If you don’t have it how do you get it? Dogecoin is cheap but then on the other hand it is also super risky to invest your earnings into. If on the other hand, you can earn some Dogecoin then it’s free money and if it goes up well hey that could be a decent amount. But how do you get that extra DOGE in the first place? In this article, I will walk you through 7 different ways that you can earn Dogecoin.
Ready? Let’s do this thing.
The top 7 ways to earn Dogecoin
1. Mining Dogecoin
This is by far the most rewarding way to earn dogecoins. The monetary value of rewards is exceedingly high compared to other modes of earning DOGE.
However, you do need to be prepared to build some technical knowledge and make upfront investments in hardware and software resources.
Let’s take a closer look at how mining Dogecoin works.
Any Dogecoin that you find on crypto exchanges has been mined. Thus, DOGE mining is the mother of all other modes of earning dogecoins.
So, what is mining?
Mining is the process that engages the use of computer systems to solve complex mathematical problems. Each solution is recorded as a new block. A block is simply a file containing this solution.
Mining for rewards
A miner earns a block reward for solving a complex mathematical problem, just as a student would earn an award for passing an exam. However, mining rewards are specific and predetermined, thus, each miner knows how much to earn when successful. Each blockchain network has its rate of reward.
Dogecoin mining vs Bitcoin mining
Bitcoin is the de facto ‘gold standard’ of crypto mining. This is because it is the first cryptocurrency to be mined. Thus, bitcoin miners are the pioneers who paved the way for other miners, including Dogecoin miners. Other crypto miners compare or contrast themselves with Bitcoin miners.
To better understand the Dogecoin blockchain network, the Dogecoin mining process, and the Dogecoin mining operations, it is good to have an idea of the Bitcoin network and mining in comparison to Dogecoin.
Dogecoin mining vs Bitcoin mining
Here are the main comparative elements:
- Mining network – both Bitcoin and Dogecoin use blockchain networks. The blockchain network is a decentralized network of computers.
- Mining algorithm – Bitcoin blockchain uses the SHA-256 algorithm while the Dogecoin blockchain uses the Scrypt algorithm.
- Proofing protocol – Both the Bitcoin network and Dogecoin use the Proof-of-Work (PoW)
- Mining hardware – While both Bitcoin and Dogecoin can utilize the same type of mining equipment, Bitcoin mining requires more sophisticated Application-Specific Integrated Circuit (ASIC) hardware. ASIC hardware is a graphics card that incorporates a powerful GPU to make complex proofing computations within a short time. Dogecoin mining doesn’t need a powerful GPU but can use a normal Central Processing Unit (CPU) to do proofing. However, using ASIC for DOGE mining makes it exceptionally fast and efficient.
- Maximum supply – Bitcoin has a maximum hard cap limit of 21 million blocks while Dogecoin has no cap limit thus unlimited supply.
- Transaction speed and confirmations – A new block takes 10 minutes to be recognized on the Bitcoin network while it takes just 1 minute to be recognized on Doge Network. Bitcoin requires 3 confirmations before a block is available for blockchain exchange. On the other hand, Dogecoin has variable confirmations depending on the requirements of the specific cryptocurrency exchange platform. For example, Kraken requires 40 confirmations while Coinbase asks for 60 confirmations. The more the confirmations, the lower the transaction speed.
- Mining rewards – Currently Bitcoin miners are rewarded around 6.25 BTC per new block while Dogecoin miners are rewarded about 10,000 DOGE per new block. In terms of dollar reward per new block, Bitcoin has a higher block reward compared to Dogecoin.
The Dogecoin mining process
Every solved computational problem is added to the network as a new block. Each of these blocks has a unique address. This address contains details such as the unique ID (hash Id) of a given block and where to find that block on the network. This address is public since everyone on the network can see it.
This unique public address is recorded in an electronic address register. This register is public and shared with everyone interested who can read and confirm it. A block is added one after the other to form a chain – a blockchain. Each new block contains an identity record of the previous block.
