Dogecoin Mining 2022: Everything You Need to Know (2024)

Dogecoin has come a long way since its modest beginnings as a joke cryptocurrency centered around a viral internet meme of a Shiba Inu “doge.” What was once a parody project purposefully created by software engineers Jackson Palmer and Billy Markus to be “as ridiculous as possible,” is now a top fifteen crypto asset boasting a $22 billion market capitalization and a global fanbase.

Dogecoin’s spectacular rise over the first half of 2021, driven largely by internet pop culture and relentless promotion from Tesla CEO Elon Musk, unsurprisingly reignited significant interest in dogecoin mining and sent mining profitability to a new six-year high.

Even with its recent success, mining dogecoin is still significantly less competitive than mining bitcoin (but still difficult). New blocks are also discovered much faster and coin rewards are substantially higher – 10,000 DOGE per block reward vs 6.25 BTC.

How does dogecoin mining work?

Dogecoin’s blockchain network employs the same system for adding new blocks to its decentralized ledger and reaching agreement among its network participants as bitcoin, litecoin and many other cryptocurrencies.

Known as a “Proof-of-Work” (PoW) mechanism, this process involves “mining” where individuals or organizations compete for the right to add new blocks containing pending transactions to the blockchain ledger using specialized computer equipment.

More specifically, miners use their machines to try and create a fixed length code known as a “hash” with a value that is equal to or lower than the target value of the new block, known as the “target hash.” Whoever creates the winning code earns the exclusive right to add new transaction data to the next block in the chain and is rewarded with newly minted coins for doing so.

Each hash generated is completely random so it’s simply a process of trial and error until one miner wins.

Here is how dogecoin mining compares to bitcoin and litecoin mining (as of January 2022):

Dogecoin

Litecoin

Bitcoin

Algorithm

Scrypt

Scrypt

SHA-256

Block time

1 min

2.5 min

10 min

Difficulty

5.05 million

11.89 million

24.37 trillion

Reward per block

10,000

12.5

6.25

Total supply

Infinite

84,000,000

21,000,000

As a rule, PoW blockchains such as bitcoin and litecoin usually have a predetermined total supply of coins that have to be mined in order for them to be added to the circulating supply (21 million and 84 million, respectively). Think of it as being like actual mining and how precious gems or gold have to be physically mined before they can enter the market.

Unlike a vast majority of cryptocurrencies, however, dogecoin doesn’t have a maximum supply cap. Its circulating supply will continue to increase indefinitely over time as new coins are created through mining.

New blocks are discovered approximately once every minute on the Dogecoin network. For comparison, Bitcoin blocks are discovered approximately once every 10 minutes.

Despite using the same Proof-of-Work system, dogecoin mining operates slightly differently than bitcoin.

Bitcoin, which is the oldest and largest cryptocurrency by market cap, uses a hashing algorithm called SHA-256. This might sound complicated but a hashing algorithm is simply a function that generates a fixed-length code using a certain technique. Think of it as random code generators, where each hashing algorithm creates random codes in a unique way.

Dogecoin and litecoin use a hashing algorithm called Scrypt, which is less complex than SHA-256. This makes mining litecoin and dogecoin much faster and less energy intensive than bitcoin.

The use of a common algorithm enabled Dogecoin and Litecoin mining to be “merged mined”, meaning both coins can be mined simultaneously without impacting operational efficiency. The two share a common algorithm because dogecoin’s design is based on luckycoin, which in turn was derived from litecoin.

In its early years, mining dogecoin was much easier because very few people participated in the network. This meant anyone could mine the coin individually. However, as the popularity of DOGE increased, the mining process became more difficult, prompting miners to come together and form “mining pools.”

A mining pool is a group of individual miners who mine the cryptocurrency as a single entity, or node, by merging their computing power. The rewards are then distributed among pool participants proportionally by the amount of computer power committed by each miner.

Today, there are three main approaches to mining dogecoin:

  • Individual mining/solo mining

  • Dogecoin mining pools

  • Cloud mining

Solo mining vs. dogecoin mining pools

For anyone looking to mine DOGE for fun or simply to understand the process, it can be done independently using a GPU (graphics processing unit) through a software like EasyMiner, for example. The GPU is a specialized processor that renders all images on a computer's screen, and many laptops and desktop computers use it to improve image processing.

However, mining alone can be a difficult process and is rarely profitable unless one is willing to shell out significant sums of money on top-spec equipment and electrical bills.

