Crypto faucets are a popular way for individuals to earn small amounts of cryptocurrency without having to invest any money upfront. These platforms, which have gained significant traction in recent years, offer users the opportunity to earn cryptocurrencies such as Bitcoin, Ethereum, and Litecoin by completing simple tasks or engaging in specific activities. In this comprehensive guide, I will walk you through what a crypto faucet is, how it works, and whether it’s worth your time (it’s not).
Let’s dive straight into it.
About Crypto Faucets
Crypto faucets often require users to complete simple tasks such as filling out surveys, watching advertisements, clicking on links, or playing online games.
These tasks serve as a way for the faucet owners to generate revenue from advertisers or sponsors, which is then shared with the users in the form of cryptocurrency rewards.
I’ll give you an example.
Say I am a small agency based in the Philippines that sells Facebook likes, shares, and comments.
Advertisers want engagement on their content because Facebook promotes the most engaging content in their rankings.
Now, I could get a bunch of developers to automate the clicks and shares but Facebook is pretty good at identifying spam engagement like that.
If, however, the engagement is coming from real users who are distributed around the world then it’s much harder for Facebook to figure out which is the real engagement and which is the less ethical type.
Said agency can now charge their clients per engagement and pay a proportion of that to their users.
For example, say I charge $1 per engagement and then pay you 20 cents for every like or share you do.
This way I can pocket the remaining 80 cents.
Another way these websites make money is by showing you ads.
Don’t be surprised if you get lots of pop-ups and ads after you sign up for a crypto faucet.
Why Do Faucets Pay You in Crypto and Not Dollars?
Well, one of the key benefits of crypto is that you can make micropayments to anyone anywhere.
Imagine the headache of trying to reward someone in Nicaragua $1.12 for their work last week. The wire transfer fees alone would cost much more that than.
Furthermore, with crypto, you can automate payments based on milestones reached.
It’s all code.
There is no need to interact with banks to manage your payments.
A more sophisticated crypto faucet model I have seen is to issue your own coin. If you are interested in going down that rabbit hole, check my post on CLM coin (Claim coin) to understand why a company might want to do that.
Types of Activities You Perform on Crypto Faucets
The activities you perform on crypto faucets are really simple and you usually get paid a few pennies for them.
This means you need to spend a lot of time doing repetitive tasks if you want to earn just a few dollars.
Here are some common tasks you might be asked to perform on a crypto faucet platform
- Solve a CAPTCHA. You know those security checks that tell you to identify the traffic lights or bicycles in pictures?
- Watch a YouTube video
- Fill out a survey
- Like or comment on Twitter, Facebook, Instagram, etc.
- Register for an account on a website or app
- Start a trial subscription
- Complete a level in a game
- Download (and keep) an app on your phone
- Leave a review
- Answer a quiz
- Complete tutorials (that teach you about crypto and trading)
- Refer someone to the faucet
- Sign up and use your money for something. E.g. sign up with a casino and wager $10.
Why Do Crypto Faucets Exist and How Did They Start?
The concept of crypto faucets emerged in 2010 when Bitcoin started gaining popularity.
The idea behind these platforms was to distribute small amounts of Bitcoin to individuals interested in familiarizing themselves with the technology, promoting adoption, or simply exploring the digital currency.
The first bitcoin faucet was called “The Bitcoin Faucet” which was a now-defunct website where you would only need to solve a simple CAPTCHA puzzle to earn 5 free bitcoins.
If you are sitting there thinking “Man, I wish I had known” you are not the only one.
The idea was pioneered by Bitcoin developer Gavin Andresen who had recently become enamoured with the concept of BTC and wanted non-developers to understand its potential.
In his original post on bitvcointalk.org Gavin says:
“For my first Bitcoin coding project, I decided to do something that sounds really dumb: I created a website that gives away Bitcoins. It is at…Five ฿ per customer, first come first served, I’ve stocked it with ฿1,100 to start. “
Over time more and more crypto whales sponsored the faucet.
In its lifetime the Bitcoin Faucet reportedly distributed 19,700 BTC which in today’s price is close to a whopping half a billion dollars.
The Bitcoin Faucet was eventually shut down but many other crypto faucets have sprung up since.
Rather than spreading the word of crypto, these platforms are more motivated by the arbitrage opportunities they see with offerwalls.
Wait, What Is an Offerwall?
An offer wall will be familiar to those of you who play free games on apps you have downloaded on your phone.
Once you are hooked on to a game you usually reach a level where you have to pay to level up (get more guns or equipment that allow you to continue playing etc. Alternatively, you can complete an offerwall.
The offerwall lists a bunch of activities you can do to continue playing.
