How to mine Dogecoin (DOGE)?
Dogecoin (DOGE), based on an Internet joke (meme), is a crypto currency that attracted a lot of media attention in 2021 when its value skyrocketed at the beginning of the year. As funny as Dogecoin and its history are, it seems that the cryptocurrency, based on the Internet joke, will be permanent in the ecosystem. Dogecoin has a loyal community that supports it by storing DOGE, despite the price volatility.
Many people are interested in investing in Dogecoin thanks to the interest it has received and the sharp rise in its value. One of the ways to earn money is to DOGE mining.
Mining, just like any other cryptocurrency, plays an important role in helping the network work.
Those who are considering starting Dogecoin mining are lucky, since DOGE, like most other popular cryptocurrencies, does not need extensive opportunities to start mining. Because you may not get rich by mining Dogecoin, but it can help you accumulate a few coins.
In summary, Dogecoin is a crypto currency that was launched in 2013. Although it was originally taken out as a joke, Dogecoin was quickly held up as the community fainted at the idea of cryptocurrency not taking itself seriously.
Moving forward, Dogecoin has become a well-structured cryptocurrency with high value thanks to the large number of people who use it for investment. Although Dogecoin is similar to other cryptocurrencies in most ways, it has some differences compared to popular cryptocurrencies such as Bitcoin (BTC).
For example, both Dogecoin and Bitcoin have blockchains, and both use cryptography, that is, encryption, to create blocks and verify transactions. However, Bitcoin uses the SHA-256 algorithm for hash algorithms, while Dogecoin uses Scrypt.
Another example is that most cryptocurrencies have an upper limit on the total number of coins that can be produced. There is no limit to the number of Dogecoins that can be produced. However, inflation is kept under control by limiting the number of coins that can be produced every year.
In addition, while Bitcoin mining is not possible for most people, it is possible to benefit from Dogecoin mining without installing an expensive mining facility.
The last and important difference is that Dogecoin mining cannot be done directly. Dogecoin has moved away from the direct mining model to protect itself against potential 51 percent attacks. If you want to earn Dogecoin through mining, you need to mine a different cryptocurrency and convert the reward to Dogecoin.
Cryptocurrencies, which have a similar understanding as Bitcoin, are produced by mining. Still, the thing is not so simple. This type of mining is carried out using processing power to solve cryptographic puzzles, rather than mining by excavation for minerals.
To put it simply, blocks are formed from transactions involving cryptocurrencies. These blocks turn out to be encrypted puzzles, and miners solve these puzzles using their computing power to process the blocks.
Since this process is necessary to verify transactions and keep the network safe, the miner helps the network work by solving blocks. Whoever solves the block first, the miner will be rewarded with new cryptocurrencies.
Having more processing power gives the miner an advantage in the crypto mining world. The more power you have, the more hashes you can solve, and thanks to this, the miner is the first to solve the block, and your chances of winning prizes increase.
Dogecoin has been using a Proof of Work (PoW) mining system since it merged with Litecoin (LTC). Instead of mining Dogecoin directly through PoW, Dogecoin can be earned by mining other cryptocurrencies that run mining networks on the Scrypt algorithm.
Another feature that makes Dogecoin mining so attractive is that it has individual mining and pool mining options. This is what allows almost everyone to earn a few coins without the need for a room full of equipment.
In individual mining, users mine alone. This means that the person owns all the mining equipment and covers the costs. Thanks to this, the rewards are not shared. In pool mining, different users combine transaction resources to decode blocks and earn coins. Although you need to share the rewards, the costs are significantly reduced, making Dogecoin mining possible for more people.
What do you need for DOGE mining?
Whether you are planning to start your own mining operation or pool your resources, you will need the hardware to get started. Pool mining is the best option for beginners thanks to the low entry price. It is also difficult to earn money as an individual miner.
The first thing you need is a Dogecoin wallet. You will store your earned coins here. You can easily find compatible wallets on the Dogecoin website. In addition, various hardware and wallet software october also available.
