Well, Cryptocurrencies are one of the most common things that you hear these days. A huge number of world populations are getting attracted to the new world that has been recently introduced. Cryptocurrencies bring up the different advantages that are working as a benefit for investors and also encouraging more people to invest.
Apart from that, Bitcoins is another term which is hugely highlighted in the world of investments. Well, it’s a form of electronic cash and part of Cryptocurrencies which was introduced in 2009. But, now there are different types of coins in crypto, it is also known as altcoins or alternative coins. Dogecoin is another popular Bitcoin-similar like a coin that is also used for mining.
For knowing more about it and for understanding the new concept, here is the guide which will help you to know about everything that you are going to need.
Dogecoin was launched by two friends Jackson Palmer and Billy Markus in 6th December 2013. However, both friends wanted to make the coin fun, friendly and something which can be more normal. For the logo, the both took mascot – a Shiba Inu dog which is also famous for memes. After the introduction, the coin becomes a huge hit as people loved its friendly and playful side.
Dogecoin turns out as great use in acting like charitable and for online tripping. Also, some websites used it as a reward and some as a tip. And that’s how Dogecoin ranked 27th when it comes to the market cap or market capitalization of any largest Cryptocurrencies.
What is mining?
It’s crucial to understand the working of Cryptocurrencies before you move toward mining. Cryptocurrencies are known as digital currency which is used peer to peer. It allows the transactions where one individual can transfer money to the next person without involving the use of the bank. All transactions are recorded which is also known as blockchain. The database of recorded transactions is safely saved and stored in different computers also known as nodes. These nodes add all newly recorded transactions in the blockchain and it forms a group, aka blocks.
Before adding, all new transactions have to go through the checking process with the help of nodes. Well. The importance of the checking is to show the exact amount of money that individuals have with them. Also confirming or mining each and every transaction consumes lots of electricity and computer energy which is expensive. Unlike any banks or companies, Blockchain doesn’t have any employees. SO for performing the task, Blockchain offers rewards to their users when they confirm any transaction. Well, they use Cryptocurrencies as rewards which the user get once they confirm the transaction. In other words, the whole process is called mining.
How to Mine Dogecoin:
Different currencies have its own different method in mining. However following the same format as blockchain, here you also have to use your computer. But, its lottery system in Dogecoin where lots of computers do the same work at the exact time but only one will get the prize. The lottery comes in the form of a math equation, those who will solve it first without taking time. They get the prize in the lottery.
Well, Dogecoin doesn’t follow the same thing and that’s why there are different areas where the mining of Dogecoin differs. Also, it makes the mining process of Dogecoin much faster as compared to other mining of different Cryptocurrencies. For understanding those areas, here are the points that you need to know:
- Block Time: Every transaction has its time and length, in between new transaction get checked and get added to the blockchain.
- Algorithm: Different Cryptocurrencies shave its own set of rules which they follow while mining. The set of different rules are known as hashing algorithm or in simple words, it’s called as mining.
- Challenges: well it depends on how eager the person is to win the lottery; apart from that the difficulties of task depend on the count of miners and protocols of the coins.
- Reward: The amount that is used for rewarding the users after they complete the process of the transaction in mining.
For mining Dogecoin, basically there are two options i.e. solo and the second one is a pool. Both ways have its process to understand and for that here is what you need to know.
Dogecoin mining: solo vs pool
Solo mining is the mining that you do by yourself whereas Dogecoin pool refers to users groups. These groups share the power of a computer in order to get the highest chance of winning the transaction’s prize. So if one node gets a transaction confirmation done, the other people in the pool received a divided amount of the reward equally
However, with Solo mining, the users have to wait to confirm the transaction as there are lots of people who are active at the same time. Sometimes it takes more than weeks to get the first mining done. But if somehow the user manages to do that, the complete reward money will transfer to their account.
Its recommended that the beginner should try Dogecoin pool at starting as it will reduce the time of mining. Also the chances of getting reward increased.
What You Need To Start Mining Dogecoin
Before starting the mining in Dogecoin, there are some basic things that the user need, such as:
- The user need PC which is installed with operating systems like Windows, OS X or Linux
- A great internet connection which let you connect and help in doing the transaction easily.
- Make sure you have a wallet that you can create by going on the homepage of Dogecoin. However, there are different types in a wallet that you can get, mostly in two types i.e. Light wallet or full wallet. It’s recommended to get a full wallet which is also known as Dogecoin core.
Dogecoin Mining Hardware Requirements
After getting the basics, there are some hardware and software that you will be going to need for mining. For a better experience, you should have this hardware:
- CPU for your computer: Well it’s one of the important hardware that you should have. Mining consumes a lot of energy and computer power which also lead to some serious damage due to overheating especially for those computers who are not very powerful.
- Graphics card or GPU: The use of graphics cards is to improve the quality of computer graphs. But they are also working great for making the mining process of Dogecoin. There are lots of options that you can choose. However, it depends on what you like and what suits you.
- Scrypt ASIC Miner: The main idea behind designing the hardware is to mine script which is based on Litecoin and Dogecoin currencies. Well, the miner is expensive but effective too. These miners are powerful however there are some basic things that you much know about it.
Dogecoin Mining Software
Before you use hardware for mining, there is some basic software that you will need as well. Before choosing the software, make user it goes well with your hardware too. Well, for better help here are few recommended software that you can try?
- GPU: if you are going to mine with the help of GPU then there are few options that might help you. There are some options that you can consider, such as Cudaminer, CGminer, and easyminer. Well, you can try different one too but make sure they work fine for mining.
- CPU: If you are mining with the help of CPU, then you should download CPU miner which will make the process much simpler and easy.
- Scrypt ASIC Miner: for a better experience you can try Multiminer and CGminer. However, if you are going to start for the very first time, make sure you don’t go with hassle creating stuff. Just keep it easy and simple.
So, Is Dogecoin Mining Profitable?
Well, there are lots of doubts regarding mining and people still don’t believe if it’s possible or not. But again, it doesn’t mean that you should not do Dogecoin mining. There is a huge chance that Cryptocurrencies will change the world or investments. And it will surely give profits to their users. Also, its fun and you will enjoy the complete process as well. However, there are a few things that you need to know about mining and what you should expect from it. Such as:
- The rate of overnight success is low or zero: Lots of people think that mining Dogecoin will make them billionaire in overnight which is one of the impossible things to happen. However, there are some people who are enjoying the success but for that, they did lots of work.
- It requires time and money to invest: even before you start earning, mining will require lots of work and a few investments in hardware, software as well as electricity. Without that, it’s hard to get profit no matter how hard you try.
Smriti Jain is the owner and senior content publisher at Financesmarti. Financesmarti is a website where she shares a lot of useful stuff for the people and business of India. This includes small business ideas and other banking information, as well. Smriti completed her education in science & technology from Delhi University. Smriti usually has interests in digital marketing now, and she has chosen this career for the full-time opportunity. The primary purpose of starting this blog to provide quality information on the banking industry to the people.