What Is A Crypto Faucet?
Crypto faucets are designed as websites, applications, or otherwise that distribute incremental amounts of crypto assets as a reward when you complete a task. This task can be something as simple as clicking on a button or passing CAPTCHA to prove you are a real person. Crypto rewards distributed from faucet platforms are free of charge and are compensation for work done.
A faucet typically gives users a crypto micro wallet, which users control. This wallet is where the crypto rewards are sent. Most of these wallets come with an incentive, just like DeFi projects for users to store assets in the wallet. The rewards are paid out as APY. Referencing the water faucet analogy, crypto faucet rewards are like tiny drops, which gather over time to become a large sum. Enough of these droplets can fill a bucket, which is how crypto faucets work.
Making money via crypto faucet is extremely slow. Unlike buying assets outright and exchanging rewards for huge profits, crypto faucets offer small, steady rewards. It is almost impossible to make huge amounts of money overnight using a crypto faucet. However, if you sign up for enough faucets, the tiny amounts will increase over time. Besides that, since the crypto market is still growing, a small amount of cryptocurrency today could be worth a lot in the future.
History of Faucets
The first crypto faucet was a Bitcoin faucet. Gavin Andresen, a software developer, created it. At one point, Andresen was named the lead developer for Bitcoin by Satoshi Nakamoto. The earliest iteration of the faucet would give visitors 5 BTC when they visited the site, solved CAPTCHA, and entered a BTC address to receive the coins. Users were then asked to distribute the BTC more widely by sending coins to the faucet address for others to receive the coins.
At the time, the goal was to ensure that Bitcoin would succeed. During this time, Bitcoin was worth just pennies. However, it proved that even a small amount of value could grow with time when using faucets. Their idea at the time was like airdrops where participants get free coins to make the network more decentralized by spreading the coins.
How Crypto Faucets Works
Each crypto faucet is unique. However, all of them require users to complete a few tasks to receive a small amount of BTC. Users have to interact with an app or website. Once on the site, they are given tasks such as completing a CAPTCHA challenge, while others require users to perform more complex tasks such as watching videos, and ads, playing games or shopping at designated retailers.
Best Crypto Faucets in 2022
Best Bitcoin Faucet
A Bitcoin faucet can be defined as a reward system from which small amounts of Bitcoin can be rewarded, known as Satoshi, the one-millionth unit of 1 Bitcoin (0.00000001 BTC). The reward system offers you Satoshis by solving captchas, clicking links or other simple tasks. The number of free Bitcoin a faucet can offer you vary — some sites have great rates, while others don’t.
Bitcoin was introduced as the first coin faucet, and it got so popular that other digital assets jumped onto the bandwagon.
Some of the best and biggest Bitcoin faucet sites can be found on bestfaucetsites.com, with the most popular being Freebitcoin, Cointiply and Firefaucet. Users can earn BTC through solving reCaptcha, SolveMedia, playing games or mining. Minimum withdrawal ranges from 0.0002 BTC to 0.002 BTC. Most of these Bitcoin faucets have instant and direct pay-out.
Best Ethereum Faucet
An Ethereum faucet works like a Bitcoin faucet, but instead of Satoshis, it rewards users with Ether for completing different simple tasks. It is a great way to earn free Ethereum (ETH) tokens by contributing to advertising and data mining. A few Ethereum faucet options are:
- Ethereum-faucet.org offers ETH tokens for solving captchas. Additionally, the website allows you to participate in its lottery with a contribution. (Updated: Ethereum-faucet.org does not offer faucet services as of August 2021)
- Bestfaucetsites.com offers a long list of the best Ethereum faucets where users can earn ETH by solving reCaptcha, SolveMedia, playing games or mining.
- Allcoins.pw is a crypto faucet that offers miner an auto-faucet features along with a few games. The faucet is free to earn Ether, but one need to pay for playing the games.
- Fire Faucet offers multiple options to earn ETH tokens, including browser mining and completing captchas.
- Dutchy CORPÂ is another free Ethereum faucet platform that allows you to earn rewards by solving captchas and playing games.
Best Litecoin Faucet
You can get free Litecoin from crypto faucets, which reward users with a small amount of LTC tokens in exchange for small tasks performed on the website. With Litecoin faucets, you’re trading your time for rewards in LTC, also known as Litoshi. Following are two faucets that offer free Litecoin tokens:
- Moon Litecoin offers free LTC to users for completing multiple tasks. The faucets use Coinpot.co micro wallet to store the small rewards earned by a user. After reaching the minimum threshold, the LTC rewards can be withdrawn into your wallet with no fees.
- Fire Faucet is an auto faucet that pays you Litecoin in addition to BTC and other cryptocurrencies as long as you have Auto Claim Points (ACP). To get free ACP, you need to register on the website. The faucet will run automatically until your ACP is exhausted. You can earn more ACP through gift boxes and by performing tasks like visiting short links, clicking ads, etc.
Conclusion
Some of these rewards are time-locked, limiting visitors to only a few tasks in a given time frame. This goal is to inculcate discipline and consistency while trying to grow your crypto holdings. These faucets come with a wallet, or you may be asked to provide a crypto address. When working with faucets, create a separate crypto address from the primary address you use to hold your main crypto assets.
