What is a Bitcoin Faucet? Here’s how they work

0

Stanislav Palamar/Getty Images

Cryptocurrency and work-from-home culture emerged around the same time — and if you’re looking to earn a bit of the former with one of the latter, a bitcoin faucet might be just the thing. you need.

Bitcoin faucets – and crypto faucets in general – allow almost anyone to earn small amounts of free cryptocurrency with minimal effort on their phones and computers. They won’t make you tomorrow’s next crypto millionaire, but if you’re just getting started and looking to add some tokens to an empty digital wallet, a Bitcoin Faucet can be a great way to get into the crypto space. cryptocurrency – even if you don’t. I have no money to spend on any investment.

What is a Bitcoin Faucet?

A bitcoin faucet is an app or website that awards small amounts of cryptocurrency to users who complete simple tasks like completing a captcha, playing a game, solving a puzzle, clicking on ads, or watching videos.

If the word “tap” conjures up images of a constant, never-ending stream of bitcoins pouring into your digital wallet, you need to temper your expectations. Rather, the term alludes to the tiny size of bitcoin rewards, which drip down in tiny drops like water from a leaking faucet.

How can I get 1 Bitcoin for free?

You would have to spend a lot of time on a bitcoin faucet to earn even a single token – or even $1 worth of bitcoin. Just as you can break dollars down into smaller units like pennies, nickels, and dimes, bitcoin can also be broken down into smaller denominations.

The smallest of them all is called a Satoshi, named after Satoshi Nakamoto, the mysterious founder or founders of bitcoin. According to SoFi, most bitcoin faucets reward task completion with a Satoshi unit.

According to CoinDesk, a single Satoshi is worth one hundred millionths of bitcoin, or 0.00000001 BTC. You would need to collect one hundred million Satoshis to create a single Bitcoin. Another way to look at it would be that for a Satoshi to be worth a single penny, the price of bitcoin would have to reach $1 million per token.

At current exchange rates, one Satoshi is worth $0.000205.

Is Free Bitcoin Faucet real?

Free bitcoin faucets are real, but their heyday is long gone. According to CoinGeek, software developer and cryptocurrency pioneer Gavin Andresen created the first bitcoin faucet on June 12, 2010, at the dawn of the cryptocurrency era.

Andresen communicated directly with the still anonymous Satoshi Nakamoto through private messages and forum posts. When Satoshi Nakamoto disappeared, Andresen took control of the fledgling bitcoin project.

Andresen created the faucet concept to introduce people to bitcoin, spread it to new users, and establish its usefulness as a digital currency. Since cryptocurrency was virtually unknown in the mainstream, a coin’s dollar value wasn’t as significant back then as what bitcoin could do – but the faucet would soon be worth a fortune.

According to Medium, Andersen created a simple website that awarded five bitcoins to anyone who used it to solve a captcha, download bitcoin software, and establish a bitcoin address.

What would these bitcoins be worth today?

At current conversion rates, those five bitcoins would be worth around $98,000 today. During 2010, Andresen donated 19,700 Bitcoins.

If Andresen had owned the coins, they were now worth more than $386 million.

So the bitcoin faucet concept lives on, but if you missed the boat, here is the hard truth. A few clicks could land you a prize that would have quickly reached a value close to six figures.

Which crypto faucet is the best?

Bitcoin was the first cryptocurrency and Andresen’s project launched the first faucet, but just as other digital coins emerged in the footsteps of bitcoin, so have other crypto faucets. Which crypto faucet is the best? It depends on the cryptocurrency you want to earn.

Here is an overview of some of the best bitcoin faucets and some of the best crypto faucets that award other types of coins.

FreeBitco.in

Founded in 2013, FreeBitco.in is one of the oldest bitcoin faucets still in existence. The site offers up to $200 in free bitcoins every hour. So far, it has awarded over 179,325 Bitcoins in total to nearly 19 million registered users across over 90 billion games played.

