{"id":57738,"date":"2023-05-04T05:57:05","date_gmt":"2023-05-04T05:57:05","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=definition&#038;p=57738"},"modified":"2024-05-15T14:06:19","modified_gmt":"2024-05-15T14:06:19","slug":"crypto-faucet","status":"publish","type":"definition","link":"https:\/\/www.techopedia.com\/definition\/crypto-faucet","title":{"rendered":"Crypto Faucet"},"content":{"rendered":"<h2><span id=\"what_is_a_crypto_faucet\">What is a Crypto Faucet?<\/span><\/h2>\n<p>A crypto faucet is a website or application that awards registered users with small amounts of <a href=\"https:\/\/www.techopedia.com\/definition\/27531\/cryptocurrency\">cryptocurrency<\/a> in exchange for completing a simple task such as viewing an ad or participating in a short survey. Essentially, <a href=\"https:\/\/www.techopedia.com\/cryptocurrency\/best-crypto-faucets\">crypto faucets<\/a> are a marketing strategy that crypto platform owners use to introduce new users to a specific cryptocurrency.<\/p>\n<h2><span id=\"history\">History<\/span><\/h2>\n<p>The first crypto faucet was created by software developer Gavin Andresen in 2010 to promote Bitcoin. New users who visited his <a href=\"http:\/\/web.archive.org\/web\/20100703032414\/http:\/\/freebitcoins.appspot.com\/\" target=\"_blank\">Bitcoin faucet website<\/a> could solve a simple <a href=\"https:\/\/www.techopedia.com\/definition\/193\/completely-automated-public-turing-test-to-tell-computers-and-humans-apart-captcha\">captcha<\/a> once a day to prove they were not a software robot (<a href=\"https:\/\/www.techopedia.com\/definition\/10459\/bot-software-robot#What_Does_Bot_Mean\">bot<\/a>) and receive <a href=\"https:\/\/bitcointalk.org\/index.php?topic=183.0\" target=\"_blank\">5 free Bitcoins <\/a>each day.<\/p>\n<p>Andresen initially funded the faucet with his own personal Bitcoin holdings to encourage Bitcoin adoption. As Bitcoin&#8217;s value increased, however, it became increasingly challenging for Andresen to fund the faucet (even with community help) and in 2012, it was shut down.<\/p>\n<p>Following Bitcoin&#8217;s initial success, other crypto operators began to create faucets to promote their own <a href=\"https:\/\/www.techopedia.com\/definition\/6702\/digital-currency\">digital currencies<\/a>. As cryptocurrency adoption became more widespread, those operators found themselves facing the same sustainability issues that Andresen had to deal with.<\/p>\n<p>One popular solution was to partner with pay-per-click (<a href=\"https:\/\/www.techopedia.com\/definition\/24753\/pay-per-click-ppc\">PPC<\/a>) and cost-per-impression (<a href=\"https:\/\/www.techopedia.com\/definition\/26698\/cost-per-impression-cpi\">CPI<\/a>) advertising networks and use a portion of the revenue to fund faucet rewards. To keep participants engaged, advertisers began to incorporate <a href=\"https:\/\/www.techopedia.com\/definition\/23489\/gamification\">gamification<\/a> elements in their ads to make the user experience (UX) more enjoyable.<\/p>\n<h2><span id=\"how_crypto_faucets_work\">How Crypto Faucets Work<\/span><\/h2>\n<p>To use a crypto faucet, participants first have to register and perform a quick, easy task such as:<\/p>\n<ul>\n<li>Solve a captcha<\/li>\n<li>Click on an ad<\/li>\n<li>Watch a short video<\/li>\n<li>Play a short video game<\/li>\n<\/ul>\n<p>Once they have finished the task, the user can claim their reward, which is typically credited to their new account on the faucet platform. Some faucets charge a small transaction fee for withdrawals. In the early days, there were few places where users could spend their digital currency, but today there are plenty of <a href=\"https:\/\/www.techopedia.com\/cryptocurrency\/what-can-you-buy-with-bitcoin\">vendors that accept Bitcoin<\/a> and other <a href=\"https:\/\/www.techopedia.com\/definition\/altcoin-alternative-coin\">altcoins<\/a>.<\/p>\n<p>While it&#8217;s true that faucets provide users with a way to earn small amounts of free cryptocurrency, it is important to approach them with caution. Today, the earnings from faucets are generally low, and the <a href=\"https:\/\/www.techopedia.com\/definition\/24747\/cybersecurity\">cybersecurity<\/a> risks associated with using them can be high.<\/p>\n<h2><span id=\"the_risks_of_using_crypto_faucets\">The Risks of Using Crypto Faucets<\/span><\/h2>\n<p>While faucets were initially conceived as a useful tool for introducing newcomers to specific cryptocurrencies, malicious actors have used them to hijack computing devices and use them to <a href=\"https:\/\/www.techopedia.com\/definition\/33729\/cryptomining\">mine cryptocurrency<\/a> without the device owners&#8217; consent.<\/p>\n<p>This practice, which is known as <a href=\"https:\/\/www.techopedia.com\/definition\/33200\/cryptojacking\">cryptojacking<\/a>, not only slows down an unsuspecting user\u2019s computing device, it also <a href=\"https:\/\/www.techopedia.com\/bitcoin-minings-environmental-impact-a-balanced-look-at-the-crypto-energy-controversy\">consumes significant amounts of energy<\/a> which may not be noticed until the user gets their next electricity bill.<\/p>\n<p><a href=\"https:\/\/www.techopedia.com\/definition\/10380\/information-privacy\">Privacy<\/a> is another concern because crypto faucets often require users to provide personally identifiable information (<a href=\"https:\/\/www.techopedia.com\/definition\/4046\/personally-identifiable-information-pii\">PII<\/a>) during the registration process. If this data is misused or sold to third parties, it not only compromises the user\u2019s information privacy but can also expose them to additional types of cyber <a href=\"https:\/\/www.techopedia.com\/definition\/15793\/attack-vector\">attack vectors<\/a>, including <a href=\"https:\/\/www.techopedia.com\/definition\/13637\/identity-theft\">identity theft<\/a> and <a href=\"https:\/\/www.techopedia.com\/definition\/4121\/spear-phishing\">spear phishing<\/a>.<\/p>\n<p>Another risk factor of using faucets to earn fee digital currency is that some faucets have hidden fees and high minimum withdrawal thresholds. In some cases, the withdrawal fees can be so exorbitant, it significantly reduces &#8212; or even negates &#8212; the value of the earned cryptocurrency.<\/p>\n<h2><span id=\"crypto_faucets_vs_airdrops\">Crypto Faucets Vs. Airdrops<\/span><\/h2>\n<p>Airdrops and crypto faucets are similar because they both involve the <a href=\"https:\/\/www.techopedia.com\/cryptocurrency\/earn-free-crypto\">distribution of free cryptocurrency<\/a> to users; the difference is that airdrops don&#8217;t require the user to perform a specific task.<\/p>\n<p>When a cryptocurrency project uses airdrops as a marketing strategy, they deposit (drop) free tokens into registered users&#8217; <a href=\"https:\/\/www.techopedia.com\/definition\/1776\/digital-wallet\">digital wallets<\/a> to create awareness for a new project, increase the number of token holders for a specific coin, or reward users who have shown loyalty.<\/p>\n<p>Just as with faucets, there are risks associated with airdrops that users should be aware of. If a <a href=\"https:\/\/www.techopedia.com\/definition\/4049\/phishing\">phishing email<\/a> disguised as a marketing message requires the user to download a new &#8220;special&#8221; wallet before they can receive their free tokens, for example, it should raise a red flag. Similar to crypto faucets, to prevent being scammed by bogus airdrop schemes, users should always use reputable sources to conduct research and validate the giveaway on the project&#8217;s website.<\/p>\n<h2><span id=\"4_popular_crypto_faucets\">4 Popular Crypto Faucets<\/span><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-67286\" src=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/05\/crypto-faucet-300x296.png\" alt=\"Crypto faucet icon courtesy of VectorStock.com \" width=\"245\" height=\"242\" srcset=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/05\/crypto-faucet-300x296.png 300w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/05\/crypto-faucet.png 720w\" sizes=\"(max-width: 245px) 100vw, 245px\" \/><\/p>\n<p><strong><a href=\"https:\/\/shrt.care\/02da7472\" target=\"_blank\">FreeCash<\/a><\/strong> is one of the best ways to start earning rewards with cryptocurrencies. This website allows users to complete online surveys, test new apps, sign-up on platform websites &#8211; and earn crypto through the process.