What is Bitcoin & Cryptocurrency?
Bitcoin is a cryptocurrency, made in 2009, that has become very popular recently due to its sudden increase in value. Cryptocurrencies work by using blockchain technology that ensures the security of the currency, making it end to end encrypted.
Cryptocurrencies, with Bitcoin at the fore, have been claimed by some to be the ‘currency of the future’ as they are not tied to specific entities like banks or states, making them deregulated and easy to use.
Mining Bitcoin with your gaming PC
In Bitcoin, mining refers to the creation of valid blocks, adding transaction records to Bitcoin’s public ledger (called the blockchain). It is a critical part of the Bitcoin network, as it resolves the “double-spend problem.”
Double-spend problem
The ‘double-spend problem’ is the issue of needing to find a common understanding on a history of transactions. Bitcoin ownership can be proven mathematically through public key cryptography, and cannot be broken with today’s technology. Nonetheless, such cryptography is not a guarantee that one particular coin hadn’t previously been sent to someone else. For a shared history of transactions to be formed, one needs to have an agreed-upon ordering that it is based on. But any external input can be manipulated by whoever provides it, thus participants need to trust that third party.
How mining Bitcoin works
Mining (and blockchain in general) uses economic incentives to provide a reliable way of structuring data. The entities ordering transactions are dispersed, and they receive monetary rewards for correct behavior. However, any misbehavior results in economic losses, provided that the majority remains honest.
Referencing Bitcoin mining, this is achieved by making a succession of blocks that can be mathematically proven to have been stacked in the correct order with a certain commitment of resources. The process depends on the mathematical properties of a cryptographic hash, the encodement data in a standardized manner.
Hashes & Encryption
Hashes are one-way encryption tools. This means that decrypting them into their input data is almost impossible, unless every possible combination is tested until the result matches the given hash.
This is what Bitcoin miners do: they cycle through trillions of hashes every second until they find the one that satisfies a condition called “difficulty.” Both the difficulty and the hash are very large numbers expressed in bits; the condition requires the hash to be lower than the difficulty. Difficulty readjusts in 2016 Bitcoin blocks — or in about every two weeks — to maintain a constant block time, which refers to how long it takes to find each new block while mining.
Altering even the most minute component of a block would noticeably change its expected hash — and that of the following blocks, too. Nodes would instantly reject this incorrect version of the blockchain, protecting the network from tampering.
Bitcoin’s proof-of-work protocol
Through these requirements, the system ensures that Bitcoin miners put in real work — the time and electricity spent in sieving through the possible combinations. This is why Bitcoin’s consensus protocol is called “proof-of-work,” to distinguish it from other types of block-creation mechanisms.
Proof of work (PoW) is a decentralized consensus mechanism that requires members of a network to use effort in solving an arbitrary mathematical puzzle. Only by solving this mathematical puzzle can the transaction and mining of new tokens be validated.
How Bitcoin miners are paid
Bitcoin miners’ efforts are recognized by the provision of rewards for generating new blocks. Two types of rewards are given: new Bitcoin created with each block, and fees paid by users to transact on the network. The block reward of newly minted Bitcoin, amounted to 6.25 BTC as of May 2020, comprises the majority of miners’ revenue. This value is slated to halve at fixed intervals of roughly four years, resulting in an eventual end to Bitcoin mining. Henceforth, only transaction fees guarantee the security of the network.
By 2040, the block reward will have been reduced to less than 0.2 BTC and only 80,000 Bitcoin out of 21 million will be left for miners to extract. After 2140 mining effectively ends as the final BTC is mined.
Even though the block reward is a diminishing one, past halvings have been amply compensated by increases in the Bitcoin price. While this does not guarantee future returns, Bitcoin miners enjoy a relative degree of certainty about their prospects. The community is very supportive of the current mining arrangement, and has no plans to phase it out like Ethereum, another major cryptocurrency. With the right conditions, individual Bitcoin miners can be confident that the venture will turn a profit.
Though mining is a competitive business, starting out is still considerably easy. In the early years of Bitcoin, hobbyists could simply boot up some software on their computer and get started right away. Those days have already past, but setting up a dedicated Bitcoin miner is not as hard as it may seem at first.
