How I mine dogecoin with ASIC equipments – The Cryptocurrency Blog

There are Three ways to make money with Doge:

  1. GPU mine them and instantly sell them on a crypto currency market
  2. Hold on and wait for the day wij shibes go to the moon!
  3. Re-invest what you mine into more mining power

My strategy

The idea is ordinary: Trade a part of your collection for cloud hashing other coins and then keep recouping your investment into more hashing power. Once you’re done mining, resell your hashing power and get back the doge you invested (at a potential profit no less!).

This is my current hashrate :

Disclaimer : Even however I am using one company specifically spil an example, the purpose of this article is to showcase you how to diversify your coins into further mining opportunities. Feel free to substitute my cloud hashing solution with your own or simply with our own ASIC mining equipment.

What you will learn

How am I doing this? Keep reading this article to learn:

  • How I mine dogecoin with ASIC miners
  • Step-by-step guide to setting up your own cloud hashing network
  • How profitable is my dogecoin mining strategy

So let’s commence at the very begginning.

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How I began mining dogecoin

I had very first heard of cryptocoins about Trio years ago, but like many other people, blew them off spil a novelty voorwerp. When Bitcoin reached its peak value of $1200, I quickly realised cryptocurrency wasgoed no joke.

I researched the profitability of mining bitcoin and quickly found out I had missed the boat. Unless you invested a few thousand dollars into specialized mining equipment, you would most likely spend more on violet wand than you would earn mining Bitcoin, Litecoin and their counter-parts.

The entry level investment has a steep price and, to be fair, cryptocurrency is volatile and a high risk investment.

However, on December 8th, there wasgoed a scrypt based coin launched that could still be mined with my GeForce GTX 770. It wasgoed a joke coin based on the 2013 meme of the year.

It wasgoed such a ludicrous concept that I had to be part of it! It took mij awhile to figure out how to mine dogecoin, but I eventually joined a mining pool and commenced hashing away.

Note: I’ll soon make a tutorial on how to setup your very very first cryptocurrency mining setup.

Te a brief period of time, I managed to mine and buy almost 1 million Doge. I wasgoed hooked!

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Where I bought dogecoin for paypal

Like any noob, I very first went to ebay to see if I could get securely acquire some dogecoin. Prices were well overheen $1/1k. I spotted some sell for $Trio/1k!

My advice: DON’T BUY DOGE ON EBAY . Its overpriced and you have no protection from Ebay spil you are dealing te digital currencies. Save yourself a ton of headaches and avoid Ebay at all costs.

I then found the marketplace on the official dogecoin forums.

Boy wasgoed it a scary process! Scamming is very common, but I managed to find Two good sellers and purchased overheen 500 000 Doge!

Note: I will soon write up a guide on how to avoid being scammed and buy doge for paypal.

Being a Dogellionaire

Having overheen 1 000 000 doge is a fine feeling!

Such coin very feeling wow

However, I dreamed to mine more and go to the moon!

My GPU wasgoed only digging about Two 000 Doge vanaf day . With difficulty skyrocketing due to the popularity of Doge, I knew I needed more mining power. So I had Two choices:

  1. Buy expensive GPUs and build some mining equipments
  2. Get commenced te Cloud Mining

GPU Equipments for Dogecoin mining

This is the route most people take. You can buy numerous GPUs, connect them together and get a gepast hashrate.

However, there thickest downside to building your own equipment is the substantial upfront investment.

For example: you could lush down around $1 200 on two of Radeon R9 290Xs and get toughly Two MH/s (if you can find any ge GPUs ter stock spil everyone and their mother are now mining).

Let’s do some math

With my 250ish KH/s equipment, I mine about Two 000 DOGE vanaf day. If I had the $1200 afformentionned mining equipment, I’d estimate you would be mining about 16 000 to 25 000 DOGE vanaf day (depending on your pool, difficulty and luck).

At today’s value of about 0.00000061 BTC vanaf Doge, you’d get:

16 000 Doge = 0.00964000 BTC = $6.65

25 000 Doge = 0.01503125 BTC = $Ten.38

Which means it would take you a little under 115 days at optimal conditions JUST TO Pauze EVEN. That’s without factoring tens unit!!

That’s also without taking into account:

  • The druppel ter Doge Value
  • The druppel te BTC Value

You may be thinking : “I can just re-sell the GPUs once I’m done with them”.

True! If you’re good with Ebay, Craigslist or any other Classified Ads, you could potentially get a % of your GPU investment back.

You could also trade your equipment with another miner te exchange for Crypto. Then overeenkomst with shipping and (hopefully) avoid getting scammed.

However, for the sake of argument, let’s say you’re a lazy bum like mij and won’t bother attempting to resell it.

