The Dogecoin cryptocurrency was launched in 2013 by Jackson Palmer and Billy Marcus. It was a joke or parody of all other cryptocurrencies, but at the same time had the goal of making digital assets more accessible and fun for the community. DOGE was often used as a tool to raise charitable donations or fund sports.
But over time, the altcoin expanded beyond its community. His pump in 2022 surprised many. Today the editors of Profinvestment.com will talk about dogecoin mining - how to mine this coin, how relevant it is in current realities, how to calculate profitability and much more.
How can you mine Dogecoin?
Today there are four main types of mining – on ASIC, on GPU, on CPU and on mobile devices. Due to the complexity of mining associated with the high hashrate of the network, there are only two relevant and profitable options:
- ASIC integrated circuits (optimal).
- Graphics Cards (GPUs) – More expensive given the fact that you will have to purchase many graphics cards to achieve profitability.
Dogecoin uses the Scrypt hashing algorithm. ASICs such as Antminer L3++, Innosilicon A6 work with it. As for video cards, it has been verified in practice that GPUs from AMD perform better than those from Nvidia.
Thus, to start mining you will need: hardware (ASICs or a farm of video cards), mining software, Windows 10 or Linux operating system, a wallet for storing mined DOGE.
Solo mining is not recommended, it is not profitable at all. Choose a good mining pool and join it, below we will tell you how to do this.
Features of the algorithm
Dogecoin is mined using Proof-of-Work on the Scrypt algorithm, just like Litecoin, but there are two differences: the difficulty is adjusted every 240 blocks (about 4 hours), and the time to find a new block is reduced to 1 minute, that is, 2 ,5 times. Until 2014, Dogecoin was mined only on video cards or processors, since the algorithm was not yet covered by ASIC manufacturers.
In recent years, DOGE mining difficulty has increased to 3.9 million, and the hashrate has increased to 258 Th/s. This suggests that despite the advantages of ASICs, the community’s interest in mining this cryptocurrency does not wane.
History of Dogecoin
The coin was first introduced in December 2013. Originally created for fun, the cryptocurrency got its name from the “Doge” meme depicting a Shiba Inu dog. Jokes aside, in January 2022, in just a week, Dogecoin’s capitalization increased from one billion dollars to two.
Billy Marcus, the creator of Dogecoin, had a number of goals in mind. First, create a people's cryptocurrency. Secondly, move away from Bitcoin, which in 2013 was associated with the darknet, drugs and weapons. Dogecoin is known for its friendly community. In 2014, the community helped raise funds for the Jamaican bobsled team and also funded NASCAR driver Josh Wise, whose car sports the same Doggy from the meme during competitions.
Dogecoin is a controversial cryptocurrency, and the controversy starts with what it is called. As with the Doge meme, there are many names for the coin: Dogecoin, Dogecoin, Dogecoin, Dogecoin, Dogecoin and even Dazhcoin. The question of the name remains open. The original version is Dogecoin and the abbreviation DOGE.
How relevant is dogecoin mining?
Achieving truly meaningful profits on DOGE is, although doable, a difficult task. Dogecoin will not make you a billionaire. Even if you choose a good pool, the profitability will be very moderate. It is worth paying attention to how the community treats the coin: it is believed that Dogecoin is not about money or profit, it is about a community of crypto enthusiasts who are ready to learn and share knowledge with each other. By mining Dogecoin, the user supports the direction of the community and becomes part of a friendly team.
Such principles are not for everyone. If you need really serious income, then it is better to consider other assets for mining. At the same time, DOGE supporters recall that in 2010, Bitcoin was worthless, so the coin has a chance to one day be worth thousands of dollars.
One way or another, before starting work, be sure to calculate your potential profit using special mining calculators.
Mining profitability calculators
Several services that allow you to calculate the approximate profit from DOGE production under given conditions:
- https://cryptocalc.online/ru/calculators/dogecoin. Manually indicate the hashrate of the proposed equipment, its energy consumption, as well as the cost of a kilowatt of electricity and the pool commission. You get an approximate level of profit (or loss) for the day, week, month and year.
- https://minerstat.com/coin/DOGE?lang=ru. Also allows you to specify hashrate, pool fee, power consumption and electricity costs. Gives approximate rewards for the last time.
- https://whattomine.com/coins/6-doge-scrypt. In addition to all the above parameters, it also makes it possible to indicate the cost of the equipment, which will allow you to calculate its payback period.
Dogecoin mining calculator on Whattomine
What programs will be required
Regardless of the type of equipment used (ASIC or graphics processors), it is necessary to select certain software. Its functions include the transfer of blockchain information about the work. It is recommended to use programs that are “tailored” to work with specific equipment.
