Did you know dogs are among a group of distinctive animals that are unselfishly kind to others and never expect a reward or recognition? Well, that’s how I would describe the dogecoin community except for the ‘recognition’ part. The Doge fanbase, led by Elon Musk (Tesla Founder), is popular for its resounding buzz about the highly anticipated breakout of the coin’s price past the one-dollar mark.
The Precedents of Dogecoin’s Popularity
What started as an internet joke, Dogecoin has exponentially grown in popularity, setting up its sentiments as must-have crypto in every investor’s portfolio. However, rather than buying $DOGE, Dogecoin mining is a great way to earn free coins without investing thousands of dollars into expensive equipment. If you want to get started, check out our guide below.
In 2021, Dogecoin recorded a spectacular price rise driven mainly by internet pop culture and interest from the world’s richest man-Elon Musk, who relentlessly promoted the cryptocurrency via his Twitter handle. Ethereum founder, Vitalik Buterin, is also a top crypto influencer who has publicly expressed their likeness to the coin. Dogecoin’s incredible price rise in 2021 attracted record numbers of miners to its network, sending mining profitability to a six-year high.
Following an increase in the number of Dogecoin miners, mining Dogecoin is still less hectic and competitive than mining Bitcoin. Unlike Bitcoin, which employs the complicated SHA-256 algorithm making mining slow, difficult, and less energy-intensive, Dogecoin employs the Scrypt algorithm, which makes mining straightforward, fast, and less energy intensive. Unlike BTC, Dogecoin blocks are discovered much faster, and mining rewards are significantly higher, i.e., 10,000 DOGE per block reward vs. Bitcoin’s 6.25 BTC.
How Does Dogecoin Mining Work?
Dogecoin mining entails solving complex cryptographic (mathematical) problems using computer power to verify all transactions on the network and add newly created blocks to the blockchain. Whoever solves the problem gets the right to create the block and, in return, is rewarded with newly created DOGE tokens.
Dogecoin leverages Proof-of-Work (PoW) consensus similar to Bitcoin and Litecoin. As such, the mining mechanism is pretty much similar among the three coins. However, Bitcoin and Litecoin have a predetermined supply (21 million and 84 million, respectively). On the other hand, Dogecoin doesn’t have a predetermined supply and is released by the protocol in a pre-programmed way.
Bitcoin uses the SHA-256 hashing algorithm, while Dogecoin and Litecoin use the Scrypt hashing algorithm, which is less complex than SHA-256. Therefore, mining DOGE and LTC is less complicated, much faster, and less energy-intensive than mining BTC. By sharing the same hashing algorithm, Dogecoin and Litecoin can be “merged mined,” meaning both coins can be mined simultaneously without impacting the mining efficiency.
The table below shows the differences in mining between PoW coins, i.e., BTC, DOGE, and LTC:
| Dogecoin | Litecoin | Bitcoin | |
| Algorithm | Scrypt | Scrypt | SHA-256 |
| Block time | 1 min | 2.5 min | 10 min |
| Difficulty | 5.05 million | 11.89 million | 24.37 trillion |
| Rewards per block | 10,000 | 12.5 | 6.25 |
| Total supply | Infinite | 84,000,000 | 21,000,000 |
Dogecoin blocks are generated once every minute of the Dogecoin network, unlike Bitcoin blocks which are discovered approximately every 10 minutes.
How to Mine Dogecoin in 2022
In its early days, mining DOGE was pretty straightforward since a few miners were competing on the network. Anyway, DOGE supporters went berserk when Elon expressed his staunch support of the coin. At this time, Dogecoin captured the attention of crypto enthusiasts who invested heavily, pushing its prices up and increasing mining difficulty.
Currently, there are three primary ways of mining DOGE:
- Solo( Individual) mining
- Dogecoin mining pools
- Cloud mining
Each of the above methods has its cons and pros, as well as the specific requirements discussed below.
Solo/Individual Mining
Mining DOGE solo was initially a preferable method not until miners found out the odds of solving the mathematical problem were quite low if they joined the network. As a solo miner, you had to have expensive high-tech mining equipment with a significantly high hash rate to attain the mining difficulty.
