had for a long time been largely unprofitable
due to the memecoin’s ridiculously low value. Yet having traded at just $0.0024 on 1 July 2020, DOGE now fetches a staggering $0.27 a coin. Somehow this meme project, created in 2013 as a joke, has become the most valuable punchline in the world, worth almost $40 billion in market cap
as of June 2021. Nobody had taken the “doggy coin” seriously in its early years – least of all its co-creators Billy Markus and Jackson Palmer. So when Elon Musk started praising Dogecoin’s virtues in December 2020, almost everyone in the crypto space initially took it as a joke.
However, after several months of pro-Dogecoin tweets – not only from Musk but from other celebrities, including Mark Cuban and Snoop Dogg – as well as a DOGE mention when Musk hosted Saturday Night Live, crypto community members are starting to believe that the self-proclaimed “Dogefather”
could be taking the meme coin more seriously than other crypto projects. Musk’s confirmation
of his working relationship with Dogecoin developers has only reinforced this perception. These developments go some way to explain why DOGE is holding strong in its support level despite currently bearish market conditions, which is great news for DOGE miners
This guide will explain how you can start earning your own DOGE through mining
and take advantage of its current popularity and high price. It’s important to do your research and to remember that there is a high risk involved due to the volatility of DOGE’s value. Bearing this in mind, let’s dive into Dogecoin mining and how it works.
Join us in showcasing the cryptocurrency revolution, one newsletter at a time. Subscribe now to get daily news and market updates right to your inbox, along with our millions of other subscribers (that’s right, millions love us!) — what are you waiting for?
miner is the hardware that participant nodes
in the Dogecoin network use to carry out the mathematical calculations needed to check and validate incoming transactions
on Dogechain, the coin’s underlying blockchain
miner nodes determine which transactions to include in the Dogechain, validating them and incorporating them into “blocks
” that will be recorded chronologically (and immutably) on the shared ledger, which is viewable by all network
To recap, these miner nodes are using their hardware to calculate the complex mathematical puzzles that are an integral part of the transaction validation process. For their efforts, they earn block rewards denominated in DOGE. The Dogechain releases 10,000 DOGE per minute
, which are rewarded to whichever node confirms incoming transactions quickest.
There are several types of Dogecoin
miners. In fact, you can start mining Dogecoin via the computer or laptop you’re using right now. Unlike Bitcoin, mining Dogecoin is not very compute-intensive, which allows entry-level computers to mine DOGE and still make a profit.
Dogecoin can be mined using various types of hardware, including:
Although it’s possible, it’s not ideal to use your personal or work computer for Dogecoin mining (unless it is truly powerful), since the process tends to overwork its components, especially its central processing unit (CPU). Dogecoin CPU mining can make the computer prone to overheating and reduce its lifespan over time.
A good place to get started if you would like to use CPU mining is cpuminer
While CPUs are powerful enough to handle the stress of mining DOGE, GPUs are more suitable, as they are more powerful and better optimized. If you prefer to mine with a GPU, three of the best to consider are:
- ASUS RX Vega 64
- Nvidia GeForce GTX
- SAPPHIRE Pulse Radeon RX 580
Scrypt ASIC Miners
runs using a Scrypt
algorithm, which happens to be the same as Litecoin
’s (and a lot less difficult than Bitcoin’s SHA-256
encryption). Scrypt ASIC miners are therefore the optimal hardware for mining DOGE, as they are specifically designed for the sole purpose of mining cryptocurrencies
that use Scrypt algorithms. If you can afford it, consider buying an ASIC miner, as it is more profitable than a GPU. The top ASIC miners for Dogecoin mining are currently:
- Bitmain Antminer L3
- BW L21 Scrypt Miner
- Innosilicon A2 Terminator
Other Things to Consider When Choosing a Miner
It’s important to note that whichever method you choose to mine Dogecoin
, you should also take your setup – including storage needs and temperature control – into consideration. As an overview, keep in mind the following:
- Coolers. Mining can cause overheating, which reduces the lifespan of your hardware. Establishing cooling setups for your mining device is important. Note that cooling requirements vary depending on the device but GPUs tend to require cooling more than other miners.
- Noise. Bear in mind that ASIC mining rigs can be really loud, especially if you are running more than one device.
- Space. Be sure to consider where you’ll place your setup before buying them. ASICs are best placed in a cool soundproof room or enclosure.
Dogecoin Mining Software
Mining software is essential for mining Dogecoin
no matter which type of miner you use. The software allows you to connect to the Dogechain and utilize the computing power of your miner to earn rewards. The five leading Dogecoin mining applications are currently:
- EasyMiner (for newbies)
- CGminer (for ASICs)
- CudaMiner (for Nvidia GPUs and ASICs)
- CPUMiner (for CPUs)
- MultiMiner (best for ASICs)
Note that you’ll need to make sure that your hardware works optimally with your chosen software.