The following software is used for Dogecoin mining on GPU:
- CudaMiner (github.com/cbuchner1/CudaMiner). Console program for mining virtual coins, working with NVIDIA video cards. Other GPUs will not work for it. The mining process itself can be controlled using information in the terminal. In addition to Dogecoin, you can use it to mine McCoin, Blakecoin, Vertcoin and other cryptocurrencies.
- CGMiner (github.com/ckolivas/cgminer). A universal miner program that is suitable for working with all video cards. Its functions include directing the available power to the production of the DOGE cryptocurrency. In addition to the main function, such software is capable of overclocking the video card, adjusting the fan speed, viewing statistics and adjusting the operation of the farm. Aimed at experienced miners.
- EasyMiner (easyminer.net). A program for mining cryptocurrencies, including Dogecoin. It is open source and allows for fine tuning based on the cryptocurrency being mined. The program is optimized for different video cards, is easy to configure and is suitable even for novice miners.
If you use ASIC miners, you can use the following programs:
- CGMiner is a universal software, which is discussed above. It can also be used to mine Dogecoin on GPU. The only thing that is slightly different is the process of mining virtual coins.
- EasyMiner is also a universal software for Dogecoin mining using ASIC miners. It performed well in mining virtual coins with the Script algorithm.
The software discussed above has been tested by many miners and has performed well in mining virtual coins. Before using the software, you must configure it correctly, taking into account the instructions on the official website and the selected cryptocurrency.
For example, the CGMiner setup process takes place in several stages:
- Install the latest version of the program from the link above.
- Select the optimal mining pool. Here you need to register, create a worker and identify equipment, as well as assign a task.
- Connect the pool to the program using the console.
- To simplify the connection, create a bat file and write the connection script in it. To create a bat file, use a regular notepad.
In a text file, enter the following information: cgminer –scrypt -o- stratum+tcp: pool address: -u worker name -p password. The following data is indicated here:
- CGminer - address to the launch file.
- Script is a mining algorithm.
- O - transition to specify the pool address.
- Pool address is directly the URL indicated on the official page for connection.
- The worker's name is login.
- P - login password.
If necessary, you can read detailed connection instructions, which are available on the official page github.com/ckolivas/cgminer.
Software
Whether you're mining with an ASIC or a GPU, you'll need some software. Its purpose is to transmit information about your actions to the blockchain. It is advisable to use software that works best with specific equipment. Here is a short list of popular Dogecoin mining software (all of them are free):
- For video cards: CudaMiner (optimal for cards from Nvidia), CGminer (equally suitable for any cards), EasyMiner (due to its ease of use, relevant for beginners).
- For ASICs: CGminer and EasyMiner can also be used with ASIC miners, MultiMiner shows itself well in mining all cryptocurrencies using the Scrypt algorithm.
With their help, you can control the cryptocurrency mining process. Before you can use the program, you must configure it properly. All instructions are usually provided by developers on official websites.
CGMiner application
Profit calculation
The profitability of mining directly depends on the cost, power of the equipment and the cost of electricity in your region. A special mining calculator from the whattomine service will allow you to calculate how profitable it is to mine DOGE coins.
Open the official website of the calculator and select the digital currency in the “Coin” section:
We indicate the power of the equipment, the cost of electricity and other additional indicators:
Click “Calculate”. The service will automatically calculate the profitability of digital currency mining. Based on the information received, each user will be able to draw conclusions regarding the profitability of mining.
Dogecoin mining pools
As we have already said, you should not consider the possibility of solo mining - this is fraught with the fact that you will spend a lot of effort, time and electricity, but will not earn anything. Being part of a pool, the chance of generating another block is much higher. It is important to choose a good pool. The pools with the highest overall hashrate find blocks more often than others, but the profits are also shared among a larger number of participants. Smaller pools find blocks less often, but the reward for each individual participant will be higher. There are other important parameters.
We offer a list of the top 5 pools for DOGE, which currently have a fairly high hashrate and comfortable conditions:
- https://easy2mine.com/. Hashrate 53.42 TH/s. PPS reward distribution type. Commission 2%. Country – China.
- https://www.poolin.com/. Hashrate 43.23 TH/s. PPS reward distribution type. Commission 3%. Country: USA, China.
- https://pool.viabtc.com/. Hashrate 36.86 TH/s. Reward distribution type PPS+, PPLNS. Commission 2-4%. Country: Hong Kong.
- https://www.f2pool.com/. Hashrate 36.46 TH/s. PPS reward distribution type. Commission 4%. Country: USA, China, Europe.
- https://aikapool.com/doge. Hashrate 42.75 GH/s. PROP reward distribution type. Commission 1%. Country: France.
Dogecoin mining equipment
Attempts to mine DOGE using a computer, laptop or phone can lead to dire consequences in the form of overheating and damage to the device. So you can mine Dogecoin using GPUs or ASIC miners. During the selection process, consider indicators such as memory size, memory bus, core frequency, memory frequency, power consumption and, of course, price.