If you are interested in mining only as a hobby, you can do it through any computer. The majority will recommend you a machine running Windows or Linux, but you can also mine it via Mac. After all, you should try to use a powerful machine, such as a graphics processing unit, or GPU, for example, computers designed for gaming or video editing. You can only mine Dogecoin with a computer that uses a CPU, but it will not be very efficient, and energy consumption will exceed your earnings.
If you are taking the issue of mining a little more seriously, you will need to buy a machine made for mining called ASIC, which is unique to the application. This will increase your processing power and the number of coins you can collect, but the cost is high.
Of course, if you want to start a large mining operation, you will need to connect several ASIC equipment and store them in a warehouse. For most people who want to start mining Dogecoin, it is obvious that it will be exorbitantly priced.
The biggest expense associated with crypto mining is electricity. Even if you are mining Dogecoin on a desktop computer as a hobby, you may encounter an installed electricity bill. The cost of electricity can be astronomical if you are conducting a large mining operation with rows of machines working together.
And the only problem is not the cost of the electricity used by the machines. All this energy consumption generates a considerable amount of heat. If the heat is not controlled, it can damage the equipment. Before powering the machines, you will also need to take into account the cooling systems to protect the mining equipment.
This is another reason why, for some, pool mining is a more attractive option. By taking only a part of the processing power, you can significantly reduce costs. Despite this, you will be in a network with processing power that will be competitive with other mining operations.
How to mine Dogecoin?
Now that you know about Dogecoin, you are ready to start. Here is a guide for beginners who want to start DOGE mining as part of the pool.
The first thing you need to know is that there are many Dogecoin mining pools that you can join. In order to find a suitable Dogecoin mining pool for yourself, it is advisable to do some research.
Let's take a look at a few general steps that apply to most mining pools:
- Go to the official website and download the software. If your browser blocks the download process (this is common in mining software), you must allow the website.
- When the file is downloaded, you need to open the compressed zip file. If you do not have the necessary software to extract files, you can download programs that will make this possible. Just right-click on the file and select a location for the files to be extracted.
- After the files are extracted, you must run the file with administrator privileges. If you have a problem, you may need to allow the application through your firewall or anti-virus software.
- After the application is opened, finish the installation process and get to the options of the mining software.
- Since GPUs and CPUs have different requirements, you will encounter various mining software options depending on the hardware you are mining on. You must download the appropriate software, and you may need to add the software to the list of programs trusted by your anti-virus software.
- You should also make sure that you have downloaded the correct version for your own operating system. Whether you use Linux, Windows, or Mac, you will need to select the option that is compatible with your operating system.
- After downloading the mining software, you need to remove the files and go back to the mining application. Click on the file icon and search for files that match your operating system and GPU or CPU.
- After installing your mining software, you will see a field for your wallet address. You will need to copy and paste your wallet address there. This shows you where to send the Dogecoin you have produced to the mining software.
- After everything is set up, you can start the process. At this stage, you must have entered the Dogecoin mining process. To verify this, you must be able to see your current hash rate in the application.
If you don't see your hash rate in the application, you will need to fix the problems. As a simple step, make sure that the mining software has all the permissions it needs to work on your computer. In addition, you can check the version of the miner you are running. You can solve the problem by installing an older version of the software.
That's how easy it is for a beginner to start mining Dogecoin. However, you should remember that your share of the reward will depend on the trading power you have contributed. In addition, you will october to pay a fee to the mining pool, so compare the fee conditions of the pools before registering.
The fact that the idea of mining is a little more accessible is one of the great things about Dogecoin. This is more relevant, especially when you consider the idea of joining the mining pool. For this reason, you should not expect that pool mining will bring you big profits.
Mining dogecoin can be worth the time you spend even with small profits. Firstly, it can be a good introduction to general cryptocurrency mining. In addition, most miners do this job as an investment, not for the current value of the Dogecoin they produce. The goal of the miners is to collect coins in advance in the hope of turning them into earnings when the price rises.