Merge Mining: How It Works and Why It Matters

In the world of crypto mining, boosting profits is always a top priority for miners. Besides optimizing hashrate, choosing the right hardware and mining pool, there’s another smart strategy that’s quietly gaining popularity—merge mining. You may have heard of the idea of “mining two coins with one machine.” This blog will walk you through the basics of how merge mining works, which coins support it, its advantages and limitations, and how it differs from dual mining. You’ll learn how to take advantage of this efficient mining method in the simplest way possible.

What Is Merge Mining?

Merge mining is essentially a way to get “double rewards from a single mining process.” The core idea is this: miners use the same amount of computing power to mine two different coins at the same time, without using extra electricity or hardware resources. These coins must share the same mining algorithm—for example, both Litecoin and Dogecoin use Scrypt. The main chain and the auxiliary chain coordinate using a mechanism known as "parent-child chain validation."

Think of it like using the same lottery ticket to enter two raffles. If you win, you get both prizes. For miners, the process feels the same as regular mining, but with potentially double the earnings.

How Does Merge Mining Achieve “Two Coins, One Machine”?

From a technical perspective, merge mining works through cooperation between the main chain and the auxiliary chain. For example, Litecoin acts as the main chain and is responsible for producing new blocks. Meanwhile, an auxiliary chain like Dogecoin validates that same work and uses it to generate its own blocks.

As a miner, all you need to do is connect to a mining pool that supports merge mining. There’s no need for extra setup. Merge mining doesn’t affect the efficiency of mining the main coin, nor does it increase power consumption. The heavy lifting is handled at the mining pool level, so most users don’t need to worry about the underlying mechanics.

Which Coins Support Merge Mining?

The most well-known and stable merge mining combo is Litecoin (LTC) + Dogecoin (DOGE). They both use the Scrypt algorithm, have reliable performance, are supported by many pools, and tend to provide consistent returns. This pairing is the go-to choice for most miners.

In the past, Bitcoin and Namecoin also supported merge mining, but that setup has mostly been phased out. Today, some newer altchains are experimenting with merge mining to improve their network security, though these efforts aren’t as widely adopted as the LTC+DOGE model.

What Are the Pros and Cons of Merge Mining?

The biggest benefit of merge mining is that it lets you earn more without increasing electricity costs. With one machine, you can receive rewards from two coins at once—no hardware upgrades or extra setup required. If the auxiliary coin (like DOGE) sees a price spike, your returns can be especially strong.

However, merge mining isn’t a silver bullet. Not all coins can be merge mined—they must share the same algorithm and be protocol-compatible. Also, not all mining pools support merge mining, so you’ll need to make sure the mining pool of choice offers this feature. Finally, because auxiliary coins often have more volatile prices, your earnings from them may not always be stable.

How Can Beginners Get Started with Merge Mining?

To get started, you’ll need a mining machine that supports the Scrypt algorithm. Popular options include the Innosilicon A6+, Goldshell LT-Lite, Antminer L7, and Antminer L3+.

Next, choose a mining pool that supports merge mining, such as ViaBTC or F2Pool. For example, F2Pool supports merge mining of LTC and DOGE, as well as other coins like BELLS, LKY, PEP, JKC, DINGO, SHIC, and CRC.

Then, set up your payout addresses for both LTC and DOGE. Once you connect to the pool, your rewards for both coins will be tracked automatically—no need for manual switching or extra steps.

Merge Mining Truly Allows “One Machine, Two Coins,” but with Conditions

Merge mining is currently one of the most effective ways to increase mining income. It’s especially ideal for users running Litecoin-compatible machines. For beginners, the setup is not complicated. As long as your hardware matches the algorithm and your pool supports merge mining, you’re good to go.

As the meme coin market becomes more active, coins like DOGE—despite their price swings—offer exciting new opportunities. Merge mining is likely to stay relevant and even grow in popularity. It’s definitely a strategy worth watching.

What’s the Difference Between Merge Mining and Dual Mining?

Many people confuse “merge mining” with “dual mining,” but they are two completely different concepts. Merge mining refers to using a single hashrate to validate two chains at once. The catch is that the chains must share the same algorithm, and both must support merge mining. The work is done once, and both chains benefit, making the process highly efficient.

On the other hand, dual mining is more common in GPU mining, such as mining ETH and TON simultaneously. In this setup, GPU resources are split—core power for one algorithm, memory for another. While it also brings extra rewards, it’s harder on the hardware, consumes more power, and requires a more complicated setup.

In short, merge mining = same algorithm + low power, while dual mining = different algorithms + higher power. Merge mining is better suited for ASIC miners, whereas dual mining is typically used in GPU setups.

Learn More About Crypto Mining with Bitdeer

If you want to further improve your mining efficiency, visit Bitdeer. We offer high-performance Sealminer series mining machines, as well as an online mining calculator to help you estimate payback time and expected earnings.

At the Bitdeer Learning Center, you’ll also find beginner-friendly educational resources. Whether you’re new to mining or looking to optimize your setup, you’ll find practical tools and insights to guide you toward a more efficient mining journey.