There are countless types of cryptocurrency hitting the market. Although Bitcoin is the most popular by far, there are benefits to knowing some of the others, including Dogecoin.
Dogecoin (DOGE) started out as a joke. The developers used it as a way for users to top one another for fun and useful social media content. Although DOGE was once a laughing matter, it has become a popular cryptocurrency that is being mined by thousands of individuals.
Over 113 billion coins were mined by February 2018. It started out with a value of 0.00000001 and has increased substantially since then, despite being a tier 2 coin. It has proven that they need to be taken seriously.
If you’re going to mine DOGE, you need to explore a fast and profitable way to get the job done.
There are 3 things that will help you mine Dogecoins:
How Mining Dogecoin Can Be Profitable
Mining Dogecoin over some of the other coins can be beneficial. Transactions on this blockchain occur quickly, so DOGE mining pools typically provide payouts every 24 hours or so.
Additionally, you can enjoy consistent revenue.
When you work to make your mining efficient, it becomes more profitable. Plus, you’ll find that there are plenty of markets where you can choose to sell your Dogecoin. You may find yourself with a generous daily income without having to physically do anything.
Understand the Team Behind DOGE
One of the reasons why DOGE is profitable is the team behind it. Jackson Palmer and Billy Marcus are the creators – though it is Marcus who gets the main credit. Dogecoins are becoming more accessible, and their goal is to make it more mainstream than bitcoin.
Additionally, the team is known for fundraising for various causes. The Dogecoin Foundation focuses on getting people to use the coin for charity.
Along with the team of DOGE comes the various projects that use DOGE. A project on Ethereum, for example, will be using DOGE as a test asset. Should it go the way the creators are saying, it could end up separating from the original chain. Such a phenomenon is known as a fork. When there’s a hard fork, the value can change dramatically – often for the better.
When you get to know the team and the future of DOGE, it allows you to see how this can be a beneficial investment to get involved in.
The Hashing Algorithm
DOGE uses the same algorithm as Litecoin for hashing, known as Scrypt. It’s a result of the SHA-256 hard fork of bitcoin. Many believe that Scrypt is a quicker and more efficient hashing algorithm than that of BTC.
The time it takes to mine a block of DOGE is approximately one minute in comparison to the 10-minute block of Bitcoin, showing that it’s a faster option for generating a profit. Further, you can actually mine DOGE and Litecoin simultaneously, which is one of the few cryptocurrencies that allow you to mine two at once. It can maximize your mining income – and Litecoin has a stabler and bigger role within the cryptocurrency, allowing you to reap even more rewards.
How to Mine Dogecoin
Mining Dogecoin is legal in most countries, though some countries such as Nepal and Morocco have limits on both the trading and mining of cryptocurrencies. There’s also no limit to the supply of Dogecoins, so mining it is highly beneficial.
You want to use a mining device capable of running the Scrypt hashing algorithm. An ASIC device such as the Antminer L3++ has a number of benefits.
Further, you will want to look at joining a mining pool. When you combine your mining power with that of hundreds or thousands of others, you achieve a higher hash rate. Blocks are solved quicker, delivering the reward. A single block could take months or years for you to complete on your own. Within a pool, they can be done faster, ensuring you earn more on a regular basis.
The Requirements for Mining Dogecoin
If you’re going to get started with mining Dogecoin, you need to check off everything that you need:
- A reliable 24/7 internet connection
- The power you will consume with your rig
- An ASIC miner
- A cryptowallet to receive your DOGE rewards
A Few Things to Consider
It can be overwhelming to get started with Dogecoin, which is why it’s important to look at a few things.
Power consumption can be considerable. Be sure your power grid can support your rig, especially if you have several ASIC systems running.
Rigs work nonstop, so there will be heat buildup. Be sure that you account for this, particularly if you live in a hotter climate. Machines that overheat are also noisier, so you want to keep the temperatures down for better overall efficiency.
By establishing a full plan, it ensures you have considered everything from the latency of your internet connection to the best rig to get the work done on the blockchain.
The Best Mining Rig to Invest In
ASIC mining hardware is the latest evolution in computing machines. Over the course of mining, we have evolved considerably from the CPU. While GPUs can get the job done, ASIC hardware can mine using the Scrypt algorithm, offering better hashing power. The Bitmain Antminer L3++ balances power consumption with hashing power. The Whatsminer M30 series is also capable of providing a high-performance mining experience.
Comparing your options will make it easier for you to invest in a mining rig with confidence.
Configuring Your ASIC Hardware and Software
ASIC rigs will come with preconfigured software, which means you don’t have to get involved with the comprehensive downloads and configurations.
You will be able to get started with a few basic steps.
Step 1: Connect your rig to both the internet and power. This includes plugging in every connector and your LAN cable.
Step 3: Establish IP. You can find the IP address from your router or choose to connect to a VPN.
Step 4: Access rig via web interface. Enter the IP address of your rig into the web browser.
Step 6: Save the configuration. Hitting save and apply will keep your configuration settings in place. Over time, you can also establish a hashrate to explore productivity.
Taking Your Mining to the Cloud
Similar to other cryptocurrencies, you have the ability to mine DOGE within the cloud. If you’d rather not mess with the technical side or make the initial investment in equipment or pay high electric bills, the cloud can be beneficial. While the fees are more expensive, it can provide you with the ability to start earning DOGE faster.
Compare a few of the different cloud mining vendors that deal in Dogecoin so you can decide what works best for you.
Calculate Your Profits
Your profits are dependent on a number of factors – the number of rigs you have, the speed in which they work, and even your operating costs. After all, you have to look at how much it’s costing you to run your rigs. Without considering this, you could be working in the negative – and that’s exactly why calculating your profits are so important.
Consider the power consumption of your ASIC rig, the rate at which you’re hashing, and the fee your mining pool is charging you. If you choose cloud mining, it can be easier to see your profits since they’re covering the various costs for you.
Your profits will change over time, too. The value of DOGE will change and the network difficulty will increase.
Additionally, you can adjust the amount that you can mine in a day by adding more rigs to your setup. When you add more rigs, you can mine more coins, earning more rewards.
How D-Central Can Help
As you prepare to mine DOGE or any other coin, you need reliable equipment. Our technical experts can guide you with a consultation so you can learn about hosting, hardware repair, and more. We’ll guide you toward the fastest and most effective way to mine blocks so you can be profitable and have fun with your cryptocurrency projects.