Does free cryptocurrency exist in today’s world? The answer is yes, and a good channel for these free digital coins is through crypto faucets.
This article will answer the question, ‘What is a crypto faucet?’ and explain the purpose and function of these faucets. You’ll also understand the different types of crypto faucets out there, like Bitcoin faucets, Ethereum faucets, and the like.
What Is a Crypto Faucet?
A crypto faucet is an app or website where people complete certain tasks to gain free cryptocurrency. This could be watching ads, completing a puzzle, participating in a survey, completing a quiz, etc.
While it won’t be wrong to look at crypto faucets as a way of earning free cryptocurrency, you can’t earn much with them. The ‘faucet’ in ‘crypto faucet’ means that you’ll only be earning tiny drops from these schemes, like a leaky kitchen faucet. It’s just like completing online surveys, but instead of earning fiat currency, you earn cryptocurrency.
How Does It Work?
First, users of the gifting platform or app have to register and provide some basic information, especially their wallet address. This will create an account on that platform and a micro wallet that’ll store the earned digital coins.
Users will access the platform every day to complete the required tasks, and they’ll be given small amounts of cryptocurrency. This could be 0.001 USDT, 0.00000001 BTC, or 0.2233 DOGE.
When the acquired cryptocurrency reaches a certain threshold, like 5 USDT, the users will be allowed to withdraw it. Users who want to withdraw their earnings will transfer the funds from the micro wallet to their main crypto wallet. Most times, these transfers come with a transaction charge.
Most crypto faucets set rules that limit a single person from earning too much. This could be:
- Restricting one user from earning more than 1 USDT a day
- Limiting all earning activities to one hour a day
What Is the Function of Crypto Faucets?
At first glance, all crypto faucets are just created to gift out cryptocurrency. While that might be true, that’s not its main purpose. These digital coin faucets are designed to create awareness about certain digital coins and encourage their usage.
The first crypto faucet, which was Gavin Andresen’s idea in 2010, had this purpose. Andresen wanted to gift people free Bitcoin tokens as a way to promote the adoption of Bitcoin. He gave people 5 BTC every day to complete a captcha, and according to his desires, Bitcoin usage steadily increased.
Today, many new cryptocurrency projects are using these faucets as a way to advertise new cryptocurrencies. However, the cost of running these projects can be quite high. That’s why many of these DeFi projects partner with advertising networks to fund part of the rewards that’ll be given to users.
Benefits of a Crypto Faucet
Below are some of the advantages of crypto faucets.
Free Cryptocurrency
These faucets offer a path for people to gain ownership of digital coins without paying for them.
Risk-Free Access to New Digital Coins
New cryptocurrency and DeFi projects are being unveiled in the market every month, but not everyone is eager to spend money on any project. With these crypto faucets, people can acquire coins from new projects without risking their investment funds.
No Requirement for Technical Knowledge
The tasks for users of a crypto faucet platform are very easy. Whether it’s solving captchas, answering trivia questions, or watching ads, none of them require technical knowledge. This makes cryptocurrency easily accessible to everyone, as long as they are willing to put in a little effort.
Risks of a Crypto Faucet
There are some risks attached to using faucet platforms, and they are:
Low Rewards
Getting a reasonable amount of digital coins from a crypto faucet is a long and tedious affair. You’ll have to complete monotonous tasks for weeks before you can reach the minimum withdrawal limit.
Scams
Not all crypto faucets are the real deal, as unscrupulous individuals might run some of these sites. Hackers can use these websites’ guise to steal the users’ information or infect their devices with a virus. Sometimes, the site might hide unreasonable limits that users would have to reach to withdraw their funds.
Data Farms
Most crypto faucets today partner with ad companies to fund their rewards. Apart from selling ad spaces on their site, malicious faucets can also sell their users’ private data.
Cryptojacking
Some faucet platforms can hijack users’ devices and use them to mine cryptocurrency. This will cause the user’s device to consume significant amounts of energy and increase their power bills.
Popular Types of Crypto Faucets
There are many types of crypto faucets, and some of them include:
Bitcoin Faucet
These are websites that allow people to gain dollars worth of Bitcoin tokens by playing games, filling out surveys, watching videos, etc. The most popular ones are:
- RollerCoin
- Cointiply
- Konstantinova
- Freebitcoin
- Fire Faucet
Litecoin Faucet
Users gain free LTC tokens on these sites when they visit short links, click ads, and complete other tasks.
Fire Faucet
Moon Litecoin
Ethereum Faucet
These sites require you to play simple games or fulfill other tasks to earn ETH worth $300 or more.
- Allcoins
- Fire Faucet
- Freeethereum
Monero Crypto Faucet
These sites reward XMR tokens for completing captchas, referring people, and other tasks.
- Allcoins
- Monerofaucet.info
- Fire Faucet
- Express faucet
Tron Faucet
These are websites that offer free TRX tokens for people who are willing to play games, complete surveys, refer friends, etc.
- Free-Tron
- Xcolander.com
- Faucet Crypto
Difference Between Crypto Faucet and Airdrop
Although crypto faucets and airdrops offer free digital coins, they are not the same. While a faucet requires users to perform a task to earn cryptocurrency, airdrops do not. The free coins will be sent to the user’s wallet in an airdrop. However, airdrops are only sent to the wallets of specific users, while anyone can benefit from a crypto faucet.
Conclusion
Crypto faucets are a legitimate channel for earning free cryptocurrency without paying anything. Compared to the way things were in the past, there are many vendors and online retailers that accept digital coins today.
Nonetheless, the security risks associated with these faucets are higher today than they were in the past. Hence, it is important to approach all crypto faucets with caution to avoid falling into scams.
