How to mine Dogecoin- Step by Step Guide

History of Dogecoin

Jackson Palmer created Dogecoin to satirize the hype of cryptocurrencies in the world. Jackson created it at the office of Adobe Inc., Sydney, Australia, in 2013. He was a product manager at Adobe Inc. at that time. While he was getting positive feedback on Dogecoin, he purchased the domain dogecoin.com to make its online presence more familiar to people. 

In the meantime, Billy Markus, a software developer at IBM, Portland, Oregon, wanted to create a digital currency. He reached out to Jackson to ask him if he could build the software for the actual Dogecoin. Then after getting Palmer’s permission, he derived the code for Dogecoin from Luckycoin, which is based on Litecoin. So, ultimately Dogecoin uses Litecoin’s script technology that makes it. Proof-of-work (PoW) coin. 

The coin was launched on December 6, 2013, and after its launch, the value of Dogecoin jumped up to 300%. 

The unlimited supply and the Scrypt technology used for the coin is the reason for its faster adaptability and pocket-friendly version of Bitcoin. 

At the end of 2017, Dogecoin’s value boomed with other cryptocurrencies and fell in 2018 with other crypto-verse. The market capitalization of Dogecoin for the year 2017-2018 passed $1 Billion. 

Elon Musk also officially supported Dogecoin in 2021 by tweeting about his coordination with the developers’ team to improve the efficiency of its transactions. The Market Capitalization of Dogecoin in October 2021 crossed $31 Billion and reached the number 10 rank, 48 a year ago. 

A large number of crypto investors invest in Dogecoin instead of Bitcoin due to some reasons. This article will discuss some important facts about Dogecoin and examine how you can mine Dogecoin.

What is Dogecoin Mining?

Before we go for Dogecoin Mining, let’s talk about mining first. So, mining is the process of producing cryptocurrencies in exchange for a task done by your system. As it is a transactional process, your system needs to be as powerful as it can solve complex problems easily. 

Although, the process of mining dogecoin is slightly different than mining another crypto such as Ethereum or Bitcoin. As we already discussed, the Scrypt technology used by Litecoin on which Dogecoin is based, the hashing algorithm for Scrypt, is used by miners to mine Dogecoin. Due to the similarity of technology, i.e., Scrypt, it is possible to mine Dogecoin and Litecoin simultaneously. 

Whenever any task is completed by you in the blockchain while mining the Dogecoin, the successful transaction will add a new block of Dogecoin to your network. The miners of Dogecoin or any other crypto solve complex mathematical problems on the transaction, and in return, they get a block of Dogecoin cryptocurrency. 

Dogecoin’s Tokenomics

Because it is an inflationary currency, there is no fixed upper limit for Crypto. But when Dogecoin was created, it had a fixed coin cap of 100 billion coins. At that time, the market set the block reward to 100,000 coins until it reached the block of 600,000. But now, each block is set to 10,000 coins until you reach the 100 Billion coin gap.
Due to the hard cap supply of Dogecoin, the price of this Crypto started to decrease significantly throughout 2014. The developers of Dogecoin also enabled ‘Merge Mining’ to protect the network from attacks. Merge mining allows miners to mine into two chains simultaneously, which run on the same Scrypt-Algorithm. And that is the reason miners can now mine for Dogecoin and Litecoin at the same time.

How Much Can You Earn Mining Doge?

One should consider four things to calculate the total earnings from mining Dogecoin crypto. And these things are the cost of energy consumed, hash power provided, the price of Dogecoin at that time, and the block reward.
The cost of Electricity or energy consumed is one of the important factors to be considered as it depends on the geographic location of the miner.
If you are looking for more powerful GPUs, then you also need to depend on the current price of Dogecoin. Because you also need to recover the cost you spent purchasing the GPU. And it will not be profitable if it takes 2 to 3 years to recover only the cost of GPU.
In conclusion, it is also seen that buying GPU for only mining Dogecoin at this current value is not a good practice. Whenever you purchase a powerful GPU, it is recommended to spend extra money to get a more powerful GPU so that you can also mine other cryptos. The main idea of spending more bucks is that you will have options to mine other cryptos if the value of DOGE isn’t worth mining.
If you look for a profitable GPU, it will make around $0.5 – $2 in a single day, depending on the current price of DOGE. Or, if you go for a more powerful GPU, it may give you a profit of $10-$50 a day.

Dogecoin mining risks 

Whenever there is something we get to profit from, there are always some risks in that process. So, do the risks involved in mining Dogecoins also? That’s why it is vital to know about the risks before you go for mining dogecoins. The first risk factor we should consider while mining is that this crypto is volatile, and you can mine up to 300 Dogecoins in a week which costs around $18.
The other things that also need to be taken care of include the electricity used by your system, the hardware, the energy consumed, and the risk of cracking up the Graphics Card.
The mining process requires the system to run for a long time, i.e., continuously for multiple hours, and it will affect the life of your system. When the systems run for hours, and the hardware you use is so powerful to solve the complexity of problems, it will consume more electricity and, in turn, will increase the energy consumption for each transaction. That is the reason that mining cryptocurrencies are not considered environment-friendly. So, the system will run for hours and hours, which may also increase the risk of GPU shortage and cracking up the Graphics card in your system. So, instead of getting crypto mined, you might run out of a shortage of graphics cards.
Hence, we should keep the risks discussed above in mind before starting the mining process.

