A Dogecoin faucet is an app or website that gives out DOGE (pronounced DOHJE) in exchange for completing simple tasks.
So how do faucets work? How do you find them? And are there any risks associated with using faucets? We will answer questions like these in this article.
What is a Dogecoin Faucet?
The name “faucet” reflects the fact that the rewards are very small, as if they were drops of water dripping from a faucet.
Free Dogecoin faucets send a few DOGE, usually one or two Dogecoins, to a user’s crypto wallet. To claim these rewards, users often have to perform a task like:
• Watch product videos
• View advertisements
• Complete a captcha
• Solve a puzzle
In exchange for these tasks, users could be rewarded with Dogecoins.
Why Were Dogecoin Faucets Created?
Crypto faucets have their roots in the very early days of cryptocurrency.
When Bitcoin was only a few years old, 1 BTC was worth less than a penny. Some early adopters took it upon themselves to create new, fun ways to spread the word about crypto.
Among them, developer Gavin Andresen believed in the future of Bitcoin and came up with a way for more people to learn about cryptocurrency. His idea was to give away free Bitcoins in exchange for completing Captchas.
The first Bitcoin faucet ever created paid out 5 BTC in exchange for the simple task of clicking images. Again, this was at a time when one Bitcoin was worth less than a penny. Today, 5 BTC would be worth about $250,000.
Over time, faucets for popular altcoins sprang up as well. When software engineers Billy Marcus and Jackson Palmer launched DOGE in 2014, DOGE faucets quickly sprang up for what was originally a joke currency. DOGE is a good fit for a faucet considering it has very low fees and was worth a tiny fraction of a penny when it was first created. Since it’s an uncapped currency, it’s also unlikely that the price will go up dramatically in the future.
How to Use a Dogecoin Faucet
The only things required are a computer with internet access and a Dogecoin wallet. Many popular crypto exchanges and their mobile apps support DOGE, providing users with a DOGE wallet.
A Dogecoin faucet, also known in the DOGE community as a “water bowl,” will ask users to enter their wallet address (also known as a public key). This is a necessary step so that the faucet knows where to send coins. If a user enters the wrong address, they won’t receive any rewards.
After entering the wallet address, a user must complete whatever task the faucet requires. Some faucets only require users to click a button to receive one or two free DOGE.
Note that there will be a time limit placed on how often someone can use the faucet. For example, the same person might only be able to use the faucet once a day or once every several hours. This prevents individuals from spamming the faucet and draining it of all its coins.
Keep in mind that faucet rewards are very small, and as the price of a coin rises, the rewards get even smaller in crypto terms. Using faucets is not a very efficient way to start building a crypto portfolio.
Are There Any Risks With a Dogecoin Faucet?
A Dogecoin faucet can come with some potential risks, as anything related to investing in cryptocurrency generally does.
Phishing scams have utilized crypto faucets in the past, seeking user information that they later use to target individuals for exploitation like identity theft or other crimes.
That’s why before using a faucet, you should first check to make sure it has a legitimate reputation. If there have been complaints from users in the past, it might be wise to consider looking for a different faucet.
It can be helpful to look at the website that hosts the faucet. A true faucet only has a single webpage with one function: to distribute coins. This only requires a place for people to enter their wallet address and a button to click, usually with a Captcha underneath it.
This feature should be the main attraction of the site. There might be some images of dogs or a variation of the Doge meme, and maybe some FAQs or other commentary. But if a “faucet” site has more than that, the odds of it being some sort of scam go up dramatically.
There’s also the risk that Dogecoin faucet users will be bombarded with advertisements and ad-tracking cookies in their browsers. Because most faucets are free, they tend to commoditize user’s time and traffic.
Finally, the high volatility of DOGE makes it a risky investment, no matter whether you’re getting it via a faucet or some other route. Some detractors have even compared DOGE to a pump-and-dump scheme.
Can I Mine Dogecoin?
Most cryptocurrencies can be mined by almost anyone.
Without getting into all the details, mining Dogecoin involves running powerful computers known as miners that process network transactions. In exchange for this work, miners receive block rewards of fresh Dogecoins. A new block of transactions is mined about once every minute on the Dogecoin network. The reward for each block is 10,000 DOGE, or about $2,500 currently.
Mining DOGE can be done alone or in a pool. For most people, it’s easier and more profitable to mine as part of a pool.
Anyone who wants to start mining Dogecoin will have to answer several questions, especially the following:
• Will you mine solo or join a Dogecoin mining pool?
• What Dogecoin mining hardware will you use?
• What Dogecoin mining software will you use?
You can find Dogecoin faucets through a simple search online or using a directory like this one . Be careful though, as some sites could use the allure of a Dogecoin faucet to trick people into giving up sensitive information. You should only need to enter your Doge wallet.
However, there are easier and more effective ways to start trading crypto. One of them is by opening an online brokerage account on SoFi Invest®. SoFi Invest allows you to trade Bitcoin, Dogecoin, Bitcoin, Ethereum, Cardano, and other types of cryptocurrency from your phone.
Photo credit:iStock/Ksenia Raykova
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