Hackernoon logoWhat are Cryptocurrency Faucets? by@juxtathinka

What are Cryptocurrency Faucets?

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@juxtathinkaJuxtathinka

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Cryptocurrency faucets or crypto faucets are websites and mobile applications that allow the users to obtain a small amount of cryptocurrency in exchange for the performance of certain tasks. A crypto faucet can best be imagined as a small tap that gives drops of different coins for completing a captcha, registering on a site or clicking on a timer. 

They are not guaranteed to turn you into a billionaire overnight, but they may be a good option for you if you are looking for ways to gather and hold coins.

How Did Crypto Faucets Come Into Existence?

Cryptocurrency faucets were designed initially to increase coin ownership and increase the popularity of cryptocurrency. For example, the first bitcoin faucet was developed by Gavin Andersen in 2010.

Then, the reward was as high as 5BTC. Eleven years later, bitcoin faucets do not usually give rewards of more than 20 satoshi per minute. Since the evolution of the first bitcoin faucet, there have been many other crypto faucets such as Dogecoin faucets, Bitcoin cash faucets, Litecoin faucets, Monero faucets, and Ethereum faucets.  

These faucets are numerous and the rewards they offer differ based on timing, the number of people on the site or app, and the task assigned. All of these faucets usually have minimum withdrawal limits with or without a withdrawal charge. When the limit is reached, you can now withdraw your coin into your multi-coin wallet or a specific wallet created for that purpose.

How Crypto Faucets Afford To Pay You

Cryptocurrency faucets are run through websites or mobile applications. The owners of these faucets make money from ads displayed on the websites, downloads on app stores, and ads viewed on mobile applications. In all sincerity, crypto faucets do not give away cryptocurrency for free. Faucet owners use CoinAd, Anonymous Ads, and affiliate marketing to cash out from the numerous visits to their mobile applications and websites daily.

How Much Can I Make From A Cryptocurrency Faucet?

If you are interested in becoming a billionaire within a year, crypto faucets may not be the thing for you. The most popular bitcoin faucets will offer 20 satoshi per transaction and at the end of a full day spent on a faucet, you might make less than $5. An hour on Fiverr or your regular day job would give you more than that, with less cost of electricity and time. Although there are some cryptocurrency faucets with higher rewards, it will take time for the coins to become tangible.

On the other hand, if you are a low-risk investor and putting your money into cryptocurrency could leave you with palpitations, crypto faucets are the way to go. In addition, crypto faucets provide a way for you to collect and hold coins for a long period of time.

These faucets also provide referral programs in which you can earn coins when you invite people to register on the website or app. These referral programs are a good way to make a lot of coins, if you have a large social media presence.

Be Wary of Crypto Faucet Scams

Some crypto faucet owners intentionally decide not to pay website and app users even after making a lot of money off ad viewership. There are many scams involved: a common one is logging the user out of the website or app once the payment threshold is reached.

Another scam method is requesting some form of payment after which the user is not able to get their coin. In other cases, the faucet slows almost before the payment threshold is reached or the coin is wiped off the wallet after the task completion. There are many scams in the cryptocurrency faucet world, so you should check reviews online before registering on a new crypto faucet app or website. This will enable you to save your time, electricity, and money.

Are Crypto Faucets A Way to Increase Passive Income or A Complete Waste of Time?

Cryptocurrency faucets can help you grow your income on the side. However, they are not guaranteed to make you rich. In terms of time spent on faucets, freelancing is a better option. However, there is a slight possibility of collecting a coin that may become very significant in years to come. In my personal opinion, crypto faucets should only be done in your spare time. 

Spending your entire day trying to get coins is too expensive in time, electricity, and mental health. Cryptocurrency faucets make the owners and the users some money: they are not completely useless. However, crypto faucet owners make a lot of money for a meager coin distribution to the crypto faucet users. I hope that imbalance is corrected: maybe I will try to change that when I create my own cryptocurrency faucet.

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