Mining is a process that involves the usage of highly complex digital code set up to check all the information entering the cryptocurrency blockchain. Once the coin is mined, the blockchain network will confirm all the modifications and the new transactions to the ledger. It plays a vital role in creating and adding new coins to the crypto market. Over the last few years, mining has become very easy with the emergence of machinery facilitating mining operations.
There are a wide array of cryptocurrencies to choose from. However, the most promising one and that gained utmost recognition from the past few months is the best option that you can choose for Mining which is none other than Dogecoin.
How to Mine Dogecoin in 2021
What is Dogecoin Mining?
The Dogechain (Dogecoin Blockchain) displays transactions in real-time, which could give you a block reward by allowing you to earn more Dogecoins into your account.
Dogecoin Mining can be referred to as a lottery because only one node at a time will win the reward. Winning the reward also depends on the computer you are using, as if you are using machinery that can confirm a new block fastest will help you more likely win the reward.
The block reward for mining a Dogecoin is 10000. Yes, you have heard it right! 10,000 coins. The Mining of Dogecoin is different in other ways, including:
1. Algorithm: Unlike Bitcoin, which uses the SHA-256 algorithm to be mined, Dogecoin is a scrypt coin, which uses a proof-of-work consensus algorithm.
2. Difficulty: The difficulty of mining Dogecoin is much lower (27,98,252) as compared to Bitcoin, which is considerably high (3,511,060,552,899)
3. Block Time: Dogecoin Mining on a laptop usually takes less than a minute as Scrypt coins can be mined faster than coins like Bitcoin and Ethereum, which may take more than 10 minutes.
4. Reward: Being a miner, you can earn a fixed number of Crypto assets as a reward for mining each new block. Dogecoin miners get 10,000 coins, whereas Bitcoin miners get 12.5 coins. Nothing to get carried away as Bitcoin’s value is far more worthy than Dogecoin.
Also Read: How to Mine Cryptocurrency?
Why Choose Dogecoin to Mine?
The prices of this Dogecoin surged massively by more than 200% just when he started tweeting about this currency. The billionaire Musk proclaimed his love towards this coin in his tweets which rose its demand extensively.
However, when the prices kept on increasing significantly for more than 2 months, its value dropped abruptly when he appeared in a comedy show ‘Saturday Night Live’ in the United States, as he left the value of Dogecoin to plummet by tweeting an image of himself with a Shiba Innu puppy (some other coin). He joked about the crypto in that show and told the audiences that buying crypto is ‘a hustle,’ including the Dogecoin.
No other cryptocurrency experienced such controversies ever before. This cryptocurrency’s trade volume has got a sharp bump, due to which a large number of investors have drawn attention towards Dogecoin. It is the sole reason why Mining this cryptocurrency can be one reason to increase your net worth enormously.
Ways to Mine Dogecoin
Dogecoin was developed by Billy Markus and Jackson Palmer, which primarily began as a joke on the internet. Today, its market capitalization is more than $54 billion making this crypto reach a phenomenal level alongside some of the biggest companies in the world.
One can mine Dogecoin in any way, including Solo Mining, Pool Mining, and Cloud Mining.
1. Solo Mining
Solo Mining is usually performed with the help of home computers and laptops. These types of miners either build the Dogecoin mining rigs or buy them. However, the cost involved in building mining rigs is huge, which is over $5,00,000. Hence, most miners prefer purchasing pre-built units. The mining profitability of Dogecoin was boosted extraordinarily.
Just like you are interested in mining Dogecoin, many miners have recently expressed their interest in Mining. So, you need to be ready that you will have to compete with millions of other miners out there and earn handsomely, just like many of them.
Also Read: 17 Best Cryptocurrency to Mine
2. Pool Mining
Pool mining is the best option, especially for beginners and do not want to invest a huge amount to mine Dogecoin. Joining mining pool organizers will allow you to earn high returns on investments.
Another good thing about joining pool mining is that it enables you to mine Dogecoin faster by sharing hashing power. At the same time, each member shares the coin too. Moreover, the pool payouts are frequent, which does not disrupt your cash flow. The only drawback of joining pool organizers may include their fees. However, some pool mining communities do not charge any fees from the miners.
Thus, it is recommended to check all the available options and consider the pool fees before joining any pool mining community.
3. Cloud Mining
You can use a cloud mining mechanism to mine Dogecoin with the help of cloud computing software. It is one of the best options if you do not want to spend a hefty amount on new tech.