For crypto enthusiasts interested in trying to make a profit from doge mining, joining a dogecoin mining pool is recommended and provides a much better chance of becoming a block validator due to the collective hashing power of the pool. But before jumping into a mining pool, be ready to pay 1%-3% in fees for the privilege to participate and always check in advance how each pool calculates payouts for its members.

Popular dogecoin mining pools in 2022 include:

Dogecoin cloud mining

Dogecoin can also be earned through cloud mining, which is not really mining per se. Cloud mining basically involves renting computing power from a data center and paying a monthly or annual fee based on an agreed-upon contract. The chosen coin is then mined at the center via a mining pool and then shared with you based on how much computing power you pay for.

The main drawback of cloud mining is that most contracts are time-locked, meaning you can lose money if DOGE prices drop below the operational and electrical costs associated with mining it.

Nevertheless, this can also be just as effective as joining a mining pool and does not require the user to own any specialist equipment. Anyone opting for the cloud mining route simply needs a dogecoin wallet.

Popular cloud mining pools that support DOGE include:

Dogecoin mining must-haves

For individuals interested in mining dogecoin solo or via a dogecoin mining pool, there’s a range of equipment needed in order to get started.

Dogecoin Mining Hardware

There are three types of hardware equipment you can use for DOGE mining:

  • CPU – your PC’s central processing unit might be an option even today, but it is not really recommended because it can cause damage to your computer by overheating it.

  • GPU – a graphics processing unit is more powerful than a CPU and can be used to mine dogecoin.

  • ASIC – an application-specific integrated circuit is a computing machine built specifically to generate hashes. ASICs are far more powerful than GPUs and, unsurprisingly, more expensive. Anyone planning to buy an ASIC should look specifically for a Scrypt-based ASIC miner.

Dogecoin Mining Software

Once you’ve decided which type of hardware to use, you’ll also need to download software to accompany it. Here are some of the leading software options available at the moment:

  • CPU – CPU miner by Pooler.

  • GPU – EasyMiner is great for beginners, CudaMiner works best with Nvidia GPUs, while CGminer does well with all types of GPUs.

  • ASIC – CGminer and EasyMiner can be used with ASICs as well, but most ASIC miners use MultiMiner.

Dogecoin Wallet

A dogecoin wallet is essential for mining and provides a secure place to receive any dogecoin rewards generated from mining. A crypto wallet consists of a public key address for sending and receiving DOGE and a private key to access it. The latter has to be kept secure and not shared with anyone. There are several types of wallets, such as:

  • Online: Anyone mining dogecoin for fun can opt to use an online wallet such as Coinbase or Binance. These aren’t as secure as other wallet options but are much more convenient to use.

  • Software: Software wallets reside on your PC or mobile device rather than online, which makes them more secure. You can download the original dogecoin wallet or use third-party software wallets.

  • Hardware: Hardware wallets are regarded as the most secure solution for storing crypto assets. These are physical devices similar to a USB stick that store crypto offline. Leading hardware wallets include the Ledger Nano S and Trezor Model T.

It’s worth noting, good access to electricity and an internet connection are essential for mining any cryptocurrency. If you opt for ASIC mining, it’s recommended that rigs be kept in a cool and isolated place to prevent overheating and disturbing neighbors with the noise.

Is dogecoin mining profitable?

Well, dogecoin mining can still be profitable. However, don’t expect to become a millionaire. Having powerful hardware and joining a dogecoin mining pool will give you the best possible chance of making a profit from dogecoin mining. If you’re interested in finding out how much you could make (approximately) per month, there’s a dogecoin mining calculator you can use.

Read More: Can You Still Mine Bitcoin and Other Crypto From Home?

Further Reading:

Proof of Work vs. Proof of Stake

What is the difference between these popular consensus mechanisms

Shib vs. Dodge

Which dog coin is best

This article was originally published on

Jan 13, 2022 at 2:53 p.m. UTC

Dogecoin Mining 2022: Everything You Need to Know (2024)

FAQs

What do you need for DOGE mining? ›

Basic Requirements: To start mining Dogecoin, you need a secure Dogecoin wallet, a computer with an operating system like macOS, Windows, or Linux, and an Internet connection​​. Mining Pools: Pool mining can significantly speed up the earning of Dogecoins compared to solo mining.

What is the best algorithm for mining Dogecoin? ›

On the other hand, Dogecoin uses a hashing algorithm called Scrypt – a bit less complex than Bitcoin's SHA-256. This makes mining Dogecoin much faster and less energy-intensive than BTC.

