DeFi
September 28, 2022
What is Token Burn and it's effects on price
An A-Z guide on token burning and how it is largely impacting the cryptocurrency industry.
Read more
People like you and me who are fascinated by the world of cryptocurrency always find opportunities to invest in the market and watch our money grow. People always look for ways to increase their crypto holdings knowing that there's still a long way to go for crypto.
You may be aware of buying, selling, trading or even staking cryptocurrency but there's more to it. You can get some additional holdings through crypto faucets. Crypto faucets have been in the crypto world since a long time, still they are not known to many.
In this article we will try to understand the concept of crypto faucet. If you have questions like should I consider giving my time in crypto faucets or not, what benefits do I get from them or is there any catch in faucets , then stick with us till the end of this article to get answers to all your doubts.
A Crypto Faucet is a web or app based service which offers small rewards in the form of crypto tokens. Users who register themselves on the platform and perform small tasks listed on it are rewarded with these small amounts of crypto which users can transfer to their wallet address.
This kind of scheme is called a faucet because the rewards distributed are very small. The earnings can be considered as free earning or with bare minimum efforts and are a great way to accumulate small amounts of tokens.
As discussed, a crypto faucet can be web based or a mobile application based faucet. There are different faucets for different cryptocurrencies, a bitcoin faucet will give fractions of bitcoins as a reward and an Ethereum faucet will give rewards in Ether.
Users have to register themselves on the faucet where they will have to create a micro wallet and link their existing crypto wallet. In the case of most crypto faucets, a micro wallet is automatically created for the user during the signup process.
This micro wallet is capable of depositing and storing small amounts of tokens which a traditional wallet wouldn’t recognize. Once the micro wallet reaches a certain minimum limit set by the faucet, users can transfer the tokens from the micro wallet to their default wallet.
These small rewards are given to the users upon compilation of small tasks listed on the faucet. These tasks include the following.
Upon completing the listed tasks, a small amount of tokens will be added to the micro wallet. Users can keep on accumulating tokens and withdraw once the minimum limit has been reached. Also, the holdings are supposed to be withdrawn in the specified time, after which tokens expire.
Crypto faucets can be an excellent way of earning crypto for some at the same time it can be a total waste of time for some. Therefore, it totally depends on your status and level of expertise in the aspect of cryptocurrencies.
What I mean is, crypto faucets can be a means of accumulating small crypto amounts for those who are new to the crypto space. Also students who generally don’t earn enough to invest in cryptocurrency can collect some free cryptos from these faucets.
However, for people who invest regularly in crypto assets and are well educated in terms of different cryptocurrencies and their projects, this amount of free tokens is far less and it probably wouldn’t matter much to them.
The fact that the world of cryptocurrency is decentralized also makes it vulnerable to scams. Moreover, wherever free stuff like rewards and airdrops are included, users should exercise extra caution.
In the case of crypto faucets, there are two types of risks which you can expect and try to be aware of.
There can be some fishy faucets which would refuse to pay any reward to the users even after completing the listed tasks. Sometimes, users complete their tasks and receive the rewards in their micro wallet.
However, when it comes to withdrawing the funds to their main wallet, their account gets logged out and they lose their access to the faucet and collected tokens.
In order to collect and transfer the earned tokens, users have to connect their main crypto wallet to the faucet app or website. While connecting the wallet to the faucet service, people may connect their wallet to a clone website which is a copy of the original website.
After entering the wallet address and seed phase, all your funds from that wallet will be taken out without your approval or any notification.
Now that we have discussed all the aspects of crypto faucets, you must have cleared your mind about them. If you are planning to start your rewards journey, here are some of the crypto faucets which give various cryptocurrencies as rewards.
Ethereum is one of the largest cryptocurrency in the world and thus there are many crypto faucets which reward Ether after completing some tasks. Here are two best Ethereum faucets to consider.
Allcoins.pw is a free faucet where you can earn some ether, however it also offers some paid games by playing which you can increase your rewards furthermore.
Fire Faucet is a more flexible and simpler faucet which allows you to earn not just ether but many other cryptocurrencies by either completing captchas or by taking part in browser mining.
XMR is a native token of Monero which can be earned through two crypto faucets. As of today, XMR is priced at $245. Here are two faucets you can try to earn some free XMR tokens.
By using Monerofaucet.info, you can earn around 0.000005 to 0.025 XMR for completing tasks. You can withdraw these tokens every 60 minutes.
Bitcoin Faucets are focused on rewarding satoshi to users. Unlike other faucets, there is one popular Bitcoin faucet which rewards satoshi in an random and lottery based manner. Let’s take a look at the faucet.
Free Bitcoin is one of the most popular and legit faucets and users can get Bitcoin worth $
200 as specified on the website. You don’t have to watch any ads, videos or complete surveys to get free Satoshi. It works on contests, betting and lottery. Hence you may or may not get rewarded based on luck.
The chances of getting better rewards are higher in this kind of faucets but we would recommend to try out the faucets which give guaranteed rewards like the ones we mentioned above.
Crypto faucets can be a useful and practical means of earning free tokens, especially for those who are not yet earning and still want to start their crypto journey. There are many legit faucets and many scams as well.
You can look for faucets of any cryptocurrency you wish to earn. However, be cautious at every stage and do not disclose any unnecessary details to these crypto faucets. You can try out the faucets mentioned above which are some of the most popular faucets trusted by people.
We hope this article helped you understand what a crypto faucet is. Feel free to explore the faucets and let us know if we missed anything. If you are looking for ways to earn passive income from crypto, check out our article about the same.
An A-Z guide on token burning and how it is largely impacting the cryptocurrency industry.
Whitepapers and Litepapers are both essential to research related to any crypto project. Get to know what they are and how to use them effectively.
Here is a list of crypto jobs you can apply for along with the resources to find jobs.