As we’ve already seen, a block is a digital file. A created block is stored in a special digital folder, known as a crypto wallet. Thus, for Dogecoin, you will have a Doge wallet with a specific Dogecoin wallet address.
How to earn mining Dogecoin
There are three different ways by which you can carry out doge mining. These are:
(i) Solo mining
As the word suggests, this is mining done by sole individuals. To mine, you register on the Dogecoin network as a sole miner. You run your own Dogecoin mining rig. You bear both the cost and rewards of mining alone. In business terms, you are a Sole Proprietor. In case you succeed in adding a new block, you are the entire amount of 10,000 DOGE.
(ii) Mining pool
If you don’t want to bear the cost of mining Doge alone, you can form a joint venture with other Doge miners. You pool resources together to form a Doge mining pool. In business terms, the so-called mining pools are akin to Partnerships. Thus, you share the cost and rewards of pool mining. For example, if you are 10 Doge miners in a pool who share the rewards equally and you create a new block, each miner will receive 10% rewards, equivalent to 1,000 DOGE each.
You can find out more about Dogecoin mining pools in my article here:
Dogecoin Mining Pool: The Best Guide for Beginners
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. Read more.
(iii) Cloud mining
Mining hardware is pretty expensive. Add that to the computing costs and it can become unbearable to less endowed miners. The more affordable option is Doge cloud mining. In this option, a miner utilizes the power of cloud computing – without owning any hardware or directly incurring the entire cost of running the hardware. The miner only pays for the computing power used which can be a very tiny fraction of the entire cost of running the mining infrastructure. In business parlance, this mode of mining can be termed as ‘freelancing’.
How to mine Dogecoin profitably
Dogecoin mining profitability depends on many factors. These include:
- Mining hardware productivity – this is about cost-efficiency per unit output (that is, hardware cost per every new block of Doge). A CPU miner is less productive compared to a GPU miner. And a GPU miner is less productive compared to an ASIC miner.
- Organizational productivity – how you organize your mining business can affect profitability. You can choose to be a sole proprietor, a partner, or a freelancer.
- Blockchain incentives -different blockchain networks have different ways of incentivizing miners. Dogecoin network offers free dogecoin mining opportunities which can greatly boost profitability.
2. Interest earning
Interest earning is the second-best non-trading option for earning Dogecoins.
You can earn interest from:
A staking account works like a bank’s Fixed Deposit account. You can stake your Doge into DeFi liquidity pools. By this, you can earn income based on an annual percentage rate commonly known as APY – Annual Percentage Yield. Typical APY can be as low as 4% and as high as 25%+.
If you really want to understand liquidity pools read my explanation of Uniswap.
Uniswap is not the only platform where you can earn a yield on your DOGE but below you can see how if you pair Dogecoin with another cryptocurrency you can earn a yield. For example, if you join a liquidity pool on BabyDogeSwap with 50% of the value of your stake in USDT and 50% in Dogecoin you can earn 12.71% in APY.
You can loan out your Doge and earn interest on the loan. Typical annual interest income can range from 8% to 25%, depending on the lending platform.
A Doge Savings account works the same way as an ordinary bank savings account. Holding your Doge in a savings account can earn you annual interest income just like a bank savings account, only that your interest is paid in Dogecoins.
3. Profit earning
Trading and investing are the two main ways by which you can generate profit from your Doge assets.
You can earn profit from:
There are many Doge trading platforms out there from which you can buy and sell Doge at a profit. Most crypto exchange platforms have a facility for buying and selling Doge digital currency. In trading, you gain profit by positive changes in Dogecoin’s price. Since Dogecoin’s price is volatile, you need to store your Doge in hot wallets which makes it easier and faster to buy and sell your Doge at the most opportune moment.
Investing is about profiting from long-term capital gains. Since its inception, the price of Dogecoin has had an upward trend. As of writing this article, Dogecoin has gained more than 10 times in monetary value since its inception. This represents a 10x capital gain.
Digital assets, especially crypto assets have registered an exponential growth in capital gains in the last 20 years. For example, bitcoin has registered almost 10,000X capital gains over this period.