Getting started with Bitcoin mining
To start mining in the first place, you have to own a mining rig. Bitcoins are mined by special hardware designated just for mining Bitcoins or other currencies based on the same algorithm. They are called ASIC (Application-Specific Integrated Circuit chips), and they use less energy and mine Bitcoins much faster.
However, this device is expensive and its manufacturing is time-consuming. Yet, its efficacy is remarkable; the most powerful machines manage to solve as many as 14 terahashes per second.
Your gaming PC should be powerful enough
The following criterion should be kept in mind when configuring your PC’s ASIC rig for mining:
- Performance (Hash rate)
- Consumption of electric power
- Price
Hash rate refers to the number of attempts required to solve a block the machine makes per second. It is recommended to go through various miners’ reviews and then choose the ASIC which seems most advantageous to you.
Don’t solely choose an ASIC according to price, instead, focus on a holistic analysis that incorporates price, performance, and consumption. Keep in mind that it could be very difficult to get these devices presently as the demand is extremely high.
Before buying an ASIC miner, try to calculate the profitability of the chosen device in an online calculator (such as AsicMinerValue, CryptoCompare and Nicehash). Apart from the parameters of your mining rig, the calculation also includes the price of electricity, fees from mining and the level of mining difficulty.
You will also learn whether mining can be profitable and how much money you have to invest at the start. Furthermore, take into consideration the increasing difficulty of the mining as well as declining profit over time.
Estimate how much you can realistically earn from mining Bitcoin?
The earnings for Bitcoin mining are reduced by half every four years. When bitcoin started in 2009, mining one block would earn you 50 BTC.
In 2012, this was halved to 25 BTC. From 2016, this was halved again to 12.5 BTC. On May 11, 2020, this was once again halved to 6.25 BTC.
At around November 2020, the price of Bitcoin was about $17,900 per bitcoin, which means you’d earn $111,875 (6.25 x 17,900) for completing a block.
Calculate your profitability from Bitcoin mining
Bitcoin mining is still profitable for some. While equipment is more easily obtained, competitive ASICs cost anywhere from a few hundred dollars to about $10,000. In an effort to stay competitive, machines have adapted: Some hardware allows users to alter settings to lower energy requirements, thus lowering electricity bills.
Prospective miners should also perform a thorough analysis before making the fixed-cost purchases of the equipment. Run the analysis several times using different price levels for both the cost of power and value of bitcoins. Determine the price bitcoin mining becomes profitable for you—that is your benchmark for profitability.
As of May 2020, the price of bitcoin hovers around $8,000. Using that rate with the current reward of 6.25 BTC for a completed block, miners will earn around $50,000 for successfully completing a hash. Of course, as the price of bitcoin is highly volatile, this reward figure is variable.
In general, prices below $0.10 per kilowatt hour are recommended to maintain a good operation. Calculating electricity costs are important as mining operations tend to consume a lot of electricity and this can drive up costs significantly. Finding the right location for mining is largely geographically bounded. People living in developing countries may not need to leave their homes, while those in developed countries are likely to face higher barriers to entry.
Consider mining with a mining pool
To compete against the mining mega centers, individuals can join a group of miners, called a mining pool, who work together and share the rewards. This can increase the speed and reduce the difficulty in mining. As difficulty and cost have increased, more and more individual miners have opted to join in a pool.
While the earnings may be split, this arrangement can help in creating a new stream of revenue.
A step-by-step guide for Bitcoin mining on your gaming PC
1. Get your gaming PC set up for mining
To start, you will need your gaming PC. Once that’s up and running, simply follow the steps below to start mining crypto and earn some Bitcoin. NiceHash is recommended as it allows you to sell others your PC hardware to mine cryptocurrency. It can also be used to join mining pools.
- Set-up an account on the NiceHash website.
- Download the mining software.
- Run the NiceHash software.
- Enter your NiceHash address).
- Click the big play button.
2. Set up your Bitcoin wallet
As you begin to accumulate cryptocurrency from those paying for your system hardware, it’s time to decide where you want to store it. While it’s possible to leave it in your NiceHash wallet, I would not recommend this. Instead, download one of the many free wallet apps onto your smartphone (notable mentions are ZenGo, Coinomi and Abra).
Once you’ve hit the minimum Bitcoin required to perform a transfer from NiceHash, you can send all your earnings to a wallet of your choosing. You could even add an extra layer of security by investing in a physical wallet, a small offline device that stores all the necessary details to access your cryptocurrency.
