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Dogecoin Explain and Approaches to Dogecoin Mining - everything you need to know

Dogecoin Explain and Approaches to Dogecoin Mining - everything you need to know

Dogecoin has become one of the top cryptocurrencies in the market. Mining Dogecoin had for a long time been largely unprofitable due to the meme coin’s ridiculously low value. Yet having traded at just $0.0024 on 1 July 2020, DOGECOIN now fetches a staggering $0.27 a coin. Somehow this meme project, created in 2013 as a joke, has become the most valuable punchline in the world, worth almost $40 billion in market cap as of June 2021. Nobody had taken the “doggy coin” seriously in its early years – least of all its co-creators Billy Markus and Jackson Palmer. So, when Elon Musk started praising Dogecoin’s virtues in December 2020, almost everyone in the crypto space initially took it as a joke.

However, after several months of pro-Dogecoin tweets – not only from Musk but from other celebrities, including Mark Cuban and Snoop Dogg – as well as a DOGECOIN mention when Musk hosted Saturday Night Live, crypto community members are starting to believe that the self-proclaimed “Dogefather” could be taking the meme coin more seriously than other crypto projects. Musk’s confirmation of his working relationship with Dogecoin developers has only reinforced this perception. These developments go some way to explain why DOGECOIN is holding strong in its support level despite currently bearish market conditions, which is great news for DOGECOIN miners.

This guide will explain how you can start earning your own DOGECOIN through mining and take advantage of its current popularity and high price. It’s important to do your research and to remember that there is a high risk involved due to the volatility of DOGE’s value. Bearing this in mind, let’s dive into DOGECOIN mining and how it works.

What Is a Dogecoin Miner?

A Dogecoin miner is the hardware that participant nodes in the Dogecoin network use to carry out the mathematical calculations needed to check and validate incoming transactions on Dogechain, the coin’s underlying blockchain.

Doge mining guide.png

How Dogecoin Mining Works

Dogecoin miner nodes determine which transactions to include in the Dogechain, validating them and incorporating them into “blocks” that will be recorded chronologically (and immutably) on the shared ledger, which is viewable by all network participants.

To recap, these miner nodes are using their hardware to calculate the complex mathematical puzzles that are an integral part of the transaction validation process. For their efforts, they earn block rewards denominated in DOGE. The Dogechain releases 10,000 DOGECOIN per minute, which are rewarded to whichever node confirms incoming transactions quickest.

What are the Best Dogecoin Miners Out There?

There are several types of Dogecoin miners. In fact, you can start mining Dogecoin via the computer or laptop you’re using right now. Unlike Bitcoin, Dogecoin’s mining system is not very compute-intensive, which allows entry-level computers to mine DOGECOIN and still make a profit.

Dogecoin can be mined using various types of hardware, including computer processors (CPUs), graphics cards (GPUs), ASIC miners, CPU Miners

Although it’s possible, it’s not ideal to use your personal or work on a computer for mining (unless it is truly powerful), since the process tends to overwork its components, especially its CPU. This can make the computer prone to overheating and reduce its lifespan over time.


GPU Miners

While CPUs are powerful enough to handle the stress of mining DOGE, GPUs are more suitable, as they are more powerful and better optimized. If you prefer to mine with a GPU, three of the best to consider are: ASUS RX Vega 64, Nvidia GeForce GTX, SAPPHIRE Pulse Radeon RX 580, BTC Antminer S19i

The BTC Antminer S19i is based on the Antminer S19 series with low power consumption, running by joint mining form to share profits and bear risks together.

Dogecoin are currently: Bitmain Antminer L3, BW L21 Scrypt Miner, Innosilicon A2 Terminator

Other Things to Consider When Choosing a Miner

It’s important to note that whichever method you choose to mine Dogecoin, you should also take your setup – including storage needs and temperature control – into consideration. As an overview, keep in mind the following:

1. Coolers

Mining can cause overheating, which reduces the lifespan of your hardware. Establishing cooling setups for your mining device is important. Note that cooling requirements vary depending on the device, but GPUs tend to require cooling more than other miners.

2. Noise

Bear in mind that ASIC mining rigs can be loud, especially if you are running more than one device.

3. Space

Be sure to consider where you’ll place your setup before buying them. ASICs are best placed in a cool soundproof room or enclosure.


Dogecoin Mining Software

Mining software is essential for mining Dogecoin no matter which type of miner you use. The software allows you to connect to the Dogechain and utilize the computing power of your miner to earn rewards. The five leading Dogecoin mining applications are currently:

EasyMiner (for newbies)

CGminer (for ASICs)

CudaMiner (for Nvidia GPUs and ASICs)

CPUMiner (for CPUs)

MultiMiner (best for ASICs)

Note that you’ll need to make sure that your hardware works optimally with your chosen software.

Approaches to DOGECOIN Mining

Dogecoin, like other proof-of-work (PoW) cryptocurrencies, can be mined using different approaches, depending on your budget and equipment. These include:

Dogecoin Solo Mining

Individual mining can in theory be extremely profitable if you have a Dogecoin miner with high computing power since you get to keep all block rewards to yourself. However, in practice, solo mining requires you to run multiple devices to be effective, as competition in the Dogecoin mining space is high. Keep in mind that you will be vying for block rewards against large mining pools across the globe.

Dogecoin Mining Pool

Pool mining is a strategy in which a group of miners pool their computing power to gain better chances of winning block rewards. A Dogecoin mining pool allows small-time miners to mitigate their risks of losing money and raises their chances of becoming profitable, as it significantly enhances their chances of consistently winning block rewards. Participation in a pool also lowers the burden of overhead costs and expensive energy consumption since multiple parties are pooling their computing power and mining as one unit.

The top Dogecoin mining pools currently out there are:

AntPool is currently one of the largest mining pools and consists of Bitmain ASIC miners. According to some reports, 10% of all cryptocurrency blocks are added by AntPool miners. The pool supports Scrypt mining, which means that it can be used to mine both Dogecoin and Litecoin.

Prohashingis one of the oldest mining pools in the market and supports multiple different altcoins. It utilizes a pay-per-share (PPS) model and charges users a 3.99% pool fee. Prohashing also offers merged mining, allowing users to mine both Dogecoin and Litecoin simultaneously.

The ViaBTC mining pool has mined 8.82% of all Bitcoin blocks over the last six months. It is a phenomenal option for crypto beginners, as it offers one of the most user-friendly interfaces. Like Prohashing, ViaBTC supports merged mining.

Trustpool is a pool based in Russia that supports seven different cryptocurrencies, including Dogecoin and Litecoin. It also features merged mining, allowing you to mine both Scrypt-based coins. Trustpool currently has several thousand active Dogecoin miners.

Dogecoin Cloud Mining

If you don’t feel like setting up your own Dogecoin mining operation, you can subscribe to a cloud mining program, in which a data center mines DOGECOIN on your behalf and charges a monthly or annual fee for its services. To easily get start earning dogecoin, join OXBTC Lottery and win 200 Free Dogecoins.

OXBTC is one of the oldest online service providers for mining and hosting cryptocurrency since 2014. Recently OXBTC start a Lottery Draw Campaign for earning 200 Free Dogecoins a week. Every new register on OXBTC official site or OXBTC App can join. To join OXBTC Lottery and earn free dogecoins you need to get a lottery ticket first. See how simple to join:

First, each new user can receive a lottery ticket and join the weekly lottery draw.

Secondly, the winning ticket will be randomly selected from all Lottery tickets and the Lottery result will be sent by email from OXBTC to your e-mail associated to your OXBTC account on Mondays at around 8:00 (SGT). (So, you need to create your OXBTC account by sign your email first).

How to Mine Dogecoin

Before you begin mining Dogecoin, make sure you have an uncapped Internet connection and a reliable electricity source that can handle the needs of your miner.

Firstly, choose your hardware. First things first, you need to get your hands on a miner.

**Secondly,**choose your software. Once you have your hardware all set up, it’s time to find the proper software and download it. Mining software is easy to install but be sure to select one that suits your GPU or ASIC mining rig.

Thirdly, create a wallet. Your wallet is where your earnings go, so be sure to secure it by memorizing your seed phrase and storing your private key safely. Moreover, your wallet needs to support Dogecoin. Trust Wallet and MetaMask are both good choices. You can also opt for hardware wallets like Trezor or Ledger. Once you’ve set up your wallet, link it to your mining software.

Finally, launch your mining operations. Once everything is in place, run the mining software and watch your DOGECOIN stacks grow. Your mining software should be providing you with a preview of how much you’re earning by the hour.

Alternatively, simply join a mining pool or sign up for cloud mining services if either of these are your choice.

Conclusion

If Dogecoin’s price doesn’t drop considerably below its current $0.3 support levels, mining Dogecoin in 2021 will likely be profitable. To be safe, be sure to use a mining profitability calculator before investing in any type of miner or mining service.

You should also be smart about cashing out your DOGE. You may want to regularly convert your DOGECOIN rewards into fiat currency or stable coins. Alternatively, you might prefer to HODL your DOGECOIN and only cash them out if they substantially increase in value. Whichever decision you make, be mindful of balancing out your risks and rewards. For example, you might want to cash out half of your DOGECOIN with every payout and hold on to the other half.