Dogecoin rose in popularity by increasing its value to over 18,000% between 2021 and 2021In just a few short months, it was in the forefront of cryptocurrency investing and has since been embraced by institutional as well retail investors. Dogecoin was originally a joke coin that had been created. In just a few months, it became a popular cryptocurrency.
Dogecoin has attracted a lot attention due to its sudden rise in value. Many people have expressed interest in mining DOGE.
Dogecoin mining is profitable. You won’t get rich from mining Dogecoin but you can make a profit by investing in it.
Continue reading to find out everything about Dogecoin, and learn how you can mine Dogecoin using just a few steps.
Understanding Dogecoin
In 2013, software developers Jackson Palmer, Billy Markus and Jackson Palmer created Dogecoin. Dogecoin, a network of software developers Billy Markus and Jackson Palmer created it in 2013 to mock the speculation of cryptocurrency. The logo was based on the Shiba Inu dog meme.
It was a hit instantly and soon gained a large following on Reddit. The team became one of the 50 most popular cryptocurrencies worldwide.
Dogecoin saw a sharp rise in its value following the celebrity attention from Elon Musk, Snoop Dogg and others. The network benefited from the GameStop short squeeze saga, and its subsequent listing on Coinbase was instrumental in the asset’s rise to fame.
Dogecoin provided the platform for many other meme currencies like Shiba Inu (or Floki Inu), which were launched more as a joke or inside joke than as a useful digital product. Dogecoin was initially started as an inside joke. However, SpaceX announced a Dogecoin-funded rideshare mission to Mars.
Mining Dogecoin
Having gained a brief understanding of the coin, let’s learn how to mine Dogecoin. Dogecoin operates on Proof-of Work protocol. This means that the consensus mechanism needs computational processing power in order to solve mathematical problems to create new DOGE. The network is protected from malicious actors and potential attacks by miners.
Miners use their devices to create a “hash” that’s randomly generated and has to equal or be lower than the value of the “target hash.” The first miner to generate the hash gets rewarded with newly minted DOGE.
Bitcoin (BTC), Ethereum and Litecoin have used the same method to create new blocks. Miners verify transactions and add new blocks to the blockchain as they solve computation problems. This Proof-of Work mechanism offers high levels of security and decentralized verification of transactions. The Proof-of-Work mechanism rewards miners who secure the network. Crypto mining is also criticized because it consumes a lot of energy and requires expensive hardware and transaction fees.
Dogecoin utilizes the Scrypt mining contract for added security. Other Proof-of-Work networks, such as Bitcoin, use the SHA-256 algorithm. Scrypt allows new Dogecoin to be mined faster and doesn’t require large amounts of energy. Scrypt is used in Litecoin’s mining, making it faster and easier to mine Dogecoin and Litecoin than Bitcoin. LTC and DOGE use “Merge Mining,” meaning they can be mined simultaneously since they share the same mining algorithm.
Dogecoin’s blocktime is 1 minute. The reward for each block is 10,000 DOGE. Every minute, 10,000 DOGE is minted. The current circulating supply is 132,670764,300 DOGE. There’s no limit to the supply, as opposed to other PoW networks such Bitcoin or Litecoin.
How to Choose a Mining Method
There are many options for those who want to mine Dogecoin.
Every method has pros and cons. There are details you should know about them all to get started with your mining operations.
Because only a handful of people were involved in mining Dogecoin, it was easy to get rewards. With more participants, chances of solving the math problem in the first place were reduced.
One of the most effective ways to mine Dogecoin is by joining Dogecoin mining groups. Dogecoin mining pools consist of individuals who pool computational power together to mine crypto currencies. All participants share the rewards of mining based on the amount they contribute to the pool.
Dogecoin Cloud Mining is another option to get started mining Dogecoin. Instead, people rent computing power for a fee. The DOGE mining is done via a pool that shares rewards based upon the computational power hired. Eobot and Genesis Mining are the best cloud mining companies, however contracts for Scrypt Mining are less common than contracts available on marketplaces such as Nicehash. NiceHash is different from other cloud mining pools since it pairs hashing power with buyers, i.e., the hashing power for sale isn’t from one mining company but many sellers.
Dogecoin Mining Equipment
There are some prerequisites that must be met in order to mine Dogecoin individually or as part of a mining pool. These requirements are to obtain Dogecoin mining hardware as well as software equipment in order for mining to be successful. Here are the requirements for mining DOGE.
1. CPU
Any laptop’s or desktop’s computer processing unit (CPU) can be used to mine Dogecoin. The computing power of the CPUs might not be sufficient to give you a competitive advantage in Dogecoin mining. Overheating can also be a problem if mining software is constantly being run on desktops or computers.
2. GPU
GPUs (graphics processing units) offer a better alternative to CPUs. GPUs like the ASUS RX VEGA 64 or the Nvidia GeForce GTX can be used to mine Dogecoin, but they still can’t compete favorably with an application-specific integrated circuit. These GPUs are also not well-suited to larger mining operations.