Cloud mining enables you to mine Dogecoin effortlessly. You just need to rent machines from the data center to mine on your behalf. However, it is crucial to choose your data center after reading the contract meticulously as it can end you up paying a heavy loss if your cloud mining center or its policies are not legit.
This type of Mining is recommended only for professionals as it is quite risky compare to other mining methods. Cloud mining contracts are time-locked. It means if the prices of Dogecoin drop during the agreement, you still need to pay the heavy electricity and other costs involved in the process of Mining, and you won’t be getting the return on your investment.
- No technical knowledge is required.
- Involves no heat, noise, and operating costs.
- No need to purchase hardware
- Cheaper than setting up your own mining operation.
- Get a steady supply of new currency each month.
- Favors the centralization of the network
- It does not share much information about itself, which becomes difficult to evaluate whether it is a profitable mining option.
- Renting your computer power is riskier as Dogecoin pools have fixed contracts. If the prices drop, it can lead you to get trapped in massive losses.
Also Read: How to Make Money with Bitcoin
Basic Requirements To Start Mining Dogecoin
Being a miner, you need to make sure you have all requirements mentioned below:
1 . Fast, uncapped Internet connectivity
Want to know how to mine Dogecoin from your computer? The first thing you will need is a robust internet connection for Dogecoin mining on a laptop and mining through GPUs or opted for cloud mining. A miner needs an unlimited internet connection that never gets slow or cut in and out when mining. Suppose, if your internet connection cuts while you are Mining, it will decrease your chances of getting block rewards as another miner (who is having a powerful internet connection) may send the results faster than you at the same time.
2. Electricity Capacity
Mining is an energy-intensive process. It is important to ensure whether your electrical system can handle your Dogecoin mining requirements as you will use cooling and mining equipment. Also, you would not want to end up paying high electricity bills once the Mining is done. Therefore, fixing up the per-unit cost will keep your electric bill within limits.
3. Cooling Equipment
While you mine, all the mining equipment can run hot. You must ensure the heat management system is strong enough to cool down all your mining equipment. Simultaneously, you also need exhausts or ventilators in the mining room/space to cool it down as they don’t overheat.
4. ASIC or Other Mining Equipment
Using an ASIC is unnecessary as you can also mine using your computer, CPU, or GPU. However, many professional miners use ASIC or other mining equipment to turn a massive profit. ASICs can be costly and consume a lot of energy; you can also opt for other affordable mining equipment such as Bitmain Antminer L3++. This equipment is featured with a high hashrate and minimal power consumption. You can also choose other mining equipment, but make sure you buy one that comes with a PSU (Power Supply Unit).
5. Dogecoin Wallet
Another important thing you need to mine Dogecoin is its wallet. It is the most feasible option to consolidate your mining profits in the Dogecoin wallet if you specifically use this coin. This wallet is compatible with all desktop platforms, including Windows, macOS, and Linux.
Also Read: How to Cash Out Bitcoin Easily
How to Mine Dogecoin Using Laptop
Thinking of Dogecoin mining on your laptop? Mentioned below are the steps which will brief you about How to Mine Dogecoin From Your Computer:
1. Visit the website ‘Unmineable‘ and download the windows software as shown in the picture below.
2. The next step is to extract and run the software. Once you do that, you will get 2 options that will allow you to mine Dogecoins and many other coins.
3. Select your mining hardware, either GPU or CPU.
(Note: The steps demonstrate Mining using the CPU option)
4. Then, select the coin you want to mine and input the wallet address and referral code. The supported algorithm to mine Dogecoin includes RandomX, Ethash, Etchash, and KawPow. The address can be an exchanged wallet or hard wallet address.
5. The last and significant step is to click on ‘Start.’ It will begin mining the particular coin instantly.
Following all these steps will allow you to mine Dogecoin effortlessly from your computer within 1 hour. Once you mined 30 Dogecoins, you can transfer them to your wallet address. In addition, you can also control the mining intensity from the setting icon of the ‘unMineable’ website.
Also Read: How to Buy SafeMoon
How to Mine Dogecoin with GPU
GPUs are graphic cards that are best-known for improving computer graphics. Although, now they are widely used to mine Crypto assets, including Dogecoin.
The introduction to ASICs has shifted a majority of the miners to buying ASIC equipment, needless to mention the ones who can afford it. Inevitably, ASICs are a bigger bang for your buck. Mining using GPUs is not very profitable until you have a ton of GPUs to perform Mining. However, GPU mining is more feasible than CPU Mining.
