Dogecoin came up in the global market as something people never would have expected. This is when the cryptocurrency started going downhill and most retail investors realized it was not for them. However, there are still many who are bullish on the currency.
The Dogecoin community is trying to evolve to build up a reputation as something more than just a silly meme. There are also many services. This coin is simple to mine on your own, and you can make money by doing it.
You can use cryptocurrency to contribute to the platform and earn it for yourself! Anyone with enough resources can participate in Dogecoin and make passive income from DOGE.
What Is Dogecoin?
Dogecoin is a decentralized cryptocurrency that was released in December 2013 and gained immense popularity in 2019. The Dogecoin community gained so much momentum that celebrities like Tesla’s CEO Elon Musk endorsed it on Twitter (Musk says he possesses one million coins).
Blockchain is a new medium of finance that is looking to disrupt the current industry standards through its immutable, secure nature.
The use of DOGE, one of the fastest and most popular cryptocurrencies, in payment systems by many retailers has shown that blockchain can help small businesses.
Proof-of-Work Consensus Explained
The Dogecoin network uses a proof-of-work (PoW) consensus model to verify which transactions are legitimate. Computers verify transactions as they compete to complete math problems and earn rewards for doing so.
A way to incentivize the community is by rewarding them with Dogecoin every time they play a certain game or contribute in some public way. This ledger of each block’s contribution history can be seen on the blockchain and allows for trustless transactions.
Everyone can verify transactions. People who verify the transactions are called “miners.” We each earn block rewards in proportion to how much computing power we contribute to the blockchain.
Bitcoin Mining vs. Dogecoin Mining
Dogecoin is largely based on Bitcoin’s mining model and so the systems are fairly similar. However, there are a few key differences that exist.
People who mine dogecoin are rewarded every minute. They might have their reward be anything from a few dogecoins to many, depending on the number of coins they get included in the block they are mining. Bitcoin, however, rewards its miners every 10 minutes or so.
Recently, bitcoin’s block rewards halved to overcome the high inflation. The next halving will occur around 2020, reducing the current block reward to 1 BTC
Bitcoin will continue to halve for at least another 100 years. There are no plans to change it, as the halving cycle will run for at least that long. Dogecoin has already stopped halving, and you receive 10,000 DOGE per minute forever.
The Bitcoin mining network is much larger than the Dogecoin network. It has over 176 million TH/s, while the Dogecoin network has around 325 TH/s.
For example, because of the block rewards & relative size, Bitcoin is more profitable to mine. However, Dogecoin can be a great way to gain experience with mining without hurting your wallet!
How To Mine Dogecoin
In this guide, we’ll show you how to mine Dogecoin using your CPU or GPU. We’ll also show you how to use it for trading and investing.
Dogecoin is a type of digital currency that has rapidly grown in popularity over the last few years. Unlike Bitcoin where the number of coins created is capped, new Dogecoins can be created at any time through a process called mining.
Mining involves solving complex mathematical equations which are used to verify transactions and create more coins into circulation. The mining process involves using your computer’s processing power to help verify transactions on the network and create new coins with each solved.
There are several resources available online if you are interested in learning more about how Dogecoin works and contributing to the network yourself.
Buy necessary mining hardware
If you are into crypto-mining, it probably isn’t the most profitable venture. You might need a specialized computer with a high amount of power to mine successfully.
If you want a computer that can generate cryptocurrency but is willing to put in a little work, an ASIC miner is your best bet. They are easy to use and also come at affordable prices.
Antminer L3+ is a great option for starters because it is not as expensive as other machines and is beginner-friendly. However, if you are up for the challenge of building a computer, you can take that route.
As more and more people are looking to improve the mining process, technology is always on the lookout for cryptocurrency mining opportunities.
To speed up mining, you must upgrade to a GPU. However, prices have shot up and miners may not be able to break even on their investment.
You can also contract to mine to a company like Kryptex for a certain period. They’ll manage the task of mining for you, and you’ll be entitled to the profits.
Join a mining pool
Once you have a mining rig built and ready to use, you connect your machine to a mining pool. A mining pool collects the computing power of many individuals to earn more consistent and predictable block rewards.
One of the best pools is F2Pool. F2Pool proves low fees and quick payouts for users. It also owns a fair amount of computing power on the chain, so it can help users earn even higher rewards.
Start earning Dogecoin
Once you are connected to a pool and have begun mining, you can start earning rewards. With an Antminer L3+, you can expect to earn around $6 per day per computer less electricity and upkeep costs.
WhatToMine is a website that offers Dogecoin mining calculators. It’s very accurate, and it’s easy to find the right calculator for your specific setup there.
Best Cryptocurrency Wallets For Dogecoin
After you mine some DOGE, you’ll want a place to store it. The mining pool will send your coins to a digital wallet where they’ll be safe until you decide to spend them.
Best Hardware Wallet: Ledger
For secure and convenient crypto storage, Ledger can be a good option. It supports the buying, selling, and swapping of DOGE. Hardware wallets are physical machines that store crypto like a bank.
Ledger offers two types of hardware wallets: Ledger Nano S and Ledger Nano X. The Nano S is more basic while the Nano X offers more functions.
When you buy a Ledger hardware wallet and download the software onto your computer, you will be given a wallet address. You enter it into your pool. This process lets the pool send rewards directly to your hardware wallet.
Is Mining Dogecoin Worth It?
Dogecoin has increased the number of transactions being processed a lot over the past year. Now that more transactions are going through, miners have to validate those to ensure it’s safe.
However, Dogecoin mining offers much higher profitability and lower barriers to entry. If you’re just experimenting with mining, or if you want to experience the system without spending a lot of money on a Bitcoin rig, this is possible.