In this article, I will walk you through what a Dogecoin mining pool is, how you can join one, how much money you could make, and which are the best pools to join.
What is Dogecoin mining?
Dogecoin is a fork of Bitcoin. A fork means that someone copy-pasted Bitcoin’s code and named it something else.
Just how you could copy and paste this Elementalcrypto article, “save as” whatever name you want to give it, and then edit it.
You can do this kind of thing in crypto because the code is there for everyone to see. That’s kinda the whole point of crypto.
As a result, Dogecoin mining is very similar to Bitcoin mining. In order to be eligible to add a block of transactions to Dogecoin’s blockchain, a difficult cryptographic puzzle needs to be solved. The reason you want to be the one to add the block is that you get rewarded in DOGE for doing so. So it’s kind of like a race where everyone is trying to solve the puzzle so they can have a chance to add the block and get the prize.
The puzzle only gets more difficult to solve over time.
Now, to solve the puzzle you need processing power. And to get the processing power you need some expensive contraptions called miners and a lot of electricity. Technically you could even use your laptop to mine DOGE but don’t expect to make any considerable amount of income that way.
The lesser-known fact about maximizing profits from mining Doge
To solve the puzzle or mine Dogecoin, Dogecoin miners need to use an algorithm called Scrypt. This is not the algorithm that Bitcoin miners use for Bitcoin. But it is the same algorithm used by Litecoin which is another fork of Bitcoin.
What’s cool about other coins using the Scrypt algorithm is that you can mine them at the same time. In 2014, before Dogecoin really took off, there were not enough miners on the Dogecoin Network. So the founder of Litecoin proposed that Dogecoin accept the same proofs that Litecoin was using. This means that when a miner solves a Litecoin puzzle they can use that same proof for Dogecoin.
So when I say Dogecoin mining it actually means Dogecoin mining + Litecoin mining
How much money can you make from mining Dogecoin?
Miners who solve the puzzle and add a new block to the Dogecoin network earn 10,000 DOGE plus a negligible amount in fees. At today’s price that is about $900 but it was closer to $6,000 when DOGE was at its all-time high. Moreover, whenever your miner adds a block to the Litecoin network, then you earn 12.5 LTC which is about $1,200 today.
If you are thinking, “Oh man! I am going to become SO rich!”, think again.
Even if you go and buy all the equipment and hook up to a power source, the likelihood that you will solve puzzles frequently is minuscule. To achieve this you would need to have a lot of computing power.
And the equipment is by no means cheap. The container to house your equipment will cost at least $30,000 and a single mining machine can cost from anywhere between $1,000 and $9,000. Typically small miners will need to have at least 150 of these. Given these costs, a ballpark figure for a small mining rig will set you back by $200,000. On top of that, you need to account for electricity costs which are going to be high.
So it’s a large investment people.
I am going to assume you don’t have that kind of spare cash lying around and that you are considering buying one miner and placing it in your home somewhere.
So what do you do if you are a small fish in a big pond? This is where a Dogecoin mining pool comes in handy.
What’s a Dogecoin mining pool
Picture this: You’re mining for Dogecoins, but all alone. You’re sitting at your desk, refreshing your page every minute to see if your mining rig has hit the jackpot, hoping that you’ll find the next block and earn some sweet, sweet doge. But let’s be honest, your computational power is no match for the massive network of miners out there. You’re like a baby trying to play chess against Bobby Fischer.
That’s where a dogecoin mining pool comes in, my friend. It’s a group of miners who have banded together, combining their hashing power to increase their chances of finding the next block and earning some DOGE. Think of it like a team sport, but instead of throwing a ball around, you’re hashing blocks.
By joining a dogecoin mining pool, you’ll get a share of the rewards earned by the pool based on your contribution to the hashing power.
How does a Dogecoin Mining Pool work?
Joining a Dogecoin mining pool is pretty straightforward. After you join, rewards get distributed every time your pool hits the jackpot and solves a puzzle.
Each time a miner submits a proof of work calculation to the pool, it is called a “share”. The number of shares a miner contributes to the pool over a certain period of time determines their share of the reward when the pool solves a block. The pool then distributes the rewards among all the miners based on the number of shares they contributed to the pool.
Overall rewards are proportional to the mining power you provide. However, there are different schemes or modes you can join.
Dogecoin Mining Pool reward schemes
This is the simplest form of earning rewards from a pool. Whenever a miner in this pool solves the puzzle everyone in the pool gets paid proportionally to their number of shares.
Pay Per Last N Shares
In a Pay Per Last N Shares (PPLNS) reward system, miners are paid based on the number of valid shares they submit. The payouts are calculated based on the last N shares submitted to the pool. The “N” value is typically a rolling average that changes over time.
