The process of Cryptocurrency mining involves the processing power of a computer used to obtain cryptocurrencies. Not all cryptocurrencies can be mined, but only those whose blockchain networks have a proof-of-work protocol can be mined. The most profitable way to learn how to mine Dogecoin is to join a pool, although the options of mining in the cloud by renting equipment are gaining popularity as well.
How To Mine Dogecoin For Free, Through Pooling, Or Cloud Mining!
Bitcoin is one of the most complicated currencies to mine, due to the enormous energy cost it has and the need for powerful and expensive hardware. Nevertheless, it is not the only one. Dogecoin, or DOGE, one of the best-performing cryptos this year, can also be mined. These are the ways to discover how to mine Dogecoin:
The process of mining Dogecoin for free involves mining only with your own resources, but it is something not very profitable and with little value beyond being an experiment. One main reason for why this happens is because mining rewards are only gained if you are the person who validates the block, and considering that you compete against hundreds and thousands of people, it is somewhat difficult.
Joining a ‘pool’:
Joining a pool may be the best option as it is a place where miners come together to pool their hardware resources and share processing power. Of course, the pool takes a commission as the rewards obtained are divided equally among the group. This process ensures far more consistent profit from mined altcoins which will continue for a period of time. Here’s how to do it:
- Step 1: The miner needs an internet connection through an ethernet cable plugged directly into the router.
- Step 2: Once the hardware is up and running, it needs to be plugged into a pool, something that can be found with a simple Google search. With this system, all you need to do is register on pages like AikaPool or Prohashing (hardware-compatible networks) to mine in a group and follow the instructions of each one.
- Step 3: After being connected to a pool like Prohashing which is a hardware-compatible network, your team will also be programmed to switch between the altcoins that are mined according to which one is more profitable at each moment.
- Step 4: Your dogecoin mining rig is connected to a different pool called DxPool, which allows you to mine DOGE and a bit of LTC. One important thing to note is that this little gadget doesn’t make as much noise or consume as much electricity. Electricity for the mini doge miner costs less than one dollar per day according to ASIC, but this can vary depending on what the kilowatt costs.
- Step 5: Once you have your mining equipment ready, it is time to start mining Dogecoin. Although, before you start mining, make sure everything is properly configured to avoid potential mishaps. For hardware, it checks things like backup power or cooling. Also, make sure that it is legal to mine crypto in your country.
- Step 6: Finally, as your team will work with other miners to mine blocks, your rewards are distributed according to the power contributed.
Doing ‘cloud mining’:
Cloud mining is basically renting equipment for mining, so it will not be your own computer to do the heavy lifting. This form of dogecoin mining can have its advantages, but also the opposite, since equipment rentals usually tend to work for periods of time and if the price drops during that period, you will be losing the rental money. Bybit or Genesis Mining are few of the pages that permit this modality.
Requirements: What do I need to start mining Dogecoin today?
First, you need to have your Dogecoin wallet set up (read down below), then you need to have the right hardware and software, or invest in a cloud mining stake. Read below the simple steps you must complete to start mining DOGE in 2021, a coin that has gained popularity after Elon Musk’s tweets went viral.
Popular mining hardware and equipment for Dogecoin
Before almost any crypto could be mined with a typical CPU, but now this is not the case. Dogecoin is no exception. To mine it, you need a GPU designed for this purpose or, if you aspire to get a good piece of the pie, an ASIC (Application Specific Integrated Circuit) device.
The underlying dynamics in mining, be it the Dogecoin Scrypt or any other algorithm, is that hardware devices or equipment that have greater computing power have a better chance of mining the next block and, therefore, of obtaining the reward linked to this.
As this is getting more and more complicated due to the increasing popularity of DOGE, having an optimal ASIC with an enviable hash rate is the first step to be able to mine cryptocurrency efficiently. Of course, profitability also depends on other factors, such as electricity consumption, the efficiency of the device or the price at which Dogecoin is traded.
You can purchase Dogecoin mining equipment on numerous sites, from physical stores to online stores. Remember that, before purchasing a device of this type, you must carry out a series of investigations to ensure that your investment is going to bring you benefits in the medium-long term.
Analyze the three best ASICs for Dogecoin
1. Bitmain Antminer L3 +
The Antiminer L3 + is an ASIC designed for mining all types of cryptocurrencies based on Scrypt, including, of course, Dogecoin, but also Litecoin. Its manufacturer is the giant of the Bitmain sector. This mining rig offers a more than the decent hash rate (504 Mh / s) with a power consumption of 8000 W and an efficiency of 1.6 J / MH.
2. BW L21 Scrypt Miner
The BW L21 was launched in January 2018 by BW.com. It is a mining ASIC for Scrypt that offers 550 MH / s with a power consumption of 950 W and an efficiency of 1,727 j / Mh. By far, this is one of the most powerful Dogecoin mining ASICs on the market and also the most talked about.
3. FusionSilicon X6 Miner
The X6 Miner is a mining ASIC run by FusionSilicon which launched in August 2018. It supports the Scrypt algorithm, thus allowing mining of Dogecoin, but also other coins based on it. X6 Miner has a hash rate of 860 Mh / s and an energy consumption of 1079 W. Regarding its efficiency, this is 1,255 j / Mh.
Dogecoin mining software
Before you start mining crypto, you need the right software that is compatible with your hardware. If you decide to mine with an ASIC, then you may find one installed on the device itself. However, if you would rather go for a GPU, you will need to download and install the relevant software for that.
Ensure that the mining software you use fits with the mining equipment you have. You also need to keep in mind that there are also mobile and desktop versions. So this means you must have the device on which you have installed the program; but with the mobile option, you can mine from anywhere.
What software do people use to mine Dogecoin?
