Introduction to Dogecoin Mining
Bitcoin’s launch in 2009 has inspired a multitude of great projects over the years, some more successful than others. However, not many began as a joke. This is just one of the reason why Dogecoin is special.
Founded by Jackson Palmer and Billy Markus way back in 2013 Dogecoin initially started out in life as a sort of parody of the moon chasing crypto communities and had the image of the cute Shiba-Inu, commonly known all over the Internet in the famous “DOGE” memes.
What started as a joke is now one of the top-rated cryptocurrencies on CoinMarketCap. Currently, Dogecoin is ranked as the 23rd most successful cryptocurrency by market cap. Over the years, Dogecoin has made quite the name for itself, and it’s usually associated with charitable donations and campaigns (building wells in Kenya, helping people in Venezuela), as well as for financing sporting sponsorships (like the donation to the Jamaican Bobsled Team). In fact, Dogecoin has one of the most interesting and loyal communities in the whole cryptosphere.
Just like Bitcoin, it can be bought, sold, traded, and even mined. Dogecoin mining is the process of being rewarded for checking transactions on the Dogecoin blockchain.
While Bitcoin uses an SHA-256 algorithm to guide the mining, Dogecoin uses Scrypt. Without overcomplicating things, Scrypt mining requires far less power, and it’s a lot more effective than SHA-256. In 2014, Dogecoin and Litecoin had merged the mining process. This means that it’s now possible to mine both of these coins in the same “process.”
The main reason to mine Dogecoin is that’s a lot faster than Bitcoin, it’s a lot less resource-intensive, and the block reward is higher, too. On the other hand, Dogecoin is a lot less valuable when compared to Bitcoin.
Dogecoin Mining: Solo vs Pool
There are two main approaches to mining Dogecoin. You can either solo mine, or you can join a mining pool. The first method implies you having to provide the hashing power yourself. It also means that you are the only one receiving the rewards. On the other hand, solo mining can be notoriously difficult on a small scale.
If you are new to mining, joining a Dogecoin mining pool is definitely the wiser choice, especially if you can’t afford to lose money. Pooled mining usually involves higher returns as it’s a collaborative effort between all the members within the pool.
Things to Consider Before Starting to Mine Dogecoin
There are a few things you should keep in mind before starting to mine Dogecoin. For starters, you’ll need a control computer running either Windows, macOS, or Linux. This computer will be used for controlling the hefty hardware required to mine Dogecoin (it can be either a powerful rig with a decent GPU or a specialized ASIC miner). A stable internet connection is also required to mine any coin, Dogecoin included.
If, however, you’re opting for pooled mining, then you’ll also need to create an account and probably pay two months in advance. Depending on your preferred OS, you’ll need a series of specialized software. Evidently, you’ll also require a wallet to safely store your mined Doge.
Dogecoin Mining Hardware
When it comes to choosing the mining hardware for Dogecoin things are not exactly simple. The more powerful hardware you have, the higher are the chances to get the reward before your competitors. Fortunately, there is a wide range of specialized mining equipment.
The other option involves buying a specialized Scrypt ASIC Miner. They are expensive and require a bit of preparation (like a cold room and particular storage options). Some of the best ASIC miners for mining Dogecoin are Innosilicon A2 terminator, Bitmain Antminer L3, and BW L21 Scrypt Miner.
Dogecoin Mining Software
Picking the right software depends on what type of hardware you’ve decided upon. For GPU Dogecoin mining you can check out CudaMiner (really good for Nvidia products), CGminer (works with most GPU hardware), and EasyMiner (recommended for absolute beginners). For ASIC miners, you can try MultiMiner, which works well with Litecoin and Dogecoin, as well as the aforementioned EasyMiner and CGminer.
Dogecoin Cloud Mining
There is yet another way to mine Dogecoin, but it’s just like solo mining, and it’s called cloud mining. This is a hands-off and more user-friendly approach to mining, and it involves you having to rent hardware (and processing power) from a larger data center. Opting for cloud mining with Dogecoin involves also finding a cloud mining service that supports Scrypt. Some of the most popular cloud mining services for Dogecoin are Genesis Mining, Eobot, and NiceHash.
As with all things in this world, Dogecoin cloud mining has its own series of advantages and disadvantages.
One of its biggest pros is the fact that it’s cheaper than the alternative (setting up your own mining operation at home). Cloud mining comes with a lot of comforts, as it’s way more practical than classic mining.
As a drawback, cloud mining usually implies year-long contracts. This means that you are forced to pay the same amount every year, even if the price of Dogecoin drastically drops.
Is Dogecoin Mining Profitable?
Currently, there are many who are tempted to say that no, Dogecoin mining is not that profitable. Even if you choose to opt for a mining pool, your rewards will be quite small. However, in the world of crypto, this is not necessarily something bad. For all you know, Dogecoin could very well quadruple in value in two years’ time. In this case, what you consider today small rewards may turn out to be massive ones in the long run.
Once you start mining Dogecoin, you end up owning Dogecoin. This means that you are now automatically included in one of the best communities within the cryptosphere, and that may very well be reason enough to do it. By mining Dogecoin, you basically support all the good charity work that revolves around Dogecoin. Furthermore, don’t forget that one year after it came to life, even Bitcoin was worthless. Keep that in mind!