Faucet Crypto: What Is It, and How Does It Work?

WhiteBIT
Published 07 December 2023
1821
Faucet Crypto: What Is It, and How Does It Work?

There are many ways to make money in the world of cryptocurrencies, and one such method is crypto faucets. These websites or apps offer users the opportunity to receive small amounts of cryptocurrency in exchange for various activities.

This article will examine how crypto faucets work, why they are needed, and how to use them.

Idea and Purpose of the Bitcoin Faucet

Crypto Faucets are online platforms that allow users to perform specific tasks in exchange for a small amount of cryptocurrency.

Is it possible to get cryptocurrency for free? Theoretically, yes. But as the saying goes, “There’s no such thing as a free breakfast.” Getting any benefit always involves costs, even if those costs are not visible at first glance.

Just as people can go to the faucet to get water, users can visit a cryptocurrency faucet site or app. Instead of turning on the faucet, they perform simple tasks like viewing ads, playing games, or completing surveys. In exchange for these small tasks, the faucet “drops” a small amount of cryptocurrency into their wallet. Users won’t be able to get large amounts quickly, but these “drips” can accumulate over time. In other words, it’s a way to slowly earn cryptocurrency without investing personal money.

There are multi-currency cryptocurrency faucets and faucets for specific coins — for example, a faucet for the first cryptocurrency, Bitcoin (BTC). The primary purpose of such faucets is to allow beginners to familiarize themselves with the world of cryptocurrencies.

With the help of cryptocurrency faucets, users can earn and interact with cryptocurrency with virtually no risk to their funds. Beginners can learn the basic principles of blockchain transactions, the concept of wallet addresses, and more about security. The first BTC Faucet gave away up to 50 BTC for passing a public Turing test to distinguish between computers and humans (Captcha) to popularize blockchain technology and teach people how to use it.

How Do Crypto Faucets Work?

Users visit the faucet’s website or app, where they are asked to complete a specific task, such as solving Captchas, viewing ads, entering a lottery, and other microtasks. Users receive small amounts of BTC or other cryptocurrency as a reward for completing the task.

The faucet’s profit is usually generated by advertising and sponsored content on the platform. Accordingly, this revenue is used to pay the faucet users.

How to Use Crypto Faucets?

Choose a Reputable Crypto Faucet

Scams in crypto faucets are common, so users should be cautious and incredibly attentive to avoid losing their funds or personal information.

To begin with, you should pay attention to the reviews and reputation of the crypto faucet site. Which crypto faucets are best to avoid?

  1. Those that promise abnormally high payouts attract users with fake promises of easy earnings of large amounts of cryptocurrency.
  2. Faucets that set a high threshold of minimum withdrawal amounts or charge high commissions make getting actual funds difficult or even impossible.
  3. Some platforms may change the rules, reducing payouts or introducing new restrictions to keep users’ earnings on the platform.
  4. Faucets that ask you to enter your data. For example, private cryptocurrency wallet keys.

Choose only known and trusted crypto faucets, read reviews, be cautious, and follow changes in the platform’s rules or terms of use. Self-evidently, use antivirus software and update it regularly to protect against malware.

Create a Cryptocurrency Wallet

Before proceeding to the sites with faucets, defining which wallet is suitable for receiving funds is necessary.

First, it should support the cryptocurrency that the faucet offers. Secondly, it is convenient to use. To learn about what varieties of cryptocurrency wallets exist and how to set up a suitable cryptocurrency wallet, read our blog.

Sign Up for the Faucet

Typically, users must verify their email, link up with X, and provide the wallet address for receiving payments. Once that’s done, you’re good to go and can start using the faucet.

Complete Tasks

After registration, log in to your faucet account and go to the “Tasks” section. Complete the necessary tasks, including clicking on ads, solving captchas, watching short videos, or navigating to external sites.

Claim Your Rewards

Generally, rewards are paid to the user’s internal account on the platform. It is impossible to transfer these funds to a personal cryptocurrency wallet until the minimum amount for withdrawal is reached.

Some faucets offer automatic payouts to a specified wallet on a particular day, while others allow you to choose the time and amount of the payout. In addition, there are even cryptocurrency faucets with instant withdrawal to the wallet.

Repeat

You can repeat the tasks listed on the site regularly, as most faucets allow users to earn rewards at regular intervals.

Why Should You Have a Crypto Wallet Before Using a Faucet?

A cryptocurrency wallet is crucial because you need somewhere to store your assets.

To use any cryptocurrency, you only need to install a “hot” or software wallet. It lets users store, send, and receive cryptocurrency quickly and easily. These wallets are connected to the internet, making them accessible anytime. But hot wallets are often considered less secure than they are. The private keys that provide access to cryptocurrency in a hot wallet are stored online, making them potentially accessible to hackers. Therefore, you need to be cautious while using hot wallets.

