Dogecoin, the meme-based coin, witnessed a significant increase in terms of value earlier in the year, attracting plenty of attention from the media in 2021. DOGE’s history is rooted in humor, and it seems like this meme-based crypto has no intention of leaving the crypto space.
In spite of its market volatility, a committed community continues to support Dogecoin without any hesitation. Today, there are so many out there who want to invest in DOGE simply due to its sharp increase in value and the media attention it initially received.
Just like other Proof of Work (PoW) cryptos, Dogecoin mining is vital to the operation of the network. In this case, dogecoin miners are definitely in luck, considering it doesn’t require any massive investment to start mining, unlike several other popular options.
Dogecoin mining will not really make you very rich. But it can definitely help you to earn a passive income. Today, we will go deep into the world of Dogecoin mining – stay tuned to find out more!
So, What Is Dogecoin Mining?
So, what is dogecoin mining? When you are referring to cryptos, mining talks about developing or creating new tokens as modes of payment for finished tasks. For solving any difficult problem happens to be a transaction of sorts, which is known for making use of cryptographic techniques and computer systems. The miner obtains compensation for their hard work.
It is also possible to mine Dogecoin and Litecoin simultaneously. This is possible because the two coins share multiple similarities. An entire series of transactions in a single block within the DOGE network includes enough data during the transaction.
Once you mine a block, all the others on the network will know about it. Moreover, the network updates records vigorously and, as a result, does not face double transaction recordings. Also, the network does not approve any fraudulent transactions.
Dogecoin mining involves solving complicated cryptographic equations, which happens to be true for mining all cryptos. Thus, a miner interested in mining doge-coins needs to expand energy based on computational power, which results in expenses.
How To Mine Dogecoin?
The Scrypt algorithm was used to build Dogecoin, Litecoin, and some hundred other cryptos.
Since Dogecoin depends on the Scrypt algorithm, it is actually energy-efficient for mining purposes. As a result, you do not need the equivalent of something massive like a nuclear collider for mining dogecoin. You can easily do it from the comfort and convenience of your room.
Dogecoin stands to build a community of like-minded individuals. So, it makes plenty of sense that mining this coin should be made accessible.
The complications of mining dogecoin start to ramp up over time. Since the token is Scrypt crypto, some miners tend to mine Viacoin (VIA), Litecoin (LTC), and other tokens that use a similar algorithm to earn more revenue.
If that does not sound appealing, then there is another great way to mine Dogecoin – yep, we are talking about mining pools!
Dogecoin Mining Equipment:
You do not really require a whole lot to get cracking on Dogecoin mining:
- A safe Dogecoin wallet such as Ledger, Trezor, etc.
- A computer device with either Linux, Windows, or macOS.
- A connection to the internet.
Apart from these, your Dogecoin mining experience will rely on the kind of mining you plan on doing. If you are planning some conventional mining then you will also need some hardware as well as software.
Dogecoin Mining Hardware:
There are three kinds of hardware that you can use for Dogecoin mining:
1. Graphics Processing Unit (GPU):
Graphic cards, or GPUs, are popular mining hardware. Graphic cards are commonly used to play video games. As a result, at times, their supply runs low, increasing the expenses.
But since DOGE does not need a whole lot of computing power, you do not have to buy anything brand-new or expensive. A relatively cheap and simple Nvidia GeForce GTX 1060 works just as well.
2. Central Processing Unit (CPU):
If you own a really good desktop and don’t feel like incurring extra costs, you can use the CPU you already have for mining Dogecoin. But we would definitely advise against the same – while DOGE is not resource-intensive like the more popular Bitcoin, it will overheat your CPU, damaging it in the process.
3. Application-Specific Integrated Circuit (ASIC):
As we mentioned in the past, you will require an ASIC that is compatible with the Scrypt algorithm for mining Dogecoin. This kind of mining happens to be really effective. However, ASIC miners are usually loud, expensive, require plenty of resources, and get very hot. As a result, managing these is a tough job.
In spite of all the problems, if you are set on buying a good ASIC miner for Dogecoin mining, then we can recommend the Innosilicon A2 Terminator.
And It’s A Wrap!
Dogecoin mining is not very hard, but it is relatively resource-intensive and needs some preparation. That being said, a majority of people do not mine DOGE for revenue or to obtain the coin. Instead, they mine DOGE for the sake of the amazing community.
Dogecoin is all about having los of fun – and it still continues to be so – either with yourself or with others. But when you mine this coin accurately, it can be profitable. Just ensure that you know what you are getting into before purchasing a $5K GPU.
If you are not running after revenue but instead want to collect certain Dogecoins, you can purchase DOGE from multiple sources as well.