If you are looking for ways to earn Bitcoin, you will come across Bitcoin mining as well as trading. But, these are certainly not the only options at your disposal. There is a simpler route you can take, which is known as a bitcoin faucet. But, what exactly is a bitcoin faucet and how does it work? Let’s find out:
What are Bitcoin Faucets?
A bitcoin faucet refers to a mobile app or website that gives users small amounts of bitcoin or any other cryptocurrencies in return for completing simple tasks. It is possible for people to watch product videos, play games, complete captchas, answer surveys, view ads, click links, and do other similar tasks. This is known as a faucet because the rewards you receive are on the small side, not very different from the tiny drops of water that usually drip from a leaky faucet.
Contrary to popular belief, you should note that Bitcoin faucets cannot be considered get-rich-quick schemes. It may sound like a piece of cake to use a free bitcoin faucet to make money, earning a solid amount can take a tad longer, depending on which faucet you use. In most cases, the rewards you earn are directly sent to an online wallet offered by the website. Bear in mind that the difficulty of the task determines the quantity of the rewards; the easier it is, the less you earn.
Likewise, some faucets also require users to have a minimum payout, which means you have accumulated a certain amount of rewards before you can make a withdrawal. This could take a couple of hours, a day, a week or even months. This all depends on the website’s rates.
History of Bitcoin Faucets
Bitcoin faucets have existed for almost a decade. These crypto faucets were developed by Gavin Andresen, a senior Bitcoin developer, a few years after Satoshi Nakamoto launched Bitcoin. The purpose was to create awareness about this new concept of money. A reward of five bitcoins was issued by early bitcoin faucets, which is a whopping $243,000 today!
Getting hands-on bitcoin was tough in the early days because there weren’t many platforms or exchanges where you could buy it. Therefore, in order to pique’s people’s curiosity without pushing them into buying bitcoin and other cryptocurrencies, the concept of faucets was used for handing small amounts of it to people.
Today, many people have created their own faucets to make extra money. They often deposit some BTC in their crypto wallet that’s linked to their faucet app or website. It is possible for faucet owners to make some passive income via the ads, as long as they make more than what they are dispensing in the form of rewards.
How do Bitcoin Faucets work?
As mentioned earlier, bitcoin faucets reward people with small amounts of BTCs upon completing tasks. The rewards are given out in the form of satoshis, which is the smallest unit of bitcoin and is named after its mysterious founder. 1 BTC is equivalent of 100 million satoshis and the amount you get will depend on the task you complete and the reward system of the faucet provider.
Some of these faucets directly send the payment to your Bitcoin wallet or through a third-party micropayment wallet. These micro wallets are similar to traditional desktop or online wallets and can only hold a small amount of cryptocurrency.
Things to Consider before Choosing a Bitcoin Faucet
Now that you understand the concept of Bitcoin faucet, it is natural to want to use one. However, before you choose one of the many available, there are certain things you need to consider. First, you should look at the timer, as some of them have a loading or refresh time, which can be between 15 minutes and a few hours. You should also check the claim amount, which indicates how often you can earn and how much. This also depends on the complexity or simplicity of the tasks you complete.
As mentioned before, some crypto faucets also require you to accumulate a certain amount of satoshis before you can withdraw, so you should look into it. Likewise, also look at the referral fee i.e. how much you can make by referring the faucet to others.