PPLNS is designed to encourage miners to stay with a pool for longer periods of time, as they will receive higher payouts the longer they remain active in the pool. However, it also means that payouts can be more irregular than in other reward systems, as they depend on the number of shares submitted and the overall performance of the pool.
Funnily enough, it is possible to mine solo if you join a pool. Miners who choose this option pay a small fee to the pool to use their nodes but mine and claim rewards on their own. Having access to a node allows them to cross-check the state of the blockchain. You can do this on your own but some people prefer to have the added security of a pool doing it for them.
In a PPS (Pay-Per-Share) payout model miners receive a payout for their contribution regardless of whether the pool finds a block or not. This payout method is more predictable than other payout models because the miner’s payout is not dependent on finding a block.
The mining pool calculates the expected rewards for each block found based on the total network hash rate and the current difficulty. The payout is then divided among all the miners based on the number of shares they contributed to the pool.
PPS is attractive because it guarantees a constant stream of income for miners. However, PPS payout rates are usually lower than other payout models because the pool bears the risk of payout volatility. This means PPS pools require a higher pool fee to compensate for the higher risk taken by the pool operator.
Full PPS is the same s PPS but miners also get compensated with transaction fees.
Pay per Share Plus is a combination of PPS and PPLNS. This means you get paid a constant stream based on your last N shares submitted to the pool regardless of whether the pool found a solution or not.
Steps you need to follow to join a mining pool
- Choose a mining pool: Research different Dogecoin mining pools and choose the one that best fits your needs based on factors like fees, reputation, and size.I will help you with this further down.
- Register with the pool: Visit the mining pool’s website and register an account. Some pools don’t require registration.
- Set up your mining software: Download and configure the mining software to connect your miners to the mining pool you have chosen.
- Add a payout address: Hook up your cryptocurrency wallet to receive LTV. Here, you will also need to add the public key address for a Dogecoin wallet. This is a different crypto wallet than Litecoin. (What is a crypto address?)
- Start mining: Begin mining with your mining equipment and start earning Dogecoin rewards.
Let’s take a look at some of the most popular Dogecoin mining pools
Best Dogecoin Mining Pools
This is the largest Dogecoin pool supplying 36% of the hash rate. Fees range between 1% and 4% depending on the mining mode you choose. The pool was launched in 2016 and is based in China.
Viabtc.net offers three mining modes such as PPS+, PPLNS, and Solo. The pool also offers cloud mining services and a mining calculator to help users estimate their earnings. Additionally, viabtc.net provides users with access to real-time hash rate, mining difficulty, and block height information.
This platform has been around since 2011, making it one of the oldest mining pools.
The user interface is easy to navigate, even for beginners, and the platform only offers PPS with a 0% fee. The pool is highly secure, with DDOS protection and SSL encryption to protect users’ personal information and ensure the safety of their mining activities.
With about 16% of the total hash rate for Dogecoin mining, f2pool is one of the largest pools you can join. They only offer PPS and charge a hefty fee of 4% for it. When you join their Litecoin pool you can set up your account to mine Dogecoin as well. The minimum threshold for Dogecoin payouts is 40 DOGE.
These guys use a PPS mode and ask for a 3% fee. The pool pays out 0.00001034 LTC + 0.01518825 DOGE per unit of computational power. Antpool is responsible for another 15% of mining power.
BTC.com is a well-known mining pool that is popular among cryptocurrency miners. The platform offers a user-friendly interface and is easy to set up for beginners. The pool also supports a range of cryptocurrencies, including Bitcoin, Bitcoin Cash, and Ethereum, making it a versatile option for miners. BTC.com has an excellent reputation for reliability, with a high hash rate and consistent payouts. The pool also offers helpful features such as real-time monitoring and alert notifications to ensure that miners stay on top of their earnings. The pool charges 2% and offers FPPS mode only.
This mining pool is easy to navigate, and miners can easily set up an account and start mining right away. Poolin.com also offers PPS only at a hefty 4% fee. They have an app that you can download on iOS or Android to monitor your returns once you get hooked up with them.
Trustpool claim to offer to best profit. This might be true as they are the only ones to offer PPS+ and they only charge a 1% fee. They have only 2% of the hash rate power though so I am not too sure about that claim.
Joining dxpool will result in daily profits of about 0.0103 LTC and 16.5427 DOGE per unit of hash rate.
The pool takes a 1% cut of the rewards and the rest is distributed to pool participants proportionally to the hashing power that they contribute. You can also do SOLO mining here.
The site is not very user-friendly but it is easy to follow the instructions to download their software and start mining. You don’t need to register to mine with this pool. The fees are very low at 0.5% and they reward you on a proportional basis any time someone in the pool finds proof.
What equipment do you need for a Dogecoin mining pool?
Ok so to join a pool you need computing power.
When cryptocurrencies first came about you could use your laptop’s CPU (central processing unit) to solve puzzles.
