Dogecoin Mining Beginner’s Guide
Dogecoin was founded by Jackson Palmer with the help of Billy Marcus. But I must say that the word “founded” is a bit misleading, since Dogecoin was conceived as a joke, a parody of the crypto community.
The Dogecoin project was started by Jackson Palmer as a joke, first on Twitter and then on a website that he specifically created.
The Dogecoin cryptocurrency was released by Palmer and Billy Marcus in 2013 with the hope of making the cryptocurrency sphere a little more fun and accessible.
In the past, Doge was used to collect charitable donations and finance sporting events.
Recently, the popularity of the coin among businessmen has grown significantly and new options for use outside the vibrant Dogecoin community have appeared.
So what is Dogecoin? This is a fun altcoin / meme, the value of which sometimes rises above a billion dollars.
Introduction to Dogecoin mining
Here are some key features of Dogecoin compared to other cryptocurrencies like Bitcoin and Litecoin.
Please note that Litecoin and Dogecoin use the Scrypt hash algorithm.
This similarity made it possible to implement the combined mining of these two cryptocurrencies and simultaneously mine Dogecoin and Litecoin. This gives miners the opportunity to receive two cryptocurrencies for the price of one.
There are two approaches to mining Dogecoin. Firstly, you can mine “solo”, that is, you yourself provide the power for mining and are the only recipient of a reward when confirming the blocks.
Solo mining is rarely profitable on a small scale and is better suited for larger enterprises. Of course, if you just indulge, then indulge in health, but expect losses.
You should also be aware of the belief that Dogecoin solo mining is dead.
The bottom line is that Litecoin miners using ASIC’s have raised the Dogecoin network hash so high that the rewards are more often a by-product of the combined Litecoin mining, and are not received directly for Dogecoin mining.
Mining in pools is best for beginners, especially if you are looking for a higher return on your investment.
Mining in pools is a joint work of participants who provide their hashing power.
Rewards are proportionally distributed among the participants upon confirmation of the block.
If you are just starting out, you better join the Dogecoin mining pool. The competition is tough and there are serious capacities on the market, including ASIC’s.
Combined mining of more profitable Litecoin using ASICs leads to the fact that some of the capacities are also used in the Doge network.
What you need to start mining Dogecoin
Before you can start mining and subsequently get a Doge stream, you need to complete a few steps
- Equipment. For starters, any Windows, Mac OS, or Linux system will do. Ordinary computers are great for experimenting, but scaling will require more serious hardware, including GPUs and ASICs.
- Software. Depending on the OS and hardware used, the software may vary. Here are some examples.
- CPU mining: cpuminer from Pooler.
- GPU mining: EasyMiner is a good place to start.
- ASIC mining: CGMiner and open source MutliMiner.
- Dogecoin wallet. You also need to send Doge you got somewhere.
At the moment, you can start mining, but remember that when mining Dogecoin “solo” it is really difficult to make a profit, especially one that would be worth the time spent.
Instead, select the Dogecoin mining pool and take advantage of the synergies.
- Pools for mining. You will need a pool that supports Scrypt mining, and here are some good options to get started.
Prohashing. Mining pools X11, Equihash, SHA-256 and Scrypt.
Multipool It supports the combined mining of Litecoin and Dogecoin.
- Professional advice. If Dogecoin is your ultimate goal, consider mining other Scrypt coins and selling them for Dogecoin. This way you can win more Doge with less hashing power.
An alternative is mining Dogecoin in the cloud
There is an easier way to mine Dogecoin, and this is cloud mining. This convenient approach allows you to simply buy a stake in a mining company.
You do not own anything, but rent equipment in a large data center. The employees of the center manage all the processes and take their share, and also usually charge you for electricity.
Cloud mining can be a good option for those who do not want to bother with hardware and are not interested in managing mining.
However, cloud mining can be risky, as most contracts have time limits.
This means that if you buy a one-year Dogecoin mining contract from a cloud miner, and Doge’s price drops below the cost of electricity, then you yourself understand that your investment will not pay off.
In fact, Scrypt cloud mining has recently become unprofitable, and this also affected Dogecoin.
Popular cloud mining services like Genesis Mining and Eobot now have far fewer Scrypt mining contracts.
There are also hash capacity markets such as Nicehash, where you can also get Scrypt mining contracts.
NiceHash is slightly different from other cloud mining pools, as it rents hashing power from its clients.
Mining capacities do not come from one company, but from many individual sellers. A very interesting system, but it is rather difficult to understand the principles of trade and pricing.
Dogecoin mining conclusion
As a result, mining Dogecoin with profit will be a daunting task – possible, but difficult. However, the creators of Dogecoin never thought about money or profit, despite the fact that they have earned millions.
This is an open and welcoming community of crypto enthusiasts who want to learn and share.
So, quite in the spirit of the community, Dogecoin mining is an affordable way to enter the crypto scene.
With the advent of new, more accessible mining features, such as USB Scrypt ASIC miners, the barriers to entry are now lower than ever before.