An Introduction to Crypto Faucet
Crypto Faucets are innovative reward systems run by various websites and mobile applications that pay out a small number of crypto coins to users who complete some specified tasks on their websites or applications. The term “faucet” has been coined by developers to signify the negligible amount of cryptos given out by crypto faucets just like drops of water dripping from a leak or faucet. However, though the earnings from a cryptocurrency faucet are insignificant they are luring, and the best part about faucets is that the tasks that need to be accomplished are very simple and anyone can do it. Users do not have to be cryptocurrency experts to perform tasks like clicking on a link or completing a captcha, viewing ads or listening to a blog or tutorial, etc. These tasks can be done anytime but a user needs to follow a website for at least a week and perform various tasks so that the crypto reward pool gets filled up with a minimum threshold of crypto coins, before they can withdraw them to their individual wallet.
How Does a Cryptocurrency Faucet Work?
A cryptocurrency faucet utilizes the divisibility feature of cryptocurrencies that allows them to reward users with small amounts of cryptocurrencies. A faucet sets some specified list of tasks for users and rewards them with crypto coins on completion of those tasks; more tedious tasks like downloading apps or watching long blogs have higher rewards than easier tasks like sharing links or completing a captcha.
Users are required to sign up at the website or app before they can start completing the specified tasks offered by the faucet website. The sign-up process is generally easy and only requires the users to enter some basic details and the main wallet address where they would prefer receiving their rewards. After the sign-up process is completed, the faucet automatically creates a “micro wallet” or a reward pool for all its users. The rewards earned by users are first stored into the micro wallet after completion of each task, and the micro wallet needs to be filled with a minimum threshold of crypto coins before which the reward cannot be claimed. As soon as the micro wallet reaches a minimum threshold limit, the coins are automatically transferred to the individual wallet (main wallet) of the users.
The faucet owners set in a locking time within which the rewards have to be claimed which implies that users need to complete a task within a specified time and accumulate the minimum threshold of coins and claim them within that stipulated time. Sometimes, the minimum threshold is quite high and takes quite a lot of days to weeks to reach there. Even if some faucet websites allow users for an early withdrawal, they impose a withdrawal limit that allows users to withdraw only a portion of their earned coins at a time. In some other cases, a crypto faucet may offer both, high incentives and a low withdrawal limit, but the withdrawal process might be tedious; there may be a lengthy KYC process. Therefore, users should read the terms and conditions of a faucet website before registering.
Are Crypto Faucets Legit?
Yes, crypto faucets, in general, are legitimate but there had been many incidents in the past where hackers have used faucet sites as scamming tools, because of which leading platforms like Facebook and Google had to ban them. The unregulated nature of the cryptocurrency market has led scammers to dupe users. Even sometimes, a fraudulent crypto faucet steals users’ information and infects their computers with malware and viruses. Sometimes, they ban users from accessing the website after reaching the threshold. Therefore, users should be aware of these telling signs like significantly high rewards, unsolicited offers, grammatical errors, etc that clearly indicates that they are scam.
Are Crypto Faucets Worth it?
Yes, crypto faucets are worthy for both, the faucet owners and the crypto users. The faucet owners set various tasks on their websites and reward free crypto coins to users who accomplish them. The tasks are as simple as viewing ads or blogs, clicking on links, or completing a captcha that lures users to the websites, and thus the traffic increases, and ultimately the faucet owners earn profit from the traffic. Viewing advertisements or sharing affiliate programs from faucet rotators generate a lot of revenues for the websites that go to the faucet owners and so they don’t mind giving out some free crypto coins to users. However, it is a time-consuming process for both the faucet owners and the crypto users.
Crypto faucets give out free crypto coins without the users having to buy, stake, or trade crypto coins across other platforms, and thus faucets appear to be very attractive because it is a risk-free alternative to increase the crypto portfolio. Crypto faucets were developed to make people aware of the existence of a decentralized currency that is safer, faster, and more convenient.