The most common task is to watch an ad. When you watch an ad the gaming developers are rewarded by the advertiser.
Crypto faucets latched on to the concept of an offerwall.
Now when you join a faucet you will often have the option to complete an offerwall in order to earn crypto.
Let’s take a close look at how crypto faucets work.
How Cryptocurrency Faucets Work
Most cryptocurrency faucets are gamified so that you get bonus points for visiting the faucet daily or completing a certain volume of specific tasks or both.
By completing the different tasks assigned to you on a daily basis you can also level up. Like in any game, there are draws, prizes, and mystery bonuses to be won.
As you level up you get more rewards per task.
Almost all faucets will require you to collect a minimum threshold of points before you can cash them out.
These points are artificially created by the platform.
For example in the screenshot above note how I have 100 ACP (activity points) which at some point I will be able to convert to the crypto of my choice.
Steps to join a crypto faucet
#1. Sign up and verify your email address
You will need to sign up with an email address and verify your address by clicking on the link that the faucet sends you.
#2. Complete your first task.
The faucet website will typically ask you to complete a simple task to make sure you are not a bot.
#3. Perform tasks to Collect points
As you perform actions on a daily basis you will start collecting points.
Once you have collected a minimum amount (which varies by platform) in a micro wallet that the faucet will have set up for you, you will then need to hook up your wallet.
#4. Connect your wallet
When it’s time to withdraw you will need to connect a crypto wallet to the website you are using.
If you have no idea what a wallet is I have got you covered. Just check out my explanation of what a crypto address is.
Once you connect your wallet you can make withdrawals.
Some platforms may have an upper limit on how much you can withdraw per day.
But don’t worry you are hardly ever going to reach that ceiling. To understand why, let’s look closely at how much money you can make from faucets.
How Much Can You Make from Crypto Faucets?
I did a little research across forums such as Reddit and the consensus is that you can earn very very little from joining a crypto faucet.
Most people report earning pennies in a day and $1 per day sounds like the maximum in an ideal scenario.
Most users agree that the most lucrative activity is to refer other people to either the faucet or the advertisers on the faucet platforms such as apps and games.
One user managed to automate “listening” to audio ads 24/7 but even then only earned $12 per month.
So Are Crypto Faucets Worth It?
It depends. If you have nothing better to do with your time then perhaps yes.
For most of the Western world, you are better off getting a minimum-wage job.
If, however, you live you a very poor country, say Malawi where the average monthly salary is $640, then yeah it might be worth your time.
For most developed economies it does not make sense.
In any case, if you are smart enough to be reading about crypto I would argue on this site there are better alternatives to earn income from crypto no matter where you live. (Just scroll to the bottom to read the passive mining post)
If you do decide to use a crypto faucet here are a few strategies you can maximize your returns
Tips and Strategies for Maximizing Your Earnings from Crypto Faucets
Although crypto faucets do not generate substantial income, there are strategies that users can employ to maximize their earnings:
- Time Management: Allocate a specific time slot to complete tasks efficiently without becoming overly consumed.
- Multiple Faucets: Engage with a variety of faucets to diversify earnings and ensure a steady flow of rewards.
- Referrals: Take advantage of the faucet’s referral program to earn additional rewards by inviting new users to join the platform.
Having said that even if you maximize your earnings, the maximum isn’t that much so don’t expect to be able to earn more than $10 per month.
You also need to exercise extreme caution when hooking up your wallet to a website that offers you free crypto.
There have been loads of scams and leaky faucets that steal your crypto assets or do not reward you for the work you put in.
How to Reduce Risk and Avoid Fraudulent Faucets
It is important to note that crypto faucets are not a get-rich-quick scheme.
The amounts of cryptocurrency distributed through faucets are typically very small, and it can take a significant amount of time and effort to accumulate a substantial balance.
Additionally, the value of the cryptocurrency earned through faucets can be volatile, and there is no guarantee that it will increase in value over time.
When engaging with crypto faucets, users must prioritize their security and privacy. Follow these guidelines:
- Secure Wallet: Use a secure cryptocurrency wallet to store and manage your earnings from faucets. Avoid sharing your wallet’s private keys or sensitive information.
- Privacy Policies: Review the privacy policies of faucet platforms to understand how your personal information will be handled.
- Phishing Attacks: Be cautious of phishing attempts, where malicious actors may impersonate legitimate faucets to steal personal information or access your digital assets.
- Malware Protection: Ensure your browsing devices have reliable antivirus software installed to protect against potential malware or cryptomining scripts.
- Research and Reviews: Conduct thorough research and read user reviews to identify legitimate faucets with a positive reputation.
