Economists insist that there is no such thing as a free lunch. Yet, the crypto world has something that sounds like one. If you have ever earned Bitcoins or any other cryptos for free, chances are that those would have come from a crypto faucet. Although many websites claim to give free Bitcoins and crypto, not all are crypto faucets. The primary objective of crypto faucets is very different, making them a legitimate way to earn free Bitcoins and other cryptos.
This blog traces the history of crypto faucets, explains their role in the crypto world, and differentiates them from crypto airdrops.
Understanding crypto faucets
Crypto faucets are apps and websites that give users small amounts of crypto rewards for completing simple tasks like solving the captcha, downloading apps, enrolling for new online services, etc.
In the early days of Bitcoin, crypto faucets played a key role in educating users about Bitcoin and the underlying blockchain technology. Faucets won’t make users rich but accelerate the adoption of Bitcoin and other cryptos.
History of crypto faucets
The term “crypto faucet” was first introduced in 2010 by American software developer Gavin Andresen, best known for his role in the development of the Bitcoin Network.
Andresen’s initial Bitcoin Faucet rewarded each user with five BTC for completing a simple captcha and eventually gave out 19,715 BTC in total during the promotional period. The distribution helped widen the Bitcoin ownership base. Going by the BTC price at that time—each token was priced at less than a cent—the total value of 19,715 BTC came to a meager $16.
Though the crypto universe and the value of BTC have changed beyond recognition, crypto faucets are still a popular option for crypto exchanges to drive new users to the platform.
What is the Purpose of crypto faucets
Crypto faucets require users to complete specific simple tasks to earn free cryptos as rewards. The tasks could be signing up on a new platform, watching videos, reading articles, completing surveys and quizzes, and playing games. Once the user completes the tasks successfully, the crypto faucet releases the crypto reward to the user.
To receive the crypto reward, the user must provide his/her wallet address supporting the faucet’s crypto. For example, if the faucet is giving the reward in ETH, you should provide the ETH wallet address, not the Bitcoin wallet address.
You should also read the terms and conditions governing the use of crypto rewards received from faucets. Some crypto faucets require you to accumulate a minimum amount of coins before you can withdraw or cash out.
How are crypto faucets different from crypto airdrops?
As we have discussed earlier, the primary objective of crypto faucets is to create awareness about cryptos and the crypto ecosystem and accelerate their mainstream adoption. And most crypto faucets use popular cryptos like BTC, ETH, and DOGE.
Crypto airdrops, too, are a popular way of generating hype around an upcoming crypto or NFT project on social media. New crypto projects send cryptos or NFTs directly to the users’ wallets. Crypto airdrop aims to increase the liquidity of the coin, steal the market share of competing cryptos or dApps, and instantly reward prior crypto users. Small crypto projects generally use crypto airdrops to create hype around the project. Yuga Labs air-dropping Bored Ape Kennel Club (BAKC) NFTs to BAYC NFT owners as a reward is one of the popular examples of crypto airdrops.
Crypto faucets are not run by crypto projects, and anyone can open a crypto faucet. Conversely, crypto airdrops are initiated by crypto projects themselves by tracking the wallet addresses of the users.
Types of crypto faucets
A Bitcoin Faucet is a website or app that gives free Bitcoins to users in exchange for completing a task. One of the oldest Bitcoin faucets on the internet is FreeBitco.io, established in 2013.
An Ethereum Faucet is a system that rewards users with free ETH tokens in exchange for completing a task or a job stated on the website. Ethereum faucets generally deliver free ETH in the form of Gwei (the smallest unit of ETH or a tenth of a millionth ETH).
If you want to earn LTC for free, Litecoin Faucet can be one of your options. Sign up with a Litecoin Faucet and earn free LTC tokens in exchange for completing a task.
There are many Monero Faucets, including Monero Cloud Faucet, where users can undertake tasks and earn their well-deserved XMR tokens. Most Monero Faucets allow users to mine small amounts of XMR tokens without making a large investment.
Zcash Faucet allows users to earn a small amount of ZEC tokens every few minutes in exchange for completing small tasks.
Tron Faucet is a website or app that allows users to earn a small amount of TRX tokens for performing simple tasks. Users generally earn rewards in trtoshi, which is a hundredth of a millionth TRX.
Should you be concerned about using crypto faucets?
The downsides of using crypto faucets are low. However, users must be watchful about which crypto faucet platforms they use. They should be reliable and have good user reviews.
As a general rule, refrain from using unverified crypto faucets and phishing website links that ask you to make deposits for availing services. You run the risk of losing money earned that you have yet to withdraw.
The best crypto faucets for you
Some of the best crypto faucets, according to 101blockchains.com, are:
- Bitcoin Aliens
- Lucky Block
Crypto faucets can be an exciting and fun way to start your crypto journey and understand the crypto ecosystem without the fear of losing money. But it will not help much to cover your expenses or be a substitute for your day job.
Always rely on a reputable crypto faucet platform with good user reviews that is vetted by top crypto wires. If you use crypto faucets correctly, tiny drops of crypto rewards can earn you a significant return over the long term as the market value of the tokens appreciates.
Is crypto faucet profitable?
If used in the right way with proper planning, earnings from a crypto faucet can be profitable. It is probably the easiest and the most inexpensive way to earn free cryptos.
What is the meaning of a faucet in crypto?
In the crypto world, faucets are websites and apps that help users earn free crypto tokens for completing simple tasks.
How do I withdraw tokens from a crypto faucet?
Once you have accumulated the minimum amount of tokens or crypto balance required to withdraw from the crypto faucet, you can transfer the cryptos to your private wallet.
Which is the safest wallet to keep crypto?
Non-custodial wallets are considered the safest wallets to keep cryptos as these are not accessible to third parties.
What is an example of a crypto faucet?
An example of a crypto faucet is FreeBitco.in. Crypto faucets are websites or applications that reward users with small amounts of cryptocurrency for completing simple tasks or solving captchas.
How do crypto faucet make money?
Crypto faucets make money through various methods, including displaying ads on their websites or apps, participating in affiliate marketing programs, or offering premium services or upgrades for users to access additional features or higher rewards.
Is free Bitcoin faucet real?
Free Bitcoin faucets do exist, and they provide users with small amounts of Bitcoin for completing tasks or solving captchas. However, the rewards are typically very low, and it can take a long time to accumulate a significant amount of Bitcoin.
What is the highest paying faucet?
The highest paying faucet can vary over time, as faucets often adjust their reward rates. Some popular faucets known for relatively higher payouts include Cointiply, Moon Bitcoin, and Freebitco.in, but it’s important to research and compare current offerings.