Dogecoin crypto is once again in the news as it hits the all-time peak price crossing 10 cents. However, here we will not discuss the buying process of Dogecoin tokens but the process of its creation. Some crypto investors create digital tokens and the process is known as mining. So, read on to find out how to mine Dogecoin tokens.
- 1. Understanding Dogecoin
- 2. How To Mine Dogecoin?
- 3. Types of Dogecoin Mining
- 4. How To Solo Mine Dogecoin?
- 5. Can You Still Mine Dogecoin? The Quest for Dogecoin Mining
- 6. What Is The Future Of Dogecoin?
- 7. Wrapping up
- 8. Mine dogecoin FAQs
Most popular cryptocurrencies come with a maximum limit to which they can be mined. For instance, Bitcoin tokens have a hard cap of twenty-one million tokens beyond which they can’t be mined. However, Dogecoin does not come with any such limitations. And this is one of the main reasons that today there are over 129 billion Dogecoin tokens circulating in the public domain.
History of Dogecoin
Dogecoin (DOGE) is a crypto token created by Billy Markus and Jackson Palmer. It is unlike other crypto coins, as its co-founders started it as a joke. Both of them felt that the cryptocurrency sector was too severe, and they created this token for fun.
Never mind its questionable start, Dogecoin is one of the recognizable tokens in the crypto arena. It is managed solely by the community. The cryptocurrency market is replete with tokens containing bales of whitepaper pages, over-exacting explanations, and complex theories on the blockchain functions. In contrast, Dogecoin’s simplicity makes it stand out from the crowd.
How To Mine Dogecoin?
While mining Dogecoin does not require the complex computing needed for Bitcoin, it can still be challenging for beginners. Therefore, we have tried our best to cover all the essential steps to help you initiate the process on your own.
Crypto mining, as well as Dogecoin mining, is a unique process where all transactions of crypto coins are stored on a ledger. This ledger is known as a ‘blockchain.’ The blockchain is spread across a vast network of computers or nodes. The nodes are responsible for assigning each of the new transactions into a group or a block.
Every block undergoes a detailed check by the nodes before it is added to the blockchain/ledger. The process of confirming blocks requires an immense amount of computing power.
In the end, every miner is rewarded in the form of new crypto tokens for all of their hard work for the mining process. Dogecoin mining follows the same principle.
Dogecoin Mining Pool
Dogechain, Dogecoin’s blockchain, is online and open to the public displaying real-time transactions. The blockchain is wholly managed by the community, and Dogecoin is the governing token that gives investors the right to decide on the policies and framework.
For those who are mining the dogecoin crypto tokens, the ultimate aim is to get the reward at the end of the process. Currently, Dogecoin miners can get involved in mining to gain a block reward when they mine Dogecoin, which is equal to ten thousand Dogecoin tokens.
Types of Dogecoin Mining
Like most other cryptocurrencies, Dogecoin tokens can be mined in one of the three ways – Mining in a pool, Solo mining, and Cloud mining. Each has its own benefits and drawbacks, as discussed below.
Dogecoin Mining in the pool essentially means joining a Dogecoin pool. Here you have to combine your mining machine’s power with the other members of the Dogecoin mining pools. As a part of the Dogecoin mining pools, your chances of gaining a reward are certainly higher. However, you have to pay a fee to be a member of Dogecoin mining pools. This is not all. The reward is split between all the miners within the pool; therefore, you will receive only a fraction of the reward.
Cloud mining is entirely different to pool mining. Your involvement in this Dogecoin mining method is very limited. You pay a third party for mining as well as mining equipment on a monthly basis.
These cloud mining entities own mining farms for mining crypto tokens like Dogecoin. They send rewards to their customers daily as per the contract that you have signed. The platform charges a fee for equipment maintenance. Cloud mining platform plans, therefore, are less profitable. While there are a few decent Dogecoin cloud miners, it is necessary to perform due diligence to avoid entering a fake scheme.
