Dogecoin Mining: Is It Profitable to Do This in 2020

2 months ago
Mining Dogecoin
Mining Dogecoin

Dogecoin is an open source decentralized coin. Doge currency was released in 2013 by an American programmer. The basis was taken Litecoin algorithm. In 2019, the Dogecoin capitalization is $296 018 427 with a cost of $ 0.0024. 

The name of the coin was in honor of the popular Internet meme Doge, which depicted a funny dog of the Shiba Inu breed. Dogecoin was originally created for fun. Despite this, the cryptocurrency has been living for 6 years and has good ratings on the CoinMarketCap portal.

In the presented article, we will talk about the features and types of mining Dogecoin, let's talk about the equipment necessary for work let's evaluate the prospects of the coin. 

How Profitable is Dogecoin Mining

The benefits of mining Dogecoin
The benefits of mining Dogecoin

The Dogecoin coin is based on the Scrypt encryption algorithm. According to users, only three minutes are enough to find the block (if you join the pool for mining with a high hashrate). Experienced miners recommend mining Dogecoin and immediately exchange half of them for more reliable assets. It is worth noting that, according to the technical characteristics, Doge is practically no different from Litecoin. Despite the fact that currency price is growing slowly, analysts confidently predict the rise the value of the coin. 

The profitability of the project can be calculated on the basis of what type of equipment is involved in the process of coin mining. Not very powerful GPUs or CPUs will cause losses. For this reason, you need to select the equipment in which the ratio of production to energy and other costs will be positive when mining Dogecoin. There may be additional costs. Among them are: Dogi mining in a pool, equipment rental fees, the use of unique and expensive software. 

Moreover, you can use the unique calculator for calculating the profit from the process of mining coins. Mining profitability will be calculated by entering the necessary data into the online calculator. To increase profits, you should become a member of the pool or purchase ASIC. This will increase revenue by dozens of times. 

Dogecoin cryptocurrency review

Dogecoin Mining: Complexity and Algorithm

The difficulty of mining Dogecoin
The difficulty of mining Dogecoin

Features of mining Dogecoin:

  • block formation occurs once in one minute (2.5 times faster than Litecoin);
  • the procedure for confirming financial transactions takes no more than six minutes (for Litecoin, it takes about 15 minutes);
  • adjustment of the complexity of currency production is recalculated once in 240 blocks.

After the coin appeared in 2013, it was impossible to mine Dogecoin using ASIC. Extraction was carried out exclusively thanks to processors and video cards. The ability to mine currency using ASICs running on the Scrypt algorithm appeared for users in the middle of 2014. The complexity of mining is constantly increasing, and for miners on processors and video cards it became increasingly difficult to compete with more efficient miners on asics. 

Dogecoin has its own indicators of production complexity. The number of tokens received in a certain time depends on them. When creating Dogecoin coins, developers have laid down a clear amount of coins that can be mined. If more coins have been mined for a specific period of time than originally laid, production costs increase sharply. This is done so that there is an opportunity to control the pace of mining Dogecoin. If the production complexity becomes lower than the planned parameters, the process of finding blocks is accelerated. 

Dogecoin mining is a process for calculating a block hash using existing technological capabilities. Since last year, the difficulty of mining Dogecoin has increased to 2.6 million, and the hash rate has risen to 180 Th/s. 

Dogecoin mining difficulty chart // Source: BitInfoCharts
Dogecoin mining difficulty chart // Source: BitInfoCharts

To receive a Dogecoin coin, you must: 

  1. install a unique wallet for Doge on your PC - Dogecoin Core;
  2. have the necessary equipment (ASIC equipment presented in the table below is considered the most popular).

Mining equipment Dogecoin

Dogecoin mining equipment specifications
Dogecoin mining equipment specifications

How to Mine Dogecoin

Calculate the preliminary profit, evaluate whether it is worth mining in general in your case. 
Choose how to mine: solo or in a pool.
Determine the equipment on which you will mine.
Start mining.

