For digital asset investors looking to get into crypto, mining is not the only option these days. However, crypto mining remains a solid way to actively contribute to the industry and community. It extends to meme coins, too, and today, let the ChangeHero team tell you about how Dogecoin mining works and how you can get started.
Key Takeaways
- Dogecoin (DOGE) is a Proof-of-work cryptocurrency, which means it can be mined. Cryptocurrency mining is a process of running special mining software to add new blocks, in this case, to the Dogecoin blockchain.
- Mining supports the decentralized network, so it is a popular activity in the Dogecoin community even on a not-for-profit basis. Nevertheless, for most miners, it is primarily a revenue source.
- DOGE is best mined with ASICs but CPUs and GPUs are fair game. To break even and profit, one would need considerable computational power, so unless you can provide it, look into joining a Dogecoin mining pool.
Introduction to Mining Dogecoin
Dogecoin (DOGE) is a meme cryptocurrency, taking after a decade-old Doge meme. Despite the light-hearted beginnings, DOGE became an iconic altcoin and is still popular.
For more information on Dogecoin (DOGE), read the Beginner’s Guide by ChangeHero. This article will assume some knowledge about the Dogecoin blockchain project.
How does Dogecoin mining work? Mining Dogecoin involves using computer hardware to perform complex calculations to verify transactions on the Dogecoin network. The difficulty of said calculations is rather high, so the best results are achieved with high-performing hardware. At the same time, at its core it’s guesswork, so even a weak node has a chance to stumble upon the correct solution.
If you are new to crypto mining, you can also read our Basic Guide about how blockchain works.
Miners are rewarded with newly minted DOGE for their efforts. This is the reward for their trouble and the reason people choose Dogecoin mining. For the time being, the block rewards are perpetually fixed at 10,000 DOGE for a single block. Therefore, it would simultaneously not take much to mine 1 Dogecoin but the trick is to be the one to discover the next block reward.
Why Choose to Mine Dogecoin?
Mining cryptocurrency is far from a simple task, and even Dogecoin is not an exception. Why do people jump through all the hoops they need to mine Dogecoin?
First and foremost, financial incentives are the primary motivation of many miners. Mining Dogecoin is not a steady stream of profit as it depends on things like hardware efficiency, electricity costs, and market conditions. But if the conditions allow, even small-scale miners will see a return in time.
Another major factor is supporting the Dogecoin blockchain. Dogecoin is one of the few remaining proof-of-work blockchains, not counting Bitcoin which is in a league of its own. Dogecoin is merge mined with other blockchains that use the script hashing algorithm. One of them is Litecoin (LTC), meaning that miners who contribute computing power to mine dogecoins do so for both networks and receive rewards from both.
Users can mine Dogecoin using consumer-grade hardware but not to the same result as scrypt ASIC miners. However, there are more options than mining Dogecoin for fun or investing thousands of dollars in equipment. We are going to get into the details of how to start mining DOGE right now!
What You Need to Start Mining Dogecoin
There are a few things to settle before jumping into Dogecoin mining. Start your research by looking further into hardware, mining software, and wallet options. Factor in things like Dogecoin mining profitability and the hash rate you can afford solo or in a pool.
Dogecoin can be mined using CPUs (central processing unit), GPUs (graphics processing unit), and ASICs (application-specific integrated circuit). Popular mining software for Dogecoin and scrypt includes CGMiner, CudoMiner, and MultiMiner. Finally, you will need a wallet to store your mined DOGE. Make sure to choose a secure wallet that supports Dogecoin.
Mining Dogecoin can be profitable, but it depends on hardware costs, electricity prices, network difficulty, etc. Joining a mining pool can increase your chances of earning rewards more consistently. Popular Dogecoin mining pools include Antpool, ViaBTC, and F2Pool.
Heads Up: What Hurdles Dogecoin Miners Encounter
Dogecoin mining is much more complicated than setting it up and forgetting it. Even experienced miners run into issues from time to time, so here is a rough idea of what you are getting into when you start mining Dogecoin.
Sudden changes in mining difficulty can impact mining profitability and require miners to adapt their strategies accordingly.
The mining hardware needs maintenance, such as keeping cooling systems operational and fixing malfunctions or power supply problems. Regular maintenance and monitoring are essential to ensure optimal mining performance. Managing electricity and energy consumption and finding cost-effective mining solutions can also constantly concern DOGE miners.
If you as a user dislike network congestion, miners find it challenging but in their own way. Congestion issues lead to delays in transaction confirmations but also, higher fees. Mining rewards and overall profitability change considerably, and miners have to adjust their strategies to navigate network congestion effectively.
Regulatory uncertainty surrounding cryptocurrency mining can pose challenges for experienced DOGE miners. Changes in regulations or government crackdowns on mining operations can disrupt mining activities and create legal uncertainties for miners.
Finally, experienced or not, miners are not immune to security risks such as hacking, phishing scams, or malware infections. Maintaining robust security measures, such as using secure wallets and practicing good cybersecurity hygiene, is crucial for protecting mining operations.
Solo Mining vs. Pool Mining: How to Mine Dogecoin Profitably?
Proof-of-work mining these days comes with the choice to do it solo, renting hardware in cloud mining, or joining a mining pool. Each method has its pros and cons, and you don’t have to stick to one for good: try and see what fits.
Solo Mining
Mining on your own hardware gives you full control over mining rewards. You won’t need to share rewards with other miners or pay a fee to the operator like you would in a pool. The software client will also directly receive block rewards if successful.
Unless you can afford to power several ASICs, it would take a long time to mine a single block. The variance in block discovery also causes inconsistency in income. The mining pools you choose not to join, with all their aggregate hash rates, will compete with you for the block rewards.
Pool Mining
Contributing the computing and processing power of specialized hardware to a mining pool provides a more consistent income through regular payouts. Mining in a pool also has reduced variance in rewards compared to solo mining.
The payoff here is sharing rewards with other pool members. Pool fees eat into the overall profitability (although less so than high energy bills). You will also depend on the pool’s performance and reliability.
In short, it comes down to how much resources you have. If you can’t find blocks with your hash rate and power consistently, a mining pool is a more reliable option. Cloud mining, if it’s legitimate, is more or less the same as pool mining: more convenient but fees reduce the profit.
Storing Dogecoin (DOGE)
As a miner, it is essential to store your DOGE securely to protect your hard-earned coins. The mining software comes with a full node which can be used to access and manage a blockchain address. However, if you want something more convenient or secure, you have several options.
Software Dogecoin Wallets
The best choice, in this case, would be to use an official Dogecoin wallet. Ensure you download the wallet from the official Dogecoin website to avoid scams. Keep your wallet software up to date to benefit from the latest security features.
Some of the wallet options for multiple cryptocurrencies with DOGE support are Edge, Arctic, and Exodus. You can even swap Dogecoin there without closing the app with the best rates provided by ChangeHero.
Cold Wallets
Alternatively, hardware wallets provide extra protection by storing your private keys offline, away from interception attacks. Use a hardware wallet like the Ledger Nano S or Trezor Model T for enhanced security. An offline device or air-gapped computer is also a solid alternative.
If you don’t want to invest extra in a specialized device, a Dogecoin paper wallet for cold storage costs pennies to make. Print the key pair out as QR codes and keep it safe away from harm. This way, you can store your private keys and recovery seed in a secure location away from unauthorized access.
Multi-Signature Wallet
It is not unusual for Dogecoin users and miners to set up a multi-signature wallet for added security. A multi-sig wallet requires two or more signatures to authorize transactions and can come in any form. This can help prevent unauthorized access to your funds and safeguard against a single point of failure being compromised.
Conclusion
We hope this guide was a helpful starting point about how to mine DOGE. Take it nice and easy, in the spirit of this friendly cryptocurrency.
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Frequently Asked Questions
Is it possible to mine Dogecoin?
Yes, Dogecoin (DOGE) is a Proof-of-work cryptocurrency, which means it can be mined. The best mining equipment for Dogecoin is scrypt ASIC miners, although GPUs can show results as well.
Is DOGE still being mined?
Yes, Dogecoin (DOGE) is a popular cryptocurrency for mining. The hash rate securing the Dogecoin network exceeds 1 petahash (i.e. miners solve over 1 quadrillion hashes a second) at the time of writing.
How much does it cost to start mining Dogecoin?
If you are considering becoming a solo dogecoin miner, at the time of writing, one of the cheapest scrypt ASICs that can mine Dogecoin costs about $760. Even with its hashing power, machines like this would perform better in a mining rig or a cloud mining pool.
What is the best software to mine Dogecoin?
The most frequently recommended Dogecoin mining software are CGMiner, CudoMiner, and MultiMiner.
Can DOGE still be mined?
Yes, Dogecoin mining is still a thing. You can merge mine it with Litecoin and DigiByte (DGB) to make Dogecoin mining profitable.
Is it profitable to mine Dogecoin?
Mining DOGE coins is profitable if you have powerful mining equipment or join a trustworthy mining pool with a decent contribution. For a solo miner, not accounting for electricity or equipment costs, you should aim for 3Gh/s or more.
What is DOGE mining?
Dogecoin’ mining process is a process of performing computations to add new blocks to the Dogecoin blockchain. Because hundreds of various miners compete to solve the cryptographic problem, it is a process that requires a lot of computational resources.