Solo mining means mining entirely on your own, without any pool or third-party cloud mining service provider. In solo mining, your machine becomes the node, and you work alone on the network for the entire duration of the mining process. While you may not be rewarded as often as pool mining, you will certainly not be sharing the reward with anyone. Plus, it does not come with the risks of Ponzi schemes that are typically associated while working in a cloud mining environment.
Solo Mining Vs. Pool Mining
Both mining options come with their unique advantages and disadvantages. With pool mining, your chances of earning rewards are much higher as pools mine blocks more frequently than a solo miner. However, on the downside, you are paying a fee, and you have to share the reward with other miners in the pool. On the whole, it is a good option if you want a consistent supply of the Dogecoin token.
The major drawback of solo mining is the wait time for confirming transactions due to massive competition in this space. Realistically speaking, it can take you weeks or months to mine your first ever Dogecoin block. Looking on the bright side, when you do win, the total reward is solely for you. There is no need to pay a pool fee or share the reward with anyone.
Beginners are usually recommended to join Dogecoin pools. However, read on to find out how you can perform solo mining to maximize returns.
How To Solo Mine Dogecoin?
If you want to mine Dogecoin solo, remember that the profitability will be much lower even though you get to keep the soils. Also, Solo mining of Dogecoin is a highly competitive arena. The chances of getting the desired results are often compared to winning a lottery.
What Do You Need for Solo Mining Dogecoin?
The Dogecoin mining process, like every crypto mining activity, comprises two elements – the internet connection and the hardware. The power of your hardware can determine whether you can mine more than your fellow crypto enthusiasts. Once this is for sure – you cannot mine Dogecoin successfully without a stable internet connection.
Dogecoin Mining Hardware requirements
First and foremost, you require a system with a CPU to mine Dogecoins. However, mining cannot be done efficiently over a phone or a mobile device. You will need either a dedicated Dogecoin miner or a mining rig.
A mining rig is a PC that is custom-built solely for the purpose of mining crypto assets. It is recommended to use GPU mining or GPU power instead of CPU power as it can process more power than a standard CPU.
A Doge miner, on the other hand, is an app-specific miner with an integrated circuit. It is also known as ASIC (application-specific integrated circuit miner). It can be used for Dogecoin since the crypto token is based on the Scrypt ASIC algorithm. This process is popularly used by ASIC miners.
Mining hardware consumes more power than standard CPU units. Therefore, you should take this into consideration for profitability calculations. You can use an online service to determine the benchmarks or the power of your mining rig. You also need a mining profitability calculator to mine Dogecoin. It can be found on a Dogecoin mining pool.
Dogecoin Mining Software requirements
Software to mine Dogecoin depends on the hardware you intend to use for this process. For instance, if you are developing your own mining rig, then there are various options for selecting a corresponding mining software.
Focussing solely on GPU mining, you can go ahead with AMD or Nvidia for the best results. It is essential to spend some time deciding which of these you intend to use because your mining software options will depend on the GPU you select.
If you are a first-time miner, then EasyMiner is an excellent user-friendly option. You can also explore CuraMinder or CGminer.
EasyMiner is a suitable mining software even if you intend to follow the ASIC mining route. You can start mining in no time.
Can You Still Mine Dogecoin? The Quest for Dogecoin Mining
The answer is yes, you can. At present, there is no cap on the number of Dogecoins that can be mined in the Dogecoin mining regulation. Palmer in 2014 commented on the GitHub forum regarding mining Dogecoin. He said that the Dogecoin cryptocurrency in circulation aims to reach 100 billion coins. Once this number has been achieved, the rewards will only be handed out in each ten thousand blocks. The idea behind this is to stabilize the number of tokens in circulation while maintaining the mining process. Currently, Dogecoin token numbers are increasing by approximately 5 billion, year on year.
Given the value of the token, solo mining is an expensive process. Therefore, the network focuses on incentivizing miners via block rewards. Without a limit in supply, Dogecoin tokens can be mined forever. You can find out more about this by contacting us directly at www.coincasso.com. ,
Is Mining Dogecoin Profitable? Yes & No
There is no doubt that mining is a time-consuming and expensive process as you have to invest in appropriate hardware and software. Moreover, the process is complex and becoming more so as you progress. With more and more people mining cryptocurrencies like Dogecoins, much powerful equipment in place is consuming massive amounts of energy.