The Different Types of Crypto Faucets

Timer-Based Faucets

This is a type of crypto faucet where users can receive cryptocurrency, but with a specific time interval between each reward request.

They require users to perform specific actions, but then the user has to wait a certain amount of time to repeat the process. For example, a faucet may allow users to receive cryptocurrency every hour or every few hours.

Captcha-Based Faucets

Provide users with the opportunity to earn cryptocurrency by solving Captcha. A Captcha is a test, usually consisting of garbled letters and numbers, that must be entered or solved correctly to prove that the user is a human, not a bot. Some faucets may offer a standard text-based Captcha, while others may include graphical challenges or solving math examples.

Game-Based Faucets

Bitcoin gaming faucets are onlineplatforms allowing users to play various games and compete, receiving a certain amount of cryptocurrency. Such media may include simulators, slot machines, dice, card games, etc.

However, as with any form of gambling, it is important to remain cautious and not risk more than you can afford to lose.

Referral-Based Faucets

Referral faucets are crypto faucets where users can earn cryptocurrency by referring new users to the platform through their unique links or codes.

Is It Possible to Earn Money on BTC Faucet?

Faucets offer the opportunity to earn small amounts of assets, and this option should not be considered a full-time job. However, try using many faucets to maximize the small profits that faucet Bitcoin provides. Compare how profitable it is for you regarding the time and effort required. Still, here are some points that can help you maximize your earnings from faucets:

  1. Sign up for multiple faucets: Sign up for different faucets to increase the number of tasks available;
  2. Regularity: Complete tasks regularly. Please note that many faucets have timers that allow you to earn rewards at specific time intervals;
  3. Referral Programs: Take advantage of faucets’ referral programs by attracting new referral users;
  4. Searching for the best terms: Compare faucets and choose the ones that provide the best terms, bonuses, or lower withdrawal fees.

New Faucets

The more new faucets you use, the more potential profit you can make. As a rule, new faucets give much higher rewards than old ones. This is how they attract new users.

In addition, such faucets can support newer and more promising cryptocurrencies, making accumulating such assets possible. New faucets can hold special bonus promotions for users, and there may be less competition for them. The “cherry on top” is a lower minimum withdrawal threshold, which allows you to get your earnings faster.

Rotators

Faucet Rotators are websites with a collection of links to cryptocurrency faucets. They significantly improve the usability of cryptocurrency faucets by allowing you to keep fewer tabs open. Rotators help you save time, as you can quickly switch between faucets without wasting time searching and entering addresses every time. In addition, rotators provide information about statistics and ratings of faucets in one place. This is very convenient, as you can weed out the faucets that have stopped paying and choose the most reliable ones.

Microwallets

Cryptocurrency micro wallets are applications or extensions for storing cryptocurrencies, specifically created to collect small amounts of digital assets that users earn from faucets crypto coins. Unlike regular crypto wallets, they set lower withdrawal thresholds and offer convenience for transactions involving small amounts.

Aggregators

These web services or applications combine the functionality of a rotator and a micro wallet. They collect information about various cryptocurrencies and provide a user interface for easy access. In addition, they allow you to store a small amount of funds.

Advantages of Using a Cryptocurrency Faucet

  • Crypto faucets offer beginners the opportunity to earn a small amount of cryptocurrency without investing money, but require an investment of time;
  • Coin faucets can be used to learn how to interact with cryptocurrency without investing personal funds. Beginners can learn the basic principles of how blockchain transactions work, the concept of wallet addresses, learn more about security, and more;
  • Although the payouts may be small, they provide a real opportunity to earn cryptocurrency. The accumulated funds and experience can be the starting point for something more.

Disadvantages of Using a Faucet Crypto

  • Users receive small rewards. This makes accumulating a significant amount of cryptocurrency difficult and requires a lot of time and effort;
  • Some tasks, such as solving or completing one-size-fits-all, can be monotonous and laborious. This quickly becomes tiring, and the process becomes uninteresting;
  • There is a risk of fraudsters using faucets to collect personal data or other information. Users should be vigilant and choose only reliable platforms.

How to Use a Crypto Faucet Safely?

Security is essential in any business, and faucets are no exception. Here are a few tips on how to use multi-currency or bitcoin faucets:

  1. Use reputable and reliable faucets. Choose cryptocurrency faucets with a good reputation and payment history. User reviews and public opinion can help you decide on the reliability of the chosen platform.
  2. Keep personal information and passwords safe. Never share personal information such as passport details or bank card numbers. Use complex passwords and two-factor authentication to protect your accounts.
  3. Use a secure wallet. Use a safe and secure cryptocurrency wallet to receive and store your cryptocurrency. Store your cryptocurrency assets off onlineplatforms to minimize the risks of loss or hacking.
  4. Beware of scammers. Be vigilant and cautious when interacting with cryptocurrencies. Avoid platforms that require excessive personal information and watch out for suspicious signs such as highauto payouts.
  5. Don’t spend too much time on faucets. Cryptocurrency-earning faucets can be a fun and educational way to mine cryptocurrency, but consider whether you should limit yourself to them. The cryptocurrency world isn’t just about faucets. With minimal experience, move on and evolve.