3. ASIC
ASICs are an upgrade to GPU mining. They’re the most suitable option for anyone serious about Dogecoin mining. ASICs can be used to mine Dogecoin. They are custom-built hardware devices that generate hashes. ASIC mining is costly, but the Bitmain Antminer 1+ miner can be used. It’s one of our most inexpensive on the market.
4. Android
Dogeminer allows Android users to mine Dogecoin. Although the app is light and simple to use, it can overheat your tablet or mobile phone.
Dogecoin Mining Software
To begin mining cryptocurrency, you will need to have the right software. Pooler’s CPUMiner for CPUs is an intuitive mining tool that allows you to start mining Dogecoin.
Software options for GPUs include EasyMiner and CudaMiner. CG miners are compatible with a wide range of GPUs.
CGMiner is highly recommended and EasyMiner is highly recommended. Many miners use MultiMiner software for mining Dogecoin.
How to store your dogecoin
To store the Dogecoins you have mined, you will need to make a wallet. Miners have a variety of Dogecoin wallets available with different functions:
1. Hardware wallets
Cold storage (or hardware wallets) is the best way to keep digital coins safe. These are non-custodial wallets in the form of USB sticks that don’t require connectivity to the internet. The Ledger Nano S, and the Trezor Model T are two examples of hardware wallets that can store Dogecoin.
2. Software wallets
Hot storage, also known as software wallets, connect to the Internet at all times. They store crypto assets online. These wallets can be downloaded on your phone or computer. Software wallets are more convenient but less secure than hardware wallets, meaning they’re better suited to inexperienced users with smaller amounts of DOGE. The CoinStats Wallet is one of the best software wallets. It allows you to store your entire assets in a safe place and monitor their growth over time. Trust Wallet is another example.
3. Online Wallets
Online wallets can be provided by many cryptocurrency exchanges. They are fast but not as secure and allow users to begin storing Dogecoins. Among the top exchange wallets are Binance Wallet and Coinbase Wallet.
ASIC allows you to mine dogecoins
Now, let’s explore mining Dogecoin with ASICs, specifically the Bitmain Antminer L3++, the most popular hardware to mine the cryptocurrency.
1. Install the ASIC Miner
Connect the ASIC miner to a power unit and insert the Ethernet cable into the miner’s provided port to connect the device to the local area network.
2. Locate the Miner in Your Network
After plugging in and running the connection, the next thing is finding the network’s mining rig. Software can be used to speed up the process. Before clicking on scan, ensure that your IP range matches the local IP range.
3. Access Antminer
After you have completed the scan, find and click the Antminer button. To sign in to Antminer, enter your username and password.
4. Get involved in a mining pool
Register for an account to join a mining pool. Due to its increased hashrate, mining Dogecoin is more efficient. A mining pool lets you mine Dogecoin effectively if you don’t have enough computing power to compete with mining farms. Zpool and Zergpool are the most popular Dogecoin mining pool. Alkapool and MultiPoolMiner are also prominent.
5. Connect your devices to the pool
Once you have an account with a mining pool, you must use this account to connect your mining machines to one of the mining pool’s servers.
6. Create a Dogecoin Wallet
Register your payout address in your pool account. If you don’t have a Dogecoin wallet, you must set up your personal wallet.
7. Start Mining
Many mining pools offer a dashboard and an app that allows you to track your mining activity. You can withdraw the Dogecoin you have earned from mining and cash it out to your bank account.
Dogecoin takes less computing power to mine new assets than Ethereum or Bitcoin. This attracts first-time miners who don’t have enough capital to buy expensive hardware. To encourage miners to protect the network, block rewards of 10,000 DOGE are offered.
CoinStats: Dogecoin Tracking
Once you have mined Dogecoin, and stored it in a crypto wallet, all of your holdings can be viewed from one place. CoinStats can be used as a cryptocurrency portfolio manager or DeFi wallet. It supports a variety of exchanges and wallets. This allows you to easily track Dogecoin’s performance.
Users can customize CoinStats to their preferences without worrying about security breaches because the portfolio manager uses the industry’s best practices and military-grade encryption to protect user data. CoinStats makes it easy to monitor your assets on different platforms.
Also, check out:Coinbase: How to buy Dogecoin.
Conclusion
Dogecoin was started out as a joke and has since grown to be an important blockchain in the cryptocurrency market. DOGE was the catalyst for a new generation of meme coins, and it attracted prominent names such as Elon Musk.
This network attracted individuals who were interested in mining DOGE. No matter what your motivations for mining Dogecoin might be, there are options.
To maximize your chances of success, you can choose to mine alone or to join a mining pool. For individuals who don’t want to splurge on mining machines, joining cloud mining pools is a viable option.
A Dogecoin wallet is required to store coins obtained from Dogecoin miners. If you follow the mining process described above, you’ll have all the chances to become a successful Dogecoin miner.