Over time though as the puzzles’ difficulty increased, companies developed special equipment called miners. The best types of miners for Dogecoin are application-specific integrated circuits (ASICs). Furthermore the ASIC miners you used need to be specifically designed for scrypt-based cryptocurrencies like Dogecoin.
You may also come across some people mining with computers with a good graphics processing unit (GPU). However, these are no longer recommended for Dogecoin mining as they are not as powerful.
To run the ASIC you are going to need some software. For the software to run you are going to need a dedicated laptop because it won’t be able to do much else given the intensity of mining.
Finally, even if you get only one ASIC you are going to need a dedicated power source and you are going to need to account for the heat generated by the device. If you live in a cold country it may help to heat up the house. However, most miners usually have some kind of cooling mechanism in place especially when they house their mining machines in containers.
How much does an ASIC miner cost?
An ASIC miner will set you back anywhere between $1000-$9000. Some of the most popular models are
- Antminer S19 Pro
- Goldshell LT5
- Bitmain Antminer L3.
- Innosilicon A6 LTC Master.
- Goldshell Mini DOGE.
- Bitmain Antminer L7.
Alternatives to buying mining machines?
As an alternative to buying an ASIC miner, you can pay to rent someone else to do it for you. Cloud mining is an alternative method for mining Dogecoin without the need to invest in expensive hardware or maintain a personal mining rig. In cloud mining, you essentially lease computing power from a remote data center that handles the mining process on your behalf. This allows you to mine Dogecoin without having to worry about the technical aspects or the associated overhead costs. While cloud mining can be an attractive option for those who want to mine Dogecoin with a minimal upfront investment, it’s essential to carefully research. There are lots of scams out there.
How much money can you make from joining a Dogecoin mining pool?
Assuming you buy a highly performant device your Dogecoin mining hash rate will be around 8800MH/s. Your power consumption per day will be 3168 Watts. The average electricity cost in $ / kWh in the US is about 0.17. And let’s assume your pool fee is 4%.
This results in revenue of 197 DOGE which at today’s price is just over $16. But energy consumption costs $12.77. After accounting for pool fees that leaves you with $2.76.
However, we also need to take into account the added revenue you will be making from mining LTC. This will be 0.0910LTC which works out to $8.26.
So your total profit at the current prices of DOGE and LTC is about $10 per day. For a device costing $8,800, this means it will take you 2.5 years to cover the cost of the miner alone. Of course, this analysis does not factor in price movements. Cryptocurrencies are volatile and can go up or down.
Solo Mining vs Pool mining
|Solo Mining||Pool mining|
|Full block reward||Higher probability of earnings|
|No pool fees||More consistent payouts|
|Complete control over mining operations||Lower resource requirements|
|High competition||Pool fees|
|Inconsistent rewards||Shared rewards|
|High resource requirements||Less control over mining operations|
Dogecoin, a meme-based cryptocurrency, was created by software engineers Jackson Palmer and Billy Markus in 2013. Inspired by the popular internet meme featuring the Shiba Inu dog breed, Dogecoin quickly captured the attention of the online community and the cryptocurrency market.
With its market capitalization growing rapidly, Dogecoin gained a significant market share, becoming one of the most profitable coins for investors and traders. The Dogecoin network, powered by blockchain technology, ensures the security and efficiency of transactions, making it an appealing choice for many crypto enthusiasts.
Dogecoin’s popularity reached new heights when tech mogul Elon Musk publicly supported the digital currency, frequently sharing his enthusiasm on social media. This endorsement from Musk further solidified Dogecoin’s status as a major player in the world of cryptocurrency.
Today, Dogecoin continues to thrive as a unique and accessible option for those looking to diversify their cryptocurrency portfolio. Its strong community, lighthearted nature, and growing market presence make it a compelling choice for anyone interested in the dynamic world of digital currencies.
Can Dogecoin be mined for free?
Mining Dogecoin is not free. To mine Dogecoin you need to purchase custom mining machine that are expensive. Other costs you need to account for are a dedicated computer and electricity. If you join a mining pool you will also need to pay a fee to the pool coordinators.
Is DOGE still mineable?
You can still mine DOGE because it inflates its supply by 4% per year which it uses to reward miners. At current prices it would take 2.5 years to break even on mining DOGE.
How long does it take to mine 10,000 DOGE?
If you only own one mining machine, it can take years to catch and add a block worth 10,000 DOGE. If you join a pool with a good ASIC miner it will take 50 days to earn 10,000 as you will earn about 200 DOGE per day.
What is the biggest DOGE mining pool?
The biggest Dogecoin mining pool is Viabtc.net. It account for 36% of all Dogecoin mining.
Can Dogecoin be mined with GPU?
Yes, technically you can mine DOGE with GPU but it is not as efficient as mining with an ASIC and may not result in profits.
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