Cryptocurrencies are a valuable asset and a great way to make loads of money. We have seen the best rags to riches stories here. But you know what they say; the greater the reward, the more you will have to work hard for it.
Although cryptocurrency is going upstream nowadays, a considerable portion of the population is still unaware of it. The best way to market a product is by introducing incentives to businesses. That's precisely what crypto experts did. To attract people to the crypto-verse, experts have come up with crypto faucets, which are an easy way to earn some coins. Let's see if they are worth a try.
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What Are Crypto Faucets?
Crypto faucets are websites or programs that reward you with cryptocurrency for doing simple tasks. The tasks, however, may differ. The harder the challenge, the bigger the prize will be.
The following are some examples of such tasks:
• Watching a video
• Clicking on ads
• Clicking on links
• Completing surveys
• Completing captchas
Why Are They Called Crypto Faucets?
A faucet is a device that regulates water flow. Leaky faucets have tiny droplets of water dripping down, and that's where the inspiration for the name came from. Like tiny droplets, the crypto faucet websites reward their users in minimal amounts. For example, in a Bitcoin faucet, users get the rewards in Satoshi (0.00000001BTC). Satoshi is the smallest unit in Bitcoin.
Once a user completes the task, websites and apps release the reward into the user's wallet. They're a great way to make money, but not the best way to get rich. The smaller the tasks are, the lesser the rewards will be. The purpose of the crypto faucet is to earn quickly and get more into the crypto industry.
How Do Crypto Faucets Work?
Bitcoin was one of the first coins that introduced crypto faucets. What first started with Bitcoin, now various top coins, i.e., Dogecoin (DOGE) and Litecoin (LTC), work on crypto faucets. they work in the following ways.
Completion of Tasks
It's pretty easy to work for crypto faucet websites. To operate on it, you simply complete a task and participate in some activities. Once the task is completed, the website sets a particular time lock, and the user gets their rewards once the timer hits zero.
Microwallets
To begin working and earning on these sites, the websites or apps generally require registration and details of your crypto wallet. However, the rewards don't go into these wallets - they go into what is called microwallets. Microwallets handle small quantities of cryptocurrencies.
Minimum Threshold
There is a minimum payout threshold on several websites. This means you can only take out the reward once you've gained a certain amount. Most websites deposit the reward into your microwallets like faucetpay. Once you've earned enough rewards and reached the minimum threshold, you can take out the reward.
How do the crypto faucets benefit from this? The faucet owners make money for themselves through organic traffic, and the ads users view on their websites and mobile applications.
How Were Crypto Faucets Introduced?
Gavin Andresen first introduced crypto faucets in 2010. They were initially made to make people more aware of the crypto world and increase coin ownership.
During the early years, when bitcoin and cryptocurrency were still new, crypto faucets offered more significant rewards than now. The highest amount of reward given by any bitcoin faucet is 5 BTC.
How Much Can You Make Through Crypto Faucets?
If your end goal is to become rich, then crypto faucets aren't the best way to go. Even the most well-known faucets pay in micros, and some people would probably be better off earning money through part-time jobs paying $5 per hour than through crypto faucets. They are, however, a terrific way to dip your feet in the crypto world while also gaining an additional source of income.
Conclusion
The concept of cryptocurrency faucets can overwhelm people when they first learn about them. This can lead them to try the first crypto faucet they see and end up getting scammed.
Some would consider faucets a free way to earn some crypto. However, in economics, there is a saying that "there is no such thing as a free lunch." So, while the tasks are easy, they can also be quite long. Some tasks can be completed in a day, while others may take weeks.