How to mine Dogecoin: A beginners guide on pool mining DOGE
Dogecoin (DOGE) is a meme-based coin that has received a lot of press in 2021, with its value skyrocketing at the start of the year. As amusing as Dogecoin and its history may be, it seems that the meme-based cryptocurrency is here to stay. It has a loyal community backing it by holding on to DOGE coins despite market volatility.
With so much attention and a sharp increase in value, many people are interested in investing in Dogecoin. One way that money could be made is through mining DOGE. Just like other cryptocurrencies, mining plays an important role in helping the network function.
For those looking to mine Dogecoin, you are in luck since DOGE is not like many other popular coins that require vast resources to get started with mining. You might not get rich mining Dogecoin, but it can be a way to pile up a few coins.
To learn more, continue reading this post about how to mine Dogecoin.
The short story is that Dogecoin is a cryptocurrency that launched in 2013. While it was initially launched as a joke, the idea of the coin caught on quickly, as the community loved the idea of a cryptocurrency coin that didn’t take itself too seriously.
Fast-forward and Dogecoin is a well-established cryptocurrency that has a strong value through the number of people who use it for investing. While Dogecoin is like other crypto coins in many ways, it does have some differences when compared to popular cryptocurrencies like Bitcoin (BTC). For example, both Dogecoin and Bitcoin have a blockchain and both use cryptography to create blocks and verify transactions. However, Bitcoin uses SHA-256 as its hash algorithm whereas Dogecoin uses Scrypt.
Another example is that many cryptocurrencies have a ceiling for the total number of coins that can be produced. With Dogecoin, there is an unlimited number of coins that can be mined. However, inflation is controlled by limiting the number of coins that can be mined each year.
Also, it is possible to benefit from mining Dogecoin without setting up an expensive mining facility, whereas for most people, mining Bitcoin is not a realistic possibility.
A final and important difference is that you can’t mine Dogecoin directly. Dogecoin moved away from a direct mining model as a way to protect itself against the potential for a 51% attack. If you want to earn Dogecoin by mining, you would need to mine a different coin and then the reward can be converted into Dogecoin.
Crypto mining is the way new crypto coins are minted. However, there is more to it than that. Instead of mining as you would for a mineral, this type of mining is done by using computing power to solve cryptographic puzzles.
In a basic sense, transactions using the coins are bundled into blocks. These blocks are released as cryptographic puzzles, and miners use their computing power to solve the puzzle to process the blocks. By solving the blocks, the miner helps the network run because this work is necessary to validate the transactions and secure the network. As a reward, the miner who solves the block first is paid in new coins.
In the world of crypto mining, having more computing power gives the miner an edge. The more power you have, the more hashes you can solve and that increases your chances of being the first miner to solve the block and receive the reward.
Since merging with Litecoin, Dogecoin uses auxiliary proof-of-work (PoW) mining. Instead of mining Dogecoin directly through PoW, Dogecoin can be earned by mining other coins that run their mining network on the Scrypt algorithm.
Another feature that makes mining Dogecoin so attractive is that you have options for solo mining and pool mining. This is what makes it possible for almost anybody to stack a few coins without needing a room full of mining equipment.
With solo mining, you are mining on your own. This means you own all of the mining equipment and take on all of the expenses. However, the upside is that you do not have to share any of the rewards. With pool mining, different entities join their computing resources together to solve blocks and earn coins. While you do have to share the rewards, it lowers the costs considerably and makes Dogecoin mining a possibility for more people.
What you will need to mine DOGE
Regardless of whether you plan to pool your resources or start your own mining operation, there are some things that you will need to get started. Pool mining is the best option for beginners since there is a lower cost of entry. Also, it is difficult to make money as a solo miner.
The first thing you will need is a Dogecoin wallet. This is where you will store the coins you mine. You can easily find compatible wallets on the Dogecoin website. Along with that, you have an assortment of hardware and software wallets that are available.
If you are just interested in mining as a hobby to collect a few coins, you can do it from any PC. Most would recommend a machine that runs on Windows or Linux, but you can also mine on Mac. Ultimately, you should try to use a machine that has a powerful graphics processing unit, or GPU – something that is made for gaming or video editing would be a good option. You could mine Dogecoin with a computer that runs on a central processing unit, or CPU, but it won’t be as efficient, and the energy consumption will eat into the profits.
If you are feeling a little more serious about mining, you would need to get an application-specific integrated circuit (ASIC), a machine that is built specifically for mining. This will increase your computing power and the number of coins you can collect, but they do come at higher costs.
Of course, if you are looking to start a big solo mining operation, you would link several ASICs and house them in a warehouse. This would obviously be cost-prohibitive for most people looking to get started with Dogecoin mining.
The big cost associated with crypto mining is electricity. Even if you are a hobbyist mining Dogecoin on a desktop, the electricity can add up to a hefty bill. If you are running a large mining operation with rows of machines working together, the electricity costs can be astronomical.
It isn’t even just the costs of electricity for the machines. All of that energy consumption creates a considerable amount of heat. If left unchecked, that heat can damage the equipment. On top of powering the machines, you will need to consider cooling systems to protect the mining machines.
This is another reason why pool mining could be a more attractive option for some. By only taking on a portion of the computing power, you can bring the costs down considerably. However, you are in a network that still has the computing power to be competitive with other mining operations.
How to mine Dogecoin
Now that you know a little about mining Dogecoin, you are ready to get started. Here is a guide for beginners looking to mine DOGE as part of a pool. The first thing you need to know is that there are several Dogecoin mining pools you can join. It is recommended to do some research to find the Dogecoin mining pool that is right for you.
Here are some general steps that would get you set up on most mining pools:
Go to the official website to download the software. If your browser blocks the download (this is common for mining software), you will need to grant the website permission.
Once the file is downloaded, you will need to unzip it. If you do not have the software to extract the files, you can download free programs that will make it possible. Just right-click the file and select a location for the extracted files.
With the files extracted, you need to run the file with administrator privileges. If you have any issues, you might need to grant the application permission through your firewall or antivirus program.
Once the app opens, click continue. At this point, you should see options for mining software.
There are several available options for mining software depending on the hardware that you are mining with, as GPUs and CPUs have different requirements. An appropriate piece of software should be downloaded, and, once again, you might need to whitelist the software if it is flagged by your antivirus program.
You will also need to make sure you are downloading the right version for your operating system. Whether you are using Linux, Windows, or Mac, you will need to select the option that corresponds to your operating system, or OS.
With the mining software downloaded, you will need to extract the files and then head back to the mining app. Click on the folder icon and look for the files that match your OS and GPU or CPU.
Once you have your mining software set up, you will see a space for your wallet address. You will need to copy and paste the address there. This will tell the mining software where to send the Dogecoin you mine.
With everything set up, you can click the start button. At this stage, you should be in the process of mining Dogecoin. To verify, you should see your current hash rate displayed in the app.
If you do not see a hash rate displayed in the app, you will need to do some troubleshooting. As a simple step, check to make sure the mining software has all the permissions it needs to run on your PC. Beyond that, you could check the version of the miner you are running. You might be able to resolve the issue by installing an older version of the software.
That is how easy it is for a beginner to get started with Dogecoin mining. However, you need to remember that your share of the reward is going to be based on the amount of computing power you contribute. Additionally, the mining pool will charge a fee, so compare pools in terms of the fees they charge before signing up.
One of the great things about Dogecoin is that the idea of mining is a little more accessible. This is especially true when you consider the idea of joining a mining pool. With that said, you shouldn’t expect pool mining to produce major profits.
Even with the thin profits, Dogecoin mining can be worthwhile. To start, it can be a good introduction to cryptocurrency mining in general. Beyond that, most miners are not doing it for the current value of the Dogecoin they mine since many mine DOGE as an investment. The idea is that they collect the coins now, with the hopes of turning a profit when the price goes up.