3. Join a Bitcoin mining pool
Next, you should consider joining a Bitcoin mining pool. Even the most powerful ASIC miners will have a hard time mining bitcoin today. And they definitely can’t compete against the mega mining farms around the world. The only best way to overcome the limitations as an individual is to join a mining pool.
In other words, miners offer their computing power to the group. When Bitcoin is mined successfully, the gains are divided amongst members proportionate to the amount of computing power they provide. This would lead to a lower but more regular income.
Of import is to research carefully on the mining pool before you join. Oftentimes there is a fee to join, so take that into account too, after which you can create an account and watch the earnings come in.
Which Bitcoin mining pool is the best?
It is important to note that there is a huge concentration of mining pools in China, the highest in the world. Many of which only have Chinese websites and support. There are about 20 major mining pools.
Broken down by the percent of hash power controlled by a pool, and the location of that pool’s company, it is estimated that Chinese pools control; approximately65% of the network hash rate .xbnm,m,m,/km kkm kp4w32a21.
And thus, the three recommended pools are all from China.
1. F2 Pool
This mining pool was launched in Beijing back in 2013. However, its popularity soon led it to expand to other continents.
Global availability
The service is now available in Russia, Canada, and the United States, amongst other countries. With 17.5% of the market in its control, F2Pool is currently the second-largest Bitcoin mining pool on the market. Remember, F2Pool could potentially become the biggest pool soon. Just for reference, Poolin, the biggest pool, holds only a 0.7% market share lead.
What makes F2 Pool great is that in addition to Bitcoin, miners can also mine for Litecoin, Ethereum, and multiple other major cryptocurrencies. In total, you can mine over 40 cryptocurrencies on F2Pool.
English version available, and easy navigation interface
Although the website was originally created for the Chinese market, the company now has an English language version of its website. Plus, its interface is designed to be extremely easy to use for miners of all experience levels.
Great Customer Service
They also have an excellent support team – a crucial element for both experienced and inexperienced users. Anyone that has engaged the F2Pool customer service would know that they are both responsive and knowledgeable. They guarantee a response to all inquiries in less than 24 hours. You can also contact them instantly through their chat if you have an emergency.
Security is top notch
Obviously, F2Pool wouldn’t be so widely-used if they didn’t have good security. The website has the HTTPS protocol and the service comes with a wallet-lock feature, which protects your investment in case your account gets hijacked. Just keep in mind that the email address you used to register can’t be replaced. The company forbids it for security reasons to prevent identity theft on their network.
High fees involved
However, all these come at a steep cost. F2Pool has one of the highest fees out there, at 4%. This fee is definitely palatable to many miners judging by how well-subscribed it is. Once you start earning a healthy profit you probably won’t mind the costs incurred at all.
2. Slush
Slush Pool has been around since 2010 and is one of the oldest Bitcoin mining pools in existence. Over the last decade, its users have mined more than 1 million Bitcoins using its services and software: BraiinsOS and BraiinsOS+.
One of the biggest Bitcoin mining pools
And if that isn’t impressive enough, you should also take this into consideration: In the last 6 months, Slush Pool collected over 9% of Bitcoins on the market. Thatalone makes it one of the five largest Bitcoin mining pools on the Internet.
Fair fees structure
In terms of fees, Slush Pool is very similar to other mining pools out there. They offer a standard 2% fee. There’s a 0.0002 Bitcoin threshold, upon reaching this sum, the platform automatically sends the earnings to your account. The best thing about it is Slush Pool’s famous score-based method of payments, allowing the awards to be distributed fairly among Bitcoin miners.
Great customer service & security
Not only that, their customer service and security features are both good quality. So be sure to consider this service as well.
3. Poolin
Poolin is a multi-currency mining pool that includes popular and profitable coins, such as Bitcoin, Litecoin, Bitcoin Cash, and Zcoin.
Reputable & Global
It was started by the creators of BTC.com, which was later acquired by Bitmain. It is a Chinese-based mining pool with many miners from China, but is open to anyone around the world.
Proprietary software
It also has its own proprietary software that acts as a proxy between miners and the pool. This reduces network traffic and allows miners to sync their settings, create sub-accounts, and balance the electrical load. Note that this feature is available for Bitcoin, Litecoin, and Zcash.