Mining Comparison

There are various factors on which the mining process depends. However, these factors differ for different cryptocurrencies. These factors include:

• The complexity of challenges faced solving to mine each block of the Crypto. 
• The algorithm is followed by cryptocurrency for mining.
• The time is taken to mine each block of the Crypto.
• The time it takes to confirm the successful transaction of the block.
• The price of the Crypto at the time it was mined. 

How to Mine Dogecoin? 

When you start mining Dogecoins, you will be rewarded with a block of Dogecoin crypto, and to avail of that reward, it is important to have a DOGE wallet. So, you need to download the application of Dogecoin available for iOS and Android, or you can also signup on their official website.

So, after you signup for your account, you need to be careful with the provided seed phrase, which is nothing but a string of 12 words. It is important because when you sign in on a new device, you must enter the string for authentication purposes. If you lose the seed phrase, you will not be able to access your crypto wallet. 

To mine Dogecoin, you need software that will start the mining process. There’s also a need for another software to manage your graphics card while mining. 

So the first software you need is the unMineable app that will manage your GPU, and the second is for mining, PhoenixMiner. 

You can download both the software from the internet and follow the steps below to set up the mining of Dogecoin Crypto:

1. Download and install the unMineable app

2. Download the PhoenixMiner app

3. Extract the downloaded file and install the .exe version from the zip. The important thing you need to take care of is to remember the location of its installation. 

4. After installation, you need to relaunch the unMineable app, and then you will be asked to select your GPU.

5. After selecting your GPU, you have to click on “Update mine file location,” which will ask you to locate the file PhoenixMiner.exe in the directory. 

6. After doing all these steps and clicking “Next,” you will be asked which cryptocurrency you want to mine. 

7. Select Dogecoin crypto from the options, and you will be asked for the wallet address and other details for saving the mined crypto in your wallet. 

8. After validating your Dogecoin wallet with unMineable, click “Start.”

9. Now, the app will start mining Dogecoin right away. When you successfully mine 30 DOGE, you can send them to your dogecoin wallet. You can also track the progress of mining on the app itself.

Dogecoin Mining: Solo vs. Pool

Solo means you mine for the crypto alone by spending all the costs and investments yourself. While pool means there are crypto enthusiasts that try to mine crypto together. Mining Dogecoin alone can be difficult as it becomes rare to profit from it because the individual has to pay for all the required hardware and electricity bills.
Mining in a pool can be a better choice for Crypto enthusiasts as it gives you a better chance to get a block validator because of the collective hashing power of the pool. But before you go for this option, you must also check the fees to participate in the pool.

What You Need To Start Mining Dogecoin?

Various equipment is needed to start mining Dogecoin, such as the CPU, GPU, Software for mining purposes, and the Wallet to receive the coins.

Dogecoin Mining Hardware

Three types of Hardware equipment are there from which you can choose for DOGE mining:

GPU: GPU is a Graphics Processing Unit that is more powerful than a CPU and responsible for the digital rendering of a computer system. Due to its high speed and efficiency, it has become useful in mining cryptocurrencies.

CPU: The CPU is a Central Processing Unit that solves complex algorithms. Anyone with a CPU with sufficient power can start mining crypto. It validates the coin transactions after solving the complex algorithms of blockchain.

ASIC: ASIC stands for Application-Specific Integrated Circuit, a computerized device mainly used for mining crypto. Dogecoin miners should look for Scrypt-based ASIC hardware. 

Dogecoin Mining Software

After you have chosen the hardware, you need to download software for mining purposes. Here are some useful software available for mining cryptocurrencies that include:

• CPU Miner: As the name suggests, the software can be used by CPU hardware. Pooler mainly uses this software.
• EasyMiner: This software is used for GPU hardware devices and works as an excellent device for beginners. Another software CudaMiner also considered best for Nvidia GPUs.
• MultiMiner: MultiMiner software is used explicitly by ASIC hardware. However, CPU Miner and EasyMiner can also be used for ASIC hardware. 

Dogecoin Cloud Mining

Mining Crypto using a cloud platform is a different approach where you don’t need to use your hardware. Instead, you can rent powerful hardware on the Cloud and use any cloud mining pools. These pools are paid, and they charge every month for the crypto that you want to mine. 

Mining Dogecoin or any other crypto on Cloud is ideal for those who don’t have much knowledge about which hardware we can use for the mining process or how to use it. They can easily do mining of DOGE on the Cloud. There are some cloud mining pools that you can join on the Cloud to mine DOGEs, such as NiceHash and Genesis Mining. These pools specifically offer mining crypto based on Scrypt Hashing. 

You can even go for more powerful tools, but you will have to take care of the pricing because the more powerful tools will cost more. It would be best if you also considered the cost of DOGE, which is rising or declining. 

Various sellers offer hashing power on the Cloud for cloud mining pools, and choosing the right can be hard. But, whenever you choose any mining pool, please read their terms completely and find out if it is suitable for you or not. 

Is Dogecoin Mining Profitable?

You can say investing in Mining Crypto is profitable and can make you a millionaire in less time. Also, the dogecoin’s value is not that big, giving you more profit over expenses such as electricity or the power system.
The profit is not much, even if you choose a cloud mining pool. Some platforms also give you a clear picture of the complete cost of investment and the returns you may get from it. You also need to note that the final results may vary from the calculated results.

Frequently Asked Questions