- No Personal Information Sharing: Legitimate faucets do not require personal information such as social security numbers or bank account details. Exercise caution if a faucet asks for such information.
Disclaimer: While I talk a lot about crypto faucets in this post please make sure you do your own research and due diligence. No one is going to give you loads of crypto for free like sweet mana from heaven.
To get a better perspective let’s sum up with pros and cons of crypto faucets
The Pros and Cons of Using Crypto Faucets
Crypto faucets offer both advantages and disadvantages to users. Understanding these can help individuals decide whether or not to engage with these platforms:
Advantages:
- Entry Point: Faucets provide a risk-free entry to the world of cryptocurrencies, allowing users to accumulate digital assets without any initial investment.
- Learning Opportunity: Engaging with faucets is an easy way for users to understand the mechanics and technology behind cryptocurrencies. For example, some platforms offer rewards for completing tutorials on crypto. Check out what is “coinbase earn” for more on this.
- Passive Income or pocket money: By completing easy tasks, users can earn cryptocurrency rewards in their spare time. This is a great way to earn some supplemental income in poorer countries.
- Diversification: Faucets offer the opportunity to collect different cryptocurrencies, allowing users to diversify their digital asset portfolios.
Disadvantages:
- Low Earnings: The amount of cryptocurrency earned through faucets is relatively small and may not be worth significant time investments.
- You may end up spending more than you make. For example, if you sign up and deposit money in a game you may end up being the customer rather than the worker.
- Too many ads: Many crypto faucets rely on advertisements for revenue, which can lead to a tedious and intrusive user experience.
- Potential Scams: Due to the popularity of crypto faucets, fraudulent platforms have surfaced, seeking to deceive users and extract personal information.
- Limited Availability: Faucets may restrict access based on geographic location, limiting earning opportunities for some individuals.
Most Popular Crypto Faucets
It is vital to note that the popularity of crypto faucets can vary over time. However, some of the most popular faucets:
For a more detailed review check out my post below
Top 30 Crypto Faucets for Passive Income.
Today we’ll be exploring the world of crypto faucets and how they can help you earn some extra income on the side. While the payouts may not be significant, these faucets can offer a low-risk way for individuals to dip their toes into the world of cryptocurrency. In this article, we’ll be taking a closer look at the 30 best crypto faucets out there, examining how they work and what they offer to their users. Read more.
Up Next
There are smarter ways to earn a return on your assets in crypto.
As you can tell from this article I personally don’t like faucets.
Not only do you not earn that much but it also feels unethical to be engaging with content if you are not genuine about it.
A better alternative to earn income from crypto is passive crypto mining. You can find out more below:
Passive Crypto Mining: 7 Best Strategies to Earn Income (2023)
Passive crypto mining is a strategy that allows miners to earn Bitcoin or other coins without actively participating in the process. But the terminology can be so confusing that it’s hard to figure out how to go about it. On top of that the options seem endless. So how do you figure it all out? What is the easiest way to generate income by holding or staking your cryptocurrencies through smart contracts? Well, buddy you’ve landed on the right page. Stick around and I will walk you through all you need to know. Read more.
Also related
20 Best Dogecoin Faucets Where You Can Get Free Doge (2023)
In this article, I review the top Dogecoin faucets. If you are a DOGE fan then this post is for you. Read more.
FAQs
Are crypto faucets worth it?
Not unless you live in a country with one of the lowest salaries. You can expect to earn less than $10 per month in the best case scenario where you spend your whole day completing tasks. Added to that, many faucet target you as a customer with sign up offers and ads.
Do crypto faucets work?
Yes, technically you can earn crypto if you complete the task and legit faucets will allow you to withdraw the crypto to your wallet. However, the monetary rewards are very low and many faucets place a limit on the amount of crypto you can withdraw per day.
What is the difference between faucets and airdrops?
A crypto faucet asks you to complete simple tasks like watching a video or downloading an app. Airdrops are coins or tokens that are gifted at issuance to highly engaged users of a platform. For example, say I launch a platform called elementalcrypto that does some funky stuff. Then, if after a year, I want to issue and circulate a coin called LMNTAL I may give some of it for free to the most active users of my platform to say thank you and create some publicity.
Is a faucet legal in crypto?
While there are many legit crypto faucets out there you also need to be careful of fraudulent ones. I would also question the ethics of the legit ones. After all, how ethical is it to get paid to download an app just so that the app can report a higher number of downloads to its users.
What is an example of a crypto faucet?
One of the better known examples of a crypto faucet is Firefaucet. When you sign up the platform will ask you complete tasks such as watching a video, singing up to a platform or game or downloading an app. As you complete tasks you earn points. After you reach a certain threshold you can convert those points into cryptocurency and send it to your wallet.