High fees involved
However, of note is the fees that using this service entails, with Bitcoin at 4% FPPS (Full Pay per share). Mining other currencies entails fees ranging from around 2-4%. What makes it popular is the variety of services and technologies employed to make it highly competitive.
4. Get a Cryptomining software for your gaming PC
By now you’d have already selected the hardware, mining pool and wallet to use. If you haven’t done so, reference the above sections to get them set up before moving forward.
The next thing for you to do is to download a CryptoMining Software onto your PC.
Some mining pools have their own software, if not there are a host of others available for your choice. The client acts as a link between your PC and the Blockchain and Bitcoin networks. These programs will also record statistics like your PC temperature and mining rate.
A few popular cryptomining software include: BTCMiner, CGMiner, BFGMiner and Ethminer.
5. Start mining Bitcoin
With all the above requirements settled, you can finally begin mining your own Bitcoin!
6. Optimizing your gaming PC for Bitcoin mining
While you can use NiceHash and leave it running for years, it’s best to do a little optimization to get the most out of your GPU without using too much electricity.
If we lower costs without affecting performance, we can earn more profit. MSI Afterburner is a great tool for altering GPU power, clock speed, and other values.
To lower GPU power draw:
- Run MSI Afterburner.
- Lower the power limit to 80%.
- Hit the apply button.
- Start the NiceHash mining process.
- Take note of your hash rate (in MH/s) from the miner command line window.
- Lower the power limit in Afterburner a further 5%.
- Hit the Apply button.
- Take note of your hash rate again after 10 minutes.
- Continue steps 6-8 until you notice a drop in the hash rate or hit the minimum power limit allowed.
3 Risks of Bitcoin mining
It’s not all chocolate and roses when it comes to Bitcoin mining. There are always risks to every venture, and that includes Bitcoin mining. Here are the top 3 risks that you should be aware of.
1. Financial Risks – Strong price fluctuations
First, there are the financial risks involved in BTC mining created by market fluctuations. The price of Bitcoin has been influenced greatly by global news, especially by those from government agencies banning the use of cryptocurrency in their home countries. Other times, its price also affected by heavily influential personalities like Elon Musk and his tweets.
Your freshly mined Bitcoin a month ago may be worth more than what is today. So you may have to decide whether you are hodling it long term, or in it for the quick cash out.
2. Physical Risks – Burning out
In addition to the financial risk of not turning a profit, there are physical risks involved in using ASICs.
Proper ventilation is needed to avoid the mining equipment burning out components due to overheating. You also need to carefully consider the limits of your electrical grid when Bitcoin mining because of the equipment’s high power usage. Your home’s electricity network has a maximum level of power, and each socket has its own ratin. Exceeding those limits could easily result in either frequent outages or electrical fires. Do consult an expert to determine whether your electrical setup is safe for mining.
3. Obsolescence of ASIC
Next, there is the risk created from obsolescence of your ASIC. While single ASICs may fail, the largest threat to their profitability is them becoming obsolete. More efficient miners will overtake older devices. Still, the speed of advances in computing technology is largely unpredictable.
Consider mining these alt-coins instead
Instead of mining the GPU-heavy Bitcoin, you are probably better off mining these alt-coins that do not require as much computing power, while ensuring better profitability.
With Bitcoin ascendant, alt-coin prices are also going up. While mining bitcoin on an individual computer is no longer feasible, there are other cryptocurrencies that you can still mine at home (if you’re prepared to put in the effort).
Although it was once possible to mine Bitcoin using laptops and desktops, the growing mining difficulty as well as the creation of the Application Specific Integrated Circuit (ASICs) hardware has made it all but impossible to profitably mine Bitcoin at home using the processing power of a PC or laptop computer. However, crypto mining from home is still possible for other popular cryptocurrencies in 2022.
1. ZCash (ZEC)
Zcash uses a different hashing algorithm than Bitcoin’s called Equihash, making it unusable with the special mining hardware (ASICs) developed for Bitcoin mining.
Equihash is made to resist the development of Zcash-mining ASICs. Instead, it is best suited for GPU mining. Zcash also differs from Bitcoin because it has a built-in privacy protocol called zk-SNARKS, which makes it the leading privacy-based crypto in the market (competing with other privacy coins such as Dash and Monero).
