A crypto faucet is a website that pays out tiny amounts of crypto in exchange for performing small tasks, such as clicking on links or watching ads.
If you’re not from the United States you may be doubly confused by the term crypto faucet as the word faucet doesn’t actually exist in British English.
In the UK we would refer to a faucet as a tap, as in a tap where water flows out.
Okay, so, that clears up what a faucet is for non-Americans, the next question is, what does a faucet or tap have to do with crypto?
Let’s find out.
In order to understand the term crypto faucet, we can think of a tap or faucet, where generally water, beer or soda flows but in this case crypto drips out.
Now, imagining the crypto slowly dripping out of the faucet as opposed to flowing out at speed is very important in order to understand the levels of money or rather crypto you are likely to earn on a crypto faucet website.
A crypto faucet is no get-rich-quick scheme! It is however free crypto, although you are still investing your time, and time is money for most people.
If you have the time and inclination you could earn yourself tiny amounts of crypto without actually paying for it and the beauty is in the fact that the value of that same crypto could rise considerably.
This wouldn’t necessarily be the same if you were earning the equivalent in a fiat currency like GBP, EUR or USD.
Let’s imagine you earn a reward of £0.05 each time you click on an advert.
The value of that 5 pence will not really go up, the value of the 5 pence today will be roughly the same next year or the year after if we ignore inflation.
Now, imagine that that same 5-pence was worth £0.50 or £1 next year.
This changes things.
With crypto as it is at this moment, the price can rise and of course, fall quite dramatically in the course of even a few weeks or months.
This volatility and growth potential makes the earning of rewards in crypto as opposed to a fiat currency potentially more interesting.
Early crypto faucets users could possibly have become millionaires
Crypto faucets started out during the early days of Bitcoin as a way to spread awareness of this new thing known as a cryptocurrency.
As difficult and painful as it may be to imagine today, those early crypto faucet users could be earning one or two bitcoin for clicking on links, it may have been a relatively worthless drip back then, however, today a single bitcoin is worth upwards of €43,000.
So, in theory, if you had earned as little as 25 bitcoin back then when they were virtually worthless, they would be worth over €1 million! Yes, you would be a millionaire.
Unfortunately, the Bitcoin opportunity is long gone, today you would earn Bitcoin in what are known as Sats or Satoshis, one Satoshi is one hundred millionth of a Bitcoin or 0.000000001 BTC
How does a crypto faucet work?
In the simplest sense, a crypto faucet website pays a reward in exchange for performing a task such as clicking on a link, watching an advertisement, completing a captcha or maybe promotion on social media.
Crypto faucet websites get paid by their clients for each task and they pass on some of the rewards to the users of the website.
Crypto faucet websites usually have some form of minimum payout threshold, so the little drips of crypto you earn accumulate in a micro wallet on their website until such time that a certain minimum balance is reached, at which point the earned crypto can be paid out to your own personal crypto wallet.
What are the downsides of crypto faucets?
There are no major downsides except that you need to invest time earning the crypto, however, there are some potential risks to be aware of.
It is not impossible that you could be clicking links that could be malicious and end up putting malware on your computer, which in turn could turn out to be disastrous.
It is therefore essential that you have your wits about you, use some common sense and are careful about what you click.
Doing research on what are reputable crypto faucet sites will certainly help reduce the risks.
Does one need knowledge of crypto to use a crypto faucet?
The great thing is that pretty much anybody can use a crypto faucet, there is no knowledge of crypto required although it is useful to know a little bit in order to know what crypto you would like to earn
Can one earn other types of crypto aside from Satoshis (tiny fractions of Bitcoin)?
Yes, although the original crypto faucets were offering Bitcoin it is also possible to earn Ethereum, Litecoin and Monero to name a few. A quick Google search will find you plenty of crypto faucet lists to choose from.
Anything else to watch out for?
Sadly, as with many aspects of crypto, even crypto faucets can attract scammers.
Scams can include simply not paying out once the threshold has been reached or just logging users out.
This type of scam is akin to making you work and then not paying you, not nice.
Again, to be safe, do some research and see what the word on the street is before using a crypto faucet.
As the well-known saying goes, “There’s no such thing as a free lunch” and it’s true, even with crypto faucets it’s not a free lunch as you still need to do some work but it can allow you to accumulate small amounts of crypto without actually paying out hard cash.
If you have more time than money or would like to find a financially risk-free way to delve into the world of crypto, crypto faucets could be a place to start.
You never know, maybe there’s another Bitcoin-size opportunity on the horizon and you could earn a tiny amount now that could be worth a lot more in the future!