Dogecoin is a cryptocurrency with both an interesting history and a huge fanbase. The history of the coin can be dated back to 2013 when it was created as a meme project that was considered to be a joke.
Today, Dogecoin has joined the list of the top ten cryptocurrencies by market capitalization. The coin has also garnered support from many famous individuals, including Tesla CEO Elon Musk.
Dogecoin has turned some investors into millionaires. In fact, over 2,000 people have seen their Dogecoin investments grow to over $1 million. Keep reading to find out the best ways for you to start investing in Dogecoin so you can have the chance to make your own fortune.
Dogecoin Mining: Another Avenue to Earn Profits from the #1 Meme Coin
Trading Dogecoin on cryptocurrency exchanges is the most traditional way to use Dogecoin. But, it’s not the only way to earn profits from the coin. You can leverage the Dogecoin mining simulator to find out some of the best ways to make money from mining the coin. Interestingly, Dogecoin has one of the best mining approaches.
What Is the Process Involved in Dogecoin Mining?
Dogecoin is one of the easiest cryptocurrencies to mine. The process of mining Dogecoin is flexible and more rewarding than many other coins. Although the coin relies on the Proof of Work (PoW) consensus algorithm like Bitcoin does, it uses lower power. This is because the coin is mined with Scrypt. The algorithm also plays an important role in the utilization of fewer resources. It enables mining operations to be run on less-powerful computers.
This also means that you won’t have to spend a lot of money to mine the coin. The best Dogecoin mining rig could be your Personal Computer, provided you have one that can handle validating the data blocks of transactions.
Why Dogecoin Mining Is Profitable
Dogecoin has been compared to some of the leading cryptocurrencies because of its superb mining operations. For example, it has been found to be a better mining alternative to Bitcoin. Dogecoin’s Scrypt algorithm is far less complex than the SHA-256 consensus algorithm used by Bitcoin making it easier and less demanding to mine.
The speed of mining Dogecoin is also exceedingly fast, thanks to the fast-paced block discovery time. Unlike Bitcoin, which takes up to 10 minutes to discover new blocks, it only takes a minute to discover the same amount on Dogecoin’s blockchain.
Can I Still Mine Dogecoin Today?
Dogecoin has had a good year. In 2022, the coin saw a dramatic increase in its value/price. It also got massive support from important personalities who vocally supported the coin.
The coin had a bullish race, but has since retracted and is now moving more slowly. But ultimately, Dogecoin can still be a profitable crypto coin to mine in 2022.
Here is why it might be a good idea to start mining this coin:
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- Dogecoin mining doesn’t require much energy, because its algorithm doesn’t demand it.
- The coin can be “merge mined” or have its transactions validated under the Litecoin-Dogecoin merged mining process. This means that it can be mined at the same time as another crypto coin such as Litecoin.
- Dogecoin has one of the most active communities – and the holders are bullish on the coin.
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How to Mine Dogecoin
Dogecoin is still profitable to mine, so lets look at some of the steps you can take to become a miner for the coin.
1) Choose a Mining Approach
The first thing you want to do is to decide on the best mining process to earn Dogecoin. There are several options and your decision will likely boil down to the resources you have to acquire the necessary equipment.
These are some of the popular Dogecoin mining approaches:
Solo Mining
As the name implies, solo mining is all about being the only one involved in the Dogecoin mining process. It is nice if you prefer working alone, but the cost of acquiring the equipment is a bit expensive for one person to take on, so this option is limited by your resources.
Mining Pools
The need for Doge/Dogecoin mining pools was triggered when the mining process of the coin became more complex.
For mining pools, the process involves several Dogecoin miners coming together to pool or share their computing power. These miners will take advantage of the collective hashing power of the pool to validate transactions faster. This can be a cheaper and easier way to mine the coin, especially for beginners, since the community can share resources and knowledge.
Cloud Mining
You can also consider subscribing to a trusted cloud mining program that allows you to mine or validate Dogecoin transactions over the cloud. Although you don’t necessarily need to install any software, there may be a need for you to get a Dogecoin digital wallet.
2) Get the Essentials Ready
The essentials you need are an active and reliable Internet connection, a Personal Computer (PC) that runs the latest Operating System (OS) for mining Dogecoin, and a Dogecoin wallet for storing the coins you earn.
3) Set up the Hardware and Software
Both hardware and software are needed for a successful Dogecoin mining operation. The hardware can be a PC’s CPU or a GPU. It could also be a Scrypt ASIC mining rig.
Ensure that the software you choose suits the hardware you are using.
4) Test Your Wallet
The digital wallet you selected should be one that can receive and send Dogecoin (DOGE). Also, secure your crypto wallet to prevent loss of funds. You can do that by saving your private key and seed phrase in a safe place.
5) Start Validating Transactions
You can now start validating the data blocks of transactions (mining) to earn Dogecoin. The validation is done by solving a complex mathematical problem as a way of adding the new blocks containing pending Dogecoin transactions into the coin’s blockchain network.
6) Secure Your Dogecoin
This is the point where some miners can make mistakes. You’ve now earned some Dogecoin, but you are not sure what to do with it.
The rule of thumb is to leave the coins in your digital wallet if you want to hold on to them for some time before selling. For instance, you may want to wait to sell after the value of the coin increases.
Otherwise, consider transferring your Dogecoin to a cryptocurrency trading platform where you can sell it.
Conclusion: You Can Mine Dogecoin in 2022
Dogecoin doesn’t have a maximum supply cap. As such, mining operations will continue for some time. With the easy mining process and the limited requirements, you can easily start your career as a Dogecoin transaction validator in 2022 and earn new coins in the process.
However, you should always exercise caution when approaching crypto investments. While Dogecoin has earned some millions, you may also see substantial losses. To have a chance at high rewards, you would need to take a big risk by making a substantial investment in Dogecoin. But you can still make a profit on mining the cryptocurrency if you are wise with your investment.
Featured Image: Megapixl
