Dogecoin is a decentralized peer-to-peer digital currency that enables users to send money online. Doge mining is one of the ways to obtain these coins but before we dive into how Doge mining works, let’s take a quick look at what Dogecoin is.
“Doge” is the fun, friendly mascot, the Shiba Inu a Japanese breed of dog now it’s the ‘face’ of a virtual currency that was popularized as an online meme and represents Dogecoin.
As of writing time, it is one of the top cryptocurrencies in terms of market capitalization and can still be mined.
This Doge mining guide will dive more on how to obtain the coins, which equipment is required and a few tips to take along before deciding to engage in Doge mining.
Dogecoin Historical Background
A Dogecoin is a form of cryptocurrency created by two gents; Billy Markus and Jackson Palmer. Unlike other coins, the Dogecoin was not started as a serious coin but rather as a parody of the existing coins in the crypto market for purposes of creating fun after they noticed people were taking cryptocurrencies too serious.
In the year 2013, the Dogecoin was first released into the market. The main goal of the coin was to make the cryptocurrency world more approachable.
Eventually, they did what no one expected. Thdy used the famous Shiba Inu dog from a meme for their currency.
It was initially used to make donations to charity organizations and financing of sporting activities. With improvements in the technology; Doge coin can now be used by merchants for regular transactions.
The technology behind Dogecoin
Dogecoin uses a similar technology just like Bitcoin. It runs on the blockchain platform but with some few distinct features. The blockchain acts as distributed forms of ledgers executing transactions in a safe, fast and secure manner.
Information on blockchain ledgers can be accessed by anyone making it a trustworthy and effective system. This gives users the liberty to confirm if the information on the ledger is legit or not and that’s the main thing that builds trust in Dogecoin users.
Note that personal data for Dogecoin users is kept private which enhances privacy.
Uses of Dogecoin
Just like most cryptocurrencies, Dogecoin has the ability to be used as digital money and can be accessed from the holder’s wallet on Smartphones, websites or computers.
However, it is widely used for online charity and tipping content creators on online platforms that accept the coin.
The coin also offers the possibility to mine them which can later be sold on exchanges or exchanged for Bitcoins or any other cryptocurrency of your choice. Mining Dogecoin is not a complicated process as we shall see below.
What Is Doge Mining
Doge mining is a method through which doge miners get rewarded DOGE coins for verifying transactions made on the Dogecoin Blockchain technology.
Look at Doge mining similar to the way people mine gold. The only difference is with Doge mining, rather than investing in heavy machinery to dig through the ground, you are investing computer hardware equipment with which to solve complicated mathematical
Once a block is being hashed, participants on the network get rewarded with Dogecoins for using their electricity and equipment.
How to mine DOGE
There are 3 ways to start mining DOGE coins. This could either be via solo mining, pool mining or cloud mining. Depending on your Doge mining goals, one of these options could suit you.
Solo Doge mining:
As soon as you have the required software and hardware in place, you can start with solo D
You may have heard that solo mining of Dogecoins does not currently exist but that is not entirely true. The bloating of the
With this approach, you will be required to provide the required hashing power on your own and you get to be the only one benefiting upon confirmation of blocks.
ote that solo mining may not yield any reasonable profits if you are practicing it on a small scale. You can only enjoy maximum profits from solo mining if it is on a large scale and with heavy equipment.
In fact, solo D
Typically, solo miners are either beginners or geeks who’re engaged in the process itself. For this reason, people usually resolve to the second method– collective mining.
As a result, you will only earn Dogecoins by merge mining it with the litecoin.
Pool Doge mining:
With the doge mining pool, miners unite forces with each other and
It is advisable to go for this option if you are still new in doge mining and you wish to get higher returns on whatever you invest. Once a block is confirmed, it is then shared proportionally to all members of the contributing pool fairly.
Also, joining a mining pool will protect you from the stiff competition involved in this process. Pooling your mining operations gives you the capacity to compete for the existing blocks with large mining operators.
Ensure that the pool you join supports
Given the vast variety of doge mining pools out there, choosing a well-established pool with a good reputation and minimal fees is something potential doge miners should take into consideration.
Cloud Doge mining:
For those not able to invest heavily in Doge mining equipment, you can also mine the Dogecoins from the cloud. This is an easier method of doge mining as it does not require you to own the hardware and software.
With cloud mining, you can just lease the capacity from a third-party provider who has already invested heavily in the hardware required in data centers. This way, work is done by the equipment of the owners.
As a tip for cloud mining, make sure to always read customer reviews, as well as rental terms offers. Also, it’s better to engage in Doge mining for a longer period of between 6 to 24 months.
Also, large websites usually offer a discount for clients ordering their power for a greater term. Also, try to get options that provide instant withdrawal.
Cloud Mining is perfect for people who are committed to other
Just like with any other coin in the crypto world, there are risks associated with cloud mining of the Dogecoin. One of the risks is that the contracts signed in cloud mining are time-bound and often up front. This implies if your contract only lasts for one year and Dogecoin prices for that specific year fall below the costs incurred in mining the coins, you will automatically incur great losses.
It is also important to note that Doge cloud mining has experienced a lot of challenges in the recent past. Most companies that used to offer the
The golden tip is beware of SCAMS. This is one of the mining methods with large scale scams. Always make sure you do in depth research before participating in cloud mining.
Doge mining hardware and software
Just like any other activity, you require some tools/equipment to begin the mining of Dogecoins. Below is a list of the things that you will require.
You can begin Doge mining with any operating system be it Windows, Mac OS or the Linux open-source operating system. However, these operating systems are only good for trying out bitcoin mining. You will require more complex OS such as the GPUs and ASICs for more serious mining.
In addition, you will require; a PC, a steady internet connection and a doge wallet. Some good equipment you could look into are; ASUS RX Vega 64, SAPPHIRE Pulse Radeon RX 580 and Nvidia GeForce GTX.
oftware used for Doge mining varies from each other depending on the running operating system. Dogecoin wallet; this wallet is quite essential for storing the mined bitcoins. You should ensure that you’ve chosen a secure wallet for added safety of your coins
Pros of owning Dogecoins
- They are fast and fun to use
- Transaction speed is faster in comparison to other coins
- The rates charged on the platform are relatively
low Ithas benefited a number of charitable organizations.
Cons associated with the Dogecoins
- Generally, it is not so profitable to mine the coins
- The Dogecoin has constantly kept losing in the cryptocurrency market since the update of the blockchain.
Closing remarks on Doge mining
The choice of which method to use for Doge mining depends on the individual, his resources and the reason for mining. It’s up to you to
Nevertheless, do not invest more than what you’re ready to lose when it comes to cryptocurrencies because mining could also lead to loses.
However, it could be profitable down the line making your time, investment and work pay off as many have made significant returns from mining especially looking back at the early days of Bitcoin.