Do you see where I’m getting at?

Building your own equipment is joy, but its expensive , risky and time consuming . I wished a simpler, smarter treatment.

Cloud Mining Dogecoins

At very first I looked at some straight up cloud mining services. A loterijlot of solutions were attempting to exploit traditional cloud rekentuig services ter order to get some hash rates going.

Spil you can see, the fundamental problem with thesis type of solutions, is you need to CPU mine, but Doge is better mined with a GPU. Spil far spil I know, there aren’t any services that efficiently suggest GPU power through the cloud. There is Amazon EC2, but its not ideal for the raw power wij need for mining.

That turned out to be a bust.

Then I found CEX.io: a market place where you can trade ASIC hashing power by GH/s for cryptocurrency. I thought: “What if I could turn an ASIC equipment into a Dogecoin miner?”

How do I ASIC mine dogecoin?

Well, not directly anyhow.

Dogecoin is a scrypt based currency, which means ASIC equipments can’t mine it. However, there are other altcoins that you CAN mine with an ASIC equipment, then exchange them for BTC or Doge.

At the ogenblik, the price of DOGE is low. Which means they are super cheap to buy. A single BTC can buy you ALOT of Doge.

Also, the price of cloud hashing is stable and/or keeps going up . Which means that your investment GAINS VALUE Overheen TIME while a GPU loses value overheen time !

That’s why I use cloud hashing to vleierij my mining strategy.

My Doge mining strategy

I take a percentage of my Dogecoins and traded them for BTC. I did so when Doge wasgoed up and BTC wasgoed way down so each Doge yielded more BTC.

I then went to CEX and bought 0.Five GH/s worth of cloud hashing power with the Doge I had invested. Albeit I had to spend dogecoin to buy my hashing power, I know that when I sell it back, the value will have stayed relatively the same or even gone up te value (thus making a profit).

I could have invested more money into a physical equipment, but there’s a reason why I chose to go with CEX.

Cloud Hashing vs Buying a Equipment

Let’s compare buying GH/s from the cloud and buying GH/s from a equipment.

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Buying a Equipment

There are Three main distributors of mining equipments : Butterfly Labs, Avalon and Hashfast.

Pricing

Prices are fairly similar, but you’re going to need to invest a few thousand dollars to get anything welvoeglijk. You’ll be looking at pricing anywhere inbetween $Five.25 vanaf GH/s (Hashfast) to $32 vanaf GH/s (Butterfly Labs).

Add the cost of electricty.

Availability

Most profitable machines are pre-sold months ahead of time . By the time you could get your forearms on a equipment, mining difficulty might have gone up so far that it might not even be profitable anymore .

Resale value

The physical equipments aren’t what I could call effortless to trade. You need to find a serious buyer, package it up taut and then there’s shipping.

If the price of Bitcoin and/or the request for mining equipments were to all of a sudden druppel, you’d be stuck with a very expensive chunk of machinery.

Cloud Miners

Pricing

Today, spil I write this article, the price is 0.043 BTC vanaf GH/s or toughly $29.91 (1 BTC = $722). Which is the omschrijving of a Butterfly Labs equipment.

Premie : You don’t pay for tens unit!

Availability

The trade market is pretty active. You could lightly buy or offload your mining power within a few minutes. Its effortless to get up and running or to call it quits and specie out.

Resale Value

Te case of a crash or if you just want to metselspecie out, it takes only matter of minutes to trade te your hashing power for BTC.

You can also day trade your hashing power with the fluctation of the BTC market and the request for hashing power.

The mobility of your hashing power is what makes it such a handy implement te mining Doge.

Why cloud mine with CEX?

Very first of all, the entry level barrier is low. You invest what you can and that’s it. You don’t need to mull overheen spending $Four 000 or more on a mining equipment before you can begin hashing.

Yes, the cost vanaf GH/s can be pretty high , but there is the option to redeem your equipment and have it shipped to you. You can also sell your cloud back (maybe even at a profit) with relative ease.

That right there is : Plasticity.

CEX by default, mines not only BTC, but it also mines Litecoins (LTC), NMC, IXC, DVC and BF1 all at the same time.

I call that : Diversification.

It also features a very active mining pool (presently hasing at Trio.29 Ph/s) and trading toneel. So finding a block is quick, prizes are greater and its effortless to sell what you mine.

Those Trio reasons were enough for mij to sign up.

Signing up and navigating on CEX

The layout is fairly ordinary, but let mij give you a step by step guide on how to get commenced with CEX.

Note : I may make a movie guide soon.