Methods of Dogecoin Mining

Dogecoin mining
Dogecoin mining

Among the main ways of Dogecoin mining are the following:

  • solo mining;
  • mining in pools;
  • сloud mining using equipment rental.

Solo Dogecoin Mining

This type of mining is an independent currency mining using a personal computer. At the moment, Dogecoin independent mining is unprofitable. 

Dogecoin Mining on a Processor

CPU mining
CPU mining

There is no particular reason to mine Dogecoin on the processor, since there will be practically no profit from such mining. 

Mining Dogecoin on Video Cards

Mining Dogecoin on video cards will be more productive than mining Doge tokens on the processor. To configure the equipment and carry out independent production, you will need one of the utilities: 

  • CudaMiner (used for NVidia cards);
  • SGMiner, and CGMiner72 (used for ATI cards).

As a rule, at the first start, video cards can not give maximum performance. To speed up the work, you will need to make changes to the launch line and change the frequency of the video card. Moreover, it will be necessary to provide ventilation for the case to lower the temperature of the video card, since it will always be under 100% load. 

Mining Dogecoin on Asics

Mining on ASICS
Mining on ASICS

ASIC mining is the most profitable type of mining Dogecoin. The most popular solution for Doge is Antminer L3 +, which costs more than $ 1,500. This asic gives a hash rate of 504MH / s and consumes only 800W. 

Dogecoin Mining Pool

Mining pool

For miners who do not want to purchase ASICs,  it is worth mining in the pool. The pool is a server on which power is distributed between all participants in the pool. Mined coins are divided in proportion to the contribution to the overall work between all network participants. 

Among the popular pools for mining Dogecoin should be mentioned:

  1. Dogehashfaster;
  2. Multipool;
  3. Aikapool.

To increase security, add the spare pool address after the primary pool address.

Dogecoin Cloud Mining 

Cloud mining
Cloud mining

For Doge cloud mining will need to rent special equipment. This type of mining is extremely popular, as it allows users to avoid buying an expensive ASIC or setting up a video card.

The most popular cloud mining services for Dogecoin are: 

  1. DogeMining is a Czech service that offers two-year capacity rental contracts. You can start work after registration. Blocks are generated using the pools AntPool, F2Pool, BTCChina, BW.com; 
  2. Antex.cloud – the service offers mining of 8 crypto coins, among which there is also Dogecoin. The minimum amount of hash that can be purchased is 5GH / s. Contracts are also concluded for 2 years. 

Mining Prospects for Dogecoin

As of today, mining Dogecoin is not profitable due to the low cost of the currency. However, the coin has many supporters. Analyzing the price of Dogecoin based on data obtained from the CoinMarketCap portal, we can conclude that it is pampered every 6-8 months. 

Dogecoin price chart // Source: CoinMarketCap
Dogecoin price chart // Source: CoinMarketCap

Supporters of the coin know that Dogecoin has no unique abilities, but periodic price hikes make Dogecoin a promising market participant. Although, experienced investors claim that such a coin does not belong in their investment portfolio. 

It is worth noting that some large sites have added support for Doge coins. Among them: a mobile application for trading cryptocurrency Robinhood, Coinbase Wallet (support is implemented for both Android and iOS). Do not forget about the Dogethereum project (DOGX). 

First announced in 2015, a project based on a smart contract system, was designed to provide a link between Doge and ETH blockchains. After the launch of DOGX in 2018, Doge's rate has grown almost 2.5 times. Today, the price of Dogethereum is $ 0.00207397, and the daily turnover is $ 6.94. If the Dogethereum project implements its goals, Doge tokens can get a new development vector. 

As of today, Dogecoin cryptocurrency is mostly used to withdraw other cryptocurrencies. This is due to the fast transaction speed, low commission and low cost. Nevertheless, despite the value of the coin, it remains stable, and its popularity continues to grow.

Based on all the data, we can conclude that Dogecoin mining is not profitable at the moment, but, it is likely that in the near future the coin will be in demand, and the mining – profitable.

We also recommend watching a video on YouTube about Dogecoin mining on your phone.