After seeing the price that DOGE (Dogecoin) gained over the past year, this cryptocurrency has attracted various traders, investors and anyone interested in mining it. Mining Dogecoin requires significantly less computing power than other cryptocurrencies, like Bitcoin.
Here’s what you need to know about DOGE and how to mine it.
What Is Dogecoin?
Software Engineers Billy Marcus and Jackson Palmer started Dogecoin as a fun way for people to learn about cryptocurrency. What began as a joke in 2013, the creation of Dogecoin was inspired by a viral meme of a Shiba Inu with grammatically incorrect phrases. At first, DOGE had no real value. In fact, the meme coin traded for a small fraction of a penny.
It wasn’t until 2017 the altcoin began to go mainstream, reaching $0.017 per coin as cryptocurrency — and capitalizing on the market at nearly $2 billion.
Then, in 2021, DOGE reached a record high and increased more than 5,000% in value. Today, Dogecoin is one of the largest cryptocurrencies on the market. Unlike Bitcoin, it releases fewer coins over time, and there’s no limit to how many you can find. The block reward is 10,000 DOGE and has a 4% yearly inflation rate.
How do I Mine Dogecoin?
Here are certain things you must consider before you get started:
- Miners need basic computer knowledge and a desktop or laptop computer.
- Familiarity with cryptocurrency is required.
- You need a reliable source of electricity.
- Must have a DOGE wallet.
1. Buy Mining Hardware
To acquire mining hardware, you must check if your computer’s CPU (central processing unit) is suitable for mining. If not, you could consider Scrypt ASICs (application-specific integrated circuits) designed to mine Dogecoin. Scrypt ASICs can cost anywhere from $700 to $17,000 or more, and any computer can run this mining machine.
2. Mine Solo or Join a Mining Pool
Miners can decide whether to mine solo or join a pool. The advantage of mining solo is you get 100% of the block reward. However, it might be weeks or months before you find a block because of the competition.
Most miners join a mining pool and receive rewards depending on the hashing power they contribute. Pool miners also have to pay a small fee to start collecting.
If you’re new to mining, you might find it more useful to join a pool.
3. Install Software
Once you’ve set up the necessary hardware and chosen a mining pool, you must install the appropriate software compatible with the mining hardware.
4. Connect Your Devices to the Pool
Connect your hardware to the computer and run the software. Once you’ve done so, you’ll connect the pool to your crypto wallet, where you’ll deposit your dogecoins.
5. Set Up Your Dogecoin Wallet and Start Mining
To start collecting any revenue, you need to register your pool account and set up your personal wallet. Dogecoin offers wallets, but other types of wallets available offer Dogecoin storage.
After setting everything up, you can use your mining pool’s account to monitor your hash rate, revenue and payout. Most mining pools have a dashboard or an app to keep track of mining activities.
Once you learn how to mine Dogecoin and receive your block rewards, you can cash it out into your personal wallet.
Is Dogecoin Hard to Mine?
It doesn’t take a tech genius to learn how to mine Dogecoin. However, previous experience with computers and crypto can go a long way. The process also requires heavy investment to get started. But once you have coins, you can start trading them for currency and make revenue.
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