How to mine Dogecoin
Dogecoin (DOGE) a cryptocurrency that began as a joke became a popular cryptocurrency in recent years due to its fun and friendly nature. Like some other cryptocurrencies, Dogecoin can be mined by anyone with a computer and internet connection. For those looking to get into the world of dogecoin mining, it can seem like a daunting task, but with a little knowledge and the right tools, anyone can join in on the fun.
What is Dogecoin - technical details and tokenomics
Created as a joke version of bitcoin, Dogecoin shares many similarities with it. The mining process for DOGE was at first almost identical to that of Bitcoin. Initially, the maximum number of DOGE coins, like BTC, was limited, and halving was also practiced. However, in 2014, the developers decided to remove the maximum limit for issuing coins and halving. As a result of the adopted update, the DOGE emission became fixed in the amount of 10,000 coins per block (5 billion 256 million coins per year), for an unlimited number of years.
Thus, today Dogecoin is technically an inflationary cryptocoin, as the amount of DOGE is growing every year. Nevertheless, Dogecoin has experienced significant price growth in recent years, largely due to its growing popularity and the support of high-profile individuals such as Elon Musk.
Despite the fact that Dogecoin was created as a joke cryptocurrency, it has attracted the attention of many investors, especially after its value began to skyrocket in early 2021. DOGE is known for its active community and social media campaigns, which are often used to promote the cryptocurrency and support its value. At the same time, Dogecoin remains an underused cryptocurrency, and its use is mainly associated with transactions on cryptocurrency exchanges.
Dogecoin has been making headlines in recent years due to its incredible price increase. It started 2021 at $0.005 and hit an all-time high of $0.68 in May 2021. However, it later experienced a significant price drop and is currently trading at around $0.07. Despite price fluctuations, Dogecoin remains one of the most popular cryptocurrencies on the market. DOGE is one of the top 10 cryptocurrencies in the world with a market capitalization of over $9 billion.
Before you can start mining or trading Dogecoin, you will need to set up a dogecoin wallet. If you prefer to use hot software wallets, you can use the MultiDoge and Dogecoin Core wallets. These wallets are created and maintained by the developers of the Dogecoin network.
Since DOGE is a top cryptocurrency, it is supported by almost all popular software crypto wallets, such as MetaMask, Exodus, Trust Wallet, Atomic Wallet, etc. Cold hardware wallets Trezor and Ledger also support DOGE.
How to Mine Dogecoin
Like other cryptocurrencies that use Proof-of-work, Dogecoins can in theory be mined on any computing device: from Android smartphones to personal computers, GPUs and ASIC miners. But the great popularity of Dogecoin has made solo mining on computers and GPUs meaningless today. The hash power of mining pools puts solo DOGE miners at a disadvantage.
According to whattomine.com resource, DOGE mining is profitable only on the most powerful Bitmain ASIC miners worth several thousand US dollars apiece. The payback period for such devices will be at least several years. Therefore, the most realistic way to mine DOGE today is to participate in mining pools or rent cloud mining services.
How to Mine Dogecoin in mining pools or cloud mining: 6 steps
- Choose a mining pool or cloud mining service. Some popular Dogecoin mining pools include Prohashing, Mining Pool Hub, and Aikapool. For cloud mining, services like Hashflare and Genesis Mining offer Dogecoin mining contracts.
- Set up a Dogecoin wallet.
- Install mining software. The mining software you choose will depend on the type of hardware you have. Some popular mining software for Dogecoin include CGMiner, EasyMiner, and MultiMiner.
- Configure mining software. This typically involves entering your mining pool's URL, port number, and your Dogecoin wallet address.
- Start mining: Once everything is set up, you can start mining Dogecoin by running the mining software. The software will use your computer's processing power to solve complex mathematical equations, which will help to verify transactions on the Dogecoin network and earn you Dogecoin rewards.
- Receive rewards. Rewards are automatically deposited into your digital wallet, and you can use them to make transactions or hold them as an investment.
Mining Dogecoin is a relatively straightforward process that involves setting up a digital wallet, joining a mining pool, downloading and installing mining software, configuring mining settings, and starting to mine. It is essential to ensure that you have the right hardware and software to maximize your mining performance. Additionally, it is crucial to monitor your mining activity regularly to ensure that everything is working correctly. With these steps in mind, you can start mining dogecoin and potentially earn rewards in this popular cryptocurrency.