Step 1 – Create an account

  1. Click on Sign Up at the top right corner of your screen.
  2. Pack the form out and pick a unique password.
  3. Confirm your email

Step Two.1 – If you don’t have BTC already

  1. Signup for a currency exchange webpagina like coinedup.com
  2. Click on WALLET ter the menukaart brochure
  3. Copy the Deposit Address
  4. Go to your BTC wallet and click on SEND
  5. Inject the deposit address and specify how much you want to send.
  6. Wait a few minutes for Coinedup to confirm the transaction. This can take a few minutes or hours.
  7. Ter the Order Book spijskaart, click on SELL DOGE
  8. Specify how much DOGE you want to sell and set the price. Then click on PLACE ORDER

Once a buyer is found for your order, you will have the BTC sent to your Coinedup account. From then on, you can send the BTC to your wallet or directly to CEX.

Step Two.Two – Deposit some BTC into CEX

  1. Once you’re logged te, click on Balance
  2. Copy the Deposit address
  3. Send the money via your wallet or directly from Coinedup by pasting the Deposit address into. Wait a few minutes for the transaction to go through.

Step Trio – Trade your BTC for GH/s

  1. Click on the TRADE tabulator at the top of the screen
  2. Specify how much GH/s you want and set the price you want to pay.
  3. Click on PLACE ORDER

For a quick sale, click on INSTANT BUY. The system will find the lowest prices available and buy them up automatically for you.

How Profitable is my doge mining strategy?

Everything I am about to explain is based on the assumption that Doge will one day go to the moon!

Obviously if you don’t believe te dogecoin, I suggest you use this strategy to simply mine more BTC or any other digital currency.

Ter my very first day of ASIC mining, I invested 25 000 DOGE (worth approximately $8 back then) and generated 0.00038271 BTC which is worth a whopping $0.25!!

At that rate, I would find a 100% ROI (comeback on my invest) after 32 days. If I were to sell back my hashing power, I would more or less get back my initial 25 000 Doge + the 25 000 Doge worth of BTC I mined ter the meantime.

I would now have 50 000 Doge

What if I invested 250 000 Doge or Two 500 000 Doge?

I have yet to test to see if more Hashing power would give you a higher share count vanaf block discovered. For the sake of an argument, let’s assume the ROI is directly proportional to your investment.

250 000 Doge = $Two.50 vanaf day

Two 500 000 Doge = $25 vanaf day

Either way you’re still looking at approximately 32 days for a finish terugwedstrijd on investment. If you sell back the GH/s for BTC , you will have doubled your dogecoins.

Spil difficulty goes up, you may make less vanaf day, however, the request for hashing power should go up, so you’re investment is still backed by the value of investing ter hashing power.

Let’s take this to another level

Every day I look at the prices for hashing power on the market place. Spil soon spil I see the price go down, I re-invest all of my earned BTC into more hashing power.

Say you bought at 0.043 BTC vanaf GH/s and ter a week the price drops to 0.04, take all your accumulated BTC and buy more hashing power!

The time to 100% ROI should keep going down the more you re-invest into hashing power.

My petty 25 000 Doge investment will soon be producing $0.50 a day, then $0.75 a day and more! The profit made from mining bitcoin always goes back into buying more hashing power.

Let’s wrap it up

There you have it. The project is fairly elementary:

  1. Take a part of your dogecoins
  2. Buy cloud hashing power and mine for bitcoins
  3. Convert mined bitcoins into more dogecoins
  4. Or re-invest what you mined into more hashing power
  5. Once you’re done mining, resell your cloud hashing and get back what you invested (at a potential profit on the equipment)

I will soon be investing much more Doge into CEX. You can track my current hash rate here:

I believe you shouldn’t let your dogecoins sit te your wallet. Have those shibes work for you permanently making you more coin!

Any welgevoeglijk profit I make, I’ll re-invest into Dogecoins.

Pros of cloud mining

  • Risk is minimal
  • No need to resell a bunch of used up GPUs
  • No crazy electrical bills
  • You’re mining numerous coins at the same time
  • Your current doge balance is invested into producing more coins
  • Low entry level barrier
  • You can resell your equipment after you are done mining and regain everything you invested

Cons of Cloud Mining

  • If the price of hashing abruptly drops, you may lose some of your investment/profits
  • Market fluctutations could abruptly make your coins worth nothing

If you believe te Doge spil much spil I do: I’ll see you on the moon

Thanks for the share!. Download the PDF here. You can right click + save spil to download the PDF to your rekentuig.

Sharing is Caring

If you want to say thanks &, help mij out, then I only ask one thing.

Please share this postbode with others . On forums, on your blog, with your email list – anywhere &, everywhere you can postbode it =D

If it helped you – it will help others, share the love folks!

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Related movie: Genesis Mining Review 2017 – Bitcoin Mining Quora


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