In this step-by-step guide for beginners, you will learn how to mine dogecoin (DOGE) in 2020.
What is Dogecoin?
Billy Markus and Jackson Palmer, the creators of DOGE, envisioned a fun and light-hearted digital currency that would reach a wider audience than Bitcoin. After its introduction in 2013, Dogecoin quickly created its own online community and became the most mentioned altcoin on Twitter at the time, although for negative reasons.
Dogecoin is often used to reward the sharing of content on social media platforms like Reddit and Twitter. Also, Dogecoin has been used to raise capital for charitable causes.
Mining Dogecoin requires a pool and hardware. Since the digital currency is based on the Script algorithm, the most appropriate miner is an Application-Integrated Specific Circuit (ASIC). For instance, you can use Antminer L3+ to mine DOGE.
To increase your chances of getting a block and earning mining revenue, you will need to join a mining pool. Pools “pool” the hashing power of many participants, therefore, decreasing the time it takes to solve the block’s mathematical problem. Additionally, you will need:
- A Dogecoin wallet: you will use this wallet to store the coins you mine. An example is this online wallet.
- A stable and dependable internet connection: to mine Dogecoin, you will need an internet connection 24/7 for the entire mining period.
- Cheap electricity: your mining rig will run on electric power. Therefore, you need access to cheap electricity.
- Isolated location: mining rigs are usually loud hence the need to set them up in an isolated location.
- Cooling equipment: you should acquire cooling equipment to reduce the heat emanating from your rig. Cooling your rig will ensure that your hardware lasts for as long as possible.
- Mining software: Your ASIC will probably come integrated with mining software. However, if you are using a CPU or a GPU, you should get mining software like CGMiner. Since CPUs and GPUs are unlikely to make you a lot of money, they are unsuitable.
To increase your earnings, use more than one ASIC miner in your rig.
Assembling your Mining Rig
Once you acquire the above equipment and location, you are ready to assemble the mining rig. Here is how you will do it:
- Connect your ASIC miner to the power supply unit (PSU) and the internet router. When this is done, connect your PSU to the power grid.
- Go to your browser and search for the best mining pools to mine Dogecoin. Choose the mining pool that works for you. When looking for a pool, consider the pool fees and reward system. An example of a mining pool that supports Dogecoin mining is Aikapool. If required, set up your workers on the pool’s website after you have joined.
- Find your ASIC’s IP address. To do this, look for your miner under the DHCP client list of your router. If you do not have access to your router, download the IP reporter software from the manufacturer’s website. So, if you are using Antminer L3+, download the software from the Bitmain website. Open the software and click start then hold the “IP Report” button on the ASIC. The IP address will appear on your computer.
- Login to the web interface of your miner and enter the IP address you retrieved in the previous step. The login credentials are “root” by default. Your manual will state the login credentials you should use. Therefore, double-check that you have used the right username and password.
- Go to “Miner Configuration” and enter the addresses of three pools. You will find the addresses on their websites. Entering information in all three pool fields ensures that your mining process is continuous even when one pool is experiencing downtime.
- Click “Save and Apply.” After a few minutes, check the status of your miner to see if mining has started. If you see the hash rate, everything is in order. Your rig will now start mining you Dogecoin.
Before you begin mining, it is important to calculate the estimated profits you will make with the miner you wish to buy and the cost of your electricity. If you use Antminer L3+, pay $0.02 kWh for electricity, and pay one percent as the pool fee, your estimated mining profits will look like this:
The earnings you get from mining Dogecoin will depend on:
- The hash rate of your miner and pool. The higher the hash rate, the higher your chances of receiving a reward.
- The mining difficulty. This difficulty is constantly changing.
- Dogecoin’s current price.
- The cost of your electricity. The above calculation has used one of the lowest electricity costs you can find.
- Mining pool fees. You should choose a reputable pool with low fees.
- The efficiency of your miner in conserving power.
- Your total expenses. To make a profit mining DOGE, you will need to keep your expenses as low as you can.