, like other proof-of-work (PoW
) cryptocurrencies, can be mined using different approaches, depending on your budget and equipment. These include:
- Solo mining. An individual mines on their own
- Mining pools. Individuals pool their resources together in order and divvy up the collective rewards between them
- Cloud mining. A miner pays a subscription to a big data center to mine on his or her behalf
Dogecoin Solo Mining
Individual mining can in theory be extremely profitable if you have a Dogecoin
miner with high computing power, since you get to keep all block rewards to yourself. However, in practice, solo mining requires you to run multiple devices to be effective, as competition in the Dogecoin mining space is high. Keep in mind that you will be vying for block rewards against large mining pools across the globe.
Best Dogecoin Mining Pool
Pool mining is a strategy in which a group of miners pool their computing power to gain better chances of winning block rewards. A Dogecoin
mining pool allows small-time miners to mitigate their risks of losing money and raises their chances of becoming profitable, as it significantly enhances their chances of consistently winning block rewards. Participation in a pool also lowers the burden of overhead costs and expensive energy consumption, since multiple parties are pooling their computing power and mining as one unit. The top Dogecoin mining pools currently out there are:
AntPool is currently one of the largest mining pools and consists of Bitmain ASIC miners. According to some reports
, 10% of all cryptocurrency blocks are added by AntPool miners. The pool supports Scrypt mining, which means that it can be used to mine both Dogecoin and Litecoin
Prohashing is one of the oldest mining pools in the market and supports multiple different altcoins
. It utilizes a pay-per-share (PPS) model and charges users a 3.99% pool fee. Prohashing also offers merged mining, allowing users to mine both Dogecoin and Litecoin simultaneously.
The ViaBTC mining pool has mined 8.82%
of all Bitcoin
blocks over the last six months. It is a phenomenal option for crypto beginners, as it offers one of the most user-friendly interfaces. Like Prohashing, ViaBTC supports merged mining.
Trustpool is a pool based in Russia that supports seven different cryptocurrencies, including Dogecoin and Litecoin. It also features merged mining, allowing you to mine both Scrypt-based coins. Trustpool currently has several thousand active Dogecoin miners.
Dogecoin Cloud Mining
If you don’t feel like setting up your own Dogecoin
mining operation, you can subscribe to a cloud mining program, in which a data center mines DOGE on your behalf and charges a monthly or annual fee for its services. Cloud mining options for Dogecoin currently include Nicehash, Eobot and Genesis Mining
Before you begin mining Dogecoin
, make sure you have an uncapped Internet connection and a reliable electricity source that can handle the needs of your miner.
- Choose your hardware. First things first, you need to get your hands on a miner.
- Choose your software. Once you have your hardware all set up, it’s time to find the proper software and download it. Mining software is fairly easy to install but be sure to select one that suits your GPU or ASIC mining rig.
- Create a wallet. Your wallet is where your earnings go, so be sure to secure it by memorizing your seed phrase and storing your private key safely. Moreover, your wallet needs to support Dogecoin.
- Launch your mining operations. Once everything is in place, run the mining software and watch your DOGE stacks grow. Your mining software should be providing you with a preview of how much you’re earning by the hour.
- Alternatively, simply join a mining pool or sign up for cloud mining services, if either of these are your choice.
There are three types of wallets you can opt for: online wallets, software wallets (aka hot wallets
) and hardware wallets
(aka cold wallets
). Online wallets are wallets on centralized exchanges like Binance and Coinbase. Software wallets need to be installed and are more secured than the former. Trust Wallet and MetaMask are both good choices. You can also create an original dogecoin wallet
: Multidoge and Dogecoin Core. Finally, you can also opt for hardware wallets
like Trezor or Ledger. Once you’ve set up your wallet, link it to your Dogecoin mining software.
As long as Dogecoin
’s price doesn’t drop considerably below its current $0.3 support levels, mining Dogecoin in 2021 will likely be profitable. To be safe, be sure to use a mining profitability calculator
before investing in any type of miner or mining service.
While the most profitable cryptocurrency to mine is Bitcoin
, professional Bitcoin miners now dominate the space. However, there are still many other profitable options to explore. For instance, you could mine Monero
, a privacy coin that uses the same consensus mechanism as Bitcoin. You could also mine Zcash
, which was created to solve the privacy issue around Bitcoin. Finally, you could also mine Ethereum
, although the network is slowly transitioning away from a proof-of-work to a proof-of-stake consensus mechanism.
You should also be smart about cashing out your DOGE. You may want to regularly convert your DOGE rewards into fiat currency
. Alternatively, you might prefer to HODL
your DOGE and only cash them out if they substantially increase in value. Whichever decision you make, be mindful of balancing out your risks and rewards. For example, you might want to cash out half of your DOGE with every payout and hold on to the other half. With this guide, you can now go forth with your Dogecoin mining journey!
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.