So you’ve heard a lot about cryptocurrencies and want to get involved in the market, right? Well, let me tell you how to mine cryptocurrencies like dogecoin(DOGE), WINk(WIN), BitTorrent(BTT) using CPU or GPU on any computer or laptop while doing other works at the same time.
Before telling you how you can mine these cryptocurrencies, let’s look at what cryptocurrency and mining are.
What is Cryptocurrency?
Cryptocurrency is a peer-to-peer digital currency, which allows money to be transferred from one person to another without using a banking system. These transactions are recorded in a huge database which is known as Blockchain. These databases are stored across tens of thousands of computers which are known as Nodes. These nodes group a number of transactions to the blockchain which is called blocks.
Before a transaction could be processed, it has to go through each and every node to be verified. This ensures that anyone could do some fraud activity to show more currency than he/she actually has.
What is Mining?
Mining is a process of getting rewarded with cryptocurrency when a transaction is checked on a blockchain. It is not as easy as it seems to look at first, it is actually like a lottery. To win a lottery you obviously need to work. Or you can say, your computer’s CPU or GPU needs to work.
This is exactly what you need to do, check and confirm transactions on a blockchain.
Many computers are working to do the same task as your computer does, all work on confirming the same transaction as you. But on all of them, only one can earn a reward for the same. These operations are achieved by solving complex mathematical equations by your computer. The node that solves the mathematical equation first wins the lottery and earns cryptocurrency.
As you might have guessed by now, mining cryptocurrency needs a lot of power and resources. Even with CPU mining, it takes a lot of time to earn a decent amount of cryptocurrency. But CPU mining takes fewer resources so it is considered easier to mine. Probably the CPU you’re currently using can mine a lot of cryptocurrency options available.
Each cryptocurrency has its own set of blockchains. So you have to mine a specific one at a given time. Also, each has its own ways of mining new currency and its own reward system.
Which is better: Mining or Trading?
Out of the two, trading is much profitable at the moment. You can make much more profits in a small amount of time by trading.
But on the other side, mining can be considered an investment. We’ve seen currencies like Bitcoin going from dollars to millions in a short span of time. Maybe storing cryptocurrencies you mine at the moment skyrockets in the future and you can end up having millions from the currency you mine today.
Also, mining helps in all the transactions done through cryptocurrency, so while mining you’re indirectly helping thousands of people doing transactions which might include donations, charity and all that good work.
Cryptocurrency is constantly changing the world and what’s better than being a part of it!
Although you can mine and trade at the same time. It’s like having the best of both worlds, getting profits today while investing for the future.
For trading, we would recommend platforms like Binance or WazirX as they are much reputed and secure for trading. They’re also good for storing your cryptocurrencies on a single platform. Having a simple interface, both platforms are also best for beginners as well as advanced users.
Solo vs Pool: Which is better?
Mining on pool means you mine with many others for the cryptocurrency reward. But it also means that you’ll get a small portion of the total reward. However, mining in a pool gives you a much steady supply of crypto, as pools mine much often than solo. You need to give a small fee for mining in a pool, which is generally 0.75-1% of the total earnings.
In solo, however, you’ll risk waiting a lot to even earn a small amount of cryptocurrency, because there is a lot of competition out there. This also means you’ll need to spend a lot of electricity and should have adequate resources like a dedicated mining machine set up for it. Also, it might take months for you to earn anything from it. But when you earn rewards, the whole of it is yours to keep.
As a beginner, pool mining is the best option as you can start using your existing machine and with no prior knowledge. Also, it would be easier for you to see a result in less time.
How to mine Dogecoin using CPU/GPU?
Mining dogecoin or any other cryptocurrency can be done with two methods: Either with CPU or GPU. If you have a 3GB or more GPU, you can use it for mining or use your CPU.
GPU mining is much faster and it could give you a much better output, but it uses more resources, and you might not be able to use your machine for other tasks. However, if you use CPU mining, it will take fewer resources and you can easily do other light work at the same time like browsing the internet or checking emails.
In the following method, you can choose or switch between any of the two easily in one click.
For this method, I’ll be using the mining software to obtain Dogecoin. For this you’ll need two things:
- Dogecoin Wallet (Make sure you download Dogecoin Core)
- unMineable: go to Download and download the packed version to make sure it isn’t deleted by any antivirus before you proceed.
Antivirus treats any mining software as malware as it directly uses the computer’s resources. But there’s nothing to worry about. Turn off any antivirus before unpacking the software and mark it as an exception. It will be used to mine dogecoin using CPU or GPU frequently so make sure it doesn’t get deleted the next time you run it.
unMineable is an easy-to-setup and use mining software that will help you in pool cryptocurrency, One does not need to have any prior knowledge of pool mining to start with it. It supports many other cryptocurrencies other than dogecoin like Aave, BitTorrent, Bitcoin, DigiByte, Binance Coin, etc. The reason behind choosing Dogecoin is that it is easy to mine because it uses Scrypt, while cryptocurrencies like Bitcoin uses SHA-256. Also, Dogecoin has much potential in the future and even Elon Musk and Mark Cuban support it.
- After you download both mentioned above, install the Dogecoin wallet.
- Copy the wallet address from that.
- Alternatively, you can use the address from Spot Wallet of Binance or the wallet of WazirX (if it supports the deposit of that currency).
- Now go to the unMinable app and paste the address after choosing which method to use while mining(CPU/GPU).
Now it will start mining in a few seconds and you just need to wait for it to go to the minimum payment amount to withdraw it. In the case of Dogecoin, it’s 30 Doge. It’ll charge you 1% fees but if you use the link above, you’ll only be charged 0.75% on the withdrawal.
Tip: Don’t wait impatiently for it to mine 20-30 Doge for you in a day. It is a long process, and will probably give you 2-3 Doge a day. So you need to be patient about it.
In the meantime, you can use other methods like earning from your Android phone or earning from YouTube without a channel as other alternative passive income sources.
If you want to learn more about Dogecoin, you can visit this website.