Lastly, Zcash has a 1.25-minute block time, compared to Bitcoin’s 10-minute blocks, and it has a block reward of 6.25 coins per solved block.
Reasons to mine ZCash
ZCash is readily traded for bitcoins (BTC),so it is a method to slowly build up a holding position in Bitcoin. Since BTC can be exchanged for cash, mining ZEC can be a good way to earn some fiat. ZEC can also be sold directly on some large exchanges.
Mining is a cheap entry ticket to the ZCash markets, loved by traders for its high volatility. Ever since ZEC entered the market, it’s been one of the highest-priced altcoins on the market, peaking at over $400 in June 2017. Lastly, building a large ZEC position through mining now could allow you to take advantage of price appreciation in the future with less risk than you’d face by just buying ZEC.
Calculating your ZCash mining profitability
Before you start this venture try using thisZCash mining profitability calculator to check for profitability.
Recommended hardware setup for ZCash mining
Zcash’s Equihash is currently only mineable by GPUs. Theoretically, it’s also mineable by CPUs. But you’ll probably use up your CPU’s power before you earn your first dollar of profit. Instead, consider the following GPU options:
Equihash can use any of these types of mining software:
- Claymore (for AMD cards)
- DSTM miner
- Bminer
- EWBF miner (for Nvidia cards)
These options mostly have the same range of hash rates on the same cards. Some of them can be slightly better on a specific card, so you will have to download all compatible miners and give them a try.
A comprehensive step-by-step guide for mining ZCash on your gaming PC.
1. Install Video Card Drivers.
Proceed with the driver installation instructions below, depending on the GPU card(s) you have. For Nvidia GPUs specifically, download the latest Nvidia GeForce drivers here. Enter your card info, and click “Start Search”. Download the current version from the results.
2. Get a ZCash Wallet Address.
Prior to setting up your miner, you will need to have a ZCash wallet address. This is critical since the coins you are about to mine need to have an address to be sent to.
3. Download the EWBF ZCash Miner program.
4. Tweak Windows Settings.
Some settings should be modified in Windows to get you ready for mining: First, you want to prevent your computer from going into sleep mode, as this will interrupt your mining.
To do that, go to your Windows Power Settings and set Turn Off/Sleep to ‘Never’. Next, modify your system page file and manually set it to 16384 MB (16GB).
Consider turning off your Windows automatic updates, as they can also interfere with your mining and settings. To do that just click your Windows icon > windows update settings > Advanced options and turn off automatic updates. This step is optional and you can leave them on, just remember that they can’t always be predicted and some will reboot your system, and as a result stop your miner’s work.
If you’re running Windows Defender or some other antivirus program, add an exclusion to it so that it doesn’t flag the entire EWBF folder.
5. Join a Mining Pool.
You are now ready to configure your miner to join a mining pool. Note that you can also use your miner to mine solo, however it is unlikely to make you any Zcash unless you have a warehouse full of GPUs.
2. Ethereum (ETH)
Essentially, Ethereum works in a very similar way to Bitcoin. It’s a decentralized ledger that is verified and then updated by participants of the Ethereum network.
Ethereum mining is the process of maintaining the Ethereum ledger through solving complex mathematical problems. Unlike Bitcoin mining, Ethereum mining can be done by using a Graphical Processing Unit (GPU) only.
Reasons to mine Ethereum
Given that Ethereum is easily traded for Bitcoins (BTC), it’s a cheap way to slowly build up a holding position in Bitcoin. Mining can be a cheap entry ticket to the Ethereum markets, which are loved by traders for their high volatility.
Building a large Ethereum position now, in the Proof of Work mining phase, will allow you to earn interest on your holdings when Ethereum eventually switches to a Proof of Stake (though this switch has been constantly pushed back).
Calculating your Ethereum mining profitability
To check on the profitability of mining Ethereum, you can use this handy calculator.
Recommended hardware setup for Ethereum mining
Experimenting with various GPU selections in the calculator will reveal a card with the best price to performance to power consumption combination. Note that AMD cards do outperform Nvidia cards for cryptocurrency mining.
While the graphics processor is probably the most important part of Ethereum mining, your system’s hardware must match certain specifications.
