Dogecoin trades last year tripled than all the virtual-currencies combined. Research shows that the transactions outpaced Bitcoin, and the crypto space is excited about this digital currency that started as a joke.
But what exactly is Dogecoin? Here’s everything you need to know about Dogecoin and how to mine Dogecoin.
What Is Dogecoin?
Dogecoin is a digital currency that you can use to transfer value online. The peer-to-peer decentralized currency started as a joke. It gained popularity when a dog meme featuring a Shiba Inu dog went viral.
With this publicity, the Dogecoin got massive interest that saw its transactions top eight million dollars in value.
Dogecoin borrows heavily from Litecoin, in that it uses key ideas and code to function. The ledger uses proof of work mechanism to verify the blockchain transactions. One of the significant difference between Dogecoin and Bitcoin is that the former uses a scrypt hashing function.
The hashing function makes it difficult to develop ASICs miners. What this means is that you can mine Dogecoin even if you don’t own any special mining equipment. Dogecoin’s aim was to have 100 billion coins in circulation. The mining difficult was to increase with every block.
With this concept, there will be a stable number of coins in circulation and help maintain mining. However, the creators came up with a new algorithm to reduce mining-related price fluctuations.
Jackson Palmer and Billy Markus, the creators of Dogecoin, insist that the digital currency is best for transactions and not investments. They emphasize that the coin won’t make you rich quickly as a potential investor.
The coin sells for less than a penny a piece, unlike Bitcoin that is approximately $1000 a piece.
The Dogecoin Foundation
Dogecoin’s foundation was to influence the community with the use of the coin through acts of goodwill, charitable, and promotional endeavors. The community is active and has several initiatives that support the digital coin.
Why Should You Mine Dogecoin?
Dogecoin, unlike other cryptocurrencies, is cheap, which allows you to do your experiments. Other digital currencies require you to have a backup, addresses and be good at passwords. However, Dogecoin is a simple altcoin that you can use to conduct transactions online.
All you need is a Dogecoin wallet that works more like a Litecoin wallet. The best part is that you’ll only lose little money even if you lock up the wallet. Also, you can shop with Dogecoin, thanks to its wide circulation.
Most cryptocurrencies are not available in their physical form, but you can now buy a physical Dogecoin with its digital version. You can trade speculatively with Dogecoin due to its popularity in the market.
Dogecoin has had a ten times increase since September 2016. However, like other cryptocurrencies, the coin has had its price go down by 80% in a day. In 2014, the coin’s trading volumes went above those of Bitcoin and fell to nearly nothing.
Also, you should mine Dogecoin as it’s a fun way to explore the cryptocurrency space. If you’re not sure about other digital coins like Bitcoin and Litecoin, you can opt for Dogecoin which is inexpensive.
Mining Dogecoin means you get to support the community’s work. The community has several projects it funds from the transactions made online; you can be sure that you’re supporting a good cause.
How To Mine Dogecoin
Mining Dogecoin is one of the ways to get free coins. However, the mining varies from other cryptocurrencies in various areas like:
Dogecoin uses Scrypt algorithm while Bitcoin uses the SHA-256 algorithm. Also, the coin takes a minute to produce a block, which is fast compared to BTC that takes ten minutes and Litecoin which takes two and a half minutes.
The reward per block for Dogecoin is 10,000 which is $27.36, but you’ll get 12.5 BTC, which is $85,391 for each new block.
Step By Step Process Of Dogecoin Mining
Dogecoin mining is less complicated compared to Bitcoin and Litecoin mining. You can choose to mine the coin by yourself or join a mining pool. As a beginner, you need to join a Dogecoin mining pool as you learn the ropes.
Also, in case of any losses, you don’t have to take the dip by yourself. Going solo gives you an advantage as you get to keep all the profits. On the downside, you’ll have to bear the losses and wait for a long time before a transaction comes through due to competition.
To get started, you’ll need an internet connection and a PC with a Linux, Windows, or OS X operating system. Also, you need a wallet to keep the Dogecoin you mine. You can download the wallet by visiting Dogecoin’s homepage.
For mining Dogecoin, opt for the full wallet also called the Dogecoin Core. The next step is to get the right hardware and software.
You can mine Dogecoin using your computer’s CPU if it’s powerful. However, using the CPU is not ideal as using it to mine can lead to overheating which causes damage. Also, you can use GPUs to mine the digital coin. Some of the favorite ones include the ASUS RX Vega 64, NVidia GeForce GTX, and SAPPHIRE Pulse Radeon RX 590.
You can opt to get a Scrypt ASIC miner, which is hardware built to mine Scrypt based currencies like Dogecoin and Litecoin. Although the miners are powerful, they are loud and expensive.
For the software, you can use the EasyMiner Software. EasyMiner is ideal for beginners and user-friendly.
The Process Of Coin Mining
You need to create a worker on a mining pool website. Select another name and password, which you’ll use to access the site. Next, download a miner program that uses the Dogecoin Scrypt algorithm. Multiminer supports a variety of mining hardware although it’s expensive.
When using CPU mining, you can get the cpuminer or the CGminer when using GPU mining. CudaMiner is an excellent option for an NVidia, card owner.
You’ll need your worker’s name, password, username, and the stratum address to connect to a coin mining protocol.
Indicate the name of the worker in the “Worker” section and your password in the “Worker-password” section. The address for the stratum on hashfaster is “stratum3.doge.hashfaster.com:3339”.
Note the address may change as it depends on the pool. The next step is to start the engines from the command prompt in windows. You can copy the command-line in Windows into a batch file and click on it every time you need to start the miner.
At this point, you should view some output indicating the current hash rate. The mining process should start. Check the mining pool site to see if there any updated statistics.
For those interesting in mining Dogecoin but would rather skip on all the tech, you can opt for Dogecoin cloud mining. All you need to do is rent computer power from a massive data center and pay a yearly or monthly fee.
The center mines the Dogecoin and sends you the share. What you’ll need is a wallet and join a cloud mining pool like Genesis Mining or Nice Hash, which provide Scrypt-based cloud mining services at a monthly fee.
Nevertheless, this type of mining has its disadvantages. Some notable ones include it’s difficult to tell if the cloud mining contract provides you value for money, the mining pools have fixed contracts which means you can’t leave as you please, and you won’t enjoy the mining process when someone else is doing it for you.
Furthermore, you’re the only one renting computer power. You’ll still need to pay the computer power even if the amount you get from Dogecoin is worth less than what you expect.
Common FAQs On Dogecoin
Here are common questions about Dogecoin.
What is Dogecoin?
Dogecoin is a decentralized peer to peer digital currency that you can use to conduct online transactions.
How much is Dogecoin?
As of now, Dogecoin stands at $0.003. The altcoin has had its peaks and lows depending on the market. It’s popular mainly in Asian markets.
How Can I Use Dogecoin?
You can use the digital coin as a way to pay for online transactions. For example, you can buy electronic products, apparel, book, and other items using Dogecoin.
Will Dogecoin Be Relevant in the Future?
Well, this is hard to predict like other cryptocurrencies. Dogecoin has been hacked and gone on a dip multiple times. Also, the Exodus Wallet got rid of the coin claiming that it lacked the essential updates. For now, we can only wait to see how the altcoin performs.
Can I get Free Dogecoin?
Yes, you can get free Dogecoin without the need to exchange the coin with other tokens. Dogecoin users tip as a standard practice. Reddit users could send out tokens to assess your wallet.
Dogecoin’s future is unpredictable as it is with all cryptocurrencies. However, if the developers include the right updates, the coin could see a drastic spike in its value. Before investing in Dogecoin, do your homework to decide if this will be an excellent investment in the long-term investment.