Worse, Dogecoin’s mining difficulty has increased, making it challenging to accumulate significant profits if you use equipment with low hash rates. The only way to profit (maybe after a while) as a solo miner is to go for expensive mining equipment such as ASIC miner. This kind of investment
Dogecoin Mining Pool
A mining pool encompasses a group of miners who have combined their computing power into a single unit to mine cryptos, in this case, DOGE. Mining rewards are then shared amongst all the participants according to the proportion of computational power contributed to the pool. The collective hashing power of a mining pool increases its chances of becoming a validator which consequently translates to high rewards.
If you’re looking for considerable profits when mining DOGE but are not in a position to start a mining pool, you can start by joining an established one. However, you will need to know the joining fees, the pool’s total hashing power, the minimum amount you are guaranteed to attain, and the frequency of the payouts. Also, it would be best to compare which mining pools have additional privileges favorable to your mining goals and, most importantly, conduct background checks to establish the legitimacy of each mining pool before you shortlist them.
Parting Shot: Joining mining pools is proven to be the best method with the highest return on investment when acquiring DOGE.
Top Dogecoin Mining Pools Include:
· Aikapool– This is the top mining pool controlling 7% of the Dogecoin mining hash rate. It charges 1% fees and utilizes a Proportional (Prop) reward system where participants are rewarded based on the proportion of their hash rate per block found. The pool’s Hashrate is 76.353 GH/s. with 140 active workers.
· Litecoinpool.org- This pool was natively created for mining Litecoin but currently supports merged mining of Dogecoin. It has 76.353 GH/s. harsh rate charges 0% fees and utilizes the pay-per-share or PPS payment method.
· Zpool– This pool controls 2% of the global Dogecoin mining hash rate and lets you mine all PoW coins. It uses the Prop payment system, has 1500 tera hash, and charges 0.5% in fees.
Dogecoin Cloud Mining
Cloud mining is another way to mine DOGE today without a starting capital. First, you need to set up a contract that defines the share of the mining power you need, including the hardware and its projected running costs assumed by the rig owner. Take note that the rent doesn’t include the expenses of running the mining rig.
Cloud mining services of Dogecoin offer different payment and reward methods. The simplest one is Pay Per Share, where you’re guaranteed a daily payout based on your pool share. This approach does away with block rewards meaning you only get what you were promised in the contract.
Nevertheless, the main issue with cloud mining is that most contracts are time locked, meaning that there is a possibility you might lose your money if DOGE prices drop below the operational and electrical costs incurred in the mining process.
Top Cloud Mining Pools that Support DOGE Mining Include:
- Minedollars– This cloud mining platform allows users to mine Dogecoin and nine other cryptos without acquiring expensive crypto mining hardware. An investment of $5 300 to buy a mining contract returns $6,678 in just 60 days at a profit of 2.1% daily.
- Genesis Mining– Aside from Bitcoin, Genesis Mining also allows you to mine Dogecoin with zero maintenance fee. The cloud mining service offers a daily payout in Dogecoin with a minimum contract price of $28 for 2mh/s to $2400 for 200 mh/s.
- NiceHash– NiceHash allows you to rent hash rate and direct it to Dogecoin mining pools such as the ones described above. You can buy hash rate from as low as 0.2391 BTC/TH/day and even trade it on the marketplace.
Prerequisites for Mining Dogecoin in 2022
If you’re interested in mining DOGE solo or via a Dogecoin mining pool, there are several supplies you must have to get started. They include:
Dogecoin Mining Hardware
The type of computer hardware you can use to mine DOGE falls into three categories: CPU-based, GPU-based, and ASIC mining.
CPU
Your computer’s Central Processing Unit (CPU) can be used to mine DOGE as long as it’s powerful enough to offer hashing power. The AMD Ryzen 9 3950X and AMD Ryzen 5 3600X CPUs provide hash rates of 19.9 kh/s and 5.58 kh/s, respectively, ranking them as the best CPUs for mining DOGE in 2022. However, they are quite expensive and consume high amounts of electricity, lowering the mining profitability.
GPU
The graphics processing unit (GPU) is more powerful than a CPU and can be used to mine DOGE more effectively. GPUs were initially made for video gaming and high-end video rendering. However, modern GPUs have been integrated with powerful processing systems making them capable of providing a high hashing rate from crypto mining. A single GPU offers a higher hashing rate as compared to one CPU. The NVIDIA GeForce RTX 3090 and NVIDIA GeForce RTX 3060 offer 121MH/S and 40 Mh/S hash rates, respectively, making them the best GPUs to mine DOGE in 2022.
