beginner
Dogecoin has never been unpopular or irrelevant, but we think it wouldn’t be a stretch to say that the coin has been on everyone’s mind lately, even more so than usual. Some people used the hype to sell off their DOGE, some finally decided to buy it up, and if you’re reading this, you’re probably considering mining it.
After reading this text, you will know how to mine DOGE, what hardware and software you will need, how long mining Dogecoin takes, whether it’s still profitable, and more.
If you want to learn more about crypto mining in general, you can read our comprehensive guide on it here. Now, let’s get to the main topic of this article — DOGE mining!
What Is Dogecoin Mining?
Source: Crypto Line News
Mining DOGE means confirming transactions on the Dogecoin blockchain and getting rewards for it with the coin itself. Don’t be fooled by the picture above — it does not involve going down to the mines, and, unfortunately, it won’t turn you into a cute shiba inu. Even so, you can still have fun and make some money when mining DOGE.
Dogecoin mining is the process of verifying and adding transactions to the public ledger (known as the blockchain) for the Dogecoin cryptocurrency. Miners receive rewards in the form of newly created Dogecoins for each block they successfully mine. Mining is an important part of any cryptocurrency’s ecosystem as it helps to keep the network secure and decentralized.
Are you interested in Dogecoin, and would you like to know how its price will behave in the future? Read our Dogecoin price prediction for 2023 and beyond.
Is Dogecoin Profitable to Mine?
The profitability of Dogecoin mining largely depends on how you mine it. Generally speaking, it’s a better idea to mine DOGE in a pool rather than solo.
A cryptocurrency’s supply is among the factors affecting the profitability of its mining. Dogecoin used to have a limited supply of 100 billion coins, but all of those original coins had already been mined by mid-2015. From that year onwards, 5 billion Dogecoins have been put into circulation every 12 months. As a result, since the supply is somewhat limited, yet the coin is in great demand, it can be profitable to mine it.
To calculate Dogecoin mining profitability, one has to consider its hashrate, current mining difficulty, and the costs: the price of equipment, electricity costs, and so on. You can use one of many free online Dogecoin mining calculators to estimate your potential daily profit.
Unlike many other cryptocurrencies — for instance, Bitcoin (BTC), Dogecoin has a fixed block reward. DOGE’s mining reward is 10,000 tokens per block.
How to Mine Dogecoin
Dogecoin was built on the Scrypt algorithm, just like Litecoin and a few hundred more cryptocurrencies.
As Dogecoin uses the Scrypt algorithm, it is relatively energy-efficient to mine. Because of this, you don’t have to own an equivalent of a nuclear collider to be able to mine it — you can technically do it in the comfort of your own room. DOGE has always been about bringing the community together, so it makes sense that mining it should be as accessible as possible.
The difficulty of Dogecoin mining ramps up with time. Since DOGE is a Scrypt cryptocurrency, some miners also mine Litecoin (LTC), Viacoin (VIA), and other coins that use the same algorithm to turn in more profits. If that doesn’t sound like something you would like to try, there’s another easy way to make money mining Dogecoin: mining pools.
Dogecoin Mining Equipment
You don’t need much to start mining Dogecoin:
a secure Dogecoin wallet (we recommend using hardware wallets, like Trezor or Ledger);a computer with either macOS, Windows, or Linux operating system;an Internet connection.
The other things you will need to mine Dogecoin will depend on the type of mining you intend to do. If you plan on doing some traditional crypto mining, you will definitely need some hardware and software.
Dogecoin mining equipment
Dogecoin Mining Hardware
There are three types of hardware you can mine Dogecoin with.
GPU
GPUs, or graphic cards, are well-known for being used in mining. They are also used for playing video games, so their supply can sometimes run low, bumping the prices up. However, since DOGE doesn’t require that much computing power, you don’t have to get one of the latest expensive models — a simple and relatively cheap Nvidia GeForce GTX 1060 will do.