To successfully gain from investment in crypto assets, you need prudent investment advice on how to create an optimal portfolio strategy to minimize risks while making maximum gains.
Unlike trading which requires hot wallets to take quick advantage of price movements, investing requires cold wallets since you need to make very few transactions in a given period. Furthermore, investment means holding a bigger quantity of digital assets which means the risk of exposure in a hot wallet is extremely high. To mitigate these risks, a cold wallet is the better option.
4. Reward earning
Participating in reward programs is a way to earn passive income. There are two major sources of reward earnings:
- Dogecoin faucet
- Airdrops and freebies
(a) Earning Dogecoin reward through Dogecoin faucet
Dogecoin faucet provides one of the most diverse passive income opportunities.
These Dogecoin reward opportunities include:
- Sign-up to earn – earn free doge when you sign up for the doge faucet program
- Play to earn – Play games (Mobile games), Play lottery, Play casino
- Watch to earn – watch ads and movies
- Click to earn – click on ads
- Answer to earn – answer survey questions
- Vote to earn – vote on product features
- Gift cards – get gift cards as a reward for participating in some of the above activities
At the bottom of this article, I will share the most popular Dogecoin faucets with you.
(b) Earning Dogecoin rewards through airdrops and freebies
The Dogecoin community is especially generous when it comes to airdrops and freebies. New members are often rewarded with free dogecoins when they sign-up. Airdrops are also common as a form of donation from big holders to smallholders.
5. Referral earning
Almost every other Dogecoin faucet offers reward earnings. However, this type of earning is not limited to faucets. Cryptocurrency exchange platforms, marketing platforms, and many crypto affiliate marketing programs provide plenty of opportunities for Dogecoin referral earnings.
You simply earn by referring others to the program. Most often, this is done by the use of an affiliate/referral link or code.
6. Loyalty earning
This is the most popular consumer earning program. Loyalty earnings are typically based on consumption.
Two major types of loyalty earnings are:
The most common type of Dogecoin cashback program is where you use a Dogecoin Credit card to shop. When you shop, your Credit card is topped up with a certain amount of Doge, which can be a fixed amount, percentage amount, or a fixed-plus-percentage amount depending on the cashback program.
Rebates are often given by merchants at the point of sale (PoS). For example, when buying a digital product, you receive a promotion code (promo code) which you enter in the promo space on the shopping cart. The rebate reduces the price you are supposed to pay. Thus, it serves as a cash discount at the Checkout/PoS.
7. Contribution earning
You earn by contributing to the Dogecoin community. This contribution can be in the form of creating awareness, providing knowledge, responding to community questions, etc.
Dogecoin crypto enthusiasts can contribute to the Dogecoin crypto community in various ways. The following are some of the best ways you can earn from your contribution to the community:
You can either create your own blog and thus establish your own online community of followers. You can be rewarded with dogecoin through adverts on your blog.
If you don’t want to bear the costly time and effort of owning your blog, you can make editorial content for distribution on top blogs in the crypto space. Most of the top blogs, especially those focused on Dogecoin topics provide a reward system for their content contributors.
Vlogging is similar to blogging, only that it is focused on video content. You can create a Dogecoin YouTube channel and get rewarded by marketers in Dogecoin. The bigger advantage is that you get to create your own online community.
Another great way to earn Dogecoin by contributing content is through reviews. You can review Dogecoin products and get paid in Doge. For example, you can be part of an editorial team of a magazine or newsletter that reviews cryptocurrency exchanges and faucets that deal in Dogecoin and get paid.
You can promote yourself to become a Dogecoin influencer by creating your own online community on social media platforms such as YouTube, TikTok, Instagram, Twitter, Discord, Telegram, and Facebook. Some of the top influencers that you can get inspiration from are Mark Cuban, and Tesla CEO Elon Musk. Both are rich investors and big influencers who are not necessarily being paid to influence but they are powerful enough to sway Dogecoin price movement and its adoption.
Once you become a Dogecoin influencer, you can get endorsement deals in which you earn Doge rewards.
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