October 19, 2022

What is a Crypto Faucet and How do They Work?

A crypto faucet allows crypto users and investors to earn small cryptocurrency rewards for completing small or simple tasks. Read to know about what is a crypto...

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Anuska

Home » Blog » Blockchain Basics » What is a Crypto Faucet and How do They Work?

Introduction

Can you earn cryptocurrency in exchange for performing simple tasks? It may sound like a dream, but crypto faucet apps have made it possible. The name of this commodity suggests its functions. Just the way water drips from a leaky faucet, best crypto faucets reward the users with crypto assets for just completing simple tasks.

So, what is a crypto faucet? In this post, we find out all about cryptocurrency faucets!

What is a Crypto Faucet?

Many apps and web interfaces offer rewards to their users as an incentive. Similarly, many cryptocurrencies also offer free crypto to users who complete simple tasks like solving quizzes, using the app daily, etc. No, these rewards might not make you rich suddenly, but earning free crypto is a definite possibility with cryptocurrency faucets. The first crypto faucet was launched in 2010 when Bitcoin network founder Gavin Anderson decided to reward 5 BTC to each user who completed a captcha. Today, users will not be able to earn such a quantity of BTC by completing such simple tasks, but the crypto assets that are relatively new and want to gain traction can offer good crypto faucet apps.

Every business owner must give out some incentive for users to be interested in their products. Similarly, crypto faucet sites and crypto faucet apps are giving out rewards to their users to attract even more users. Moreover, a cryptocurrency faucet is a great place for beginners to understand more about the crypto world. The best crypto faucets are fundamental in educating people about crypto networks, and therefore support the ecosystem’s growth.

How do Crypto Faucets Work?

Now that you know ‘what are crypto faucets?’, it’s time for us to get into their workings. The working principle of a cryptocurrency faucet is quite simple. Every user who wishes to earn a crypto reward has to register with the digital asset service. Crypto faucet sites usually require users to register over their digital wallets and create an account with them. Crypto faucet apps specialize in supporting their users with crypto rewards over the completion of assigned tasks. Usually, the tasks are as simple as watching a video, logging in daily, watching ads, and taking quizzes or surveys.

Sometimes the cryptocurrency faucet tasks can also be about referring to friends, which indirectly aims at promoting the crypto asset in question. These tasks usually do not consume much time, and users are comfortable doing them. On rare occasions, the crypto faucet apps may assign tasks that take quite some time for the users to complete. As soon as the tasks are completed, the digital wallet attached to the user’s account is credited with the rewards. Sometimes, these rewards also work on the compounding principle as the users keep completing tasks daily.

Some crypto faucet sites also require their users to earn a reward of up to a certain amount before they can cash it out. So, if you are learning about ‘what is a crypto faucet?’, you should know that the tasks will be easy in most cases, but at times they might prove to be tricky

Want to get an in-depth understanding of the best crypto faucets? 👉 Check the detailed guide now on Best Crypto Faucets

8 Types of Crypto Faucets

There are several types of cryptocurrency faucets. The best crypto faucet sites include:

1. Bitcoin Faucets

The first kind of cryptocurrency faucet was the Bitcoin faucet, launched by Gavin in 2010. Initially, many users earned 5 BTC for completing simple tasks, but now the process is not the same. A Bitcoin faucet is a reward system in which the users are rewarded with a Satoshi, one-millionth of a Bitcoin, over completing simple tasks like solving captchas, among others. Due to the popularity that Bitcoin faucets gained, other crypto faucet sites also came into existence.

2. Ethereum Faucets

ETH took the process of earning free crypto rewards to the next level, as multiple crypto faucet sites offer free ETH. It is a great source of advertisement for Ether and provides data mining as well. Allcoin.PW is a platform that offers ETH rewards to users for playing games. On the other hand, Fire Faucet offers ETH for solving captchas and browser mining.

3. Litecoin Faucets

Litecoin has taken a similar approach to BTC and offers Litoshi as a reward over its crypto faucet sites. Users get to earn free Litecoin for completing simple tasks on the website. Moon Litecoin is a famous crypto faucet site for Litecoin. It offers rewards to users through coinpot.co wallet. Fire Faucet also offers Litecoin, BTC, and other assets for users with auto-claim points.

4. Bitcoin Cash Faucets

In general, users must register for various wallets to use a Bitcoin Cash faucet. The rewards are provided regularly according to the tasks and options are given by the provider. Faucet Crypto offers free BCH for using their services, and the users can claim their rewards by clicking on the assigned tab. Konstantinova is also a platform that offers free BCH that is sent to the FaucetPay.io wallet every fifty minutes when the users claim it.

5. Monero Faucets

Every person who has an interest in earning Monero tokens can make use of the Monero cryptocurrency faucets. Over the completion of simple tasks like completing captchas and watching ads, users get to earn MXR tokens. Monerfaucet.info is a crypto faucet app that rewards users with 0.000005 to 0.025 MXR tokens over the completion of each task. The rewards can be collected every sixty minutes. Similarly, Express Faucet offers rewards every four hours.

6. ZCash Faucets

On the same path as other crypto faucets, ZCash faucets also offer tokens for completing simple tasks. Pipeflare faucet is a platform that supports ZEC tokens. The users only have to create their account and complete one captcha every day, and they can earn the rewards. There is no minimum limit applied by the cryptocurrency faucet to withdraw the rewards. Globalive faucet is another crypto faucet site that offers ZEC rewards every twenty hours.

7. Tron Faucets

You can play games, refer to friends, complete surveys, watch videos and do more simple tasks like that to earn TRX tokens with these cryptocurrency faucets. Xcolander.com has gained a name for being one of the most used Tron faucets. It offers tokens based on spin-the-wheel format.

8. Multicurrency Faucets

Some crypto faucet apps have taken this reward-based system to another level. They offer a chance for the users to earn crypto rewards through simple tasks and, moreover, choose the reward according to their liking. Faucet crypto is one of the best crypto faucet platforms that offers users multiple currencies as rewards.

3 Benefits and Disadvantages of Crypto Faucets

Benefits of Crypto Faucets	Disadvantages of Crypto Faucets
Free Crypto	Fraudulent Faucets
No Limit on Earning from the same Crypto Faucet	Time-Wasting
Risk-Free Method of Learning	Repetitive Tasks

Benefits of Crypto Faucets

The many benefits of crypto faucet apps include:

1. Free Crypto

Learning about what is a crypto faucet, you already know that they are a great platform to earn free crypto. There is no risk involved since you are not investing money in these assets, and you can just wait for the market to move in your favor. The users only have to complete very simple tasks to earn free crypto with the best crypto faucet sites.

2. No Limit on Earning from the same Crypto Faucet

You can keep completing basic tasks and earning crypto rewards from the same crypto faucet. Most cryptocurrency faucets do not put an upper limit on earning from the same faucets.

3. Risk-Free Method of Learning

Usually, people think that they need to have money at their disposal to learn about crypto. Cryptocurrency faucets make this assumption go away by letting people earn crypto tokens and use them in the real world for learning purposes. It is a risk-free method that attracts a lot of users toward cryptocurrency.

Disadvantages of Crypto Faucets

Cryptocurrency faucets have their fair share of disadvantages too, namely:

1. Fraudulent Faucets

Similar to real-world cases, crypto faucet apps are fraudulent sometimes as well. Sometimes faucets do not pay their users even when they have watched the ads or completed their assigned tasks. At times, the faucets may even be malware that can harm your computer and steal your data.

2. Time-Wasting

There have been cases when a cryptocurrency faucet has proven to be time-wasting. The tasks might be tedious, and the reward may not be fitting for the time consumed. Since the rewards are very small, it may take a lot of time to earn enough rewards to cash out.

3. Repetitive Tasks

If you are one of those who do not like to keep doing the same thing all the time, then crypto faucet sites might be a bummer for you. While learning about ‘how do crypto faucets work?’, you must have gathered that the tasks are mostly repetitive. It might bore the users and cause disruption in earning daily rewards.

Conclusion

Now that you have complete knowledge about ‘what are crypto faucets?’, it’s up to you to decide how you like the concept. Cryptocurrency faucets provide free crypto rewards to the users, but the time they consume is quite a lot. The amount of participation required to earn enough crypto rewards is also quite large. However, we can still conclude that crypto faucets are a great option to learn about cryptocurrency without risking anything.

The best crypto faucets, therefore, have pretty efficient uses in the real world, and many crypto traders make use of them for some additional passive income.

Disclaimers: Opinions expressed in this publication are those of the author(s). They do not necessarily purport to reflect the opinions or views of Shardeum Foundation.

About the Author: Anuska is an independent freelance writer freshly exploring web3 and blockchain space. Her articles blend personal exploration with established editorial methods, and she’d love to hear your thoughts in the comments!