Dogecoin mining – is it still worth it?

 

Dogecoin mining is an essential part of the DOGE cryptocurrency, because this is how the blockchain is basically operated.

Dogecoin is a Litecoin fork and therefore works with the same Proof of Work Scrypt algorithm . In order to create new blocks, complex cryptographic problems have to be solved, which is exactly what Dogecoin Miners do.

With the right requirements, basically anyone can start with Dogecoin Mining themselves. In this article, we explain exactly how this works.

Dogecoin was created as a hoax by two developers, Jackson Palmer and Billy Markus , in 2013 . To do this, they created a fork from Litecoin and adopted its Scrypt algorithm .

With mining, all transactions are validated and written to a copy of the ledger. This information is then transmitted to all other miners so that the entire Dogecoin network is up to date.

Each mining computer is a so-called node that connects to the Dogecoin blockchain and has a copy of the entire ledger. As a result, all transactions are stored decentrally without the need for a middleman.

Once a miner has solved a cryptographic puzzle , a certain number of transactions are inserted into a block. Anyone who has solved the problem can create the new block and will be rewarded with new DOGE coins .

A new block is created every 60 seconds . 10,000 new DOGE coins are created per block and given to the miner who solved the problem the fastest. During the first blocks, up to 1 million DOGE coins were created per minute, which therefore made mining much more profitable.

The computing power of all miners combined is the current hash rate . This defines how big the chance is to be able to mine a new block. The more miners are active, the higher the hash rate becomes. This also means that the network is more decentralized and therefore better protected against a 51% attack .

Due to the many miners that exist today, the hash rate is now measured in terahash. This is currently around 600 terahash per second .

In principle, a Dogecoin Miner is hardware that solves complex mathematical problems with computing power . The required computing power is usually very large, which therefore consumes a lot of power . In contrast to Bitcoin, however, the Dogecoin mining system is not that complex, which is why even a regular laptop with rather low computing power can be used initially.

Nowadays, however, due to the high hash rate , you can no longer keep up with a regular PC, but need a powerful graphics card or a specialized computer .

Due to the high energy costs and the expensive acquisition costs, mining pools or cloud mining providers are much more popular today than so-called solo mining .

Computer processors (CPU) vs. graphics cards (GPUs)

CPUs are the computer processors in regular PCs or laptops . Initially, this was sufficient for solo miners, since mining was not that competitive. However, the calculations can quickly overload and overheat the device, which can damage it.

Therefore, in recent years, miners have switched to GPU mining , i.e. mining with graphics cards. Gaming computers in particular often have strong graphics cards with which a mining rig can be created. However, such miners often participate in a Dogecoin mining pool because they are also too weak for solo mining.

Scrypt ASIC Miner

However, even powerful GPUs are often too weak today and can no longer win enough blocks to be profitable at the current hash rate.

Therefore, specific mining computers are created today, in which a so-called circuit is integrated, in which the hash rate can be adjusted. This is called ASIC (Application Specific Integrated Circuit) .

The best-known model is the Antminer L3 from Bitmain , which is constantly sold out due to its great popularity . These ASIC Miners are therefore popular computers with a high resale value.

Nevertheless, no Antminer L3 model with a maximum of 596 megahash per second can keep up with the current hash rate.

However, the newer Bitmain models now have several hundred terahashes per second. For example the Antminer S19 XP Hyd with 255Th/s. This can currently even be bought relatively cheaply for around 2,600 to 5,000 US dollars.

The Bitmain Antminer S19 XP Hyd is currently even slightly profitable

What is a mining pool?

In a mining pool , several miners combine their computing power and then share the profits. The same equipment must be purchased as for solo mining.

However, the merger means that a slightly less powerful computer can also be used, such as the Bitmain Antminer L3++. Because it only has a hash rate of 596 megahash per second and can therefore hardly keep up with the constantly increasing hash rates alone.

However, if some miners join forces with, for example, 596 Mh/s , then the chance that they will receive a block at more regular intervals increases .

With cloud mining, you can rent mining equipment from certain providers . The best known are Nicehash and Genesis Mining. You have to rent a miner for a fixed period of time and pay a relatively high rental fee in BTC .

However, since this is the simplest and most uncomplicated way of mining, these quotas are often sold out . In addition, this type of mining is only worthwhile if the Dogecoin price is above average .

We advise against using cloud mining services as users report that no money has ever been paid out. Therefore, it is better to buy Dogecoin directly before concluding a cloud mining contract.

Requirements for Dogecoin mining

Dogecoin mining is complex and worthwhile at least in the form of solo mining for very few. However, if you still want to try it, you must meet the following requirements and make purchases.

Remember that first of all you have to spend a lot of money for the purchase. In addition, high electricity costs can eat up almost all of the profits. Therefore , always calculate the profitability first before you buy any hardware.

Mining Hardware

Nowadays GPUs or ASICS are mostly used as hardware because CPUs are no longer powerful enough. In fact, there is actually no way around purchasing an ASIC miner with the highest possible hash rate.

The only profitable miners are currently various Bitmain models . The profitability depends not only on the hash rate , but also on the power consumption .

The Bitmain Antminers are the undefeated winners as DOGE miners

The Bitmain Antminer S19 XP Hyd is currently the strongest with a performance of 250 TH/s . At 5,304 watts, however , it consumes a relatively large amount of electricity . In addition, you have to shell out at least 2,600 US dollars for it, if a model is available at all.

The Bitmain Antminer KA3 is better off . However, the acquisition costs for this are also astronomically high and upwards of 9,000 US dollars .

Another important hardware point is good cooling . The Antminer K3 can only perform well if it is cooled to at least 25 degrees .

Mining Software

Next you will also need a mining software . With an ASIC miner, this is often already included. If this is not the case, then you should take care of mining software that suits your hardware.

The most popular is CGMiner . Other providers are:

EasyMiner : well suited for beginners

MultiMiner : best suited for ASICs

CPUMiner : suitable for CPUs

CudaMiner : suitable for Nvidia GPUs and ASICs

Reset Dogecoin Wallet

Next you need to create a Dogecoin wallet address where you can receive the Dogecoin rewards .

You can use any Dogecoin wallet for this. Hardware wallets such as Ledger and Trezor offer the highest level of security . But if you prefer to have quick access to your Dogecoins, you can also use an online wallet like Trust Wallet .

You can find out more about the best Dogecoin wallets in our Dogecoin wallet comparison 2023 .

Join Dogecoin Mining Pool

If you want to join a Dogecoin mining pool, you basically have to meet the same requirements as a solo miner.

Dogecoin mining pools, where you can also mine Litecoin, are best suited.

The largest pools are currently:

AntPool : this pool consists of Antminers and gets about 10% of all blocks . Since the pool supports scrypt mining, you can also mine Litecoin here

Prohashing : this is one of the oldest crypto mining pools, in which you can mine not only Dogecoin through merged mining, but also Litecoin . The pool charges a fee of 3.99%

Trustpool : This mining pool is based in Russia and also offers Litecoin mining in addition to Dogeocin.

Join Could Mining Pool

The easiest way to mine Dogecoin is by joining a cloud mining pool . You only rent the hash rate of a data center and don't have to worry about the purchase or maintenance.

For this reason, these pools are also extremely popular. In addition, you have to check the profitability carefully so that you don't end up making a loss due to the high fees . This is especially true when the Dogecoin price has fallen. Because the fees, which are usually owed in Bitcoin, always remain the same.

In addition to Genesis Mining and Nicehash, ViaBTC and Bitdeer also offer Dogecoin cloud mining.

Is Dogecoin mining worth it?

Solo mining for Dogecoin alone is currently hardly worthwhile. Apart from the expensive acquisition costs and the high power consumption, it is also difficult to get hold of ASICs at all.

But if you can get hold of one of the newer ASICs, then Dogecoin mining is only worthwhile as merged mining in combination with Litecoin mining.

If you are unsure, you can use the mining calculator on Coinwarz to calculate whether a Dogecoin miner would be worthwhile for you.

With the Dogecoin Mining Calculator you can calculate whether Dogecoin Mining would be worthwhile for you (Source: Coinwarz)

Dogecoin Mining –

Dogecoin mining was once a fairly profitable business . This is especially true if you have held the DOGE Coins for a long time . In the meantime, however, the hash rate is so high that Dogecoin mining activities are hardly worthwhile anymore due to the high acquisition costs and high power consumption .

In addition, the mining rewards have fallen sharply since the beginning and are currently 10,000 DOGE per minute . Only the strongest ASIC miners now have a chance to regularly get a Dogecoin block attributed.

DOGE mining via a cloud is much cheaper. However, you are bound to fixed contract times with fixed fees . So if the DOGE price has fallen sharply, the costs are usually higher than the income. In addition, due to the great popularity, there is often no contingent left.

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