Did you know Dogecoin was started as a fun project between two friends- Jackson Palmer and Billy Markus? In 2013, these two friends thought the cryptocurrency market was getting too serious, and so they decided to create their fun and friendly crypto coin, with the ShibaInu dog as their mascot.
Dogecoin since then has maintained a decent reputation in the cryptocurrency scene, used at charity events, a reward for good content sharing on groups, and transaction fees. If you have wondered about the different ways to mine Dogecoin, you are in the right place.
What Do You Need For Dogecoin Mining?
The few basic requirements for Dogecoin mining are:
- Mining hardware
- Internet connection
You can use your standard CPU for mining with a CPU miner, but it will be prone to overheating as the mining process can get taxing. You can also use graphics cards for mining. Scrypt ASIC miners are machines designed especially for mining. For beginners, EasyMiner is one of the best mining software available, owing to its easy-to-use features.
What Are the Different Ways to Mine Dogecoin?
Dogecoin rates in early 2021 reached new heights, growing by 216%, between January 28 and 29. This growth rate exceeded those of Bitcoin.
The different mining approaches for Dogecoin are:
- Mining Pools
- Solo Mining
- Cloud Mining
In a Dogecoin pool, multiple users combine their computing power to increase their chances of winning the reward. Once a node in the pool confirms the transaction, the block reward is shared by all users in the pool.
You will have to pay fees to join aDogecoin pool. You will share your rewards with every other user in the pool. However, the odds of blocking transactions are higher in a pool. As a beginner, it is recommended one start mining with a Dogecoin pool. You also get to be part of the mining community.
Solo mining is the opposite of mining in pools. You set up the whole mining process; with your machine as the node, you will be working alone in the network. You won’t be paying any fees while you mine solo, but there is risk involved in this approach.
You might end up waiting for weeks or months before you receive your first block reward. The risk is undoubtedly high, but you will not have to share your reward for winning.
If you do not want to get into technical nitty-gritty’s, you could go with the cloud approach. You will need a wallet to rent computing power from a data center. The center will be the one responsible for setting up the process and mining Dogecoins.
Several risks come with this approach. You need to carefully read through the clauses before you sign a mining contract. Data centers are cheap and effective, but they will not always be forthcoming with information. The Dogecoins prices are fixed, so you will not experience the volatility of the cryptocurrency market. You might end up at a loss, paying the fixed price for Dogecoin, when the market price has dropped.
If you are a beginner looking to mine Dogecoin, you could start by joining a pool and becoming a member of the Dogecoin community. If you have the resources and can afford the risk appetite, you could go in for the solo mining approach.