What Are Crypto Faucets & How To Earn Some Crypto For Free?
Why you should consider crypto faucets to earn some crypto rewards for free, but with some caution and responsibility? Is, what we will explore today
If you get anything for free it should be worth your time, because nothing is for free in reality
Let’s Set The Context:
There are many rags-to-riches stories associated with BitCoin, especially those associated with Crypto Faucets. The maiden crypto faucets became functional in 2010, where, in order to promote the Bitcoin adoption, they put around 1–2(whose value is $49999.85 at the time of writing ) bitcoin on offer to the users who were willing to engage on their portal to perform the activities like, Solving captchas
In those days it was valued for a penny but those early bitcoin adopters who stayed long and HODLed, may lucky ones would have become Multimillionaire with that fraction of bitcoin they earned.
Now as Bitcoin has gained so much traction and popularity and is worth $49999(at the time of writing )hardly any portal run a Crypto faucet with such Bitcoin rewards, They offer the smallest fraction of bitcoin called, Satoshis to their users for engaging in multiple activities on their portal
- Clicking on captchas
- Engaging with Ads
- Sharing the content on Social media etc.
But if you are a beginner and want to get some free bitcoin or ETH or any Crypto token for that matter, Crypto Faucets can be one of your way to getting started and if you are smart enough and hard-working you may even make a decent amount by staying patient.
Having said that you must always see if it is worth your time engaging with the Crypto Faucets out there.
Now that context is set right it is time to debunk
What The Heck Is Crypto Faucets & Why Is It Called So?
A crypto Faucet is a cryptocurrency award system that rewards cryptocurrency holders in order for completing certain tasks on a website or mobile app.
It doesn’t expect you to be an expert of any kind you just need to perform some brainless task that involves viewing ads or completing captcha tasks or sharing content etc, for which you don’t need to be a crypto trading expert or blockchain expert.
Why they are called Faucets?
To understand the same we need to see the dictionary meaning of the word “Faucet”
As per dictionary :
Water comes out of your faucet and into your sink or bathtub. A faucet is a device that allows you to turn the flow of water on and off.
So faucet is what controls the water flow and helps it fall drop by drop, The world Cryptocurrency faucet has taken inspiration from this and signifies that one will receive rewards that are small, just like small drops of water dripping from a leaky faucet.
For instance in the case of Bitcoin faucets the payouts are awarded in Satoshi, or one-hundred-millionth of a Bitcoin = 0.000000001 BTC.
Any tiny amount you earn out of those faucets gets transferred into your wallet, the kind and complexities of the task determine the reward value, like watching a tutorial or blog video may reward you more, but just clicking a link or completing the captchas may reward you less.
Crypto faucets are not your get-rich-quick scheme, you will have to engage with those faucets for a day or a week to accumulate and achieve the required threshold before it can be withdrawn from the wallet. So patience and time well invested is what will be required.
Maiden Faucet: Bitcoin Faucet
Bitcoin faucets have been one of the most popular forms of faucets. The very first of those Bitcoin faucets was developed in 2010 by Gavin Andresen, In the early days, Bitcoin faucets used to be worth 5 whole BTC.
Moving forward Faucets for Ethereum, Dogecoin and Litecoin, Monero faucets, also emerged.
How Do Crypto Faucets Work?
As discussed crypto faucets are largely driven by the set of tasks that need to be performed by the user in order to earn crypto rewards. So faucets set up the following types of activities
- Completing Captcha
- Watching Video
- Clicking on Ads
- Completing tutorials and attempting quizzes.
Websites or mobile applications running crypto faucets generally configure the threshold of the crypto to be allocated to the faucets pool. They set the minimum payment threshold before the collected rewards can be claimed by the user. Also, they set a timelock for users to claim those rewards.
Every participant has to sign-up with the crypto faucet by furnishing their basic info along with the wallet address where they will receive the rewards. They will see the list of above-mentioned task, which they need to complete, Once they complete those task they keep on earning the rewards which get transferred to the micro wallet
Micro wallet is a wallet similar to traditional wallets, but with the capability of collecting small amounts of crypto assets. For most crypto faucets, micro wallets are automatically created upon signing up.
Once the required threshold is reached in the micro-wallet, the accumulated crypto rewards are automatically sent out to the main wallet of the users.
Some prominent Faucet Examples:
As discussed above Bitcoin faucet was the first one to start this concept of awarding micro crypto rewards, with the simple objective of increasing awareness among people about crypto.
After that multiple Faucets were launched by other popular cryptos like Ethereum, Litecoin, etc.
Ethereum faucets started awarding users with Ether for completing different tasks. A few Ethereum popular faucet options are:
- Ethereum-faucet.org offers ETH tokens for solving captchas and other activities
- Allcoins.pw is another crypto faucet that offers miner and auto-faucet features along with a few games.
- Fire Faucet awards you to ETH tokens, for browser mining and completing captchas.
- Dutchy CORP is another Ethereum faucet portal that helps you to earn rewards by solving captchas and playing games.
Some of the popular faucets which award LTC tokens to the users for a set of tasks that need to be performed on their portal are:
- Moon Litecoin offers free LTC to users accomplishing multiple tasks. The use Coinpot.co micro wallet to store the small rewards earned by a user.
- Fire Faucet is another faucet that pays you Litecoin in addition to BTC and other cryptocurrencies as long as you hold Auto Claim Points (ACP). To get free ACP, you need to register on the website. The faucet will run automatically until your ACP is exhausted. You can earn more ACP through gift boxes and by performing tasks like visiting short links, clicking ads, etc.
Likewise, there are some popular faucets for awarding Monero tokens
- Monerofaucet.info allows you to earn between 0.000005 to 0.025 Monero tokens per reward, which can be claimed every 1 hour.
- Express faucet also allows you to claim a reward of up to 0.00042754 XMR every four hours. The faucet also has a lottery game that you can play to earn additional free Monero if you win.
For more faucet examples one can visit faucetdump.com, which boasts to host 420 faucets for 48 different cryptocurrencies.
Beware of Faucet Scams!
Not everything is legitimate when it comes to offering free rewards, many use this as a tool to scam users. Some crypto faucet owners refuse to pay the users even though they make loads of money for getting the ads clicked Also there are many scams running under the hood of crypto faucets where they log users out of their website or app once the payment threshold is reached.
So do your homework before lending your priceless time to such scamming portals and if you notice anyone fooling around report and spread the awareness among the community.
In 2021 many crypto projects have seen widespread adoption. Apart from Bitcoin and Ethereum, there are many blockchain protocols based platform likes Solana, Avalanch, Cardano, Polygon(Matic), Fantom that has come up and seen the traction, but still, there are millions of people who are not aware of their utility and potential.
There are projects like Audius, which is innovating the music industry, there are many Decentralized Finance projects like AAVE, UniSwap, PanCakeSwap, Compound that are offering unique financial services like crypto lending, Yield Farming, staking, etc which can help users earn passive income.
So concepts like Faucets, Airdrops, need to be employed with the required accountability, by these crypto projects that can help them educate their users and achieve the critical audience mass to change the game for the larger good of humanity.
Bitcoin, Ethereum has given new hope to millions and millions out there, to attain some kind of financial awareness and freedom, that needs to be discussed and talked about.
So I feel
“Everyone should educate themselves about blockchain and cryptocurrency at least to attain the level where they can make an informed investment decision. Every crypto project who are innovating for good needs to be invested to educate on and all without failing ”
Opinions expressed here at CryptoWise are not investment advice and are only for educational purposes. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility.