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How to Mine Dogecoin. A Beginner’s Guide For 2024:
Solo Mining — is when you are mining alone;
Dogecoin Mining Pools — here, miners band together and combine their computation power;
Cloud Mining — you're renting the computing power from a data center for a monthly or annual fee.
Dogecoin’s value has been increasing steadily. No wonder why so many investors are talking about how to mine this possible goldmine. We’ve collected the best Dogecoin mining tips and strategies for you.
Dogecoin has taken the world by storm. Even Elon Musk wants to ride the bandwagon and make it the de-facto cryptocurrency out there. In this article, we’ll tell you all about Dogecoin; its history, and rise to fame. But most importantly, we want you to make the most out of this meme coin.
Never have we ever had the opportunity to make thick cash sitting at home. Times are changing and you can profit from Dogecoin too. Let’s dive into it!
Simply put, Dogecoin is a cryptocurrency like Bitcoin and Ethereum, a bit different though. For example, you can use Ethereum to create and share various applications or DApps. Similarly, you can use Ripple (XRP) for international asset exchange. But Dogecoin was launched as a joke, but certainly isn’t a joke anymore.
Secondly, all cryptocurrencies have a limited supply. There’s a ceiling to how many coins can be created. For example, Bitcoin has a supply limit of 21 million coins. Of this, 18.638 million have been mined already.
The funny thing is Dogecoin currently has no supply limit. You may find this strange because anything that isn’t scarce has little to no value. How on Earth then is Dogecoin valuable? Does it even offer a store of value? Why should you invest in Dogecoin? Here’s what it offers:
Dogecoin History
Dogecoin founders Billy Markus and Jackson Palmer wanted Dogecoin to stand out from the crowd. That’s why the Dogecoin community started using the coin for charitable projects.
Doge4water was a Winter Olympics fundraiser that supported charities worth $14,000 made in Dogecoin. Similarly, League against AIDS, Edward Center, and Shiba Scout Rescue programs are all charities run by Dogecoin.
Dogecoin also stands out because of its less complicated algorithm, which means you can mine it more easily. While Bitcoin uses the complicated SHA-256 algorithm, Dogecoin uses the Scrypt algorithm, which is faster and less energy-intensive.
Dogecoin Profile
Ticket
DOGE
Max supply
N/A
Total supply
130,063,646,536
1-year price low
$0.0074524
1-year price high
$0.68144
Current Price
$0.16
Market cap
$0
Markets
Binance, Huobi Global, Coinbase
Can you Mine Dogecoin?
Like how you’ve to mine gold before it enters the market, the same way you have to mine Dogecoin so it becomes available in the market. Dogecoin is a fork of Lucky Coin, which is a fork of Litecoin, which is a fork of Bitcoin. A fork is a sort of like a split in a cryptocurrency’s software.
For example, when people started joining the Bitcoin bandwagon, the crypto network slowed down. Users wanted to update the Bitcoin protocol and created a new fork. This fork created new rules for the currency without violating existing ones.
Hard forks are major changes to the existing network and that’s why Litecoin emerged from Bitcoin, Lucky Coin arose from Litecoin, and Dogecoin came out of Lucky Coin.
Mining means you’ve to lend your processing power to get some cryptos in return. That’s called proof-of-work. Like Bitcoin, Dogecoin also functions on proof-of-work, which means that to mine it, you’ll have to lend your computational power to the blockchain network.
However, speculation has it that Dogecoin might switch to proof-of-stake soon. This protocol randomly selects miners to confirm a transaction based on how many coins they hold. The higher your coins, the higher the mining power you can lend. It’s an eco-friendlier way. But that’s just speculation for now.
Is Dogecoin Mining Profitable?
Mining Dogecoin has become profitable, especially after its surge in price in early 2023. As a cryptocurrency becomes more popular, more people join in as miners, and the currency’s value increases. However, as the competition increases, the proof-of-work protocol becomes more difficult.
In other words, you’re competing with millions of other miners and it becomes difficult to mine the currency. For Dogecoin, we recommend you check out this profitability calculator. Your profitability depends on your hash rate, power consumption, and mining difficulty.
Previously, mining Dogecoin wasn’t profitable because it had a very low price. Although the mining difficulty was low too, it couldn’t compensate for the coin’s low price.
Now, however, the currency has surged and it has become profitable to mine Dogecoin despite its increased difficulty. But to do that you will need a good graphics-processing unit (GPU). A more powerful GPU can mine more Dogecoins per unit of energy consumed.
Just a heads up, mining from your CPU isn’t profitable. You’ll end up spending more money on power than earning crypto.
