How to Mine Dogecoin: A Complete Guide – GOBankingRates | Jewelry Dukan

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If you are interested in earning extra income from home, cryptocurrency mining is one way to do it. While you need to make an upfront investment in a mining computer and also have the ongoing electricity costs to run your miner, mining crypto can generate passive income over time.

Read: Do you want to diversify in a bear market? Consider these 6 alternative investments

It is easy to start mining Dogecoins and you can earn significant profits over time. As the price of DOGE increases, every coin you’ve mined will gain even more value. Mining can be fun and profitable as you set yourself up to earn years of passive income.

In just four steps you can start mining Dogecoins.

  1. Set up your wallet
  2. Choose a mining pool
  3. Set up your hardware and software
  4. Start mining

What is Dogecoin?

Honestly, Dogecoin started out as a joke. In 2013, IBM software engineer Billy Markus and Adobe software engineer Jackson Palmer met on Twitter and decided to combine two hot trends at the time – “Dog” and Bitcoin.

meme inspiration

At the time, there was a Shibu Inu meme circulating that was used to share thoughts on everything from fad diets to napping. Palmer alluded to this, tweeting, “Investing in Dogecoin pretty sure it’s the next big thing.” The tweet received an unexpectedly positive response, prompting Palmer to buy the Dogecoin.com domain.

Markus, who was working on programming his own crypto, apparently agreed with Palmer. He stumbled across the website and approached Palmer about partnering. And Dogecoin was born.

In early 2021, long after the doge meme crossed the rainbow bridge only to make sporadic appearances on Facebook, Dogecoin took off thanks to a series of tweets between Elon Musk and Snoop Dogg. In January 2021, as GameStop stock soared thanks to the Reddit subthread /WallStreetBets, Dogecoin took off and surged 600%. It peaked at $0.7376 in May 2021.

ups and downs

At its peak, the coin reached a market cap of $80 billion. It is an open-source, peer-to-peer cryptocurrency that is considered an altcoin – bitcoin is the original crypto, and all other coins are considered altcoins. Despite its humble beginnings as a joke, Dogecoin is among the top 10 cryptos according to CoinMarketCap.

Although the coin fell as low as $0.053 during the crypto winter, it is slowly starting to rise again. If you start mining DOGE now and crypto keeps going up, you could create a small nest egg to reinvest, spend, or save.

This guide will show you everything you need to know to start mining Dogecoin, including how long it will take and how much you can expect to spend.

How to start mining Dogecoin?

You’ll need to do a little research at each step to ensure you choose the right hardware and software and understand how your wallet and mining pool work, but it only takes four steps to get started.

1. Set up your wallet

When you start mining Dogecoin, you need a crypto wallet compatible with Dogecoin. Cold storage wallets are the more secure option as they store your crypto offline where it is not vulnerable to hackers until you actively use the wallet to trade and connect it to the internet.

If you prefer faster access to your wallet, you can opt for a hot storage wallet that stays online – but be aware that this comes with additional security risks.

After you have your wallet, you should choose a mining pool to join.

2. Choose a mining pool

This step is optional – while you can mine solo instead of joining a pool, the cost of a solo mining rig and the associated energy consumption can be prohibitive. It may be a better option to start in a pool and later switch to solo mining if your mining is going well and you’ve earned enough to justify the cost.

First, look online for a mining pool. DOGE differs from many other altcoins because you can mine Litecoin and then get paid in DOGE if you wish.

Some popular mining pools include Aikapool, which controls 7% of the Dogecoin mining hash rate market share. With Litecoinpool you can mine LTC and DOGE. Zpool is another popular Dogecoin miner that controls 2% share of the mining hash rate.

When comparing mining pools, consider the following:

  • Percentage of Fees
  • Type of payment system
  • Pool hash rate
  • Estimated time per block

3. Set up your hardware and software

You need dedicated hardware for mining Dogecoin. You can rent someone else’s hardware through cloud mining — a good option if you don’t have the space or money for your own rig — or you can set up your own CPU, GPU, or ASIC rig. If you’re joining a mining pool you can probably get by with a cheaper setup, but if you’re mining alone you might need one of the more expensive options, like an ASIC rig, to make it worthwhile.

Most pools require you to create an account containing your crypto wallet address, download the mining software and configure it to mine for DOGE. You may also need to choose your payment method. For example, in the case of Zpool, you can choose to mine Bitcoin and get paid in DOGE, or vice versa.

