Dogecoin Mining (DOGE) Guide
Unlike many other cryptocurrencies, Dogecoin initially started as a parody of the crypto communities on the get-rich-quick path. The coin was initially launched on Twitter to make cryptocurrencies more fun and approachable. However, what started as a meme has now become a crypto market worth millions.
What is Dogecoin Mining (DOGE)?
Although Dogecoin is a distant Bitcoin fork, its source code has several major differences. Unlike others, Dogecoin does not have a predefined maximum supply and works as an inflationary currency. In order to keep the network safe from attackers, developers in 2014 decided to enable merge mining for DOGE as well.
Dogecoin uses a simplified version of the Proof of Work hashing algorithm, Scrypt. This enables it to receive work from other networks that are based on the same algorithm. Miners solve mathematical equations using their mining setups and are rewarded with Dogecoin for their efforts.
Why Mine Dogecoin (DOGE)?
Compared to other cryptocurrencies, Dogecoin does not have a maximum supply, and miners can earn 10,000 DOGE per block. More than 14 million Dogecoins are created daily, and over 131 billion are currently in circulation, with one Dogecoin worth around $0.06581. Mathematical equations required for earning Dogecoin are comparatively faster and easier to solve.
Where other cryptocurrencies, such as Bitcoin, take an average of 10 minutes to process new blocks on the network, blocks on the Dogecoin network take an average of just one minute. Due to the infinite number of Dogecoins that can be created, the crypto, by design, is an inflationary currency. Keeping this in mind, Dogecoin can be seen as more effective for processing payments than crypto you would hold for a greater return on investment.
Profitability of Dogecoin mining (DOGE) Rig
When measuring the profitability of a Dogecoin mining setup, various factors such as electricity cost, power consumption, pool fees, and hash rate need to be considered. Using the Dogecoin profitability calculator provided by MinerStat is the simplest and most accurate way of measuring profitability.
A mining system’s hashing power and electricity costs are the most critical when calculating profitability. An efficient hash rate will increase the chance of solving mathematical equations on the Dogecoin network and allow miners to earn more tokens.
Although the worth of Dogecoin is expected to decrease slightly by the end of 2022, the expected value of the crypto token may increase to a maximum of $0.11999 in 2023.
Requirements To Set Up
Although ASIC miners are the most efficient and profitable option for Dogecoin mining, the setup can be costly. However, budget-friendly computer processor (CPU) and graphics card (GPU) mining options are available. When choosing your hardware for Dogecoin mining, it’s important to consider the potential hashing power, as it will increase the chances of solving mathematical equations on the Dogecoin network.
Some of the best GPUs for mining DOGE include RTX 3090 Ultra Gaming, RTX 2080 Ti, RTX 2070, GeForce GTX 1080 Ti, and the AMD Radeon RX 5700 XT. It’s preeminent to mention that the recommended GPU option, the RTX 3090 Ultra Gaming, has a hash rate of 120 MH/s, therefore multiple GPUs will be required to make your mining setup profitable.
Along with the GPUs, you will also need wallets to store your earnings. There are three main types of crypto wallets: Web Wallets, Browser Integrated Wallets, and Hardware wallets.
Web wallets are based on Web3 and use their websites for transactions. Whereas browser-integrated wallets allow users to seamlessly interact with their crypto and work without frequent requirements for login credentials. Hardware wallets are physical wallets used to store crypto and serve as the best option for those who want to hold on to their crypto tokens for long periods.
Currently, the Exodus Wallet, Atomic Wallet, and Guarda Wallet are some recommended options for storing, trading, and investing in Dogecoin. Along with these, hardware wallets such as the Ledger Nano S Plus and the Trezor Model One are the best option for those who want to hold Dogecoins. In addition to choosing a wallet, you need to visit MiningPoolStats to choose a Dogecoin mining pool.
Step-by-Step Guide for Dogecoin Mining on PC
When you have finalized a wallet and a Dogecoin pool, you can start mining DOGE by following these steps:
The first thing you need to do is to update your GPU drivers. You can do this by going to the GPU manufacturer’s website and downloading the latest drivers.
Mining Software Configuration
Once you have updated your GPU drives, you can proceed to download DOGE mining software.
Currently, EasyMiner is the best GPU mining software for Dogecoin. First, you’ve to download and install the mining software. When you start the software, it automatically asks you for information about mining Litecoin. Here you will click on Skip and Exit so that you may configure the software to mine Dogecoin instead. Afterward, open the Setup to access the configuration of the mining software and provide the following information:
- Algo – enter “scrypt” as the mining algorithm
- Server – enter the “pool address” and “port” taken from MiningPoolStats
- User – enter “wallet address” and “worker name”
After saving the configuration settings, click on Start Mining.
Due to the requirement of multiple GPUs to make your DOGE mining setup profitable, alternatives such as cloud mining solutions are a great option to increase your profitability and reduce initial costs.
Some of the best cloud mining alternatives for mining Dogecoin are provided by Genesis Mining and ViaBTC. These platforms are a great alternative for mining and provide lifetime contracts and daily payouts. In addition to this, another key benefit of cloud mining alternatives is that you don’t have to worry about any power, setup, or electricity cost.
Dogecoin started as a parody of cryptocurrencies and is a distant fork of Bitcoin. Unlike others, it does not have a maximum supply and therefore serves as an inflationary currency. Although ASIC mining is the most profitable option for mining DOGE, the crypto can be mined using GPUs.
However, multiple GPUs are required to generate an effective hash rate and increase profitability. Considering this, those not comfortable with mining DOGE on their own can use various cloud mining alternatives. This will help reduce the initial setup costs required to start mining DOGE and provide miners with a hassle-free solution.