What Is Dogecoin Mining?

 

CLICK HERE TO GET A FREE DOGECOIN TODAY

WHAT IS DOGECOIN MINING?

Dogecoin has gone a long way since its humble beginnings as a joke cryptocurrency based on a Shiba Inu "doge" meme that went widespread on the internet.

The fantastic start to the year for Dogecoin has drawn a record number of miners to its network.

Dogecoin's meteoric growth in the first half of 2021, fueled partly by online pop culture and unrelenting marketing from Tesla CEO Elon Musk, has reawakened major interest in dogecoin mining, which has reached a new six-year high in profitability.

First of all, know that a Dogecoin is also a Bitcoin or Crypto currency. so in this post, we will be interchanging the names- but they mean the same thing.

Dogecoin mining therefore is the process where a crypto miner is able to solve cryptographic equations using a sophisticated hardware or system (laptop), after which the crypto miners is rewarded with digital incentives/currencies as a token of appreciation for solving the challenge.

Notice that Bitcoin is based on a blockchain algorithm, which is a distributed and repeated digital record of transactions transmitted across a peer-to-peer network of servers. 

Every "block" on a blockchain is loaded with Bitcoin transaction records until it hits one megabyte in size (a difficult mathematical problem to solve). The Bitcoin miners must then validate each block to determine that it is both authentic and correct.

The first Bitcoin miner to solve this difficult puzzle wins all transaction fees and receives BTC prizes. As a result, the Bitcoin network favors miners with higher-powered systems, than miners with lower-powered systems.

When mining dogecoin, the block reward is 10,000 dogecoins. it must be noted that DOGE and Litecoin merged mining in 2014 and are both based on the Scrypt algorithm. Bitcoin, on the other hand, employs the SHA-256 algorithm, which requires more computing power to mine.

Mining dogecoin is still substantially less competitive than mining bitcoin, despite its recent success (but still difficult). New blocks are also discovered considerably more quickly, and currency payouts are much higher.

Do You Know?: Dogecoin's blockchain, known as Dogechain, is open to the public and displays transactions in near-real-time. Because only one miner at a time will get a reward i.e.,—the system that can verify a new block the fastest.

CURRENT DOGECOIN VALUE

Crypto currencies like every other commodity rises and fall due to many factors. The current Dogecoin value as at the time of writing this post is $0.269969 USD with a 24-hour trading volume of $3,675,625,247 USD

HOW MUCH IS DOGECOIN TO USD

As at the time of writing this post, 1 Doge is equal to $0.27 USD

CLICK HERE TO GET A FREE DOGECOIN TODAY

THREE WAYS TO MINE DOGECOIN

1. POOL MINING: If you're a rookie miner seeking for a bigger return on your investment, this is  a superior and best option. Here, members contribute their hashing power to pooled mining, which is a communal activity. 

When a block is confirmed or solved, the rewards are proportionately distributed among the members of the pool. With this approach of mining, a miner is more likely to win and get return on investment.

2. SOLO MINING: You can solo mine if you think you are good enough to crack or solve the blockchain in quick time without external help. This means that, if you eventually solve the difficult blockchain, you alone will be the sole beneficiary of the rewards. 

In  a small scale, solo mining is generally difficult to make lucrative, and is best fit for larger enterprises. If you employ this approach , expect to lose. because its no longer a viable approach to solve the blockchain, that is why miners have ditched it for the pooling approach.

3. CLOUD MINING: This is the third and most easiest approach to win. This hands-off strategy allows you to essentially purchase into a mining company. 

You don't own anything but instead rent it from a larger data center. They will often bill you for the electricity as well as run the mining for you and take their own cut after every win.

Cloud mining is a viable solution for anyone who does not want to invest in hardware or manage the mining process himself. Cloud mining, on the other hand, can be dangerous because most contracts are time-limited. 

CLICK HERE TO GET A FREE DOGECOIN TODAY

BOTTOM LINE

Its up to you which mining strategy you want to employ in other to get a high return on investment. Which ever route you take, kindly let me know in the comments section as I would be glad to hear from you.