I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.
See all posts Frank GogolHow to Mine Dogecoin
Updated on August 15, 2024
Written by
Written by
Reviewed by
Rohit Mittal
Reviewed by
Rohit Mittal
Rohit Mittal is the co-founder and CEO of Stilt. Rohit has extensive experience in credit risk analytics and data science. He spent years building credit risk and fraud models for top U.S. banks. In his current role, he defines the overall business strategy, leads debt and capital fundraising efforts, leads product development, and leads other customer-related aspects for the company. Stilt is backed by Y Combinator and has raised a total of $275M in debt and equity funding to date.
See all posts Rohit MittalAt a Glance
- Ripple and Stellar are altcoins with similar blockchains.
- Ripple focuses on fast and low-cost international transfers for banks using XRP.
- Stellar aims to provide affordable transfers for individuals, especially in developing countries, using XLM.
- Ripple is more centralized, targeting the banking sector; Stellar is decentralized, focusing on accessibility.
So you’ve heard of Dogecoin, the latest popular memecoin. No doubt you’ve also heard of the huge increases in value that DOGE had in 2021. You can enjoy the benefits of holding Dogecoin without directly risking money to buy it. You can mine it instead. If you want to learn how to mine Dogecoin you’re in the right place.
What Do I Need to Mine Dogecoin?
The key to understanding how to mine Dogecoin is to first understand what crypto mining is.
What is Crypto Mining?
Cryptocurrency mining is the process of doing a mathematical operation called hashing over and over until a correct hash value is found.
A hash is like the ID number for a set of data. Even a tiny change in the data produces a completely different hash. This is one of the keys to crypto mining.
The other key is this: finding a hash is difficult, but checking whether a hash is correct is mathematically easy.
Hashes Explained
A hash is like an ID and is difficult to find but easy to check. These facts form the basis of a system called proof-of-work. Proof-of-work is a way to get lots of independent computers to agree that something is true. In crypto, the computers must agree on the money in every account and the transfers between accounts.
The best crypto miner is the one that can check the largest number of hashes in the shortest time. However, since the hashing process is pure trial and error, there is a chance that even a low-powered node could stumble upon the correct solution.
Understanding Nodes
Any node that tries to change a transaction that was previously confirmed and added to the blockchain would have to re-hash every block. It would also have to propose the latest block faster than any other node. This gets harder every few minutes as more blocks are added.
Even to rewrite a few blocks of history would require a node to have more computational power than half the network combined. On a large network, it is practically impossible.
On the other hand, it is always extremely quick and easy for any node to check that every new block’s hash matches the previous chain hash. This is the basis of the proof-of-work consensus mechanism.
Dogecoin uses proof-of-work consensus.
Requirements for Mining DOGE crypto
You can see from the steps involved in mining what kind of equipment you need. Your mining rig needs to be able to do two things:
- Calculate block hashes quickly
- Communicate with the rest of the network
To achieve this you will need a high-performance processor and high-speed broadband
How to Mine Dogecoin
Ultimately, mining Dogecoin comes down to running the mining software on a computer. The computer’s hardware needs to be powerful enough to get a reasonable amount of rewards from mining.
Dogecoin’s blockchain uses the Scrypt hashing algorithm. Scrypt is less computationally intensive than Bitcoin’s SHA-256 hashing. This means even a personal computer could theoretically compete with purpose-built crypto mining equipment and receive DOGE rewards.
To mine DOGE on a Windows or Linux computer, you just need to download the mining software, extract it, then run it. Two popular software packages for mining DOGE on a personal computer are unMineable and Phoenix Miner. You can use these two software packages together to handle the hashing and interaction with the rest of the DOGE blockchain network.
Best Dogecoin Miners
The most important part of how to mine Dogecoin is the processing power you have. The more processing power you have, the better your chances of winning a block reward. The kind of computing equipment you can use to mine DOGE crypto falls into three categories: CPU-based, GPU-based, and ASIC mining.
Each of these is detailed below.
CPU Miners
Every computer has a central processing unit (CPU). The CPU is responsible for all the major computing tasks. CPU mining Dogecoin generally means using a personal computer that is not equipped with a GPU to run hashing software. You can also rent a virtual private server (VPS) and install mining software on it.
GPU Miners
The original purpose of a graphics processing unit (GPU) is for video gaming and high-end video rendering. The calculations associated with rendering video game worlds and animation benefit from specialized hardware. When installed, the GPU takes over these kinds of calculations from the CPU.
Modern GPUs are powerful processing systems. If your computer has at least one GPU, you can use it to increase the hashing rate higher than it would be with just the CPU.
