With thousands of cryptocurrencies to choose from, the crypto world can be quite overwhelming.
For some of you, you might choose to get involved with crypto through mining Dogecoin (DOGE). Why? Maybe it’s that cute and fluffy Shiba Inu face that you see everywhere. Or you might have heard that Dogecoin, surprisingly - considering it was created as a joke - has generally held its value over time.
Anyway, mining can be quite intimidating if you’re a beginner so we at Exodus want to make it easy. Here’s how to mine Dogecoin - the easy way!
How Hard Is It to Mine Dogecoin?
Before we get into the tutorial, you should know (if you don’t already) that mining DOGE isn’t what it used to be.
Like Bitcoin, Dogecoin has seen the rise of ASICs, or application-specific integrated circuits, which is a fancy way of saying devices built specifically for mining. Although DOGE’s mining algorithm, Scrypt, was originally designed to be ASIC-resistant, ASIC manufacturers eventually found a way around that.
The introduction of ASICs, which are much more powerful than home computing equipment, at least for the purposes of mining, has made mining DOGE much harder for the average individual since those using CPUs (computing processing units) and GPUs (graphics processing units) now have to compete with ASIC miners.
In addition to the rise of ASICs, the introduction of merged mining - being able to mine DOGE as well as other cryptos - has also made Dogecoin mining more difficult. Before the addition of merged mining support, some members of the DOGE community worried that a small handful of powerful groups were dominating Dogecoin mining.
This meant that those powerful few could potentially launch a 51% attack. In other words, by using a majority (51%) of the network’s hashrate or mining power, these powerful mining groups could change Dogecoin and its blockchain, or record of transactions, entirely.
To counter this, Dogecoin developers introduced AuXPoW, or Auxiliary Proof-of-Work. AuXPoW allows miners of other cryptocurrencies to also mine DOGE (merged mining). While this did have an effect on more broadly distributing DOGE’s hashrate, it also made the Dogecoin mining difficulty shoot up, making mining more difficult.
Lastly, due to regularly scheduled decreases in the DOGE block reward (how many Dogecoins are created with each new block of the blockchain), there is less DOGE to go around for miners. This can create downwards pressure on miner profitability unless the price of 1 DOGE is able to make up for the lower block rewards.
So what does this all mean for you, the brave DOGE miner?
Well due to all of these changes in the Dogecoin mining ecosystem over the years, trying to mine Dogecoin by yourself with just a CPU or GPU probably won’t be worth it in terms of profit. Nevertheless, you still might be able to mine somewhat efficiently if you join a mining pool (we’ll explain what that is if you don’t know) - but probably only with ASIC mining, which is more costly.
Mining Pools vs. Solo Mining
Mining pools are groups of miners that come together to combine their hashrate or mining power. By “pooling” together, mining pools have a higher overall hashrate, which means they have a higher chance of winning block rewards. Any profits are proportionally split among pool members and while payouts might be smaller for each individual member, they are usually more consistent than those of solo miners.
Solo miners, as their name implies, mine by themselves. Solo miners keep any mining rewards they earn all for themselves. However, unless the solo miner has a lot of hashing power, their chances of winning block rewards are small. Thus, their payments don’t come as often (or at all).
As we mentioned, solo mining DOGE with just a CPU or GPU isn’t worth it. The exception would be if you are mining with ASIC(s). But even then you’re better off joining a pool unless you’re some sort of DOGE mining ASIC kingpin with a bunch of ASICs.
How to Mine Dogecoin
Now for the fun part - how to mine Dogecoin!
Before getting started, you want to make sure that you have all the necessary requirements.
1. A good, uncapped Internet connection
One of the things you’ll need is a solid, unlimited Internet connection. You don’t want your Internet to be slow or cut in and out when mining. If you’re not connected to the Internet, you’re not mining.
For slow connections, even if you’re connected, you don’t want to be communicating slowly with the network because that would decrease your chances of receiving block rewards if you and another miner with faster Internet send your results at the same time.
2. Electrical capacity
Since mining is energy-intensive, you want to make sure that your electrical system can handle your Dogecoin mining needs. See the energy requirements of the things you’ll use like cooling and mining equipment.
3. Heat management (e.g. cooling system, fans)
Another thing you need is good heat management. Mining equipment can run hot, and you still want to make sure you have the proper cooling in place to make sure your equipment and mining space, such as your garage, don’t overheat.
4. An ASIC (or other mining equipment)
While ASICs can be pricey, they are pretty much a must have if you actually want to turn a decent profit and not just mine for fun. Your best bet is probably the Bitmain Antminer L3++, which has a good combination of high hashrate, moderate power consumption, and relatively affordable price. You can probably find one for a decent price on Ebay.
Make sure to buy one that comes with a power supply unit (PSU)! Exception being if you already have one lying around.
After you decide on what mining equipment you’re going to use, it would be a good idea to estimate your mining profitability (if you want to make a profit). A good resource is WhatToMine’s Dogecoin mining profit calculator.
If we were to take the example of the Antminer L3++ (580 Mh/s hashrate, 1050w power consumption, $155 upfront cost including shipping based off new L3++ listings on eBay), a fairly standard mining pool fee of 1%, and an average US electricity cost of 12 cents per kilowatt hour, we can see that DOGE mining would be unprofitable:
Therefore, even with the best Scrypt ASIC currently on the market, mining DOGE is probably unprofitable. However, if you somehow had free electricity (utilities included in your rent) or lived in a country like Argentina with nearly free electricity, you would be close to breaking even:
However, keep in mind that calculators like these only provide estimates and things could change if things like the DOGE price or mining difficulty change. For example, if you’ve been in this space for even a week, you know that prices can change drastically within hours, let alone days, weeks, months, or a year. As of writing, the DOGE price is quite down from where it was in 2018 and earlier. Mining difficulty also changes often.
On top of changes in price and mining difficulty, you and your pool can get lucky when it comes to mining rewards more often than a mining calculator accounts for.
At worst, your mining efforts will at the very least contribute to the decentralization of DOGE mining.
5. A Dogecoin wallet
If you’re still determined to mine DOGE, another thing you’ll need is a Dogecoin wallet to send your mining profits, too.
The official DOGE wallet is a good choice if you only use DOGE and want something that supports major desktop platforms (Windows, macOS, and Linux) as well as Android.
If you want something with a bit more functionality, the Exodus Dogecoin wallet is a good choice thanks to:
- Supporting DOGE as well as 100+ other crypto assets
- Focusing on premium design and ease of use
- Supporting desktop and mobile (iOS and Android), including syncing your DOGE between both platforms!
- Allowing you to exchange your DOGE profits for other cryptos right from the app
- Having 24/7, fast human support if you ever need help
Setting up your ASIC (Antminer L3++)
In this example, we’re going to use an ASIC (Antminer L3++) since they have the most potential for profit.
One of the good things about mining with ASICs is that you don’t have to download and configure mining software. Most ASICs these days come with software built-in so you can get mining faster.
Once you have your ASIC(s) in hand, here are the steps you need to take:
1. Connect your ASIC to both a power source and the Internet
First connect your ASIC to the power supply unit (PSU). Then connect the PSU to a power source. Finally, plug the Ethernet cable into the ASIC and make sure it’s connected to a router or other Internet source.
2. Choose a Dogecoin mining pool
Pick a mining pool to join based on things like:
- Trustworthiness - is the pool reputable and do they pay miners on time
- How much hashing power the pool has - the more hashing power, the higher the chances the pool, as a whole, has of receiving block rewards
- Uptime - if the pool isn’t running consistently, it isn’t mining
- The pool fee - how much they take from your profits
- Reward system - how the pool calculates rewards payouts
- Server location - the closer the better. The closer you are, the lower your latency, which has an effect on how quickly you submit shares (of how much you mined) and receive shares (of how much you’ll mine). Any delay here could result in you solving less shares and getting less of the pool’s block rewards
- Minimum payout - lower could be better if you don’t have much mining power and want more frequent payouts
- Multicurrency support - some pools let you mine other cryptocurrencies besides Dogecoin
3. Find your ASIC’s IP Address
Next, login to your router’s settings (usually accessible by typing 192.168.1.1 in the address bar of your web browser).
Enter your username and password (usually given to you when the router was setup and/or listed on the router itself).
From there, find your network’s connected devices and look for “Antminer” and copy the associated IP address.
If that all sounded confusing to you, look through your router’s documentation. If you don’t have it, search Google or another search engine for your router’s name (should be on the device) along with “how to find connected devices” or “DHCP client list.”
4. Login to the ASIC’s Web Interface
Once you have your device’s IP, enter it in your browser.
A box will show up, telling you to login. The default username and password should be “root” without the quotation marks but check your ASIC’s manual if that isn’t the case.
5. Enter Mining Pool Information
Once you’re logged in, go to your Miner Configuration settings and enter your mining pool’s URL and Password (both provided by the pool). Where it says Worker is where you’ll put your Dogecoin wallet address.
If you’d like, entering more than 1 pool’s information will ensure that even if your main pool is down, your ASIC will switch to the next one in order to ensure continuous mining.
Also, be sure to set the correct payout coin via the pool’s website! You don’t want to accidentally mine some other coin to your Dogecoin wallet (or vice versa if you choose to get paid in non-DOGE).
6. You’re Done!
Once you hit save, you’re all good to go! Pretty easy, right? After a few minutes, your miner should display a hashrate in the Miner Status tab, which means that everything is working properly.
How to Mine Dogecoin with GPU
Want to know how to mine Dogecoin with GPU?
Unfortunately, these are the ASIC days, and you probably won’t be profitable unless you have a ton of GPUs. Even then, just buying ASICs would be a bigger bang for your buck.
Still, if you want to try anyway, perhaps to just mess around or get a feel for what mining DOGE is like, you have some options.
First, either set up a GPU mining rig or use whatever GPU your computer currently has.
For either program, you’ll need the following:
- Stratum address and port number to connect to. (Stratum is a coin mining protocol, and you can think of a Stratum address as a website address. But instead of connecting to a website you’re connecting to a mining pool)
- Your worker name - created on mining pool site
- Your worker password - created on mining pool site, different from your user password for the site
- Your username for the mining pool site
How to Mine Dogecoin with CPU
If GPU Dogecoin mining is unviable, you can forget about CPU mining, at least when it comes to actually turning a profit. You’ll probably just cause your CPU to overheat, which can damage it and reduce its lifespan.
However, if you’d like to tinker around anyway, what you need is to download CPUMiner and have the settings listed above (stratum address, port number, worker name, worker password, pool site username) ready.
How to Mine Dogecoin on Android
While it might sound cool to be able to mine DOGE using your phone, it unfortunately just isn’t possible. Phones are not even close to being powerful enough to mine Dogecoin.
What you could do is check out the fun Android game Dogeminer!
How to Mine Dogecoin on Mac
If you want to mine Dogecoin on your Mac, it probably won’t be possible unless you have an amazing GPU. Even then, don’t expect to be profitable, as ASICs will provide tough competition. Also, do not try this on a Mac you care about since your Mac will run very hot, which might cause damage and definitely reduce the lifespan of your device.
Either way, if you still want to get started, follow the instructions in the “How to Mine Dogecoin with GPU” section or the “How to Mine Dogecoin with CPU” section.
How to Solo Mine Dogecoin
As I’m sure you’ve noticed, mining Dogecoin is hard, even with a mining pool. The only way to really solo mine Dogecoin profitably is if you have a Dogecoin mining farm somewhere with many ASIC devices in a place where electricity is very cheap or even free.
Otherwise, you risk waiting a long time to receive DOGE block rewards. It could be weeks, months, years, or never before you mine a DOGE block by yourself. Though once you do, the entire reward will be yours, as opposed to having to share with a mining pool. However, things like electricity costs could eat into any profits you make.
How Long Does It Take to Mine Dogecoin
Technically, a Dogecoin block is mined every minute. However, if you want to know how long it will take for you to mine some DOGE, use something like the WhatToMine Dogecoin mining calculator but know that it isn’t perfect. For example, with an Antminer L3++, it will probably take you an hour or less to mine 1 DOGE.
Hopefully know you know how to mine Dogecoin! While it is largely unprofitable for most these days, that’s dependent on one’s own situation. Not to mention that things could change if, for example, the price of DOGE goes up!
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.