A cryptocurrency faucet disburses small amounts of cryptocurrences in exchange for completing tasks. Some of these tasks could involve filling out a captcha, playing a game, or responding to a survey.
These sites are called faucets because they slowly disburse cryptocurrency to your wallet (as in a dripping tap).
If you’re using a bitcoin faucet, the minimum you can earn is one Satoshi –or one millionth of a bitcoin (0.000000001 BTC)
To cut down on transaction costs, most sites also have a minimum payment threshold for withdrawals. How it works is that you sign up for an account on the site to receieve a crypto wallet key. Once the minimum is reached, you can withdraw the crypto to your regular wallet.
The amount of time it will take you to reach the threshold can take days, if not weeks depending on your level of activity.
In short, signing up for multiple faucets could be a good way for students or newcomers to get acquainted with crypto and blockchain technology.
Faucets and Micro Wallets
Similar in design and function to a regular bitcoin wallet, micro wallets are designed for keeping track of very small amounts of cryptocurrencies.
The specific purpose of micro wallets is to cut down on transaction fees when transferring funds from the faucet wallet account and your main wallet.
Micro wallets are used on the server-side of crypto faucets, so there are no extra steps you should need to take if the platform supports one.
Why Do Faucets Give Away Free Coins?
You might be wondering why some sites are giving away free cryptocurrencies.
Like any online business, a successful faucet makes more money for the owners than what they cost. Revenue for the faucet operators can come in the form of advertisements or for pay per action in the case of filling out captchas or surveys.
There are numerous sites available that track and rate bitcoin and crypto wallets: