Faucet is an application that distributes small amounts of cryptocurrency in exchange for completing a few tasks.
It was invented by Gavin Andresen, a Bitcoin developer, who rewarded users with five BTC per day through the first Bitcoin Faucet.
Faucet can be thought of as an app on users' phones and takes its name from the analogy of drops leaking from a faucet. It rewards users with small amounts of cryptocurrency for completing tasks, and initially deposits these rewards into the site's online wallet. Once a certain limit is reached, users can withdraw their earned cryptocurrency into their own wallets.
To earn Faucet rewards, users must complete easy tasks such as watching advertisements, product videos, answering questions, or completing Captchas. Rewards are given based on the ease of the task, with larger amounts of cryptocurrency sent to a user's account if the task is more difficult.
What Is the Purpose of Cryptocurrency Faucets?
The purpose of cryptocurrency faucets is to educate users about cryptocurrency and encourage them to invest.
The primary goal of Faucet is to raise awareness of cryptocurrencies. By providing users with small amounts of cryptocurrency through Faucet, the aim is to encourage more users to join the cryptocurrency platforms. Most of the income from Faucets comes from advertisements and the tasks given.
How Do Cryptocurrency Faucets Work?
Faucets are typically designed to be user-friendly.
Firstly, users must have a wallet that supports the faucet before using it. When it's time to claim the cryptocurrency reward, the general address of the wallet is copied and pasted onto the faucet's website.
Faucets provide users with tasks to complete, such as watching videos, viewing ads, or completing surveys. Once the tasks are completed, users are rewarded. Each faucet has different rules for claiming rewards. Often, a minimum limit must be reached before the reward is sent to the user's wallet address. For example, you may need to accumulate $4 worth of rewards to claim the cryptocurrencies available on the site.
What Are the Types of Faucets?
One way to categorize Faucets is by the type of cryptocurrency offered as a reward.
Additionally, there are collection websites for Faucets that offer users multiple options depending on the cryptocurrency they want to claim as a reward.
- Bitcoin Faucet
- Ethereum Faucet
- Litecoin Faucet
- Monero Faucet
- Tron Faucet
Bitcoin Faucet
Bitcoin, designed by Gavin Andresen, was created to reward users for completing simple tasks. Bitcoin Faucet was the first cryptocurrency Faucet. The purpose of Bitcoin Faucet was to create awareness about Bitcoin as the concept of cryptocurrency was new at that time. At the same time, cryptocurrency platforms were limited and it was difficult to buy Bitcoin. Therefore, Bitcoin Faucet was created.
Giving away free Bitcoin was a big move to get people involved in the ecosystem and increase interest without capital risk. Bitcoin Faucet rewards Satoshi (0.00000001 BTC), which is equivalent to one millionth of BTC, as a reward. The reward system includes completing "captcha," clicking links or completing simple tasks. The amount of free Bitcoin offered on Bitcoin Faucet varies depending on the platform.
Ethereum Faucet
The Ethereum Faucet works in the same way as the Bitcoin Faucet. However, the Ethereum Faucet rewards users who complete the given tasks with Ether. The Ethereum Faucet is considered an easy way to earn Ether by helping with advertising and data mining.
Litecoin Faucet
Litecoin Faucet rewards its users with Litoshi (LTC) for completing small tasks on its website.
Monero Faucet
Monero Faucet rewards users who complete tasks such as Captcha completion and watching advertisements with Monero token (XMR).
Tron Faucet
Tron Faucet rewards users who play games, invite different users, complete surveys, and other given tasks with Tron token (TRX).
Relation Between Faucet and Airdrop
Although airdrops are another way to earn free cryptocurrency, they are different from faucets. Through airdrops, new projects can send their cryptocurrency directly to a user's wallet. The purpose of an airdrop is usually to generate interest or attention about a new project and to reward users. Some projects use airdrops to promote their projects on social media platforms.
Faucets, on the other hand, are interested in involving people in the wider cryptocurrency ecosystem.
What Are the Risks of Faucets?
The most significant risk of faucets is their tendency towards fraud. Rewarding free cryptocurrency, especially for people who are new to using Web 3.0 technology, is attractive. However, malicious individuals can set up a website representing a cryptocurrency faucet to steal users' personal information.