CPU
If you have a good PC and don’t want to spend extra money, you can always use your already existing CPU to mine Dogecoin. However, we would advise against that: although DOGE isn’t resource-intensive like Bitcoin, it can still cause your CPU to overheat, damaging it.
ASIC
As we have mentioned previously, you will need a Scrypt-compatible ASIC to mine Dogecoin. This way of mining is very effective, but ASIC miners are expensive, loud, need a lot of resources, and can get very hot, so managing them can be tough. If you want to get a good Dogecoin ASIC miner without breaking the bank, we can recommend using Innosilicon A2 Terminator.
Top Dogecoin ASIC Miner Hardware
Here are some of the best Dogecoin ASIC miners.
As you can see, the hash rate is directly proportional to the ASIC miner’s price and power consumption — the higher the hash rate, the higher the cost you will have to pay. When choosing Dogecoin mining hardware, try to balance these three parameters out in accordance with your available resources. You can use one of many available Dogecoin mining calculators (like this one) to find out how much profit you will be able to make with your chosen mining rig.
Top Dogecoin (DOGE) Mining Software
So, you have chosen the hardware for mining Dogecoin. No matter what you’ve set your sights on, ASICs, GPUs, or CPUs, to actually mine DOGE, you will also need proper software.
Here’s an overview of some of the best Dogecoin mining software solutions. Almost all of them are completely free.
CGminer
This is one of the most popular mining software programs. It is easy to use, supports multiple GPUs and ASICs, and can display detailed mining statistics.
CGminer
BFGMiner
A modular ASIC/FPGA miner written in C that features dynamic clocking, monitoring, and remote interface capabilities. It offers advanced mining software, supports multiple GPUs and ASICs, and is integrated into multiple popular mining pools.
MultiMiner
An all-in-one GUI that allows you to mine multiple cryptocurrencies, including Dogecoin. It is integrated into many popular mining pools and is incredibly easy to use.
MultiMiner’s interface
EasyMiner
A free, beginner-friendly graphical frontend for mining Bitcoin, Litecoin, Dogecoin, and many other cryptocurrencies. EasyMiner supports the Stratum and sha256 mining protocols and has two setups: Classic and Moneymaker modes. You can learn more about them and this software here.
Awesome Miner — $39 per year
A Windows application for managing and monitoring the mining of Bitcoin, Ethereum, Litecoin, and other cryptocurrencies. It is easy to use, has remote management capabilities, and displays advanced statistics.
Awesome Miner
GUIMiner-scrypt
A GUI-based miner for Windows that supports the mining of multiple cryptocurrencies, including Dogecoin. It is easy to use, supports multiple GPUs and ASICs, and integrates with popular mining pools.
Dogecoin Mining Pools
A mining pool is a group of miners who work together to mine Dogecoins. By joining a mining pool, you can earn Dogecoins much faster than you could on your own, so it’s a great alternative to mining DOGE solo.
Here are some of the best Dogecoin mining pools:
DogeChainWeMineDogecoinsProhashingDogeMiningPoolMinePoolsMuchpool
Before creating your mining pool account, don’t forget to check the reviews for the service as well as any possible fees. Once you set everything up, you will be able to see your revenue and payouts in your mining pool’s account settings.
Cloud Mining
Cloud mining is arguably the easiest way to mine DOGE as it allows you to do your Dogecoin mining online. You don’t have to buy or even look after any mining equipment — you just rent it from somebody else without ever actually seeing that equipment. Basically, you simply pay a large data center to get a cut of the rewards from one of their mining rigs.
While Dogecoin cloud mining is easy and cost-effective, it can be quite risky. Usually, you sign a contract to rent the equipment, which can last anywhere from 1 month to 1 year. And if the price of Dogecoin falls soon after you sign the contract, you will still have to pay your rent — and you may make a loss instead of a profit.
Dogecoin Mining Risks
Other than preparing the necessary equipment, it is crucial to understand all the possible risks before you start mining Dogecoin and become one of Dogecoin miners.