There are many GPUs to choose from. But the best ones are mentioned below:
- Nvidia GeForce GTX
- SAPPHIRE Pulse Radeon RX 580
- ASUS RX Vega 64 and furthermore, downloading the software will help you mine with GPU seamlessly, including:
1. CudaMiner– Works best with Nvidia products.
2. EasyMiner– Excellent choice, especially for beginners as it is user-friendly
3. CGminer– Compatible with a majority of the GPU Hardware.
However, you will need the following for any of the software mentioned above:
- Stratum address and port number to connect to.
- Your worker name, user name, and password, the ones created on the mining pool site.
Stratum is a coin mining protocol. You can think as a stratum address is similar to a website address that enables miners to connect to a mining pool.
How to Mine Dogecoin with CPU
Knowing how to mine Dogecoin with CPU may not benefit you much as CPU Mining is undoubtedly a slower version of Mining than the GPUs. Mining using your CPUs is not recommended because it can produce excessive heat in less powerful computers, which can cause heavy damage or reduce their lifespan.
However, if you would like to tinker around just like some miners who use CPUs to mine, the best software to go for is CPU Miner.
How to Mine Dogecoin on Android?
Want to mine Dogecoin from your Android handset. Unfortunately, it is not possible to mine Dogecoin or any other Crypto asset from your phone. It is because the phones are powerful enough to mine a crypto coin.
Is it hard to Mine Dogecoin?
It is a realistic guide that will brief you about the practical experience of the miners in Mining Dogecoin. To be clear, Dogecoin mining is not what it was used to be. It has seen a significant rise in Application-Specific Integrated Circuits (ASICs). These are the devices specifically built for Mining and enable you to mine coins quickly. Dogecoin uses ‘Scrypt’ as the algorithm, which was originally designed to be ASIC resistant.
The introduction of ASIC machinery demotivated miners who were performing Dogecoin Mining on the laptop. The reason is that ASIC machinery is undoubtedly much powerful than home computing equipment, whether you are using CPUs or GPUs. So, it becomes difficult for the home equipment miners to compete with the miners using ASIC technology.
Moreover, the introduction of merged Mining has also made it quite difficult to mine Dogecoin. It is because the robust mining group or pool organizers could change Dogecoin and its transactions record or even its blockchain by using a considerable network’s hashrate or mining power. To counter this, the Dogecoin developers introduced Auxiliary Proof-of-Work, allowing other crypto miners to mine Dogecoin, which encourages merged Mining and make it quite difficult to mine this crypto.
Despite all these difficulties, the reward for mining Dogecoin is alluring. Miners get a certain amount of Dogecoin for mining each new block, along with rewards in fiat currencies worth more than $150.
You can also use a Dogecoin mining calculator, which facilitates the process of Dogecoin Mining.
Dogecoin has become one of the most used coins nowadays. Therefore, Mining is the way to go if you want to earn ample profit from its increased use.
Q1. Can You Earn Interest On The Dogecoin?
The accredited platform to earn interest on Dogecoin is Binance. However, other platforms can help you earn annual interest of up to 5% on Dogecoin.
Q2. What Is An Ideal Option- Earn Interest or Hold Dogecoin?
Crypto is a volatile market. However, Dogecoin is one coin that rose to prominence and is known to every investor. Instead of earning nominal interest on Dogecoin, you can simply opt for holding it as a long-term investment. It will help you earn immense profits whenever Dogecoin’s price fluctuates extensively in the future. If you want to earn a handsome interest in the cryptocurrency market, you can purchase Bitcoin or Ethereum.
Q3. Should I Put My Savings and Buy Dogecoin?
It is highly recommended to only invest your money in any crypto that you can afford to lose. Because Dogecoin is a manipulated coin with high volatility, you should put a part of your savings into Dogecoin or any other crypto asset purchase. Recently, many short-term traders fetched huge profits by swing trading the coin and made the most out of it. But still, it is a risky investment.
Recommended: BlockFi Review: Is it legit or too risky?
Q4. How Long Does It Take To Mine Dogecoin?
A new Dogecoin is mined recurrently. Considering the current Dogecoin difficulty level along with the mining hashrate of 9500 MH/s, consuming 3425 watts of power at $0.10 per kWh and block reward of 10000 Doge, it would take 0.002 days to mine 1 Dogecoin.
Now that you know how to mine Dogecoin, just follow our guide and the process we mentioned to make the most out of your time and money. Witnessing the current Dogecoin price has led many miners to set back the mining process. However, the Mining of Dogecoin will be again a lucrative option once its prices go up! Happy Mining!