An open-source, peer-to-peer cryptocurrency Dogecoin (DOGE) was created by Billy Marcus and Jackson Palmer in 2013. The idea behind it was to establish an easy-to-use and fun alternative to litecoin (LTC) driven by a community of users.
Although DOGE began as a joke, the altcoin soon got a toehold in the market and built up a community of loyal traders. Many crypto fans and investors are opting to mine dogecoin instead of bitcoin (BTC).
In this comprehensive guide, we explain the basics of Dogecoin mining, why you might want to participate in this activity, outline the essential requirements, describe the various mining methods, and more.
What is Dogecoin Mining?
Mining DOGE means validating and adding transactions on the Dogecoin blockchain and receiving rewards for doing it. For each successfully mined block, DOGE miners are compensated with new Dogecoins, generating a potential income source.
Just like with mining other cryptocurrencies, Dogecoin involves resolving complex mathematical equations, which means a DOGE miner expends energy – and money – on the power to solve these difficult problems. A key part of the ecosystem of a cryptocurrency, mining helps keep the network decentralized and secure.
Why Mine Dogecoin?
Mining it is a good way to contribute to its ecosystem as well as a potentially lucrative endeavor. Dogecoin, which is one of the most broadly accepted and popular cryptocurrencies, offers miners the chance to earn rewards while supporting a fun project driven by the community.
How Long Does it Take to Mine 1 Dogecoin?
Dogecoin is one of the easiest cryptos to mine, as well as one of the fastest. It takes other cryptocurrencies, such as bitcoin, 10 minutes on average to process new blocks on their networks.
However, it takes one minute on average to process a block on the Dogecoin network. It adds 1,440 new blocks per day at the rate of one block per minute, producing 14.4 million DOGE (approximately $1 million) in rewards for miners every day.
Prerequisites to Start Mining Dogecoin
Here are the steps you need to take to mine Dogecoin.
Central Processing Unit (CPU): This is used to solve complex algorithms. If you have a CPU that is powerful enough, you can start mining Dogecoin. After solving the complex algorithms, the CPU validates Dogecoin transactions.
Graphics Processing Unit (GPU): More powerful than a CPU, a GPU handles the digital rendering of a computer system. A GPU is good for mining cryptos because of its rapid speed.
Application-Specific Integrated Circuit (ASIC) miner: This computerized device or rig is designed specifically to mine crypto. Dogecoin users should look for scrypt-based mining equipment.
You need to select the Dogecoin mining software that is best suited for your hardware setup.
For example, if you have an Nvidia GPU, you would likely use the CudaMiner package because it is better able to take advantage of Nvidia’s CUDA processing system.
EasyMiner software, which runs on GPU hardware, is great for beginners, while MultiMiner is well-suited to ASIC hardware.
To get money from the block rewards, you have to link your payout address to your pool account. If you don’t already have a personal Dogecoin wallet, you’ll have to establish one.
Although it has official wallets, many other wallets also enable users to store Dogecoin.
Choosing a Mining Method
There are three main ways to mine Dogecoin, and each of them has its advantages and disadvantages.
1. Solo Mining
As a solo miner, you will use your computational resources to generate Dogecoins on your own. As this takes a lot of computational power, it may not be an efficient option if you’re a small-scale miner.
To perform solo mining, you have to join the Dogecoin network as an individual node and use your mining device to solve transaction blocks.
- You receive 100% of the mining rewards.
- Since there’s no pool fee or transaction fee, the rewards are slightly higher.
- Good for miners with large amounts of computational power/resources.
- Requires a lot of computing power and energy, which can be costly.
- Infrequency and inconsistency of rewards.
2. Pool Mining
With pool mining, you join a Dogecoin pool, which consists of numerous miners who have pooled their computational resources to solve the complex equations necessary to acquire Dogecoins.
When a pool solves an equation, you will share the rewards based on your individual contribution.
- You don’t need as much computing power as you would if you were a solo miner.
- You have a greater chance of generating Dogecoins.
- If you’re a small-scale miner, this is an efficient way to take part in the mining process.
- It’s easier for you to join a pool than to find a block to mine.
- You are required to pay pool mining fees.
- You must split any successfully mined crypto with other users in the pool.
