Dogecoin has been in the center stage since its price stunts led by Elon Musk. Many people are becoming more and more interested in this meme coin. If you are reading this piece, it is probably because you want some of it too. One of the ways to get DOGE is to mine it. Luckily for you, this process is easier than you think, and in this guide, we will show you exactly how to do it.
What Is Dogecoin?
Dogecoin is a cryptocurrency that was designed to entertain people as they navigate the crypto world. It was created out of Litecoin by a hardfork, but still retains the core properties of Bitcoin. In fact, Dogecoin upgrades are based on Bitcoin’s improvement proposals, making it pretty secure as Bitcoin’s security is the strongest of any cryptocurrency.
Although the coin was created for fun, it has grown in popularity over the years. One of the reasons for this is Elon Musk, who has been tweeting about the cryptocurrency, referring to it as his favorite crypto.
While Dogecoin is mainly used for tipping content creators on social media such as Reddit and Twitter, you can also trade it for other cryptocurrencies, as it is listed on several top exchanges, including Binance, OKEx, and Huobi Global.
- Market Supply: Infinite;
- Current Supply: 128,441,150,198 (February 2021);
- Blocktime: 1 minute;
- Block reward: 10,000 per block;
- Inflation rate: 5.2 billion DOGE per year;
- Difficulty: 6,213,941.73;
- Mining Algorithm: DigiShield;
- Difficulty retarget: After each block;
- Consensus Algorithm: Scrypt.
Requirements for Dogecoin Mining
There are a few requirements that must be in place for on how to mine for Dogecoin successfully. This will depend on the scale of mining you want and other factors, but here are the basic things you need to get started with Dogecoin mining:
- Internet connection: Mining is impossible without this;
- A personal computer: Any Windows, OS X, or Linux operating system will fit;
- Mining software;
- A Dogecoin full wallet, also known as Dogecoin Core Wallet.
Dogecoin Solo Mining
Dogecoin mining can be done in two ways, one of which is solo mining. This is a situation where a miner decides to mine alone and provides all the equipment and hashing power. They also have the entire block reward for themselves – if they get to mine a block. But it should be noted that the chances of a solo miner successfully mining a block are very small compared to those who mine in pools. The reason is simple – pools have more hashing power as every member contributes their hashing power, so they are likely to mine more blocks than a solo miner.
Generally speaking, Dogecoin solo mining is not profitable on a small scale, which means you either go big or go home. As it stands, it is far more profitable to mine Litecoin than to mine Dogecoin solely, as the hash rate is so high it is almost impossible to profit from it.
Dogecoin Pool Mining
Here is the second method of mining Dogecoin. This one involves a collective effort and is far more likely to succeed. This is because of the collection of hash power from all pool members, which makes the pool stronger than that of a solo miner. However, as many miners are involved, block rewards are also shared depending on how much hash power each member of the pool contributes.
This is the recommended mining method for those venturing into Dogecoin mining for the first time. This will ensure that they get a higher return on investment and also keep them motivated enough to keep going.
Dogecoin Mining Hardware
Mining Dogecoin requires some hardware, which include the following:
PC CPU: If you own a computer that is fully outdated or almost dead, chances are the CPU can be used to mine Dogecoin. It is worth noting that if you want to increase your mining power, you need to protect your computer, as mining with the CPU can damage it because of overheating. To do this, you will need a GPU, which is much more powerful and will increase your chances of mining enough.
A Scrypt ASIC Miner: This is a very powerful equipment for mining cryptocurrencies with the Scrypt algorithm. They are also quite expensive hardware, so it is quite an investment. Examples of this hardware include:
- Innosilicon A2 Terminator;
- Bitmain Antminer L3;
- BW L21 Scrypt Miner.
Dogecoin Mining Software
Just as hardware is required for mining Dogecoin, there is also software required for the job. Your choice of which software to use depends on the type of hardware you are using (CPU, GPU, or Scrypt ASIC Miners). The software types include:
For CPU: There is a free software called CPUminer, which you can easily install, and you are ready to go.
For GPU: There is a range of GPU software to choose from, depending on your level of experience and other factors. Typically, GPUs use CGminer, but there is Easy Miner, which is more suitable for beginners using a GPU.
Scrypt ASIC Miners: This is the ideal software for mining script-based cryptocurrencies, like Dogecoin and Litecoin. Scrypt ASIC Miners also use CGminers and Easyminers.
Dogecoin Mining Profitability
The profitability of Dogecoin mining has increased significantly compared to a few years ago, as DOGE price went up. However, if you wish to mine it, it is wiser to stick to a pool, especially if you are just starting. Besides, the merged mining of Dogecoin and Litecoin gives a better chance of earning any real profits, so you may wish to try that out rather than mine Dogecoin on your own.
This is the information required for you to start out as a Dogecoin miner. If you follow the advice spelled out, then your chances of success will increase significantly. Having said that, good luck with your mining adventure, and we hope you find the information helpful.
Featured image: The cryptonomist
Note: This post was originally published on 31 December 2018 and has been totally updated for the completeness and veracity of the content on 22 February 2021.