Crypto faucets are innovative ways of rewarding crypto users with free crypto coins on completion of some simple tasks on a website or mobile application. The tasks are very simple such as clicking on a link or listening to a blog or tutorial or sometimes completing a captcha code. The complexities of each task determine the amount of the rewards; the more complex the task the higher would be the rewards and vice versa.
Why Was the Crypto Faucet Created?
Crypto faucets were developed with the sole objective of creating cryptocurrency awareness among individuals. Cryptocurrencies are still in their stages of infancy and therefore, at some point, the developers felt that there is a need for mass promotion of cryptocurrencies whereby users would be able to realize the positive aspects of digital assets.
It was then a senior Bitcoin engineer named Gavin Andresen created bitcoin faucets that would reward users with 5 Bit incentives for each task they accomplish. This lucrative option to get some free bitcoins by completing some simple tasks became a favorite pastime for crypto users and they began to sign up at faucet websites and began earning free bitcoins.
Some other objectives of creating crypto faucets are:
Quick acquisition of bitcoins
If a crypto user wants to increase his crypto holdings, he would have to either purchase crypto coins from a cryptocurrency exchange, or mine it, or trade with other crypto holders, all of which are time-consuming processes as well as involve high risks owing to the extremely volatile nature of cryptocurrencies. Moreover, when cryptocurrencies came into existence, there were only a handful of cryptocurrency exchanges that allowed crypto purchases that too in small amounts. To eliminate these limitations and to encourage people to increase their crypto holdings, crypto faucets were created that do not require people to buy or trade crypto coins and thus help in their quick acquisition.
Source of passive income
Nowadays, many crypto users set up their individual faucet websites to earn some passive income from them. Crypto owners deposit a fixed number of crypto coins into their wallets and then link them to their faucet apps or websites. It helps the faucet owners to earn some passive income from ads as long as they can generate more funds than they dispense to users.
How Much Can One Make from A Cryptocurrency Faucet?
Cryptocurrency faucets should not be seen as the ultimate tool to generate revenue. Instead, faucets should be seen as a reliable way to increase one’s crypto holdings and gain some insights into how the crypto market works, which would be of great help when one decides to invest in cryptocurrencies in the future. Revenue generated from cryptocurrency faucets is negligible and the most popular BTC faucet pays as low as 20 satoshis per transaction which means that one can only earn $5 working the entire day, which is meager. Therefore, faucets can only serve as an additional way of earning cryptos and not the sole source of income.
Crypto Faucet, A Passive Income, Or A Waste of Time?
Crypto faucets can be sometimes called a ‘necessary evil’. Though it requires users to complete some simple tasks and in exchange, they get some free crypto coins, it requires active participation from users. It is not a one-day affair, users need at least a week to remain associated with a faucet website and accumulate the minimum threshold of coins, only after which the coins would be credited to their main wallet. In response to this active participation required from crypto users, the rewards are negligible and due to this reason, some investors consider faucets as a waste of time.
But at the same time, it is also true that crypto faucets give out free crypto coins to users without the users having to buy or trade them across exchanges which saves a lot of time and effort. Only some simple tasks and users get free tokens credited in their wallets.
Are Cryptocurrency Faucets Profitable?
Yes, cryptocurrency faucets are profitable and they have been in existence for over a decade now. After bitcoin came into existence in 2009 there were a lot of speculations about its reliability and very few people believed that bitcoins can help them earn money. But just as bitcoins sustained the market, crypto faucets also did, and still have been helping users to earn some passive incomes.
Thus, crypto faucets enlighten users about the positive aspects of cryptocurrencies and provide powerful insights about how the digital market works, and, in this process, help users to earn some passive incomes in the form of free cryptocurrencies. Low-risk investors who cannot accumulate courage to invest in cryptocurrencies but at the same time are keen on increasing their cryptocurrency portfolio find crypto faucets very useful; they can earn their favorite cryptocurrencies without buying, trading, or staking them.