The cryptocurrency sector is rapidly expanding, as are the methods for obtaining it. These digital assets can be purchased, staked, and traded. However, all of these methods take a significant amount of effort, money, and time. However, there is a way to get some cryptocurrency for free. This is where crypto faucets come into play.
What are crypto faucets?
A crypto faucet is an app or a website that pays you with a small amount of cryptocurrency in exchange for minuscule tasks such as watching a product video, playing a game, completing a captcha, solving a puzzle, and so on. Crypto faucets acquire their name from the small amount of cryptocurrency that one receives, similar to the tiny drops of water dripping from a faucet. A Satoshi is frequently given to people (the smallest unit of Bitcoin; one-millionth of one Bitcoin) as a reward for completing their tasks. There were only Bitcoin faucets before, but now we have Ethereum, Litecoin, and a variety of other crypto faucets.
History
The concept of crypto faucets is not new. They first appeared in 2009, shortly after the Bitcoin network went public. They were never meant to be a source of free crypto or money, though.
Bitcoin had little to no value back then. Nobody was using it, and most people were unaware of its existence. Gavin Andersen, a Bitcoin investor, and early user, began distributing free bitcoins to those who completed a series of captchas online to generate awareness and educate people about the benefits of this new virtual commodity. In 2010, the first Bitcoin faucet was introduced, which paid out 5 BTC for the simple task of clicking images.
How does it work?
These faucets do not require any professional training to realize their benefits. The only criteria would be a wallet address for permanently storing these rewards.
- Begin by looking for a credible faucet website/app; several are available online.
- Register by providing some basic information and the wallet address to which you wish to send the tokens. After that, you can start working on the tasks given on the website.
- Depending on the difficulty level of the task, different incentives are given. Before you can send tokens to your wallet, most faucets have a timer and a minimum threshold that must be met. They will remain in your mini wallet on the app/website until then.
Pros and cons of crypto faucets:
Pros
- The significant advantage of crypto faucets is the free cryptocurrency. There aren’t many other options for receiving free crypto. Crypto airdrops also include consumers receiving free cryptocurrency, although these are usually handed to a small group of people who meet particular criteria.
- You don’t need much knowledge or experience to get started with faucets. Anyone can use them. To use a faucet, you don’t need to know how to trade cryptocurrency too.
- Faucets are a simple way to begin trading cryptocurrency. Apart from establishing a crypto wallet and completing the task linked with the faucet in question, no real investment is necessary.
Cons
- The amount of cryptocurrency earned is insignificant. People mostly earn one Satoshi for one completed task which is the smallest unit of Bitcoin.
- The chores required by a crypto faucet can rapidly become tedious. Who would be willing to sit and finish a Captcha all day everyday?
- The risks associated with bitcoin, in general, apply to faucets as well. Scams, phishing efforts, and other methods of stealing a user’s finances or identity are among them. Some faucets have the potential to infect consumers with malware. Hackers can utilize the allure of free money to breach the devices or identities of potential users. After a user clicks a link or downloads a file, the website or app may phish for information or download malware to their device. If the payoff is too good to be true, there are error-heavy warnings, or you have gotten an unsolicited offer, these are all red indicators that a crypto faucet is a fraud.
Conclusion
A cryptocurrency faucet is not a way to profit from cryptocurrencies. Faucets are similar to free games that might introduce new users to the crypto world. It could take months of consistent use of faucets to earn even a single dollar in incentives. Crypto faucets allow you to quickly and easily accumulate modest sums of cryptocurrencies. They are popular among crypto newcomers looking for free Bitcoin and other cryptocurrencies. This was quite profitable in the beginning. These small quantities of crypto may never be valued as much as the early 5 BTC distributed, but that shouldn’t prevent people from using faucets if they have no other method to earn free crypto and don’t have the money to buy it.
