The world is moving towards cryptocurrency. Currently, it seems as if cryptocurrency is the place where you should put all your money and just wait for the money to start rolling in. Because of the increased profit that people have received over the past five years, more and more youngsters are looking for ways to make more money from cryptocurrency.
Dogecoin is a similar form of cryptocurrency. If you want to know how to mine dogecoin, look no further. This article will guide you in terms of the procedure pertaining to mining dogecoin from the security and ease of your computer. Thereby, make sure to read till end.
What is Dogecoin?
Before we move forward, it is important to have an understanding of what dogecoin is. Since cryptocurrency is becoming the talk of the town, there are many variations coming out for people to invest in. These types of currencies are called altcoins, which means alternative currencies.
This whole train was started by Bitcoin and from then onwards, it was only uphill for people investing in cryptocurrency. If you plan on making an investment with a small amount of money then dogecoin is going to be perfect for you.
It is widely known that the value of a dogecoin increased by about 1000% in a few days. This is a good rate to go by if you want to invest in cryptocurrency. There are few platforms that you can use to buy dogecoin like Binance. We will talk about that a little later. However, emphasis has been laid on the security of your cryptocurrency.
Since most of this currency exists online it is quite easy to hack into accounts and steal currency from them. There is software specifically designed to prevent that from happening. There is also technology that you can use to protect your data like the Ledger Nano X. This is a secure wallet that you can use to prevent hackers from accessing your data. This device acts as a firewall.
The Procedure of Dogecoin Mining
There is a certain level of confirming and checking transactions that your computer has to do in order to gain dogecoin and profit off of it. Many computers may work on the same block of transactions, but it is not necessary that all of their profit off of it. In fact, only one of the miners has the prospects of being rewarded with new coins.
The person earning the new coins will connect the old block transaction to the new block transaction. This connection is normally completed using mathematical equations. There are always rules that are to be followed if you want to mine any cryptocurrency and this set of rules is called the algorithm.
There is a certain amount of time that it takes to attach the new blockchain to the old blockchain. This period of time is called block time.
Dogecoin uses Scrypt mining. In comparison to what bitcoin uses to guide the mining, this is much faster and it does not require the same amount of power to function. Since more people are allowed to mine the coin, user of dogecoin have a notion that dogecoin mining is fairer because everyone can use it.
Mining is also made easier and simpler for people who have not worked with cryptocurrency. Experienced people say that it is a lot easier to claim the reward in dogecoin than it is in Bitcoin.
However, the aspect to offset the ease and simplicity of the dogecoin is the worth of the dogecoin. To compare, ten thousand dogecoins is worth less than $30. However, since it is easier, time and effort can lead to you getting a decent reward in real currency.
How to Mine Dogecoin?
There are two distinct methods of mining dogecoin. You can either mine solo or you can mine in a pool. For the pool, there is a certain amount of money that you have to pay which is the mining fees. The way that this works is that multiple miners combine the powers of each of their computers and increase the chances of one of them winning the rewards.
When someone from the pool does win a reward, the reward is divided evenly amongst the people who joined their computers.
The disadvantage to this is that even someone does win, you will only get a small amount of the winnings, and however, since this does increase your chances, it is worth the risk. Half the time, people who mine as a group get more rewards than people who are mining solo.
When you mine solo, you risk a long time before you actually make a transaction and get a reward. It could literally be months before you hit your first reward. Regardless, if you win at some point, you won’t need to share your winnings with anyone.
Equipment You’ll Need
There are a few gadgets that you’ll need in order to start mining. For starters, you are going to need a solid Internet connection that works without any disruption and a PC with either Windows or Linux installed. OS X is another operating system that will work best for this.
You are also going to need a secure space to store all of your coins in. As mentioned before, these sites are quite easy to hack into. Choosing an online wallet is a very risky move. Instead, it is much better if you choose a wallet, which is software or hardware.
Coinbase is a software wallet whereas the Ledger Nano X or the Trezor Model T is a hardware wallet that doesn’t allow access to your data.
You should also have ownership of a CPU that is powerful enough to mine dogecoin. You will also need a dogecoin mining software like the CudaMiner or CGminer. EasyMiner is also a good option.
How to mine dogecoin is an important question that you should research in detail if you are just starting off. Make mistakes that aren’t highly detrimental, financially.