Similar to Bitcoin transactional feature, Dogecoin is a decentralized cryptocurrency with its digital ledger being maintained by a network of nodes. This is owed to the simple fact that the distribution of coins is designed to be decentralized in nature.
Following its mining process, Dogecoin is issued and released via the designed protocol in a pre-programmed way. Here, receivers of newly minted Dogecoins are the miners. These miners are the actors in the mining of Dogecoin and who are in turn rewarded for the cryptocurrency. The word “mining” is synonymous with the mining process of precious earth metals from the ground as they are both labor and energy-intensive.
Contrary to how industrial mining is carried out, Dogecoin mining is characterized by solving complex mathematical problems with the use of high-level computers. This process of Dogecoin mining is more of a competitive process in which the first miner to successfully solve the complex problem gets rewarded with a newly added Dogecoin. This reward is in compliment of computational power provision to the Dogecoin network, hence making the crypto network secure for engaging in peer-to-peer transactions.
How To Mine Dogecoin
A processing power, popularly called a hash power is very crucial to Dogecoin mining. Computer hardware like the home CPU and GPU can be easily used in mining Dogecoin during its early stage, but as its value increases with its popularity, its hash power has been exclusively provided to its network such that mining Dogecoin becomes difficult than before. Today, an Application-Specific Integrated (ASIC) machine is highly required to provide the much-needed hash power to the Dogecoin network.
Sharing similarity with Bitcoin mining, Dogecoin is largely dominated by pockets of mining pools. If an individual has the dexterity for computing power, it is advisable to stay connected to the mining pools. In the event of a mining pool finding a new crypto block, miners a reward that is proportionate to the hash power being contributed. Also, miners can have a merge to participate in multiple script-based mining that is devoid of hash rate compromise.
How Much Can Be Earned With Dogecoin Mining?
Earning profits with Dogecoin mining is dependent on four (4) variables. These are energy costs, hash power provided, current Dogecoin price, and the block reward. However, the energy cost is considered the most important of the parameters which vary with the geographic location of the miner. Miners must set up equipment at locales where there is a low energy cost to earn more profit.
With GPU, Dogecoin miners can make between $0.25 to $2 in a day, depending on the current price of the coin. Using the latest model of ASIC miners, Dogecoin miners can make an approximate profit between $5 to $10 in a day.
How To Start Mining Dogecoin
1. Buy mining hardware
Get mining hardware or make a thorough check if your CPU or GPU is suitable for mining Dogecoin. If you want to make a huge profit from mining, it is advisable to acquire ASIC machines.
2. Install Software
Download and install the preferred software (CPU, GPU, or ASIC) or better still update your GPU driver.
3. Join A Mining Pool
Join an appropriate mining pool by creating an account with them to get started.
4. Connect Your Devices To The Pool
Immediately you have set up an account with a mining pool, use the account to connect your mining machine to one of the mining pool’s servers to start Dogecoin mining.
5. Create A Dogecoin Wallet
To access the reward that comes from the block, a Dogecoin address is required to get your rewards sent to the account. Dogecoin offers a Dogecoin wallet but crypto platforms like Prestmit also provide storage for your Dogecoin.
6. Start Mining
You are good to go with mining and earning Dogecoin once you have set up your account and equipment. Mining pools will make provision for a dashboard that can easily display your activities and rewards. You can easily cash out your Dogecoin into your wallet through your mining pool account.
Conclusion
A delve into Dogecoin mining is a lucrative prospect, but it requires skill, time, and energy to earn its attached profits. It is also important to join credible mining pools to stay atop the business.