4. Start mining

Once you have your wallet, mining pool, and gear set up, you can start mining.

Is it expensive to mine Dogecoin?

It’s important to remember that most businesses or investments have some startup costs, and DOGE mining is no different. Working as a solo miner or in a pool affects your costs.

solo mining

If you’re a solo miner, you’ll face several considerations that you won’t face when you start pool mining. You need a powerful computer – preferably an ASIC miner with extensive cooling systems to avoid damaging the machines. ASIC miners can be expensive.

In a series of reviews of various crypto miners, Software Testing Help presents a basic miner that costs $2,500 and consumes 950W of power. The assessment said you would be making $5.53 per day after subtracting the cost of the machine and electricity to run it.

You can try mining using a Windows or Linux PC with a graphics processing unit (GPU), also known as a gaming computer. However, the power consumption, coupled with the cost of the GPU-based computers and required cooling systems, makes DOGE solo mining quite costly and, most experts say, unprofitable.

The Dogecoin website says that using a GPU for solo mining is unlikely to be profitable due to the slow mining rate and high energy bills.

pool mining

If you can’t afford one – or better yet, many – ASIC mining computers, pool mining is a far better option for startup miners without the backing of a big company behind it.

You can still get better results with an ASIC miner than with a GPU, even in a pool. But if you can’t afford the start-up costs of an ASIC machine – and you have access to affordable power – you might be able to use your GPU to get started and learn the basics, with the intention of eventually upgrading to a better rig.

How long does it take to mine a Dogecoin?

According to CoinWarz, it currently takes 0.004 days to mine a Dogecoin with a hashrate of 9,500 MH/s. However, you cannot mine a single DOGE at a time. Dogecoin is mined in blocks of 10,000 and it takes about a minute to mine a full block.

Of course, the speed it takes to mine a block will vary depending on the mining pool you choose and the power of your miner. If you mine with a GPU instead of an ASIC, you won’t be able to mine as fast and your profitability will decrease. Mining rate and profitability also change depending on the total computing power available at any given time to mine blocks and generate hashes.

profitability

It’s important to review your profitability to see if it’s worth continuing or to decide if you need to switch mining pools, upgrade your mining computer, or even sit out for a while until profitability increases.

CoinWarz calculated the profitability of mining DOGE on September 15, 2022 using the following parameters:

  • mining difficulty: 4,542,503.70
  • Mining Hashrate: 9,500MH/s
  • Power consumption: 3,425 watts at $0.10 per kWh
  • Block Reward: 10,000 DOGE at $0.05

After deducting mining fees and electricity costs, miners can earn $16.67 in a day.

However, this number will vary daily and is just an example. Likewise, the value of Dogecoin to USD will also change. At the above rate, you could earn an additional $112 per week and an additional $448 per month mining DOGE.

Keep in mind that the cost of your electricity and mining rig, as well as the fees you pay, may be tax deductible. You should speak with a tax professional to determine your tax liability based on your crypto mining income and what you can deduct to reduce your bottom line.

How many DOGE can you mine per day?

Based on CoinWarz research and stats, at the current hash rate of 9,500 MH/s, you can currently mine 420.7 Dogecoins per day, which would probably make Elon Musk very happy. Again, this number will rise and fall based on the number of miners and the difficulty of mining.

Dogecoin is one of the easiest coins to mine, beating out Litecoin, Bitcoin, Ethereum and many others to top the lowest difficulty list based on computational requirements. This means you get more bang for your buck even if you don’t have the best ASIC miner available, namely DOGE.

Final recording

Dogecoin mining can be a fun way to earn passive income. The easiest way to mine DOGE is in a mining pool. You may still want an ASIC mining computer instead of a GPU to mine with the most efficiency and maximize your profits.

To reduce electricity costs, consider running your mining computer on solar power or another clean, affordable energy source. Ensure proper cooling systems are in place as mining computers heat up quickly.

Remember to evaluate your profitability daily and make adjustments to keep earning DOGE. Of course, the more miners you can invest, the more money you can make.

Information is correct as of September 20, 2022 and is subject to change.

Our in-house research team and on-site financial experts work together to create content that is accurate, impartial and timely. We verify every single statistic, quote, and fact against trusted primary sources to ensure the information we provide is accurate. Learn more about GOBankingRates’ processes and standards in our editorial policy.

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