What is a Bitcoin Faucet? Cryptocurrency Faucet?
When Bitcoin was first beginning to pick up traction amongst the retail and mainstream community, a group of users came up with an idea that would yield profit, spread awareness and level of knowledge regarding Bitcoin, and also provide a preliminary framework for beginners to get a hold of the technology behind cryptocurrency. This solution was called a ‘faucet’, a platform where users could get free Bitcoin for watching ads, completing captchas, and the like.
When first starting out with Bitcoin or crypto, you’re bound to make mistakes. Whether it be sending crypto a wrong address, or misplacing your private key, it’s always better to make beginner mistakes with small amounts of money rather than your life’s saving. It’s better to send $1 of Bitcoin to a wrong address and learn your lesson as opposed to sending $10,000 of Bitcoin to a wrong address.
Bitcoin faucets serve as facilitators for learning this type of tech. All that’s required is a valid Bitcoin address that you own and a valid Bitcoin faucet link, and it’s that simple, you’ll be given free Bitcoin (A very very small amount in exchange for either watching an ad or completing a small maze/captcha).
Additionally, there are multiple types of ‘faucets’. Bitcoin faucets are websites that distribute free Bitcoin, Ethereum faucets are websites distributing free Ethereum, and so on.
How to Use Bitcoin Faucets?
Using a Bitcoin faucet is fairly streamlined and straightforward. If you haven’t created one already, you’ll need an accessible Bitcoin wallet. If you’re unsure how to create a Bitcoin wallet and how to use one, you can follow our Bitcoin wallet guide. In any case, you’ll want to ensure that you can access it entirely and find the ‘Receive’ button or process which will generate a string of random letters and numbers, which is your main wallet address. The faucet will know this is where it should send the Bitcoin too, once you enter it on the platform.
The next step is to find a valid Bitcoin faucet; keep in mind many of these faucets are actually just scams and fakes that offer above average Bitcoin deposits, however, the truth of the matter is that many of these will be fake. Therefore, it’s important to do extensive due diligence, while referring to this guide if you ever come to a roadblock.
It should be noted, with Bitcoin faucets, each faucet will have a ‘Reserve’ (Which is the total amount of Bitcoin left able to distribute to other users). Bitcoin faucets will always also have a time limit that predicates when the next time you can receive Bitcoin for will be.
Nonetheless, once you’ve found a Bitcoin faucet of your choosing, the next step would be to copy and paste your receiving wallet address into the input field specified on the faucet; in the image on the right-hand side, this input field is above the green box. In all cases, you’ll be asked to paste the wallet address and in many cases, complete a captcha or watch an ad. Once done, you’ll be successfully sent Bitcoin!
How Do Bitcoin Faucets Make Money?
Bitcoin faucets might seem too good to be true, but the actualization is that they’re not, in fact, they do function as a proper business model, they’re not just giving away Bitcoin for free for absolutely no reason. On pretty much all Bitcoin faucets, you’ll notice an abundance of cryptocurrency advertisements pop up windows, hard to complete captchas and more; this is essentially the profit method of Bitcoin faucets as has been made so for multiple years now. The goal of a Bitcoin faucet is to make more money from advertisements/partnerships than it has to spend on the free Bitcoin it’s giving away to users. Then, you can use that Bitcoin as you want, it doesn’t matter if it’s Bitcoin trading, online payments and much more.
Assume the following: A Bitcoin faucet starts up with $500 in Bitcoin to give away to users for free. The faucet adds a lot of advertisements to the main platform page. Within a week, the faucet has given away all of its $500 in Bitcoin, however, when checking its advertisement stream, the revenue shows that it actually made $575 in ad revenue, making a $75 profit. As a result, the faucet buys $550 in Bitcoin and continues the process.
Of course, there are limitations, and it’d be underwhelming to say that capacity constraints are just a small problem with Bitcoin faucets, however, if executed correctly, it can be a reasonable option for prospective website owners looking to start an alternative business.
So when asking, “Are bitcoin faucets actually legitimate”, a majority of them are in fact legitimate, and you’ll actually get free Bitcoin, however, it will be in minuscule amounts, and you’ll have to deal with a large number of advertisements being thrown at you.