Assess the risks today to avoid crying tomorrow.
First of all, there is a risk of financial loss due to the volatile nature of cryptocurrencies. The value of Dogecoin can go up or down very quickly, and if you’re not careful with your money, you could lose a lot.
Another risk to consider is the possibility of hardware failure. If your mining rig isn’t properly maintained, it could overheat and break down. This would lead not only to financial loss but also to damage to your equipment.
Finally, there’s a risk of hacking and theft. Since cryptocurrencies are digital assets, they are susceptible to hackers who may try to steal your coins. Additionally, if you store your coins on an exchange or in an online wallet, there is always the risk of theft from those platforms.
While there are certainly risks involved in mining Dogecoin, there are also a number of ways to mitigate those risks. First of all, make sure you understand the market and know what you’re doing before investing any money. Secondly, don’t store your coins on an exchange or online wallet; instead, store them in a cold storage wallet for added security. And finally, be sure to keep your mining rig well maintained to avoid any costly repairs.
Final Thoughts
Mining DOGE isn’t hard but is (relatively) resource-intensive and requires some preparation. That said, most people don’t mine Dogecoin for profit or to get the coin — they do it for the amazing community. Dogecoin has always been about having fun, either on your own or together with others. However, it is still profitable when mined correctly — just make sure to understand what you’re getting involved in before buying a $5K GPU.
If you aren’t after profit but just want to get some Dogecoins, you can buy DOGE on our fiat-to-crypto marketplace instead!
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FAQ
Can you mine Dogecoin?
Yes, you can mine Dogecoin. You can do it using specialized Dogecoin miner hardware or via cloud/pool mining.
How long does it take to mine 1 Dogecoin?
Dogecoin has a relatively short block time — the time it takes to create the next block in the chain. For DOGE, it is equal to 1 minute.
How much does it cost to mine 1 Dogecoin?
It costs around $0.01 to mine 1 Dogecoin.
Is Dogecoin mining profitable?
Dogecoin likely won’t bring you much profit if you’re mining DOGE solo and don’t own a huge mining farm. Additionally, the profitability of Dogecoin mining will largely depend on DOGE’s price action, which can be incredibly volatile and unpredictable at times. That’s why we would advise you against using contract-based cloud mining.
What is a Dogecoin mining pool?
A Dogecoin mining pool is a group of miners who work together to mine Dogecoins.
How do I start a Dogecoin mining pool?
Setting up your own mining pool requires a huge initial investment: you will need to rent a big warehouse and buy a lot of hardware. If you are not ready to spend (potentially) hundreds of thousands of dollars and many hours a day maintaining it, we recommend against it.
Is Dogecoin worth mining?
The answer is… it depends. If you just want to make some quick profit, then you will probably be better off buying and selling or trading DOGE. Purchasing it is also a better option if you just want to own some DOGE. Mining Dogecoin is mostly suited for those who are genuinely interested in this coin, its future, and the community.
What is Dogecoin Mining Tycoon?
Dogecoin Mining Tycoon is a Roblox server dedicated to mining Dogecoin. It offers various tools to enhance the mining process and facilitates earning in-game money with quests and Dogecoin Mining Tycoon codes.
Can I mine Dogecoin on my iPhone?
Dogecoin mining on your phone is possible but pointless. The mining hash rate will be so low that it will be virtually impossible to get anything. Furthermore, the mining app will most likely cause your phone to overheat, damaging it.
What is the best Dogecoin mining pool?
There are a lot of good Dogecoin mining pools out there. Litecoinpool.org, although natively meant for mining LTC, allows merged mining for DOGE and has great rates. However, all your earnings will be in Litecoin.
What is the best Dogecoin mining software?
The best Dogecoin mining software is the one that’s the most profitable for you. This will depend on a number of factors, like the cost of electricity and the hash rate of your mining rig.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
Source: https://changelly.com/blog/dogecoin-doge-mining-explained/
