Creating your own Dogecoin (with Black Jack and Hookers)
So, you have decided to make your own space station, with Black Jack and…. no wait, of course you want to mine Dogecoin!
Let me stop you right there. I am sorry to first give you high hopes and then breaking it down like this. But, unless you are the owner of a Chinese mining farm or owner of a ton of graphic cards of the current value of 2 new Toyota pickups (they are RARE right now, the cards, not the Toyotas) you won’t be able to come anywhere near to profitably mining Dogecoin.
That’s bad news, we know. But there is always some good news too. You could still become a miner, using just one or two of the (rather good) graphic cards you own right now and be able to BUY Dogecoin with the amount of other coins earned. It still will not be really profitable, unless you pay literally NOTHING for electricity and you got your graphic cards for free or 10 bucks at a garage sale.
Yes, I’m serious. In the beginning days of mining and crypto currency there were literally FORTUNES to be made (well, not back then worth-wise, but now). You could easily mine 10k Bitcoins in a couple of days, you could even mine 100k Dogecoin in the first couple of days when Dogecoin came out in 2013.
Nevertheless, those days are long gone. Whatever you heard from “news” or “friends” or “experts” is wrong. No, you won’t get rich while mining Dogecoin in your basement with your old Core2Duo 8400 Pentium Computer. Like, no way. Forget that.
We have been around on social media for some time now and there have been recurring questions like “Can I just mine coins?” or “Why is it so hard to mine coins now, why have “the developers” made mining so difficult that the ordinary people cannot do it?”
Answer is, that is exactly what the coins were programmed to do to maintain their worth and to maintain the blockchain (simply said the blockchain is a big log of all the transactions ever made in the whole world, like literally ALL of them!).
Let’s keep that in mind and keep the answer for later.
Now we would like to tell you how to start mining in (more or less) easy steps. It won’t be Dogecoin (reasons see up there) but some other crypto coins. Let’s find which ones are profitable and which graphic cards we need to use for mining.
- Step 1
Check your mining equipment (rig). What kind of mining hardware do you have available? How much do you want to spend on it if you don’t have any and are you willing to have a relatively big investment ahead of you if you really want to mine cryptos?You have a rig and have an own room (storage) available for it? This is important, because rigs are LOUD and produce loads of HEAT. No, you will not be able to just put it under your bed or put it next to your PC battle station much less USE your normal gaming pc for it. It will be useless for any other purpose than mining, PERIOD! No, you don’t want your gaming pc to run 24/7, no, you don’t want to put games and personal programs on your mining rig. Just don’t. Trust us! If you have that, go to –> Step 3
- Step 2
You don’t have a mining rig and want to know which hardware is nice (and most of all available for a humane price)?
Then go to this site. The guys and gals at minerstat.com have been around for ages and they are experts. See the hardware list for recommendations for a good mining card (or asic). Chose one that is available in your region preferably (check on ebay or your local hardware store online and be aware that during crypto peaks there will always be a shortage of supply because everybody suddenly wants to mine).
Let’s choose the AMD RX 580 for now, because that is a great card in regard of availability (not the best gaming card), price and mining power (if you are on a budget). Ok, now click on it, it will take you to another site. Here you will see a mining calculator that will show you the estimated mining revenue of your card (to be taken with care, it’s estimates and it’s really only for that exact point of time because revenues are CHANGING every day!).
Enter your electricity costs truthfully (no need to lie to yourself here, take the real price with all side costs shown on your bill) and then hit calculate.
You will find yourself presented with a lot of different “names” and “algorithms” here. The name is either the name of the coin which is profitable (or not profitable) to mine or the name of the pool which is mining with that speficic kind of algorithm.
Keep in mind, that almost every single crypto coin has its’ own mining algorithm, e.g. the kind of calculations that have to be done to “mine” a block of the coin, or to gain coins.