Popular Сoin Faucets

Bitcoin Faucets. From the name, it is clear that as a reward, users receive Bitcoin, or more specifically, a small part of it — a few “Satoshi.” This is the smallest unit of BTC or one hundred millionth of a bitcoin. Bitcoin faucets pay from 6 to 60 Satoshi, depending on time slots.

Ethereum Faucets. Ethereum’s faucets also reward users with free coins but in ETH and the form of Gwei. This is one billionth (1/1,000,000,000,000,000) of ETH. The main disadvantage is that the withdrawal fee on the Ethereum network can significantly exceed the income from using the faucet.

Litecoin Faucets. If you want to mine some LTC, Litecoin Faucet might be an option. Litecoin’s faucets work on the same principle as the others and accrue mining as “Litoshi,” equaling 0.00000001 LTC.

Bitcoin Cash Faucets: No different from BTC faucets. They work on the same principle, but instead of “Satoshi,” the user is credited with BCH.

Monero Faucets: Reward users through XMR for watching videos, answering questions, and clicking on ads. Unlike the high commissions of the Ethereum network, the average Monero commission at the time of writing is 0.00039 XMR ($0.064).

ZCash Faucets: Allows users to earn a small amount of ZEC every few minutes in exchange for completing small tasks.

Tron Faucets: Allows beginners to earn small amounts of TRX tokens for completing simple tasks. Users are usually rewarded in SUNs, the smallest unit, one-hundredth of a millionth of TRX.

DogeCoin Faucets: DogeCoin faucets began after the coin’s launch on December 6, 2013. The faucet takes DOGE from sponsors and then rewards users. In the early days of the launch, the faucets gave 1-5 DOGE at a time. At the time of writing, on average, the faucets give out 0.0081881 DOGE each.

How to Withdraw Earned Bitcoins from the Faucet: Top 3 Methods

Cryptocurrency Exchanges

Let’s take a look at BTC withdrawal using WhiteBIT as an example. If you haven’t registered yet, you can do it now – creating an account takes only a few minutes.

How to withdraw cryptocurrency to the WhiteBIT balance:

  1. Click on the “Deposit” button;
  2. Select BTC;
  3. Specify the method (“Address”) and choose the network;
  4. You can copy or scan the wallet address on the exchange page;
  5. Paste it on the platform from which you plan to withdraw. Confirm the withdrawal;
  6. Depending on the network load, the asset will appear on your account after some time.
  7. If necessary, after receiving BTC, you can exchange it for another asset, for example, USDT. Or immediately convert BTC to any national currency available on the site;

More detailed instructions on how to deposit on the WhiteBIT exchange.

Exchangers

The crypto exchanger is a service that allows you to buy and sell cryptocurrency in exchange for fiat. There are online exchangers in the form of websites or apps and offline exchangers. The functionality of the exchanger is straightforward: you transfer money to the wallet exchanger and specify your card for crediting the state currency. If it is an offline exchange, you will receive the amount in cash.

Forums

Where do you find people who will agree to exchange your cryptocurrency for government currencies or anything else? On forums! The first example of a BTC exchange on a forum dates back to 2010. American programmer Laszlo Hanyecz found a person on a forum who would agree to exchange two pizzas for 10,000 BTC. Don’t be like Laszlo; look for favorable exchange options 🙂

Conclusion

Cryptocurrency Faucets are a great way to start familiarizing yourself with cryptocurrency. Without risking their money, beginners can learn how transactions work, interact with different networks, and deposit and withdraw money on the exchange. However, you should not forget about security. Avoid tempting offers from suspicious sites promising big profits. Scammers also know what is a crypto faucet and who they are for. So they take advantage of the inexperience of newcomers.

FAQ

Cryptocurrency faucets give small amounts of cryptocurrency for completing specific tasks, such as clicking on links or solving captchas.

Yes, faucet in crypto is legal in most jurisdictions, but it is essential to use coin faucet that meets legal standards and operates transparently.

Yes, these are free services. However, to earn, you'll have to spend time completing tasks.

Profits are negligible as the faucets pay a minimum amount of cryptocurrencies. For example, Ethereum and Bitcoin faucets give Gwei and Satoshi, the minors units of cryptocurrencies. For instance, BTC faucets pay between 6 and 60 Satoshi depending on time slots and type of faucet.

A faucet BTC is a website or app through which users can earn a small amount of BTC by performing simple actions.

It's pretty simple. You make tasks and receive faucet coins. Remember, only practice will help you understand crypto faucets and how they work.