So, should you still consider mining Dogecoin? Those who mine Dogecoin know that the process is far less complex than mining Bitcoin. Plus, your chances of winning the block reward are higher when you mine Dogecoin. Therefore, for a first-time miner, Dogecoin is an excellent token to mine.
For now, mining Dogecoin can help you make a profit. It is the expert opinion as the Dogecoin token has experienced growth in 2021 compared to its price in 2020. However, as a miner, you should know that cryptocurrency mining profitability can change pretty quickly.
Dogechain is a constantly growing and evolving blockchain. Therefore, it is highly probable that the mining complexity will increase as the blockchain develops further. Keeping this in mind, it is recommended that miners check their profitability regularly to remain green at all times.
What Is The Future Of Dogecoin?
For a token that was founded in jest, Dogecoin continues to perform with an upward trend in 2021 as well. In just January this year, the cryptocurrency token managed to achieve more than 45% growth. Bitcoin, on the other hand, only managed 6% in that period. For a digital asset launched as a joke, this is a commendable performance.
However, the token is struggling to shed its image as a cryptocurrency designed in jest. As a result, Dogecoin is still considered a highly speculative cryptocurrency asset that continues to enjoy trading on several prominent exchanges.
This contradictory history has pushed some cryptocurrency analysts to believe that Dogecoin can potentially be a risky investment. But, the supportive Dogecoin community has proven what loyal supporters can help you achieve. It remains active despite the significantly fluctuating world events. Being a low-cost cryptocurrency, the Dogecoin community has found it easier to stay active and involved.
Dogecoin’s success is primarily due to its large and supportive community members. The cryptocurrency token continues to stress what a strong ecosystem of supporters can achieve. Hence, so long as Dogecoin continues to enjoy the dedication of a growing community, the token will more than likely, offer stable returns in the future.
Plus, the Dogecoin token does not come with any hard cap on the numbers that can be mined. Therefore, Dogecoin mining has a bright future and is here to stay for a considerable period of time. Even though Dogecoin mining is not as profitable as Bitcoin or ether, various investors consider it a safe investment leading to its consistent rise.
If you are a first-time miner, then make sure that you do all the checks to begin the process with the correct hardware and software. You can create an account at CoinCasso by clicking here: https://app.coincasso.com/login and begin your cryptocurrency journey.
Mine dogecoin FAQs
How Fast Can You Mine Dogecoin?
Broadly speaking, and depending on your hardware, you can mine a little under 90 Dogecoins per day. It is no mystery that Dogecoin mining is worth a lot less than Bitcoin mining or Litecoin mining. However, when it comes to mining speed, it is much faster than both these currencies. As a result, the block reward is definitely higher. But on the other hand, the value of 1 Dogecoin is still far lesser than 1 Bitcoin.
How Long Does It Take To Mine 1 Dogecoin 2021?
According to Coinwarz, it would take around 0.011 days for a user to mine a single Dogecoin. It is calculated after considering the complexity level for mining a Dogecoin and its hashrate during the hashing process. However, the process is much faster than mining a heavy digital currency like Bitcoin.
How Many Dogecoins Are Left To Mine?
According to the latest data released by Coindesk, nearly 129 billion Dogecoin tokens are in circulation, and over 110 billion have been mined. The community intends to maintain the number of Dogecoins in circulation around 100 billion. Therefore, they plan to continue with rewards in the blocks of 10K.
Will Dogecoin Reach $1?
Whether Dogecoin will sustain its growth cycle in the future remains to be seen. As of now, the next significant milestone for the community is to reach the $1 mark. Although it is more than likely to happen, ‘when?’ is a difficult question to answer with certainty. The majority of digital currency investors are confident that the Dogecoin token will reach $1 price before too long.
What is the wallet for storing Dogecoins?
Dogecoin wallet is the official wallet for storing your Dogecoin tokens. The Dogecoin wallet can be accessed with Windows, Android, Mac, as well as Linux users.