Dogecoin Basics

Introduced to the digital currency market in late 2013, Dogecoin is one of the most recognizable coins on the market, bearing the logo of Shiba Inu, a Japanese dog. The digital currency was introduced as a modified digital currency over Bitcoin to speed up transactions and more transactions.

Although Dogecoin was once made for just one joke, it is now one of the best digital currencies on the market with over $ 2 billion in trading volume.

Dogecoin Mining

The structure of Dogecoin is very different from bitcoin. Its algorithm is based on Scrypt, which is also used by other currencies such as Litecoin. Of course, because its main algorithm is Proof of work, it can be mined. So with a powerful computer or miner, you can mine Dogecoin.

ASIC miners exist that work with the Scrypt algorithm. Currently, however, Litecoin is worth more mining with ASIC mining devices than Dogecoin. So it is better to join the miner pools instead of mineing them directly with the machine.

Dogecoin Mining Difficulty

Since 2018, the difficulty of mining Dogecoin has increased dramatically. So either you have to pay a lot of money for the powerful Dogecoin miner, or you have to join one of its mining pools.

Mining pools generally allow you to make more money from co-mining than when you mine a currency yourself. In a mining pool, several devices enter, mine, and the amount of reward obtained is divided among the people present in the pool. In this case, the profitability of Dogecoin mining will be higher.

Each pool gives its users a different reward for gaining resources. You should first check the pool’s cost, compensation, and security and then join it to start mining.

Also, after inspecting the pool, you should make sure that you can mine Dogecoin in it. Some pools allow their users to use other digital currencies that are more profitable. You can use an online profit calculator to find out how beneficial it is to mine a digital currency.

Sometimes some pools do not charge extra, but you will have to pay for them when withdrawing money. So try to consider the costs of PPS, PPS +, PPLNS systems before choosing a mining pool.