Users love it for the simplicity and familiarity of its casino-based dice game format – you don’t need a credit card and no deposit is required to sign up. You are allowed to complete a captcha and roll the dice once per hour, every hour – and Satoshis are guaranteed with every roll. The faucet awards bigger prizes through weekly and monthly jackpot contests and if you refer friends you get 50% of their faucet winnings for life.

Bitcoin Aliens

The Bitcoin Aliens faucet has been awarding cryptocurrencies since 2014 – and not just bitcoins. The site’s collective applications have given away over $20 million worth of bitcoin, bitcoin cash (BCH), and litecoin (LTC).

Today, over 5 million users continue to use the site to earn crypto from their phones. There are several ways to earn tokens through the Bitcoin Aliens app suite, which includes:

  • Litecoin gift
  • bitcoin cash gift
  • alien race
  • blockchain game
  • Free Bitcoin.

Some of the apps involve playing games, and others require you to watch videos, solve puzzles, or display ads, but all are free to download and use.

Cointiply

Cointiply has 3 million users who have earned over $12 million in bitcoins, but the site also rewards litecoin, dogecoin (DOGE), and dash (DASH). The site is known for its high payouts and many ways to earn, including:

  • Surveys: Earn $1 to $5 in coins for every survey you complete for businesses, products, and services.
  • Games: Install games and earn coins as you progress in desktop or mobile mode.
  • Videos: Earn cryptos for every video you watch.
  • Missions and offers: You can earn reward points for every task you complete and every offer you accept.
  • References : Earn 25% of each friend’s faucet rewards you refer and 10% of their offer revenue.
  • Interest: Earn 5% interest on all your holdings once you reach 35,000 coins.

CoinPayU

CoinPayU uses crypto faucets as part of its advertising platform and stands out for the wide variety of tokens it awards, including:

FreeBitcoins.com

FreeBitcoins.com allows users to participate with up to two accounts to double their bitcoin rewards and several altcoins available. Offers include ethereum, dash, dogecoin, bitcoin cash, clamcoin, curecoin, rhombus, mazacoin and more. Users never have to make a deposit or risk anything.

The site has a long history dating back to 2010 when bitcoin was trading for around $0.25. The site is a full-service exchange, and its faucet rewards users for testing and using the website so that its administrators can identify flaws and make improvements. It also awards coins for letting people know about the exchange through its affiliate program.

What are the risks of bitcoin faucets?

According to SoFi, users of cryptocurrency faucets should adopt a cautious attitude and take the same precautions as if they were trading crypto. Some sites and apps pretending to be faucets might install malware, and there have been phishing attacks and other scams associated with impostor faucets.

The temptation of free money can cause people to let their guard down – a fact that hackers know well. Faucet scammers can use this lure as part of a scheme to steal identities or break into crypto wallets by asking users to click a bait link, download a malicious file, or reveal passwords or other critical data.

Use common sense and avoid any faucet that contains numerous grammatical errors or other suspicious visual cues. You’re not going to get rich using a crypto faucet – if the rewards seem too good to be true, walk away. Finally, be skeptical of any unsolicited faucet offers you receive via email or message.

Final take

Crypto faucets do not provide a feasible way to accumulate large crypto holdings. The tasks required to earn crypto can quickly become tedious, and earning even a few dollars worth of coins usually requires too much of a time commitment to justify the minor reward.

However, faucets give real crypto. This gives beginners and hobbyists the chance to fill their wallets with different types of coins while learning how different cryptocurrencies work and what they can do. As an added benefit, they can be a fun way to pass the time online productively – at least for a while.

Our in-house research team and on-site financial experts work together to create accurate, unbiased and up-to-date content. We check every stat, quote and fact using trusted primary resources to ensure that the information we provide is correct. You can read more about GOBankingRates processes and standards in our Editorial Policy.

Share.

About Author

Comments are closed.