ASIC Miners
Unlike CPUs and GPUs designed for general computing, application-specific integrated circuits (ASICs) are specifically made to achieve a specific task. ASICs designed for crypto mining are explicitly built to generate hashes making them more powerful than GPUs and CPUs combined. It’s no surprise that they’re quite more expensive than GPUs and difficult to set up. Scrypt ASIC miners such as the Bitmain Antminer L7 and BW L21 Scrypt Miner are specifically designed to mine Dogecoin with an impressive hash rate of up to 9,500 MH/s.
Dogecoin Mining Software
A crucial point to point out, the choice of your preferred DOGE mining software depends on the setup of your hardware equipment. For instance, if you have an NVidia GPU, the CudaMiner package is better for this class of hardware. EasyMiner is also great for beginners using a GPU, while CPU miner by Pooler is perfect for CPUs. The CGminer and MultiMiner are best suited for ASICs.
If you’re using a Windows computer, you can use PhoenixMiner and UnMineable (beta) to mine DOGE on your computer.
Dogecoin Wallet
Whether you’re mining Doge individually, via a mining pool, or through cloud mining, you need a Dogecoin wallet to receive and store your newly produced Dogecoins. Basically, wallets range from online, software, and hardware. Hardware wallets are critically acclaimed to be the most secure, while software and online wallets are much more convenient.
More or less, if you wish to exchange the mined DOGE, which is now in a wallet, you will need to sign up on a crypto exchange where you can trade them for fiat or other cryptocurrencies. It shouldn’t be a problem when looking for an exchange that supports DOGE, as dozens of them are online.
Final Thoughts
In summary, before you venture into Dogecoin mining, ensure you’ve good access to electricity and an internet connection. Other factors you should consider are DOGE’s volatility and environmental impact.
As aforementioned, joining a mining pool seems to be the most efficient and profitable way of mining DOGE in 2022.
However, if you have the financial muscle and can mine the coin solo, we recommend setting up an ASIC owing to its high hash rate, meaning less competition and high profits. In this case, just make sure to keep your mining rigs in a cool and isolated environment to prevent overheating and annoying noise that can disturb you and your neighbors.
All in all, always exercise your due diligence when deciding your ideal mining method to mine DOGE.
Dogecoin FAQs
What is Dogecoin mining?
Dogecoin mining is a process analogous to the extraction of precious minerals from the ground, only in the case of Dogecoin mining, people use computers to solve complex mathematical equations in order to generate new DOGE coins. The first person to solve these equations gets rewarded with the newly-minted DOGE.
The mining process also grows the Dogecoin network because every successful solution of a mathematical puzzle adds a new block to the Dogecoin blockchain.
What is DogeMiner?
DogeMiner is a simple mobile app that allows you to mine Dogecoin as well as a variety of other cryptocurrencies. It gives you access to one of the most popular Dogecoin mining pools to ensure that miners earn as much Dogecoin as possible with as little effort as possible.
All of the pool’s mining power is backed by physical miners, thus enabling it to leverage the most recent algorithms to ensure that the pool can mine as much DOGE as possible.
How long will it take to mine 1 DOGE?
It is currently not possible to mine just one DOGE because a single block is worth 10,000 DOGE. But depending on the mining equipment and the hash rate of a pool, it takes about a minute to mine one block, meaning 1 DOGE could take infinitely less than a minute.
Will Dogecoin ever be profitable?
Between early November 2020 and early May 2021, Dogecoin increased by approximately 27,000 percent.
However, the gains for patient DOGE hodlers have been even greater. According to CoinMarketCap, a single DOGE token could be purchased for $0.0004512 eight years ago. However, at the time of writing, Dogecoin was trading for $0.0664. It gained thousands of percentage points by removing two zeroes. And, if the recent trend continues, Dogecoin has the potential to reward its holders handsomely in both the long and short run.
Should I invest in Dogecoin?
Investing in Dogecoin is a great idea because, as the numbers above show, it has been growing steadily since its inception. The community behind Dogecoin is also very friendly and helpful.
It is also a great way to diversify your investment portfolio. The cryptocurrency market has been growing rapidly since 2013, and Dogecoin was one of the first cryptocurrencies to be launched. However, great caution should be taken due to the ongoing volatility in the broader crypto market.
Sourced from crypto.news.
Written by Wayne Jones on 2022-08-04 10:00:00.
