What Is A Crypto Faucet?

Crypto faucets, one of the oldest and easiest ways to earn cryptocurrencies, are of great importance in the history of cryptocurrencies. However, they remain effective options for earning money from cryptocurrencies, and like blockchain technology, crypto faucets are in the process of evolution. A continuation of bitcoin faucet Gavin Andresen, this idea exploded in the early days of cryptocurrencies and blockchain technology.

A relatively similar idea, Airdrops have become popular lately. Airdrops are perhaps an evolution of the faucet concept… with more highlights.

Unlike airdrops, the crypto faucet reward system is instant, usually has a wide participation range, and lasts longer. With good management, a coin collector can work for years and maintain stable rewards. Airdrops only last for a certain period and use a different reward distribution scheme.

A Brief History of Crypto Faucets

In 2010, Gavin Andresen gave away over 19,700 bitcoins in the first recorded bitcoin collection program, The Bitcoin Faucet. It is very similar to modern cranes. Each registered user is allocated five bitcoins, which are eventually requested in satoshi (1 satoshi = 100 millionth of a bitcoin) after completing captcha tasks. Playing a few simple games was also part of Gavin’s bitcoin faucet reward challenge and offered larger rewards.

Gavin designed the faucet as an effective means of distributing bitcoin ownership and possibly attracting people to the growing bitcoin community.

The success of Gavin’s concept has inspired other cryptocurrency projects and individuals to create similar platforms, diversify the challenge system, and develop a more marketing-focused coin collection program. Some modern crypto faucets distribute rewards in multiple cryptocurrencies.

What are the types of crypto faucets?

Crypto faucet technology has been optimized over time; the ease of creating and running a coin faucet has led to the proliferation of faucets. Faucets are usually named according to the cryptocurrency they transfer to users.

Bitcoin faucets

Bitcoin faucets are the oldest and most popular cryptocurrency faucets. Since then, most of the old bitcoin faucets have become obsolete, but a few reputable bitcoin faucets still exist. You can get up to 200 Satoshi on the Cointiply bitcoin faucet. Check out other recommended bitcoin faucets here.

Ethereum faucets

Ethereum faucets reward you with Ether for completing social tasks. The most famous Ethereum faucet, Ethereum-faucet.org, has since taken over its money transfer service on the air. Freethereum is offering each user up to $300 per hour in Ethereum. However, the amount required depends on other factors determined by the crane owner. Check out other Ethereum faucets here.

Other coin collectors

Just like Bitcoin and Ethereum, other cryptocurrency faucets reward you with their traditional coins for completing a basket of social tasks. Check out the active faucets for each cryptocurrency here.

How crypto faucets work

Simply put, cryptocurrency faucets reward you with bits of a particular crypto asset for completing simple and varied tasks. You have probably come across several crypto faucets and used them to some extent. Bitcoin and Ethereum faucets are more popular. Many other “team-driven” projects have developed faucets as an effective marketing scheme and a cheaper option for airdrops. Individual and community faucets are also quite visible.

If you think spending time on simple tasks is less capital intensive; then crypto faucets are one of the “free” ways to earn cryptocurrencies. Otherwise, the coin collectors are just as good as the polished reward system.

The rewards received are proportional to the task completed. There are cases of a disproportionate reward system for coin collectors. Known crypto faucet tasks include streaming short videos, following provided links, and completing captchas or quizzes. Coin faucets also offer referral rewards for inviting users who successfully register on the faucet.

For members, crypto faucets serve one purpose – an easy way to earn cryptocurrencies. On the other hand, faucet owners get many benefits from their rewards program. It’s mostly marketing, but many faucet-related websites, videos, and ads are hooked up to a “pay-per-impression” system, faucet users are rewarded as part of the payment, and the faucet creator profits from the rest.

Popular Arguments Against Faucets

Faucets are a brilliant idea that has received a lot of positive feedback from the cryptocurrency communities. But there are still some caveats, including;

Low reward system

Bitcoin faucet by Gavin Andresen allocated 5 bitcoins per user; this is widely advertised as “profitable”. But given the value of bitcoin at the time, it still doesn’t match the type of rewards offered by some giveaway programs. The system of low rewards of crypto faucets is the main obstacle. Good explanation for the easy airdrop win.

High withdrawal threshold

Compared to the faucet reward per request, most users may find the minimum withdrawal amount too high. The minimum withdrawal amount of most crypto faucets is set at $5 and the request per hour is only $0.0003. A good percentage of faucet users abandon the giveaway program after failing to earn up to the withdrawal limit.

Are crypto faucets reliable?

Apart from the low reward system and high withdrawal threshold, crypto faucets have experienced several infamous events over the years. On the part of users and owners, a number of failures have shocked the assembler programs and reduced user confidence in similar programs. Faucet users report scams, phishing, and hacking. Faucets are exposed to almost the same risks as other cryptocurrencies.

There are a large number of legitimate coin faucets, but misleading faucets have reduced the overall credibility of cryptocurrency faucets.

Notable faucet scams include the inability to withdraw earned coins (even if they exceed the minimum withdrawal amount) and dubious individuals posing as owners of faucet sites. Some faucets also exploit users by requiring registration funds. Rogue faucet programs can redirect users to phishing sites and fake mining sites. Users run the risk of not making money on the faucet program, as well as losing their funds due to phishing.

How to Avoid Crypto Faucet Scams

Avoiding faucet scams will require some safety and social awareness skills. Here’s how you can avoid losing out on faucet scams.

Beware of dubious faucet promises

The simple truth is that “if it sounds too good to be true, then it probably isn’t.” But greed overshadows personal consciousness, and in the pool of our greed, everything sounds good and everything is possible… for example, getting $3,000 a day by investing $1,000 in a dubious faucet or mining site.

Fraudsters take advantage of users’ belief in easy and fast money. Most scam faucets offer users mouth-watering promises and easy money for very simple tasks or “small initial deposits”. Falling victim to this kind of faucet scam is much easier than you think, but it also depends on your level of greed. Greedy investors are more vulnerable. Fix your greed, but that’s easier said than done.

Conduct proper background research on the faucet.

If possible, run DYOR and check your faucet history and write it down before taking part in the program. Reviews from past users would be helpful. Review user complaints and ratings before registering or completing social tasks. Command information should be checked, if any.

Legitimate crypto faucets will never require your wallet seed phrase or personal details to register. If an initial deposit is requested, exercise due diligence and take precautions.

Double-check the links provided by the faucets.

The Internet is filled with phishing links, under the guise of links to websites, hackers can get the data stored on your device through special links that violate the permissions of your device and give out important data stored on your device. Faucets may provide you with phishing links under the guise of a reward. To stay safe, always check the authenticity of the links presented to you. If it looks fishy then you are going to get phishing…pun intended. Be careful, click only on safe links.

Conclusion

Without a doubt, crypto faucets are a great idea. Given the stage of development of blockchain technology and cryptocurrencies, bits of cryptocurrencies received from faucets may be worth more in the future. Who knows? However, it is important to consider the profitability of a coin collection program (in terms of personal factors) before investing resources in social tasks and rewards.

The rise of cryptocurrency scams is spreading to all parts of the crypto space, including coin faucets. Ensuring the security and legitimacy of the faucet program and the links provided is of paramount importance. Keep in mind that “if it’s too good to be true, then it probably isn’t true.”

Looking for ways to earn cryptocurrencies? Consider learning about cryptocurrency airdrops and how to profit!