The volatile values of cryptocurrencies make them one of the best assets for mining. People around the world are looking for such mineable cryptocurrencies to add to their blockchain ledger. In 2020, Bitcoin is the most mined cryptocurrency in the world. However, Bitcoin’s high price makes it impractical for mining among new crypto holders. Hence, an open-source, peer-to-peer cryptocurrency such as Dogecoin comes into play.
Today, Dogecoin is considered an altcoin as it was almost created like a sarcastic meme of Bitcoin. The development of Dogecoin was initially helmed as a joke, but over the years, this crypto asset has evolved its blockchain meritoriously. Since its launch in December 2013, it’s been seven years for Dogecoin to gain global prominence for being derived from Litecoin’s underlying technology. With a market capitalization of nearly $500 million, Dogecoin is now mineable like Litecoin and has the same proof-of-work technology backing its value. Only a few crypto miners, however, are aware of dogecoin mining.
Can You Mine Dogecoins?
Simply put, Dogecoin is a mineable cryptocurrency. You can mine Dogecoins the same way you mine Bitcoin and Litecoin cryptocurrencies. However, the value of Dogecoin is significantly less than that of Litecoin and Bitcoin. Hence, Dogecoin mining is often observed as a less profitable process. Difficulty levels in Dogecoin mining are relatively low, compared to the Bitcoin mining difficulties. At the same time, mining Dogecoins has higher chances of winning the block reward than mining any other cryptocurrency.
How to Mine a Dogecoin
The Dogecoin mining process looks simple, where you are rewarded with a new Dogecoin for conducting your payment transactions on the Dogecoin blockchain. However, mining this cryptocurrency is not as easy as it seems. Dogecoin mining works similarly to the concept of a lottery. It requires the user to put some work into the process. As per Dogecoin News, Miners are required to work on their computer (which serves as a node) for mining Dogecoins. This work primarily involves confirming online payments and checking those transactions on the Dogecoin blockchain network.
If millions of computers are working on the same block of Dogecoin transactions simultaneously, only one miner can win the reward of new Dogecoins. That miner earns the new coin by adding the node to the new block of Dogecoin transactions. This process is completed with the help of complex mathematical equations. If your computer/node solves this mathematical problem first, you win a Dogecoin, and it gets attached to your newly-confirmed block of crypto transactions on the blockchain.
Unlike other cryptocurrency mining, Dogecoin mining has a distinct process that is governed by the following factors:
- Mining Algorithm: Each Dogecoin token follows the standard set of crypto mining rules. These rules are a part of the hashing algorithm.
- Mining Difficulty: The miner faces a number that represents how hard it is to mine each new block of Dogecoin. This difficulty number is used for figuring out the likelihood of winning the Dogecoin mining lottery. Mining difficulty varies depending on how many miners are actively involved at the same time. This difficulty level is also adjusted by Dogecoin’s protocol, ensuring that the block time stays the same.
- Dogecoin Block Time: It is the average length of time taken for a new block of crypto transactions added to the Dogecoin blockchain.
- Reward: It is the amount of Dogecoins won by miners.
Now, let’s look at where you can mine Dogecoins for maximizing the rewards.
Where Can You Mine Dogecoin?
For any miner, it takes not more than 1 minute to mine a Dogecoin. However, the speed of Dogecoin mining also depends on where the cryptocurrency is being mined. You can mine Dogecoin with a basic hardware setup that includes the CPU of your personal computer, which should be powerful enough to mine cryptocurrencies such as Litecoin. Your Dogecoin mining hardware also needs optimally powerful computers as there should not be recurring instances of overheating. This can cause damage to your system as well as your mining efforts.
The Dogecoin mining hardware needs a GPU (graphics card) that improves not only the computer graphics but also mines Dogecoin. Some of the best GPUs for mining Dogecoin include:
- SAPPHIRE Pulse Radeon RX 580
- ASUS RX Vega 64
- Nvidia GeForce GTX
The most important part of your crypto mining hardware is the Scrypt ASIC miner, a component designed to mine scrypt-based cryptocurrencies. The Scrypt ASIC miners are programmable hardware used for Litecoin, Bitcoin, and Dogecoin. They are powerful and quite expensive. With extensive mining, these pieces of hardware can become very loud. Innosilicon A2 Terminator is an affordable Scrypt ASIC miner.
Cloud mining is also available for Dogecoins, where you can start a Dogecoin wallet and join an online mining pool. Eobot, Genesis, and Nice Hash are among the best cloud mining websites for Dogecoin. However, these websites offer their cloud services at a monthly fee, which is cheaper than running your own mining operation.
Dogecoin Mining – Is it Profitable?
Based on your mining hardware, you can mine approximately 83.07773329 Dogecoins in a day at a mining hash-rate of 2,200,000.00 KH/s under Dogecoin difficulty of 5,327,113.17 for a block reward of 10000 DOGE. However, Dogecoin mining is not that profitable compared to Litecoin mining. It will not make an overnight crypto millionaire as one Dogecoin is worth only 0.002777 US Dollars. You can get more information about DOGE Price Prediction and make your investment accordingly.
Final Thoughts on Dogecoin Mining
Ultimately, making profits from mining Dogecoin is going to be difficult. It is possible, but Dogecoin mining is less about money or profits and more about learning and sharing. Despite being worth millions, Dogecoins are only serving the purpose of welcoming people to the crypto mining community. It is an accessible cryptocurrency for mining enthusiasts and comes with several affordable options.