On blockchains like Ethereum Mainnet, fees represented in cryptocurrency units on the blockchain must be paid for transactions to occur and be recorded. From exchanges, one can buy Ether (ETH), the native cryptocurrency of the Ethereum blockchain, and pay transaction fees. However, alternative Ether distribution mechanisms are used on testnets like Rinkeby and scientific research blockchains like Bloxberg.
One such method is a faucet, which grants users free cryptocurrency according to certain predetermined rules. In general, faucets provide a fixed amount of money for a specific time or block. For example, Bloxberg Blockchain’s web-based faucet offers 0.2 ETH.
So, if you are still wondering, does “free crypto” really exist? The answer is yes! A crypto faucet is nothing more than a website that awards you token sums of cryptocurrency in exchange for completing simple tasks like solving quizzes, watching ads or videos, etc.
But what is a crypto faucet for? Crypto faucets are designed to provide users with free cryptocurrency for start learning about digital assets and possibly use them. For example, the low-income unbanked population can access financial services through a permissionless network powered by blockchain.
In this article, you will learn what crypto faucets are, their purpose, types of crypto faucets, how they work, and the different risks associated with crypto faucets.
How does a crypto faucet work?
The operation of a cryptocurrency faucet is simple: all you have to do is register with a digital asset service or visit a cryptocurrency faucet website or app that rewards you with a free crypto to play games, take surveys and watch videos or ads etc.
The earned cryptocurrency is then sent to your online mini-wallet by the crypto faucets website or app. A micro wallet is a type of wallet comparable to standard wallets, but which can only hold modest amounts of cryptocurrency assets. Micro wallets are usually established immediately when you sign up for a crypto faucet.
The benefits of the mini wallet include:
However, you cannot withdraw money until this micro-allocated wallet has reached a minimum level of rewards (e.g. $10 worth of cryptocurrency). When this happens, all cryptocurrency is automatically transferred to your real cryptocurrency wallet. Please note that some websites may limit the time users have to claim their rewards. Also, if you use a faucet often, the benefits or rewards may increase over time to larger sums.
What types of crypto faucets are there?
If you want to know how to earn small crypto rewards from crypto faucets, you will need to look into different types of crypto faucets. However, please note that faucets are different from airdrops and bounties. While bounties refer to a list of remunerative tasks (such as detecting flaws in code) offered by a blockchain project, airdrops are usually distributed to users use a specific crypto token or wallet to increase awareness of a particular project.
On the contrary, one can categorize crypto faucets based on the type of token that is paid as a reward. For example, Ethereum faucets reward users with a certain amount of ETH for performing tasks such as solving captchas, like obligatory by Ethereum-faucet.org.
Additionally, you can earn ETH tokens using Fire Faucet by operating websites and solving captchas. Another Ethereum faucet site that allows you to to win Free ETH by completing challenges and playing games is Dutchy CORP. Like Ethereum faucets, users can earn rewards in satoshis, the smallest unit of BTC, using Bitcoin (BTC) taps.
Other examples of crypto faucets are Litecoin (SLD) and Monero (XMR) taps. For example, Moon Litecoin rewards users with free LTC to perform multiple activities like streaming videos. The micro-wallet on Coinpot.co is used to hold the modest user rewards offered by Moon Litecoin. Likewise, you can get rewards from Monerofaucet.info which are redeemable for between 0.000005 and 0.025 Monero tokens per hour.
Zcash (ZEC), faucets, like other faucets, reward users with free Zcash for performing trivial tasks. For example, every 20 hours there is a free Zcash offer on the Globalhive faucet. The typical reward that can be claims is 0.00003100 ZEC, which can be withdrawn immediately and put in your wallet.
For Tron (TRX) lovers, Tron faucets like Xcolander.com could be another way to earn free crypto. The number you receive when rolling the wheel on the platform (i.e. Xcolander.com) will be determine how many TRX coins you will receive.
What are the risks of crypto faucets?
Free rewards aren’t always legitimate; some are used to scam users. For example, some cryptocurrency faucet owners refuse to pay consumers when they make a ton of money by clicking their ad or streaming video on their websites or apps. Also, beware of phishers who make their websites and offers appear legitimate via email. Never give out private information to anyone, including your wallet address or your private keysif you don’t know them by heart.
So if you want to know, are crypto faucets safe? The answer is to do your research before considering anything legal or illegal. Remember, if you head to high paying crypto faucets without doing your due diligence, you may end up lending your valuable time for nothing in return.
Therefore, beware of websites that look suspicious and have big promises that seem too good to be true. Trusted and long-standing brands should be your go-to if you want to experiment with crypto faucets. The amounts of free crypto time could potentially lead to a large sum if you use the crypto faucets correctly and frequently, especially if the market value of the tokens you have collected increases.
So should you use a crypto faucet? It all depends on your availability and how much time you are willing to devote to earning free crypto. But, of course, for experienced people like blockchain developers, crypto analysts or researchers, spending considerable time on crypto faucets may not be an ideal choice.
However, students or beginners looking to make money passive income or free money can invest their time in performing various tasks, as mentioned above. Therefore, depending on your experience in the cryptocurrency market and how you use it, a crypto faucet might just be a waste of time or a blessing for you.