Examples of suitable video cards:
- Radeon VII (price 65,000 rubles)
- Radeon Vega 64 (price 50,000 rubles)
- RX 5700 XT (price 95,000 rubles)
- RX 590 (price 40,000 rubles)
One video card will not do the job; for effective mining you will need to assemble a farm of at least 4-12 copies.
Video card for dogecoin mining (RX 5700 XT)
ASIC miners for the Scrypt algorithm are designed in such a way that they can perform only one type of work, but with great power. In addition, the devices are quite expensive, tend to make a lot of noise and heat up - so they need a separate well-ventilated room.
ASICs that currently show good mining performance on Scrypt according to the results of the Whattomine website:
- Innosilicon A6+ LTC Master (price 220,000 rubles, hashrate 2.20 Gh/s, power 2100W)
- Bitmain Antminer L3++ (price from 5000 rubles, hashrate 596.00 Mh/s, power 1050W)
Innosilicon A6+ LTC Master – ASIC for DOGE mining
How to start mining
In terms of ease of setup and startup, ASICs are more convenient than video cards. It is enough to connect them to the Internet and network, make a couple of easy settings in the web interface. Assembling a mining farm from a GPU can take a certain amount of time and effort, but in the end, on the resulting farm you can mine different currencies, and not just one.
The procedure for starting mining on ASIC is as follows:
- Create a wallet (for example, Dogecoin Core, MultiDoge, Jaxx, DogeChain Wallet).
- Select a pool.
- Install the software.
- Connect the ASIC to the power supply and the Internet via the Ethernet port.
- Find the ASIC IP address in the router settings.
- Log in to the miner’s web interface, enter the information provided by the pool there (URL and password).
- Also enter your wallet address.
- Save changes.
After rebooting, the device should start working and generating coins.
If you start mining on video cards, then you will need to specify in the software the address and port number to connect (stratum is a coin mining protocol, and you can think of the Stratum address as the address of a website, but instead of connecting to the site, you are connecting to the mining pool ). The worker name is created on the pool site, as well as the password and username.
Coin storage methods
Before you start mining in the cloud or on your own farm, you should make sure you have a DOGE wallet. There are several ways to store coins:
- Official Dogecoin wallet software (desktop or mobile version). Free applications are convenient to use for accumulating coins and making payments online;
- Hardware wallets Trezor, Keepkey, Ledger are convenient and secure, but you will have to pay $60 or more for them;
- Accounts on cryptocurrency exchanges are the most convenient storage for coins that you want to exchange for ether, bitcoins or fiat currency.
Cloud mining
An easier way to mine Dogecoin is cloud mining. In this case, you do not own any equipment, but simply rent it from a large data center, which manages the mining for you and charges a certain percentage for the services, and also usually charges for electricity. Cloud mining can be a good option for those who don't want to deal with hardware, but there are pitfalls. Firstly, this method currently produces minimal profit (if any at all). Secondly, this is a risk, since purchased contracts are usually locked in time, and if the coin suddenly becomes unprofitable, you will not be able to cancel the purchase and return the money spent.
DOGE mining contracts offer very few services today. Previously, Genesis Mining was among them, but now such contracts are not available there. Another option is Eobot.
Dogecoin cloud mining via Eobot
There are also hashrate markets such as Nicehash. With their help, you can also mine Dogecoin, acting as a miner (seller of hashrate) or a simple user who does not mine, but only buys power according to the principle of cloud mining. The system is quite interesting, but it will take a little more time to understand it.
Where to exchange mined dogecoins
The received coins can be exchanged for another cryptocurrency or transferred to fiat using the following methods:
- Exchangers (for example, ChangeNow, FastExchange, Prostocash, MChange, 60cek, ExchangeKey)
- Cryptocurrency exchanges with DOGE (Binance, Currency.com, EXMO, Crex24).
- Telegram bots (@DOGE_CHANGE_BOT)
- p2p exchanges (Bitzlato)
- Cryptomats.
When choosing an exchange method, pay attention to fees and other parameters that may affect the profitability of the final result. Also, choose exclusively proven services with a good reputation.
Faucets for earning DOGE
Another way to earn DOGE is through faucets. Faucets are sites where a certain amount of DOGE is given for completing simple tasks. The largest number of DOGE faucets can be found on FaucetHub.
There is no point in taking cryptocurrency faucets seriously, especially DOGE faucets, due to the low cost per coin. One DOGE costs $0.002979. For entering a captcha and viewing an endless variety of advertisements, the Zenfaucet faucet gives out 0.14 DOGE or $0.00041706. In other words, you need to enter the captcha 10,000 times to get $4. Not the best way to spend your free time.