Now keep in mind, this is important, that different algorithms also mean different HASHRATES! Meaning, if you would make 30 MH (Megahash, not Megahertz) on Ethash (the algorithm for Ethereum) that DOES NOT mean that you will make 30 MH on Scrypt (the algorithm for Dogecoin). Like, not at all. Imagine a Toyota pickup engine in a VW Beetle, it will drive it like hell, but if you put a Toyota pickup V8 in a 40t truck it will probably not move it a bit.
“But the Dogecoin Scrypt algorithm doesn’t even show up?”
True, even when you click on “all coins” it won’t show up. That’s because the guys at minerstat are smart and won’t show you any coins that you would have absolutely NO chance of mining for a profit. In a later article I will explain why you should not mine Dogecoin and what “mining difficulty” means.
Anyway, we’ll just stick to the EThash for now and decide to mine that. If you entered your RX 580 and about $0.3 of power costs it will show you (for 03-03-2021) that you can expect to “mine” with about 32 MH and a 84 watts power consumption (per hour!). That is, a good estimate, and will only be your mining result when you tweak your mining software and and your card (and I mean really tweak, like spending 1 or two whole days fine-tuning that stuff or even bios-flashing your card with a special mining bios). Write down your Hashrate now, you will need it later (a lot).
For us, it will be a whopping $3 profit per day. Not really much, not really nothing. Keep in mind that your computer will run 24/7 for getting that profit and also mind that there will be downtimes (power failure, updates, internet connection failures, hardware and software errors).
- Step 3
If you already have mining equipment, then just enter this site. Choose your card or asic and then follow the steps to find out your hashrate and what to mine. Read Step 2 if you haven’t done so yet on which crypto you should mine (Attention: There are of course mining pools that just let you do that fully automatically, even the switching to the most profitable coin right now, you are just providing the “calculation power” to them and they do the rest) But I guess you would like to start deciding what coin you want to have and what to mine since you already came here with the idea of mining Dogecoin (didn’t you?)
- Step 4
Join a mining pool! “But hey, why should I join a mining pool when you just said that I should choose the coin I want to mine?”
The answer to that is both easy and difficult. Easiest said: You will NEVER find a block (mine coins) when mining solo. Maybe you have heard about those “quizzes” that your computer needs to solve to “win” coins. Let me put it like that: The quiz is too hard for your card or rig or whatever. There will always be an Asian (literally, the mining farms) that solve that quiz before you and “win” the coins. All of them!
That’s what mining pools are for. 10 or 100 people like you combine their mining power to solve that quiz and beat the Chinese farm to solve the riddle before they do. What happens then when we found it? Simply said, you will share the plunder (loot). Ever member of the mining pool gets a share based on their contributed mining power. Easy? Yes, that’s makes it so beautiful.
So, join a pool. Take one of the big ones as they are the most reliable and a lot of them are not taking a lot of fees (some are even free) for their service (hey, they have to pay for the site and maintenance, right?)
- Step 5
On minerstat.com you will find dozens of mining software. Download it for your graphic card (there are sometimes versions especially for your brand only) and make your fine-tuning. (there are loads of instructional web sites for that and there must be millions of way to do that, so we won’t cover it here)
- Step 6
Keep in mind that some mining pools have minimum payouts. You will not be able to just withdraw your coins every day and spend them (btw. do you have a wallet yet? If not, go get one! it’s really easy. I recommend to go to the developers web site ALWAYS to download or create your wallet there. Other sites can be insecure or even spy on your passwords and you don’t want to have a compromised wallet, trust me!
So, remember that it could take several weeks until you will be able to pay out your coins. Don’t be impatient, don’t turn off your mining computer or restart it while you mine. Minerstat for instance let’s you keep an eye on your rig from the dashboard of their site, making you able to survey your whole mining operations!
- Step 7
Have fun with your cryptos! Open an account at one of the big crypto exchanges (always check if they offer wallets and pay ins, Robin Hood is NOT a good choice!) and transfer them there. exchange them for Dogecoin and build your very own Dogecoin portfolio!
That’s it. You have now mined your very first own crypto coins!