HERE'S HOW TO MINE DOGECOIN
A lot of people around the world mine Bitcoin with hopes of making profits. On the other hand, Dogecoin miners do it for fun. But is there more than fun to be gained from mining Dogecoin? Read on to find out.
What is Dogecoin?
Memes have popularized Dogecoin (DOGE), a digital currency created for fun and designed to reach a wider audience than other cryptocurrencies. Dogecoin was born in 2013 when Billy Markus and Jack Palmer launched it as a jocular gesture to ease the tension in the crypto world.
With a cute Shiba Inu as the symbol, the coin aims to show the lighter side of the crypto world and get more people engaged in cryptocurrency. What began as a joke has now been applied in a ton of meaningful use cases that show its significance in societal issues.
Apart from being enjoyed by Reddit users in rewarding funny content, Dogecoin has been used to advance charitable causes like promoting the notable Jamaican Olympic bobsled team, as well as digging water wells in Kenya.
Dogecoin mining is similar to mining other cryptocurrencies, which involves validating transactions and being rewarded with a new coin. Dogecoin blockchain makes use of the Scrypt algorithm, with a new block gained every minute and offering 10.000 Dogecoins.
As with mining other cryptocurrencies, there are two ways to go about it – solo mining (on your own) or pool mining (along with a group). Solo mining naturally gives one a lower chance of winning a block, while pool mining increases the odds as there are more competing nodes. However, the total reward for the latter is shared among the group of miners.
What Is Required for Dogecoin Mining?
Mining any cryptocurrency is an extremely complex process that requires expensive hardware, software, and a lot of electric power.
Hardware for Mining Dogecoin
To mine Dogecoin, you need a Scrypt ASIC (application-specific integrated circuit) miner, a central processing unit (CPU), or a graphics processing unit (GPU).
It is not advisable to use the CPU of your PC as it may overheat from the complexity of the processes involved. GPUs perform better, and there are various kinds available.
However, as mining is now highly competitive, it's best done with an ASIC miner that works with the Scrypt algorithm. It comes with more power, but also costs more and consumes more electric power.
Sofware for Mining Dogecoin
There are a few software options for both pool and solo mining CPU mining. For GPU mining, there are a few more options, including Minergate, CudoMiner, and NiceHash.
ASIC for mining, on the other hand, usually comes built-in with the necessary software. Nonetheless, if your ASIC has no integrated program, CGminer is a vastly universal mining software.
Those interested in mining Dogecoins without investing in hardware or software can opt for cloud mining, which involves renting computer power at a monthly charge. This way, you get a corresponding share of rewards obtained. Some cloud mining pools you can join include Genesis Mining, Eobot and NiceHash.
You need a cryptocurrency wallet in which to store the Dogecoins you earn. Just like with online banking, you can send or receive crypto coins using your crypto wallet as well. There are several crypto wallets to download via the app store of your device.
Dogecoin mining is a good place for beginners to familiarize themselves with the mining process. In addition, though earlier considered as a crypto parody, Dogecoin has also proven its worth in supporting charitable causes.