dogecoin mining tips that you should know

In September 2014, the Dogecoin blockchain saw a hard fork that implemented merged mining with Litecoin and other Scrypt-based cryptocurrencies. Merged mining is a process that allows work (mining) done on one blockchain to be valid on another blockchain. As a result, Dogecoin can be considered an auxiliary blockchain of Litecoin. This merged mining system is often considered to be an ultimate solution to the hash-rate oscillation problem that occurred between Litecoin and Dogecoin mining. In this post, we will be going over some Dogecoin Mining tips.

Merged Mining

To get a better understanding of what merged mining is, I will compare mining to a lottery in which miners are constantly generating new lottery tickets.

If a miners lottery ticket matches the winning number, they will earn a reward. In this case, they will be rewarded an amount of DOGE tokens. Before the implementation of merged mining; DOGE and LTC mining were two separate lotteries, and their tickets were incompatible with one another. Miners could only participate in a single lottery. Once Dogecoin enabled its AuxPoW consensus algorithm, it started accepting tickets from both groups of miners.

This allowed Litecoin miners to generate additional (Dogecoin) tokens without any extra work. Consequently, the hashrate for the Dogecoin network increased tenfold. This is due to the majority of miners on the LTC network enabling merged mining, causing them to mine DOGE as well as LTC.

How Merged Mining Works

You start by assembling a block of transactions for each chain. In this case, that would be Dogecoin and Litecoin. The Dogecoin (auxiliary chain) blockchain includes everything you’d expect from a standard set of transactions. This is also true for the Litecoin block. However, an additional transaction is added with the hash that points towards the Dogecoin block you recently constructed.

After you’ve assembeld your blocks, it’s time to mine. There are several different scenarios that could play out at this point:

  • You mine a block at Litecoin’s difficulty: You finish mining your Litecoin block and broadcast it to the Litecoin network. As the difficulty level that you mined the Litecoin block is higher than the Dogecoin difficulty, you will also mine a Dogecoin block. This will earn you both mining rewards.
  • You mine a block at Dogecoin’s difficulty: You finish assembling the Dogecoin block by inserting the header and the hash of the Litecoin block. The Dogecoin chain will then accept the block. It is able to recognize the official header for Litecoin and hash as your proof of work. This is because of the development work you did to support this merged mining. You will only receive a Dogecoin reward.
  • You mine a block between Dogecoin and Litecoin’s difficulty: The outcome for this scenario will be the same as the second scenario.

Is it profitable?

When merged mining, every hash you do will contribute to the hashing power of both blockchains entirely. You may have to do a small amount of extra work when generating a work unit, though it’s almost insignificant. Miners will only need to generate a work unit once every couple billion hashes they do.

If you’re merged mining Dogecoin and Litecoin, you won’t be sacrificing your hashing power. You will generate just as many Dogecoins as if you only mined Dogecoins, and on the side; you’ll get just as many Litecoins as if you were only mining Litecoin. There are only 2 negatives of any significance.

The first is that your Litecoin blocks will be bigger than usual as they also include Dogecoin headers. As well as this, you will have to generate new work units each time a new block is completed on either blockchain. This will result in generating work units twice as often which can be a big deal for a big mining pool.

Depending on the two coins you decide to merged mine, it can definitely be lucrative. However, in the case of Dogecoin and Litecoin, the added Dogecoin you will be receiving on the side won’t be as much as you’d expect. 


Dogecoin was not created for speculation, profit or tax evasion purposes. It was created to put a smile on your face and make the world a better place.

Merged mining can definitely be a profitable option. But in the case of Dogecoin and Litecoin, you probably have better options. You can only mine Dogecoin directly on a few mining pools, and even then you’ll be mining at a loss. Since the AuxPoW hard fork to Dogecoin, it’s almost impossible to compete when solo mining. I’ll explain:

9,000,000,000,000 H/s of LTC hashpower through AuxPoW
0,000,000,100,000 H/s is a typical CPU / GPU hashrate

Both of these competitors will be chasing the same 10,000 Doge tokens per minute of block rewards and there can only be one winner. At those rates, you have a better chance of winning a lottery. If you want to build up your Dogecoin portfolio, your best bet is to buy low and HODL.

We offer DOGE trading on our cryptocurrency exchange, as well as Litecoin and several other cryptocurrencies. Will you be mining DOGE? Or will you decide to find your own two coins to merged mine? Let us know in the comments below!

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Disclaimer Notice:

This article is intended to educate and should in no way be seen as investment advice or an enticement to use the platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.