Faucet

What Is a Faucet?

A faucet is a system that offers rewards to cryptocurrency holders who complete specific tasks on a website. It provides an easy way to earn crypto assets without needing any expertise in cryptocurrency trading. These tasks can include viewing ads or completing captcha tasks. The main purpose of the reward system is to encourage the purchase of cryptocurrencies, particularly altcoins, which are alternative digital currencies to Bitcoin.

Since the increase in cryptocurrency prices in 2019, payouts from faucets have significantly decreased. To be eligible for a small portion of coins, users usually have to complete a captcha.

Bitcoin faucets are unsurprisingly one of the most popular types of faucets. The first Bitcoin faucet was created by Gavin Andresen in 2010. In the early days, Bitcoin faucets were worth five whole BTC. Later on, faucets tied to Ethereum, Dogecoin, and Litecoin also emerged.

In the case of BTC, the faucet rewards users with satoshis, which are the hundredth of a millionth of a Bitcoin. The term “satoshi” was named after Bitcoin’s founder, Satoshi Nakamoto.

Most faucet rewards are paid directly to the user’s wallet or the third-party wallet being used. It is important to note that faucets should not be mistaken for airdrops and bounties, which are other methods of receiving cryptocurrency awards. Airdrops are typically distributed by cryptocurrency start-ups and provide a one-time reward for assisting with community building.

Bitcoin Aliens is a faucet that was developed in 2014. It enables users to earn various key cryptocurrencies, such as Bitcoin, Litecoin, and Bitcoin Cash, as a reward for playing games on their phone.