How Does Dogecoin Mining Work?
Transactions on the blockchain network do not happen in a vacuum. They need processing power to get approved. This processing power comes from the millions of people ‘mining’ the currency.
If you’re a miner, you’re lending out your computer’s processing power in return for some cryptocurrency. The blockchain network uses this computation power to verify and approve transactions.
When your computer starts mining, it produces hashes that solve mathematical problems. This helps verify transactions in blocks on the blockchain. The proof-of-work algorithm decides how much computational power you’ve used.
Miners compete as to who will verify transactions in blocks. Most likely, you’ll be in a mining pool where several other miners merge their computing power and the rewards are shared among all.
To sum it up, you lend out your processing power to the Dogecoin blockchain network. Your computer generates hashes to solve math problems. This helps verify transactions on the blockchain network. For every transaction you verify, you’re awarded Dogecoin.
How to Mine Dogecoin in 2024
Before you get started, you should know there are three kinds of mining – solo mining, mining pools, and cloud mining.
Solo Mining
As the name suggests, solo mining is when you are mining alone. That’s why you need to have high-tech expensive equipment that has a high hash rate. A low hash rate won’t do you any good because Dogecoin's difficulty has increased.
If you can afford expensive equipment like the ASIC miner, you’ll get more rewards because you won’t have to share them. The energy costs and profitability are also going to be pretty high.
Dogecoin Mining Pools
Here, miners band together and combine their computation power. With a much higher collective hash rate, mining becomes easier and the rewards are distributed among miners based on how much computation power each miner lent.
There’s a catch though. You’ll be charged a 1 to 3% fee for being in a mining pool. Therefore, your rewards will be lower than what you’d expect in solo mining. Here are some Dogecoin mining pools
Aikapool – All you need to do is sign up with a PIN and give your miner a name. Remember the PIN because you’ll need it to withdraw the rewards.
Multipool – This mining pool is apt for merged mining, which means you can mine Litecoin and Dogecoin simultaneously without losing your hash power. The sign-up process is similar.
Prohashing – After signing up, you can use this pool to mine multiple currencies and even choose the coin you want to be rewarded in.
Cloud Mining
Cloud mining means you're renting the computing power from a data center for a monthly or annual fee depending on how much computing power you need. The data center will use that computing power and join a mining pool. The mining rewards will be shared between you and the data center based on the contract you signed with them.
Cloud mining can be risky because contracts are time-locked. So, if Dogecoin’s price drops, you’re going to incur a loss and you won’t be able to change your contract terms either. If you’re interested in cloud mining, check out Nicehash and Genesis Mining.
Best Dogecoin Miners in 2024
There are three ways you can mine Dogecoin – CPU Miners, GPU Miners, and ASIC Miners.
CPU Miners
AMD Ryzen 9 3950X – If you want to mine with your CPU, you may need to get access to this processor. It gives a good CPU hash rate of 19.9 kh/s, otherwise mining from your CPU isn’t profitable. This equipment will cost you around $2,000.
AMD Ryzen 5 3600X – This processor will give you a hash rate of 5.58 kh/s and is still cost-effective in terms of mining rewards per unit of energy consumed. You can buy it at a price of around $450-500.
GPU Miners
NVIDIA GeForce RTX 3090 – Costing at around $1,500, this GPU will give you a hash rate of up to 121 MH/s. However, it has a significant power draw. But still, it makes mining profitable.
NVIDIA GeForce RTX 3060 – This graphics card will give you a massive hash rate of 40 Mh/s with a power draw of 225W. Plus, it only costs $400.
ASIC Miners
Bitmain Antminer L7 – ASIC miners are extremely powerful and purposefully built just for mining. This miner has an explosive hash rate of 9,500 MH/s. The power draw is equally as high as up to 3,425W. This machine will cost you around $13,000.
BW L21 Scrypt Miner – With this miner, you’ll get an impressive hash rate of 550 Mh/s with a power draw of around 950W. The miner supports all currencies that use the scrypt algorithm, including Dogecoin. This machine costs $2,500, which is a slightly higher investment than a really good GPU.
Dogecoin Mining Software
CPU Mining
As we’ve already discussed, CPU mining is not profitable unless you invest in a really powerful processor like the one mentioned above. However, at this price range, you’ll get more powerful GPUs that’ll give you a better hash rate than a CPU.
Anyhow, if you’re still bent on mining from your CPU, you may use the CPU Miner mining software. Another really easy software for newbies you can use is EasyMiner. You can use it for both CPU or GPU mining.
GPU Mining
Most miners use GPUs because it’s more profitable to mine using your GPU. CudaMiner is one of the best mining software for your GPU, especially if you have an NVIDIA GPU. You can also use this mining software with an ASIC machine.
Apart from CudaMiner, you can also use EasyMiner and CGMiner. Most mining softwares are compatible with both CPUs and GPUs, which means they can mine from both simultaneously.
ASIC Mining
If you’re using an ASIC machine, we recommend you use MultiMiner, which is the top choice for ASIC miners. Its advantage lies in its ease of use. Apart from this, you can also use CGMiner and BFGMiner. The latter is more built for customization. It’s more suitable for advanced users.
Dogecoin Wallet
No matter which mining hardware or software you use or whether you’re doing solo mining or pool mining, you must have a Dogecoin wallet. Without having a wallet, you won’t be able to mine Dogecoin.
Whatever exchange you’re using, there will be an option to create a wallet and set its currency. You’re mining Dogecoin, so select the currency as Dogecoin. After that, the exchange will give you your wallet address.
The digital wallet is virtual and of course, carries a risk of being vulnerable to being hacked. You can also have a hardware wallet. This is a device that stores your cryptocurrency secured on a physical device only you have access to.
A physical cryptocurrency wallet is much more secure because it cannot be hacked. If you’re interested in a hardware Dogecoin wallet, have a look at Ledger Nano X and TREZOR One.
Other Dogecoin Mining Costs
Apart from a GPU or ASIC equipment, which are costly investments, you’ll also need to invest in complementary accessories that help run this equipment smoothly. For one, you’ll need a cooling system.
Mining is a resource-intensive process and can heat your GPU, wearing down its life. That’s why you need a cooling system to cool your mining rig. You may use CloudCooler if you have a big mining rig. Otherwise, you can just rely on an air-conditioned room too.
Your rig’s cooling requirements depend on the average weather conditions where you live and the number of systems you have installed in your rig.
Secondly, mining is a power-intensive process. A GPU and an ASIC Miner will use quite a lot of electricity while mining. On average, you can expect your electricity costs to be between 10-20% of the revenue you earn using a good GPU or ASIC machine.
Should I Mine Dogecoin?
With Dogecoin’s price risen, it has become profitable to mine the cryptocurrency.
However, whether you should mine Dogecoin depends on:
Whether you have access to the right equipment for Dogecoin mining. If not, are you ready to invest in it and the supplementary accessories?
The electricity costs where you live. The more expensive electricity is, the less profitable it’ll be for you to mine Dogecoin. Make sure you check this profitability calculator.
Whether you’re ready to bear a potential loss. The crypto market is extremely volatile and since Dogecoin can be described as a pump and dump scheme, it could lose its value in the future. If so, your mining efforts could go down the drain unless you convert Dogecoins into Bitcoin or Ethereum.
– WeBull is an American-based cryptocurrency broker regulated by the SEC and FINRA. The best thing about this platform is that it doesn’t charge you commission if you want to trade.
Plus, you can start trading with a minimum deposit of $1. On top of that, you’ll have access to analytic and trading tools, which will help you forecast the value of your portfolio.
Binance is the biggest crypto exchange out there. It’s based in Hong Kong. Although it charges a commission on every transaction you make, it offers high-end security of your crypto assets.
Small exchanges can be hacked but this risk does not apply to Binance. Additionally, Binance gives you a proprietary cold wallet that adds another layer of security to your crypto wallet.
Summary
All in all, Dogecoin is worth mining because of its price surge. It seems like Dogecoin fans won’t give up on the currency. With people like Elon Musk who want to make Dogecoin the default cryptocurrency out there, it doesn’t seem the coin’s demand will wane. Therefore, it’s profitable to invest in Dogecoin, especially if you want to mine it.
We recommend using a good GPU for mining Dogecoin because a GPU is a multipurpose machine unlike the ASIC, which is only built for mining. Make sure you check out the profitability of mining based on the electricity costs where you live and the cooling material you’d require.
For storing Dogecoin, we suggest using Dogecoin. Yes, there’s a transaction fee on the platform but Binance provides unparalleled security so you won’t have to worry about losing your hard-earned crypto assets.
FAQs
Is Dogecoin mining possible?
Yes. Dogecoin works according to the PoW algorithm, classic mining is possible
What do you need to mine DOGE?
To mine DOGE you need a GPU miner or ASIC miner and software
Is it mandatory to join the DOGE mining pool?
You can get DOGE without joining the pool. But the profitability of mining will be lower.
What determines the profitability of DOGE mining?
The profitability of DOGE mining depends on hardware and software, participation in a pool or self-mining, current DOGE prices, the cost of electricity in your region and other factors…………....
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.
