUs or GPUs that are suitable for dogemining. You can purchase your mining equipment from official producers or resellers. However, sometimes the supply of ASICs is tight, making it difficult to find them on sale.
2. Install the software.
Once you set up your hardware, it's time to find the right software. You can download the necessary mining software to run your mining rig. Take note to choose the one that works for you as there are options for CPU, GPU, and ASICs. After downloading the appropriate mining software, install and allow it to run. If you're using GPUs, you might need to update your drivers.
3. Join a mining pool.
The next step is to join a dogecoin mining pool. Each mining pool offers different service features and has different requirements. Before you join a mining pool, ensure your check out the following:
- The pool safety level
- The amount of fees the pool charges for various transactions
- How rewards are calculated and the system of distributing rewards
- The geographical location of the pool servers
- The pool's hashing power
4. Set up a Dogecoin wallet.
After registering with a dogecoin mining pool, the next step involves connecting your account to your mining machines. Once you've set up your pool account, you need to register your wallet address to receive revenue from block rewards. You can set up a personal dogecoin wallet from the official dogecoin site. There are other secondary wallet options you can use to store your Dogecoin.
5. Start mining.
We've explored all the steps you need to know on how to mine Dogecoin. Once your mining rig is set up and your pool's account linked to your mining machine, you can edit your settings to monitor your hashrate contribution, revenue, and payout. Keep track of your mining activities through the dashboard on the site or application. Finally, you can cash your Dogecoin into your wallet from your mining pool account.
Is it safe to invest in Dogecoin?
When considering if it's safe to invest in mining Dogecoin 2022, it's important to note that investing in crypto is highly risky. Crypto traders are faced with the challenge of the constant volatility of the crypto market, which can cause massive shifts in the price of coins. Because the price of Dogecoin directly affects the potential profits you can earn from a Doge mining pool. Your potential revenue increases or decreases as the price of Dogecoin.
When it comes to the security of your Dogecoin in the website mining dogecoin, you can secure your Dogecoin in your wallet after receiving your share of the mining reward. Investing in Dogecoin is relatively safe as the security of the funds depends on how well you keep your password and wallet keys. There are several wallets for storing Dogecoin, including hardware wallets, light wallets, and software wallets.
If you decide to buy Dogecoin, ensure you read reviews of several crypto exchanges before selecting your preferred option. Many scam websites appear as clones of original sites. You can avoid scam attacks by paying attention to the URL of the site before linking your wallet.
If you're exploring options for mining Bitcoin aside from solo mining and mining pool, using bitcoin hosting services removes the limitations of running your mining rig.