We recommend this setup:
- For rigs of less than 6 GPUs, a 4GB RAM is required. Anything more, and it is necessary to get an 8GB RAM stick.
- A motherboard with enough PCIe inputs – this is a crucial piece to look for in your motherboard.
- If you are building a multiple GPU rig, your motherboard needs to have enough PCIe inputs to hold them. You also need a powered riser cable for each card.
- An open-air rig for multiple GPUs.
A comprehensive step-by-step guide for mining Ethereum on your gaming PC.
1. Install Drivers AMD GPU’s
Go to amd.com then choose “Support & Drivers”. Enter your GPU information and click “Display Results”.
Click the Download button for the current driver. Or you can choose “Download Previous Drivers & Software” on the right hand side to choose older versions.
2. Get an Ethereum wallet
If you want to skip the long time it takes Mist to download the Ethereum blockchain head over to MyEtherWallet.com to create a dedicated Ethereum digital wallet.
3. Download an Ethereum Miner
For example, we are going to be using the very popular Ethereum mining software called Claymore Miner.
4. Windows Settings
Some settings should be modified in Windows to get you ready for mining: First, you want to prevent your computer from going into sleep mode, as this will interrupt your mining.
To do that, go to your Windows Power Settings and set Turn Off/Sleep to ‘Never’. Next, modify your system page file and manually set it to 16384 MB (16GB).
Consider turning off your Windows automatic updates, as they can also interfere with your mining and settings. To do that just click your Windows icon > windows update settings > Advanced options and turn off automatic updates. This step is optional and you can leave them on, just remember that they can’t always be predicted and some will reboot your system, and as a result stop your miner’s work.
If you’re running Windows Defender or some other antivirus program, add an exclusion to it so that it doesn’t flag the Claymore mining executable “EthDcrMiner64.exe” as a virus or try to disable or worse, delete it.
5. Join a Mining Pool
The next step is to set up pool-mining, as solo-mining is unlikely to make you any Ethereum unless you have a warehouse full of GPUs. In addition, a mining pool also provides more frequent payouts to your wallet. This allows you to get hold of your Ethereum sooner than later – reducing the price fluctuation risks.
The top 3 Ethereum mining pools are:
- Ethpool/Ethermine
- Nanopool
- Dwarfpool
You can find the full list of Ethereum mining pools here, and you can proceed to join one of your liking there.
3. Dogecoin (DOGE)
Dogecoin (DOGE) is a cryptocurrency that’s been around since 2013. Though it started out from a meme, it’s now an altcoin with a substantial user base. DOGE has a supply of coins that’s not finite, adding on much incentive for anyone planning to mine it.
Reasons to mine Dogecoin
Dogecoin has been growing in popularity in the recent months, with more people using it. With popular Shark Tank entrepreneur Mark Cuban, and the infamous Elon Musk backing this cryptocurrency, it’s popularity has gone through the roof recently.
It’s safe to say that when a coin attracts the attention and investment of these all-star influencers, its value may eventually increase over time. Surely they wouldn’t want their investments to go down the drain, right?
Elon Musk is also reportedly working with the Dogecoin team to improve the sustainability factor of the coin, paving the way towards better energy efficiency when mining the coin in the future. Using less energy to mint a coin is perfect for miners as this translates into greater savings over time.
Calculating your Dogecoin mining profitability
You can calculate your Dogecoin mining profitability in real-time using this online calculator. Simply input your Hash rate, your mining rig’s power, cost per watt, hardware cost and fees – the calculator then generates your profit per hour, and profit per day.
It also gives an estimate of how much you can earn by mining Dogecoin per week and per month.
Recommended hardware setup for Dogecoin mining
Dogecoin mining can be considered much easier than mining other historic coins like Bitcoin or Ethereum. And by that, I mean it is about more than 1 million times easier.
Dogecoin mining uses a Scrypt algorithm that has a difficulty rating of 2798252.1991 of mining a new block of currency. This is much lower as compared to Bitcoin’s difficulty rating of 3511060552899.72. The rewards per block created in Dogecoin is also higher, at 10,000 versus 12.5 for Bitcoin. (Note: Although the rewards are greater, the value of Dogecoin is much lesser than Bitcoin.)
And because it is so much easier to mine Dogecoin, your gaming PC’s CPU is powerful enough to do this. However, it is still recommended to get a GPU so that your gaming PC won’t overheat and be damaged during the mining process.
