Dogecoin or DOGE is a meme-based cryptocurrency and people who want to collect a few coins through mining dogecoin are lucky as it doesn’t need expensive resources as other cryptocurrency mining does. Dogecoin holders are a loyal community as they still hold onto the coin despite its highly volatile nature. This coin received much press in 2021 with its value increasing at the starting of the year.
DOGE initially debuted as a joke and people became interested in it as it wasn’t something very serious and looked at investing in DOGE as a fun activity. But things changed as Dogecoin began to attract investments.
Dogecoin also uses blocks to add transactions and cryptography for security like Bitcoin but they are different in some ways. Dogecoin is different from Bitcoin as it uses the scrypt algorithm instead of SHA-256. Dogecoin also has an unlimited supply, unlike Bitcoins which are only 21 million. DOGE’s value can increase infinitely, however inflation of the coin is controlled by putting a limit to the number of dogecoins that can be mined every year.
What is Dogecoin mining?
Dogecoin mining is a way of creating new DOGE coins. Dogecoin mining is easy. You can mine Dogecoin through your laptop if you wish to. Three types of hardware can be used for Dogecoin mining. These are CPU, GPU, and ASIC.
CPU is the central processing unit of your computer. You can mine Dogecoin using CPU but it will heat your device and also the process would be slow. The energy consumption would be too high to see any profits.
GPU is the graphics processing unit of your laptop or computer. Computers use GPUs to improve image processing. Devices that are made for gaming or video editing have strong GPUs and can be a good fit for mining DOGE. While relying on GPU to mine Dogecoin, miners need to install a separate mining software too.
ASIC is an application-specific integrated circuit. It is a machine built to mine coins. It can increase your computer power and give you an edge over other miners but its cost is also high. While using ASIC, separate mining software is not required as they come with inbuilt technology.
Dogecoin mining can be done directly or miners can mine a different coin that uses scrypt algorithm and then convert the reward in Dogecoin.
Why is Dogecoin pool mining the best option?
When you are a part of a Dogecoin pool, your hashing power merges with all the other participants. This results in greater speed while adding blocks to the network. More blocks added will eventually convert into more rewards for all the miners in the Dogecoin pool. One thing to know here is that for each block that is added to the network, the income goes proportionately to all the miners in the dogecoin pool. If this is something you don’t have a problem with then joining a Dogecoin pool can be the best way to receive frequent payouts.
But if you want to earn all the profits for yourself then you can start your Dogecoin pool. Starting your pool has its drawbacks. It can take you months or years to earn some profit considering the investment it takes to set up a mining project. For a solo mining project, you would need to buy several application-specific integrated circuits (ASICs). ASIC is a machine specifically built for mining coins, they come with pre-installed software to mine coins. The major costs that will go into a solo mining project are electricity, storage and maintenance of hardware, and cooling devices for the heat generated. Dogecoin pool is a great way to earn for beginners as solo mining can be quite difficult.
If you are a dogecoin miner then the best option for you to earn a profit margin is to join a Dogecoin pool. All pools have different protocols for rewards but mostly the payout is given on a proportional basis to the miners. Rewards are given in proportion to the number of blocks added to the network.
Before joining a Dogecoin pool you should research how the pool calculates the profits for the members, hashing capacity of the pool and how secure that Dogecoin pool is. The Dogecoin pools which give the option of mining several coins can be much more beneficial as they are flexible and the miners can switch to coins that give maximum profits.
Some Dogecoin pools in the market are:
This is one of the best Dogecoin pools. It offers flexibility for miners to mine Litecoin and Dogecoin both. This Dogecoin pool has a transparent reward system of PPS or pay per share. Litecoin has been successful in attracting several miners and it also protects them with TLS-encrypted stratum connection. This pool is highly scalable and secure at the same time.
It is the first Dogecoin pool to have more than 100 active miners. The main USP of this pool is that it offers 14 other scrypt coins too along with Dogecoin. The miners in the pool get rewarded on PROP basis. You will get the available currencies after registering on the pool, no registration can keep some options closed. Even if you wish to shift to other scrypt algorithms then Dogecoin gives you the option to do so on Aikapool.
This pool operates two pools- Litecoin mining pool and Dogecoin mining pool. The miners are rewarded as per the proportional payout system. The best part of this Dogecoin pool is that the reward gets directly transferred to your wallet. This pool mines 3 blocks per week.
In this pool, multiple coins can be mined like Litecoin and Verge. The payment to the miners is done in DOGE and other coins. Multipool is a great platform to do merge mining of coins like Dogecoin and Litecoin simultaneously without losing the hashing power. This pool allows miners to mine 29 cryptocurrencies with different algorithms making it a flexible platform.
This pool was found in 2013 and is counted among one of the best Dogecoin pools in 2021. The best part of this pool is that miners can choose which cryptocurrency they want to be paid in, provided that cryptocurrency is in the list of payout currencies of Prohashing. This pool maintains transparency, is stable and is very easy to use.
Every pool has some fee that the miner has to pay for participating in that pool. It can vary between 1% to 3%. Before choosing a Dogecoin pool, you can check how flexible and profitable it is. Generally, pools with a higher hash rate have more participants and are likely to be more profitable as they have more chances to find a block and add it to the network.
Dogecoin stands today at $0.23 and if you are looking to earn some DOGE through mining then Dogecoin pool mining is the best way to do so. Since DOGE is highly volatile you may want to regularly cash it out or convert it to other stable coins. If you are a miner, then you can use a mining profitability calculator to see how profitable it would be to mine DOGE.