The most popular mining software used these days is the CGMiner. CGMiner v3.7.2 is a command line interface (CLI) software product that you can seamlessly install and customize according to your preference. If you don’t like this option, you can also take a look at MultiMiner and EasyMiner for ASIC hardware and CudaMiner for GPU alternatives.
Can you use your personal computer to mine Dogecoin?
Technically, mining Dogecoin with a personal computer was possible until recently due to the lack of computational power required. However, once its price exploded to the upper side, this led to a higher hash rate. Inevitably, it led to an increased mining difficulty.
These days, trying to mine Dogecoin with a regular PC is not the best idea, especially if you are looking for an economic return in conditions. The reason is simple, as it has already been said before and that is that you need computational power that a CPU cannot provide.
What’s more, if you give it a try, it is very possible that your computer will overheat and be damaged forever. Therefore, to mine crypto, the best options are GPUs and ASICs. Of course, if you bet on a GPU, you may need four of them and be in charge of the best brands on the market.
Technical knowledge required to mine Dogecoin:
As you prepare to learn how to mine Dogecoin, you may need to understand various technical aspects of the industry. Knowing these terms will allow you to fully understand mining and make the process more exciting and understandable.
- Algorithm: This is the set of rules that allow mining and that promote security and transactions in the blockchain. Mining algorithms differ and therefore it is important to know which one is tied/linked to the coin you want to mine.
- Blockchain: Simply put, blockchain pertains to the block data added one after another in the distributed ledger. The blocks must be validated and consist of hashes of all the transactional information. Miners only get a reward when a block is verified and added/attached to the original chain.
- Hash rate: This pertains to the amount of computational power that is needed to mine new coins. The higher the hash rate, the more chances of getting a new block. This rate also comprises the computational power of all the miners that secure the network. The more it is, the more difficult it is to execute the dreaded 51% attack.
- Block time: This parameter pertains to the time it takes to find a new block, verify transactions, and add it to the blockchain. It is also known as block generation time. Even though Litecoin mining uses up to 2.5 minutes per block, Dogecoin mines new blocks every minute. Bitcoin is one of the slowest in this regard since it mines a new block every 10 minutes or so.
- Mining Difficulty: This indicates the difficulty miners face in obtaining a new block. It increases or decreases depending on the number of miners present in the network. Mining difficulty settings ensure that the average mining time always remains under the same figures.
- Commissions for mining: This is a small fee that users pay for their transactions to be processed on the network. It is part of the block reward that miners receive.
- Block reward: This is the prize miners receive for each mined block that is added to the blockchain. In the case of this crypto asset, it consists of new currencies (10,000 DOGE) and mining or transaction fees.
- Profitability of mining: This is the calculation of the potential benefits of mining once all the elements involved in the process are taken into account. Miners become more profitable when the price of mined coins is higher than the price of mining them.
Is it profitable to mine Dogecoin?
When Jackson Palmer and Billy Markus developed Dogecoin they intended it to be a joke. They even came up with the cryptocurrency logo to be a Shiba Inu dog. In doing so, they sought to discourage serious miners by making the mining reward a random number. This meant that a miner could earn from zero to thousands of DOGEs per block.
However, things are different now. With the increased use of Dogecoin, it has become a cryptocurrency worth mining.
Whether you are mining on your own or joining an existing mining pool, you should first estimate/calculate the potential profitability of mining the coin before you start. From this, the important thing is to keep the mining expenses below or less than what is obtained as a reward.
The following are what you need to keep in mind to achieve this goal:
- Mining tool cost
- Hash rate value
- Electricity cost per kWh
- Pool fees
- Dogecoin Price
If you use a good Dogecoin mining calculator, you can quickly and easily check the potential profitability of mining for various hardware devices. Most mining calculators also have a list of the best hardware options, so you can compare options at your leisure and focus on the value of the hash rate, the energy use, and the efficiency offered.
I have already mined Dogecoin, now what?
At this point, what you should do is either sell your DOGE for immediate profit or keep them in a portfolio with the goal that they will appreciate over time. Let’s delve into both possibilities.
Sell your Dogecoin
If you are looking for immediate benefits, you probably want to do this. In that case, you have two ways to sell your mined DOGE.
- Through a cryptocurrency exchange: This is the simplest option. All you have to do is create an account and sell your Dogecoin. Once you go to do it, do not forget that there are additional charges, such as commission costs and price fluctuations.
- Through a peer-to-peer platform: The P2P market is a great option to sell your coins. On these platforms, sellers get in direct contact with buyers and set the terms of the transaction. After the agreement, you receive the payment and deliver the corresponding DOGE to the buyer’s public address.
Save your Dogecoins in a wallet for the future
Some may want to keep mined coins with the intention that they will appreciate over time. Saving your dogecoins in a wallet for the future is a very common strategy in the crypto ecosystem and is known as “HODLing.”
This means keeping them in the long term, as one believes that the currency is below its real value. If you decide to do this, be sure to store your DOGEs in a secure wallet.
Choose a wallet to receive Dogecoin:
Once the mining method has been chosen, you must have a portfolio, or wallet, to which to send your Dogecoin. Therefore, the first step to mining Dogecoin is to set up a wallet, as this is where you will receive your mining reward. Find a safe wallet (if possible, cold, as it allows you to keep your coins offline). If not, use a high security wallet that offers you this possibility.
In conclusion, purchasing bitcoin is not the only way investors are entering the market and people decided to mine cryptocurrencies, a process that allows one to earn cryptocurrencies by verifying transactions through blockchain. So learning how to mine dogecoin can give someone an edge.
If you have the resources, put them to work.
Please keep in mind that mining cannot be entirely profitable; far too much electricity is consumed and with less powerful computers, not much is achieved. But due to the DOGE price surging, it might be a good time to learn how to mine dogecoins.