These components are what you need to get started:
GPU:
Scrypt ASIC Miner:
It is not necessary, but highly recommended for faster Dogecoin mining. Because Dogecoin uses a Scrypt algorithm, you need a Scrypt ASIC miner that is designed to mine Scrypt-based currencies like Dogecoin. These bad boys are really powerful – but are expensive, loud and get very hot too. Here are some recommendations if you do intend to get one.
Dogecoin mining software:
The type of Dogecoin mining software varies and depends on how your mining rig is set up for Dogecoin mining. Whether you’re using a CPU, a GPU or an ASIC miner, there are different routes you can take.
Dogecoin mining software for CPU miner: CPUminer is a free software that allows you to get started on Dogecoin mining immediately with your current CPU set up.
Dogecoin mining software for GPU miner: For most GPUs, you can go with CCGmining. Specifically for Nvidia GPUs, you can choose to go with CudaMiner. But if you’re just starting out, and want something easy and straightforward, you should go with EasyMiner.
Dogecoin mining software for Scrypt ASIC miner: A versatile mining software would be MultiMiner, which excels at mining scrypt-based currencies as well as SHA-256 currencies, like Bitcoin. You can also run with CCGmining or EasyMiner.
A comprehensive step-by-step guide for mining Dogecoin on your gaming PC for ASIC miners.
Once you have the recommended ASIC equipment and software ready to go, you can begin mining by following the steps below.
1. Set up your ASIC
Connect your ASIC to the power supply unit that is connected to a power source. Connect an Ethernet cable that’s corrected to an internet source directly to your ASIC.
2. Choose & join a Dogecoin mining pool
Like all the other cryptocurrency coins, it is extremely difficult to turn a profit while mining solo. The amount of money spent on electricity and hardware will overwrite any ounce of profit you gain from the venture. To circumvent this, join a Dogecoin mining pool.
You should consider these factors when picking a Dogecoin mining pool:
- Hashing Power – It’s the amount of computing power that a pool has to solve blocks. The higher the hashing power, the greater the chances that our pool will receive block rewards.
- Reputation – Is this pool trustworthy and does it pay miners on time? A reputable mining pool is key to earning your money.
- Fees – How much does the pool charge from your mining profits.
- Server Proximity – The closer you are to the server, the better. The closer you are to the server, the lower your latency will be. And with that delay comes less chance of solving shares and getting paid out properly.
- Uptime – How consistent is the pool keep running and online. If the mining pool keeps having downtimes, it is not mining, and you will not be earning.
- Minimum Payout – The lower the payout, the more frequently you will receive payment from it. If you don’t have much mining power, this could be better for you.
- Multicurrency Support – What other cryptocurrencies does the pool let you mine? Having this support allows you to switch cryptocurrencies halfway through.
We’ve done the analysis for you, and here are some good Dogecoin mining pools to consider – Prohashing, Aikapool and Litecoinpool (via merged Litecoin-Dogecoin mining).
4. Set up a Dogecoin wallet
If you are considering to use a hardware wallet, it is better to consolidate your coins via an online wallet before transferring them over. This is because hardware wallets have limited computational power.
Online wallets for Dogecoin – Dogecoin Wallet, Atomic Wallet, Jaxx.
Hardware (Offline) wallets for Dogecoin – TREZOR One Wallet, Ledger Nano X Wallet, Ellipal Hardware Wallet.
3. Identify your ASIC’s IP Address
Log in to your router’s settings and enter your router’s username and password. You can find the IP address for your Antminer on the device. You can also look up your router’s documentation if you have trouble identifying it.
4. Log into the ASIC’s web interface
Once you have your device’s IP, enter it in your browser.
A box will show up, telling you to login. The default username and password should be “root” without the quotation marks but check your ASIC’s manual if that isn’t the case.
5. Key in your chosen mining pool’s information
Go to your Miner Configuration settings and enter your mining pool’s URL and password that are provided by the pool. You may choose to enter more than 1 mining pool – this ensure continuity when a pool goes offline, and your ASIC will automatically switch to the next.
Key in your Dogecoin wallet address and hit save. You’re good to start mining now. Check back a few minutes later, and your miner should display a hashrate in the Miner Status tab. This means that everything is working well.
