Fri. Feb 23rd, 2024

What Is A Crypto Faucet: Coin Faucets And How They Work

Crypto Writer Jared By Jared Kirui Oct 6, 2022 #Bitcoin (BTC)
Crypto Faucet

✍️ 14 October, 2022 – 10:48 👤 Editor: Jakub Motyka

A crypto faucet is an app or a website that allows users to earn token rewards by performing specific tasks. The term is coined from the analogy that a leaking faucet will eventually fill a cup. The idea behind crypto faucets is to market new blockchain projects.

The first crypto faucet was a Bitcoin faucet created in 2010. The offering was from one of Bitcoin’s lead developer, Gavin Andresen. It rewarded 5 BTC for each user who completed a simple captcha. The faucet was meant to educate early bitcoin users. By the end of it, a total of 19,715 BTC had been distributed.

Types of Crypto Faucets

A crypto faucet can be categorized depending on the underlying token. You can have Bitcoin, Ether, XRP, or an LTC faucet.

Of importance to note, a crypto faucet is different from an airdrop. The latter is awarded to users already holding a given token, usually within a specific timeline. Faucets are also distinct from a bounty. For bounties, users get a one-time reward for a one-off task, e.g., a bug bounty.

How Crypto Faucets Work

To subscribe to a crypto faucet, a user must first register an account with an asset service provider. A crypto wallet is also required, and one should pass the verification processes. Once all the onboarding steps are complete, the asset provider automatically creates a micro-wallet for receiving the rewards.

When the rewards accumulate to a certain threshold in the micro-wallet, they are sent to the users’ main digital wallet.

Some of the tasks in a faucet are watching an advert, responding to survey questions, playing a game, or clicking links. Always be cautious on the last one! Popular faucet sites include Ethereum-faucet.org, bestfaucetsites.com, and Moon Litecoin.

Risks When Using Faucets

The Crypto faucet space has numerous scams and fraud. Some sites portrayed as faucets are a source of malware, phishing attacks, spyware, or worse, ransomware. To avoid being a victim, you should only work with established brands endorsed by reputable brokers.

Another risk is not getting value for your time. The more straightforward a faucet task is, the harder it is to earn enough rewards. When you choose to participate in a crypto faucet, always check for the ones that will give you value for your time.

More crypto articles:

EN: Jared Kirui is an experienced financial writer with a passion for all things blockchain technology. Previously, he was into stock markets and forex, providing asset managers with top-notch content. With a flair for producing high-quality articles, he started covering crypto news in 2021. He is open-minded, trades for fun, and enjoys sports.

ES: Jared Kirui es un escritor financiero experimentado apasionado por todo lo relacionado con la tecnología blockchain. Anteriormente, estuvo en los mercados bursátiles y forex, brindando a los administradores de activos contenido de primer nivel. Con un don para producir artículos de alta calidad, comenzó a cubrir noticias crypto en 2021. Tiene una mente abierta, comercia por diversión y disfruta de los deportes.
Jared Kirui
Latest posts by Jared Kirui (see all)

Image sources:

Crypto Writer Jared

By Jared Kirui

EN: Jared Kirui is an experienced financial writer with a passion for all things blockchain technology. Previously, he was into stock markets and forex, providing asset managers with top-notch content. With a flair for producing high-quality articles, he started covering crypto news in 2021. He is open-minded, trades for fun, and enjoys sports. ES: Jared Kirui es un escritor financiero experimentado apasionado por todo lo relacionado con la tecnología blockchain. Anteriormente, estuvo en los mercados bursátiles y forex, brindando a los administradores de activos contenido de primer nivel. Con un don para producir artículos de alta calidad, comenzó a cubrir noticias crypto en 2021. Tiene una mente abierta, comercia por diversión y disfruta de los deportes.

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *