Dogecoin is a peer-to-peer cryptocurrency that was launched as a joke coin in December 2013. Approximately 100 billion Dogecoin’s are currently in circulation and the coin boasts a market capitalisation of over $300 million.
As with other crypto currencies, it is possible to earn money by mining for Dogecoins. I this article we’ll focus specifically on how to mine dogecoin, including the hardware and software you’ll need.
If you’re interested in learning about how you can profit from trading crypto currencies, you might want to consider enrolling in a crypto currency trading course.
How to Mine Dogecoin
Many people think that it is easier to get started mining Dogecoin compared to other coins as it is less compute intensive.
- Check that you have the right hardware
- Download mining software
- Get started!
Hardware requirements for Dogecoin Mining
As with all cryptocurrency mining, a reliable source of cheap electricity is the most important resource and then, with just a PC and access to the Internet, you can start Dogecoin mining.
The hardware requirements needed to mine Dogecoin are very similar to that needed to mine Litecoin, so should you have a rig that is suitable for Litecoin it can easily be converted to a Dogecoin rig.
- GPU – It is possible to mine for Dogecoin without a graphics card, but the process will be slow and you will not see the results as fast as you would if you included a good graphics card in your setup.
- Many miners believe that the graphics card should be the most important element of your mining rig. Graphics cards recommended for a start-up rig have a capability of running at 450 kh/s.
- Power – The next critical element of your rig is an adequate power supply. If you only have one graphics card, your power supply will need to be a minimum of 750 watts, increasing with every graphics card added (four graphics cards will require at least a 1300 watt power supply).
- Motherboard – The third crucial element is the motherboard. Ensure you have enough slots for the number of graphics cards you have and if you plan to expand your rig over time, make sure the motherboard allows for growth. Other elements that you will need to build your rig are the CPU’s (minimum of 200 kh/sec is advised), RAM and hard drive with operating system.
Software requirements for Dogecoin Mining
Once you have your rig set up you need to download a wallet that keeps your Dogecoin’s on your computer for you. You can find a wallet on the Dogecoin.com site (Dogecoinqt.exc), which once downloaded needs to be synchronised with the Dogecoin network.
You will also need to download mining software, such as CG miner, Minergate, BFG Miner, CudaMiner. Other options and a description of the software can be found here.
Once you have installed the software and created files where necessary, you are ready to start mining.
Many miners prefer to join a Dogecoin mining pool rather than mine solo.
Combining the resources of your rig with other miners increases the speed at which transactions can be solved and payments are recognised. The downside of pool mining is that the profits are divided amongst all the miners that take part and the pools will often take a management fee as well.
However, with the amount of miner’s currently active across all the cryptocurrencies, unless you have a very powerful rig, the results of mining alone are often not profitable as you cannot compete with the mining pools.
Dogecoin Mining Profitability
To calculate the profitability of Dogecoin Mining, use the calculator found at https://whattomine.com/coins/6-doge-scrypt.