How to solo mine DOGE? ›

To perform solo mining, you have to join the Dogecoin network as an individual node and use your mining device to solve transaction blocks. You receive 100% of the mining rewards. Since there's no pool fee or transaction fee, the rewards are slightly higher.

How much Dogecoin can I mine per day? ›

How much dogecoin can you mine in a day? This is entirely based on the mining hardware that you use. With a Dogecoin mining hashrate of 9,500.00 MH/s, a block reward of 10000 DOGE, and a Dogecoin difficulty of 7,019,157.38 you can mine 272.26543290 Dogecoin per day.

How long does it take to mine one Dogecoin? ›

However, you can't actually mine a single DOGE at a time. Dogecoin is mined in blocks of 10,000, and it takes roughly one minute to mine a full block. Of course, the speed it takes to mine a block varies based on the mining pool you chose and the power of your miner.

How much time does it take to mine 1 Dogecoin? ›

Time to Mine a Block: It takes about 10 minutes to mine a single Bitcoin block, while a Dogecoin block can be mined in just 1 minute. Mining Difficulty Level: The difficulty level for mining Bitcoin stands at 7,182,852,313,938.32, significantly higher than Dogecoin's difficulty level of 2,881,328.6684.

Is mining DOGE profitable? ›

Is Dogecoin Mining Profitable? According to most mining calculators, Dogecoin is profitable to mine. Whattomine and other mining calculators can be used to determine how profitable it is to mine Dogecoin with various miners.

What is the easiest and most profitable crypto to mine? ›

  • Bitcoin (BTC) Bitcoin is the largest crypto by market capitalization and the most popular cryptocurrency to mine, with a reward of 6.25 BTC per block - although this is due to halve soon. ...
  • Litecoin (LTC) ...
  • Zcash (ZEC) ...
  • Dogecoin (DOGE) ...
  • Dash (DASH) ...
  • Ravencoin (RVN) ...
  • Vertcoin (VTC) ...
  • Ethereum Classic (ETC)
Mar 19, 2024

What is the most profitable DOGE mining pool? ›

Best pool options for Dogecoin mining
  • Aikapool. Aikapool is one of the leading mining pools with a share of 7% in hash rate contribution. ...
  • Litecoinpool. Litecoinpool is also a popular Dogecoin mining pool option. ...
  • Zpool. Zpool is also one of the largest platforms for mining Dogecoin in a pool. ...
  • 1CoinPool. ...
  • Multipool.
Mar 9, 2023

What is the cheapest way to mine Dogecoin? ›

Pool mining is the best option for beginners since there is a lower cost of entry. Also, it is difficult to make money as a solo miner. The first thing you will need is a Dogecoin wallet. This is where you will store the coins you mine.

What is the easiest crypto to mine? ›

Crypto you can mine from a home computer in 2024
  • Dogecoin (DOGE)
  • Ethereum Classic (ETC)
  • Monero (XMR)
  • ZCash (ZEC)
  • Ravencoin (RVN)
  • Bitcoin Gold (BTG)
  • Horizen (ZEN)
  • Bytecoin (BCN)
Mar 22, 2023

Can you make money solo mining? ›

Solo mining is a method where a single miner independently conducts and executes the mining process, relying on native crypto wallet clients to discover blocks. Profits depend on hardware hash power and network difficulty. Solo miners can earn significant rewards if they complete the entire process within the network.

What do you need to go to Titan in Dogeminer 2? ›

Before embarking on your journey to the Cyborg Planet in Dogeminer 2, you need to ensure you have enough Dogecoins to purchase the Titan Rocket. The Titan Rocket serves as your ticket to interplanetary travel and exploration, but it comes with a price tag of 729 million Dogecoins.

Is DOGE mining paid real or fake? ›

Is Dogeminingpaid Site Real? No, it isn't.

What would you need to mine a cryptocurrency? ›

Key Takeaways
  1. Becoming familiar with the mining process is a key factor when you're starting out.
  2. You'll need a cryptocurrency wallet, mining software, and mining hardware to begin mining cryptocurrency.
  3. The equipment you need can be very expensive; however, the more you pay for equipment, the more profitable it can be.

What is the best GPU for mining Dogecoin? ›

The RTX 3090 Ultra Gaming is probably the leading GPU for mining Dogecoin, but you can also try out RTX 2080 Ti, RTX 2070, GeForce GTX 1080 Ti, RX 580 GTS, and the AMD Radeon RX 5700XT. Regarding profitability, you can generate around $49.99 per day at a mining hash rate of 9,500 MH/s.

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