What Is a Crypto Faucet?
Crypto faucets, like cryptocurrency, are part of a decentralised financial system using peer-to-peer transactions. A cryptocurrency faucet doesn’t incur any transaction fees by bypassing traditional financial services and payment systems, such as banks and credit cards, as well as advertising business models such as Google Ads which would typically sit between a user and a website or app.
The tasks the user completes could be clicking on a paid ad, completing a CAPTCHA test or logging in every day. The user – that is, the wallet holder – earns Bitcoin cash by completing tasks on a crypto faucet via a website or an app.
What’s the benefit for each party? A crypto faucet cuts out the intermediary, typically Google Ads or any other online monetization company, and rewards the user directly. Factors including ad clicks and CAPTCHA tests generate website traffic and this, in turn, is a source of revenue for the website or app, while the user earns crypto coins directly into their crypto wallet.
What is a Bitcoin faucet?
Capped supply of Bitcoin: 21 million
How often new Bitcoins are minted by miners: 10 minutes
How much 10000 satoshis will give you in GBP: 2.3631 GBP
So which type of faucet do you go with? You might want to pay attention to market capitalization – or market cap – that’s the price of each coin multiplied by the number of coins in circulation. Bear in mind Bitcoin will only ever have 21 million coins in circulation since this affects how this cryptocurrency scores in the ranking of cryptocurrencies and is indicative of its potential for growth. The same applies for other cryptocurrencies.
How do crypto faucets work?
- Clicking on paid ads
- Logging on to a website every day
- Completing CAPTCHA tests
- Playing games
- Watching ads
Long term strategy
The reward system used with crypto faucets is done over time and in small quantities. It’s a low effort and low-risk way for the user to earn crypto coins,
The reward system used with crypto faucets is done over time and in small quantities. It’s a low effort and low-risk way for the user to earn crypto coins, but you have to be willing to put the time in over a period of days, weeks, or months. You’re playing a long game.
Like other investment assets, there are various risks and rewards involved, different types of asset class, as well as short term and long term strategies to adopt with cryptocurrencies.
Crypto faucets, secure transactions and Blockchain
Bitcoin transactions are public and can be viewed on Bitcoin software, known as the blockchain. This is because cryptocurrency transactions are part of an open, decentralised financial system. Every time someone sends Bitcoin or other cryptocurrencies to another wallet, a transaction is created with an ID that is used to verify transactions.
Mining v faucets
Future of money and cryptocurrency
Digital currency isn’t going anywhere. Governments and banks are becoming more open to the idea of investing in digital currencies, as well as the broader public. El Salvador just announced plans to make Bitcoin legal tender in the country from September. Wealth managers increasingly advise clients on investing in crypto assets instead of traditional assets, or as part of a diversified portfolio. If you decide you want to invest in crypto, firstly, take the time to understand the digital currency landscape. If you’re still a bit unsure, consider starting with a low-risk option, such as crypto faucets.
What do you think is the future for cryptocurrency?