Scrypt ASIC Miners
Unlike GPUs and CPUs, application-specific integrated circuits (ASICs) are quite specialized and rarely encountered in everyday life for most people. An ASIC is a computing device designed from the ground up to achieve a very narrow, specialized task.
CPUs and GPUs are also integrated circuits, but they are designed for general computing. They are designed to be able to do many different kinds of calculations reasonably well. ASICs are designed to do one specific kind of calculation extremely well.
ASIC miners are by far the most costly and difficult type to set up. ASIC mining is also the most efficient because the hardware can be specially designed to hash very well.
Dogecoin Mining Software
You need three pieces of software to mine DOGE using a Windows computer. If your computer is running Linux (very likely for an ASIC) make sure to download the correct versions.
- Dogecoin wallet
- UnMineable (beta)
- PhoenixMiner
Depending on your exact hardware setup, you may need to select different mining software that is better suited. For example, if you have an nVidia GPU, the CudaMiner package is better able to take advantage of that manufacturer’s CUDA processing system. There is also the EasyMiner package which is designed for beginners, and MultiMiner which is well suited to ASICs.
Considerations When Mining Dogecoin
DOGE Volatility
It is important to keep in mind that even using the most basic hardware, you are still using some of your resources to mine. Whether that mining is profitable depends very much on the value of DOGE, which can swing wildly over a few weeks.
DOGE Environmental Impact
Although DOGE’s proof-of-work uses less electricity than Ethereum and much much less than Bitcoin, keep in mind that the electricity consumed in mining contributes to carbon dioxide emissions and therefore climate change. That is unless you use electricity from nuclear power or fully renewable sources.
DOGE Mining Pool
You can limit the level of computing power you need by joining a mining pool. Joining a mining pool is a way for a crypto miner to earn a more stable income. Members of mining pools combine their computing power. This increases the chances that one of them will find a correct hash. They then share the block reward amongst themselves depending on who contributes the most computational power.
Read More
- How to Make Money with Cryptocurrency
- How to Withdraw from Binance
- How to Transfer From Coinbase to Coinbase Pro
- How to Transfer from Coinbase to Binance
- How Does Cryptocurrency Gain Value?
- How to Read Crypto Charts
Final Thoughts
If you are wondering how to mine dogecoin, you only need the following:
- processing power
- high-speed internet
- Dogecoin mining software, and
- a Dogecoin wallet.
You can mine DOGE using a personal computer, ideally one with a graphics card. You could also set up a specialized kind of computer called an ASIC, which can be designed specifically for crypto mining.
Frequently Asked Questions (FAQ)
How does Dogecoin mining work?
Dogecoin mining involves using computer hardware to solve complex mathematical problems that secure the Dogecoin network. Miners are rewarded with Dogecoins for their computational efforts.
What hardware do I need for Dogecoin mining?
Dogecoin mining can be done using both CPUs and GPUs. However, due to the increased difficulty of mining, it is more efficient to use specialized mining hardware such as ASICs.
How do I choose a Dogecoin mining pool?
When choosing a Dogecoin mining pool, consider factors such as pool fees, payout methods, and the pool’s reputation and reliability. It’s recommended to join a well-established and reputable pool.
What is the block reward for mining Dogecoin?
The block reward for mining Dogecoin is currently set at 10,000 Dogecoins. However, it is subject to halving approximately every 2.5 years.
How long does it take to mine a Dogecoin block?
The time it takes to mine a Dogecoin block can vary depending on several factors, such as the mining hardware used, the mining difficulty, and the mining pool’s collective hashrate. On average, it can take a few minutes to several hours.
Can I mine Dogecoin with my smartphone?
Mining Dogecoin with a smartphone is not recommended. The computational power of smartphones is relatively low compared to specialized mining hardware, making it inefficient and potentially damaging to the device.
What is a Dogecoin wallet address?
A Dogecoin wallet address is a unique identifier that represents your Dogecoin wallet. It is used to receive and send Dogecoins. Wallet addresses are alphanumeric strings starting with “D” and are case-sensitive.
How do I secure my Dogecoin wallet?
To secure your Dogecoin wallet, it’s important to use a strong and unique password, enable two-factor authentication if available, regularly update your wallet software, and keep backups of your wallet’s private keys.
Is Dogecoin mining profitable?
The profitability of Dogecoin mining depends on various factors such as the cost of electricity, the mining hardware efficiency, and the current price of Dogecoin. It’s recommended to perform a cost-benefit analysis before starting mining.
Can I mine other cryptocurrencies with the same hardware used for Dogecoin mining?
In many cases, the hardware used for Dogecoin mining can also be used to mine other cryptocurrencies that use the same mining algorithm, such as Litecoin. However, it’s important to research and ensure compatibility before mining different cryptocurrencies.
Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.