3. Cloud Mining
If you opt for cloud mining, you’ll be renting computing power from a third-party provider to mine Dogecoins.
This provider sets up the mining hardware and handles maintenance. All you have to do is join a cloud mining pool and have a Dogecoin wallet.
- It’s less expensive than setting everything up yourself.
- It’s suitable if you’re a beginner without the computational resources or technical expertise to mine Dogecoins on your own.
- Each month, you get a steady supply of new currency.
- Because cloud mining pools don’t share much information about their operations, you might find it difficult to determine if a cloud mining contract is worth the money.
- Since you’re just renting computer power, you’ll still have to pay the same amount even if the price of Dogecoin falls.
6 Steps to Mine Dogecoin
For a successful Dogecoin mining experience, you should follow the steps below.
1. Buy Dogecoin Mining Hardware
- You should determine if your GPU or CPU can be used for mining. If not, you need to purchase mining equipment.
- To mine Dogecoin as profitably as possible, you need ASIC miners designed for scrypt-based algorithms. You can purchase these from distributors or authorized producers.
2. Download, Install, and Configure the Mining Software
- Once your mining hardware is ready, you have to download, install, and configure your mining software.
- You have to select software that is compatible with the mining hardware you’re using.
- You should also opt for software that provides an interface that’s user-friendly so you can set it up and monitor it easily.
3. Join a Mining Pool
- Although you can mine Dogecoin on your own, you should probably join a mining pool, which enables numerous miners to combine their computational power.
- You should refer to the mining pool’s documentation for guidance on how to configure your mining device (also called a worker) correctly because each pool has its own instructions and requirements for setting up mining devices.
4. Connect Your Mining Hardware to the Pool
- After you’ve set up your account with a mining pool, you’ll use it to connect your mining device to one of the pool’s servers.
- You can find videos on YouTube offering instructions on how to do this for each pool using ASIC machines and GPUs/CPUs.
5. Set Up Your Dogecoin Wallet
- You’ll need a crypto wallet that is compatible with Dogecoin to store the coins you mine before you can start mining.
- Since there are a variety of wallets available, including mobile wallets, online wallets, and desktop wallets, you should select the wallet that aligns with your needs in terms of accessibility.
6. Start Mining Dogecoin
- Once you have everything set up, the account settings of your mining pool will keep track of your hash rate, earnings, and payment.
- You can use apps provided by the mining pools or a dashboard to track your mining operations.
- When you’ve mined some Dogecoin, you can use your pool account to withdraw your rewards to your wallet.
The following are some common mining problems and their solutions:
If your mining software won’t connect, first check the details of your pool, as even a slight typo in the address of the server can cause a problem.
If that’s not it, restarting your mining software or even your mining device will likely solve the issue.
A Drop in Your Mining Speed
If you notice a drop in your mining speed, check to be sure that no heavy applications are running simultaneously, as they can drain your system’s resources.
You should also update your drivers, as outdated GPU drivers can affect the efficiency of your mining.
If you haven’t seen any Dogecoin in your wallet even though you’ve been mining for a while, it could be because some mining pools only pay out after you’ve reached a certain minimum threshold for payment.
You should also confirm that you’ve entered the correct wallet address in your mining software. If you’ve entered the wrong address, you won’t get any Dogecoins.
Your Hardware is Overheating
Since mining can be intensive, you might find that your hardware is overheating. Consequently, you should pay attention to the temperature of your system.
You might want to purchase a program that monitors the health of your hardware. In addition, try improving the airflow around your mining device or adding more fans.
If you’re aiming to become a serious miner, you should consider purchasing a dedicated cooling solution.
Is Mining Dogecoin Profitable?
Typically, you can make a profit mining it, according to most mining calculators. You can use these mining calculators to determine how profitable it is to mine Dogecoin with various miners.
However, while Dogecoin mining can be profitable, it depends on a number of factors, including:
- The current price of DOGE
- The costs of your hardware and electricity
- The efficiency of your hardware
- The mining method you select.
For example, if you choose a Dogecoin cloud mining pool, the rewards will be modest.
Only you can determine if mining Dogecoin is right for you. But our guide will help you understand what’s involved in its mining process so you can make an informed decision.