\u00a0Here are a few other features and rewards one can earn with FreeCash:<\/p>\n<ul>\n<li>After signing up with FreeCash, you can extract one of these 4 bonus amounts &#8211; $0.05, $0.25, $2.5, or $250.<\/li>\n<li>The average customer starts earning cash within 17 minutes of using FreeCash<\/li>\n<li>So far, FreeCash has paid out more than $53 million worth of rewards to customers<\/li>\n<li>Funds can be cashed out in several cryptos &#8211; such as Bitcoin, Ethereum, Litecoin, and Dogecoin.<\/li>\n<\/ul>\n<p><strong>FreeBitco.in<\/strong> is one of the most popular <a href=\"https:\/\/www.techopedia.com\/cryptocurrency\/what-can-you-buy-with-bitcoin\">Bitcoin<\/a> faucets. It has been around since 2013 and allows users to claim small amounts of Bitcoin in satoshis, which are the smallest unit of Bitcoin. According to their website, users can win up to $200 in free satoshis every hour by solving a simple captcha. The platform also offers additional features such as:<\/p>\n<ul>\n<li>A provably fair, high-low game that allows users to wager their BTC and potentially multiply it.<\/li>\n<li>Weekly lotteries.<\/li>\n<li>Programs that allow users to start earning interest on accounts that meet a minimum balance requirement.<\/li>\n<li>A referral program that allows users to earn satoshis by referring new users to the platform.<\/li>\n<\/ul>\n<p><strong>Cointiply<\/strong> is another popular cryptocurrency faucet that allows users to earn free Bitcoin and other cryptocurrencies (such as <a href=\"https:\/\/www.techopedia.com\/definition\/33147\/dogecoin\">Dogecoin<\/a>) by completing various tasks. Users can claim coins by:<\/p>\n<ul>\n<li>Solving captchas every hour.<\/li>\n<li>Watching short video ads.<\/li>\n<li>Participate in surveys and offers from Cointiply&#8217;s partners.<\/li>\n<li>Playing browser-based games.<\/li>\n<li>Installing mobile apps and using them to complete specific tasks.<\/li>\n<li>Referring others to Cointiply and earning a percentage of their earnings.<\/li>\n<li>Wagering coins in a provably fair game to potentially multiply earnings.<\/li>\n<\/ul>\n<p><strong>Faucet Crypto<\/strong> is a cryptocurrency faucet that allows users to earn free cryptocurrencies, including <a href=\"https:\/\/www.techopedia.com\/cryptocurrency\/best-crypto-to-buy\">popular crypto assets<\/a> like Bitcoin, Ethereum, and <a href=\"https:\/\/www.techopedia.com\/cryptocurrency\/best-altcoins\">various altcoins<\/a>, by completing tasks such as:<\/p>\n<ul>\n<li>Clicking on a link.<\/li>\n<li>Viewing an ad for a certain period of time.<\/li>\n<li>Completing a survey, watching a video, or installing an app.<\/li>\n<li>Participating in offers from Faucet Crypto&#8217;s partners.<\/li>\n<li>Visiting the site regularly.<\/li>\n<li>Referring others to the platform.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a Crypto Faucet? A crypto faucet is a website or application that awards registered users with small amounts of cryptocurrency in exchange for completing a simple task such as viewing an ad or participating in a short survey. Essentially, crypto faucets are a marketing strategy that crypto platform owners use to introduce new [&hellip;]<\/p>\n","protected":false},"author":7813,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","om_disable_all_campaigns":false,"footnotes":""},"definitioncat":[272,255],"class_list":["post-57738","definition","type-definition","status-publish","format-standard","hentry","definitioncat-cryptocurrency","definitioncat-cyber-threats"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.2 (Yoast SEO v24.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is a Crypto Faucet, How Does It Work and Is It Safe to Use?<\/title>\n<meta name=\"description\" content=\"This definition explains what a crypto faucet reward system is, how it works and how to avoid crypto faucet scams.\" \/>\n<meta name=\"robots\" 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