Everything about Mining Dogecoin in 2021
Dogecoin is one of the most popular cryptocurrencies out there. In the beginning, Dogecoin was just a joke, a tribute to a popular meme, but now it is a currency worthy of investing in.
This year, Doge has attracted the attention of miners. It seems that the coin is worth mining compared to all other digital coins. The reason for such interest is simple: it’s easier to mine Dogecoin than BTC, but the rewards are pretty appealing.
Don’t get it wrong, it’s still difficult to find and solve blocks since it’s competitive to mine Doge, but it is relatively easier. If you are interested in starting to mine Doge, check out the article to figure out what you need to begin.
The Process of Mining Dogecoin
The idea of mining Doge is the same as mining any cryptocurrency. The process is held on the Doge blockchain. The system adds new blocks to the decentralized ledger every certain period. To add this block to the ledger the system needs verification from users who mine within the system. This process is called the Proof of Work.
Each miner or mining pool competes against each other to be the first one to solve the algorithm so the new block is added. Whoever succeeds first gets a reward in the crypto money of the system - Dogecoin.
There is one significant fact to note - most blockchain systems have a fixed number of blocks that can be added, and thus coins. When all the blocks are added, all coins will be mined. But Doge is different. There is no set number of coins that can be mined.
Moreover, thanks to a different hashing algorithm used by Doge blockchain, coins are mined faster than BTC. Bitcoin uses a rather old algorithm (SHA-256) that generates codes that need to be solved to get BTC.
Doge uses Scrypt - an algorithm that generates codes faster, adding new blocks to mine every minute. Compare this to SHA-256 that adds new blocks every 10 minutes and you will figure out what is all the hype about mining Doge. Scrypt consumes less power and allows you to get coins faster, so it makes Doge more appealing to mine.
Methods of Mining Dogecoin
The ways of mining Doge are the same as when mining other coins. Naturally, with the popularity of the Doge token competition grew. In the past, it was a lot easier to mine Dogecoins because of the lack of miners. But today, people have to put a bit more effort into mining.
In general, there are 3 ways of mining:
- Solo mining.
-Joining a pool.
- Using cloud services.
Check out below for more details about each of these methods.
Solo and Pool Mining
Solo mining means using the required hardware and software to mine alone. For example, you bought an ASIC or invested in a great graphics card, then purchased the program to mine, so now you are gaining those Doge coins. Solo mining is considered to be a tedious process. Yes, you get better rewards than in the case of pool mining, but you gain them rarely.
Pool mining is when you join a group of miners. Whenever someone solves the algorithm, all people from the group get the rewards. Naturally, the reward for solving the algorithm is distributed between all the participants. This method is believed to be more beneficial since you get rewards with more frequency even though they are lower.
If you are mining within a pool, you have better hash power, so that the pool solves more algorithms. As opposed to solo mining, when even the most powerful mining rig won’t be as fast at adding blocks and getting coins. The best pools for mining Doge are:
Using Cloud Services
Cloud services mine Doge for you. It’s almost like investing in cryptocurrency, but a bit cheaper. You get a chance to buy a certain package with a set or an approximate number of coins within a period, and you pay money so the coins are mined for you. The drawback is that you can lose more than you gain in such a way if the crypto prices you chose to drop.
What Tools Do You Need to Mine Dogecoin?
Here is what you need to start mining.
CPU or central processing unit can be used to obtain crypto coins. Mining with a CPU is considered outdated since it consumes too much power while being too slow. GPU is the next best thing and has its advantages. It’s a graphics card and can be used for gaming when you aren’t mining. Some of the GPUs are powerful and consume less power.
Still, the best mining equipment is ASIC. Compared to the former examples, it’s the fastest hardware while consuming less power than CPU and GPU. You also need to install software programs. There are programs for each type of hardware so you can choose any depending on whether you have a GPU or ASIC setup. You also need a safe e-wallet to keep your coins safe.