Dogecoin is one of the most popular cryptocurrencies. Since entering the top 10 of the highest crypto assets, crypto dogecoin cloud mining more and more aggressively practice it in order to get the currency bearing this dog.
Like Bitcoin, mining is one of the most effective ways to earn Dogecoin for free. What is the difference between mining Bitcoin and Dogecoin? To know the answer, see the following discussion.
Understanding Dogecoin Mining
Mining Dogecoin is not much different from mining Bitcoin. You can do both by logging into the blockchain and miners are tasked with calculating and verifying every transaction that occurs in the blockchain.
In return, miners or miners will get a certain amount of Dogecoin. The faster your calculations, the more Dogecoins you can mine.
However, there are some basic differences between Bitcoin mining and Dogecoin mining in terms of algorithms. If Bitcoin mining uses SHA-256, Dogecoin uses the scrypt algorithm which tends to be easier for us to solve.
This is why mining Dogecoin is more energy efficient and relatively more for many people. It’s no wonder that many novice crypto activists are glancing at this one cryptocurrency.
What’s that Dogecoin Cloud Mining
Cloud mining is one way you can mine Dogecoin. With this method, miners can rent computers belonging to other people so they don’t have to spend a lot of money on purchases and maintenance.
Only by paying equipment rental fees, miners can get more benefits from mining activities. There are several providers that provide cloud mining services, for example Nice Hash.
The advantage of this mining method is that miners don’t have to bother with all the mining processes but can still earn Dogecoin income. In addition, this method is also more efficient in terms of cost.
However, cloud mining has a higher risk if we compare solo mining or through mining pools. The reason is that the hardware rental fee does not change while the Dogecoin exchange rate is very volatile.
Alternative Dogecoin Mining
Apart from cloud mining, miners can use other ways to earn Dogecoin, namely solo mining and through mining pools. Here’s the explanation.
1. Solo Mining
Solo mining is a mining activity that is carried out alone. This method is popular among miners who want to mine Dogecoin in an easy and fun way. In the process, miners have to compete with other miners in the Dogecoin ecosystem.
Speed is an important factor in the competition for prizes. Miners compete against each other to solve complex algorithms in order to win the match and earn 10,000 coins.
In order to be able to do solo mining, miners must prepare mining software and a Dogecoin wallet. And certainly, the computer used must have qualified specifications.
2. Join the Mining Pool
Mining pool is a gathering place for miners who are mining together. When joining the pool, the computer power will be combined thus allowing the miners to win the competition.
There are many mining pool options that you can visit, for example Litecoinpool and AikaPool. When joining a particular pool, run the software as usual and wait for the Dogecoin to be rewarded for the contributions made.
Although relatively easy, this method applies an participation fee. Every Dogecoin earned by miners will be subject to a certain percentage discount.
That’s a glimpse of Dogecoin cloud mining. To find out more about the world of cryptocurrencies, keep an eye on the various interesting information and the latest updates on Media Authority.