April 2, 2019, | AtoZ Markets - A bitcoin faucet is a certain feature on websites which periodically transfers cryptos directly to the user’s bitcoin wallet or a 3rd party micropayment wallet like CoinPot or FaucetHub. Some people, still consider bitcoin faucets to be a hassle, others think, that it is a convenient way to start earning bitcoins from scratch.
What is a Bitcoin Faucet?
Considered to be designed by a software developer Gavin Andresen in 2010, bitcoin faucets are sites that give free cryptos for:
- Decryption CAPTCHA,
- Website visits
- Watching videos
- Offer Walls
- Pay to Click Ads
- Browser games
According to Andersen, the bitcoin faucets were initially created to expand the crypto community. The idea was to distribute bitcoin as widely as possible. Gavin Andresen decided that only through “having skin in the game and sending and receiving BTC” would help people to understand the concept of cryptos.
“For my first Bitcoin coding project, I decided to do something that sounds really dumb I created a website that gives away bitcoins,” the first bitcoin faucet founder stated.
Since 2010, however, the main concept of the crypto faucets has changed. The bitcoin faucets website admins might still claim, that their main aim, is to expand the bitcoin community. However, nowadays, companies use bitcoin faucets to increase their website traffic.
How do Bitcoin faucets work?
Visitors of the Bitcoin faucet platforms got paid with coins for viewing ads. The earned coins are called Satoshi, one satoshi is 1/100 million part of bitcoin. Depending on the project, it is possible to get up to 200 satoshis per hour, using only a home computer, and not buying expensive equipment. Bitcoin faucets do not provide more than 10 000 satoshis per one time. Bitcoin faucet’s working algorithm looks the following way:
- Before launching their project, the owners of the faucet place ads on their website in the form of videos or banners. Also, the faucet owners might publish links to their web page on forums, blogs, and thematic resources.
- People visit a cryptocurrency faucet and perform certain actions (go to advertisers' websites, enter the captcha, play an online game, read text ads). The longer the visitor stays on the site, the better traffic the website gets.
- After the action is completed, a button appears, asking the users to enter their wallet number/address.
How to start earning with Bitcoin faucet?
To accumulating coins with the bitcoin faucets, the following steps are required:
- install a bitcoin wallet;
- choose a suitable site and make sure that there is money in the account of the faucet;
- specify the address of the"wallet" after performing a specific action;
- click on the bonus receipt icon (if there are any);
- start earning coins;
- withdraw coins to the wallet.
Why people use Bitcoin faucets?
There are some reasons why anybody would want to run their own faucet:
- To give something back: The crypto area remains new and a bit scary to many people. Faucets are a great way to help introduce new people to cryptocurrency. It allows newbies to ‘try before they buy’ coins. It enables users to experiment with a test transaction or two before putting real money on the line.
- To get traffic: Faucets are high traffic websites. It is not all that difficult to get a huge number of page views per day to a site which is giving away free money.
- To make money: Making a profit from a faucet site on its own is a lot harder than just making a popular faucet, but it is still possible. There are a lot of similar websites, so it's a very competitive market, and earning enough from advertising to cover the cost of the coins you are giving away is not easy. Creating an additional content or unique or interesting twist on the website can help.
How to create your own Bitcoin faucet?
With the growing popularity of cryptocurrency and blockchain technology, the number of projects allowing to earn virtual money without leaving home has increased. Using a computer and a mobile phone on Android and iOS, creating a bitcoin faucet with a capital of 1 BTC is not a problem. There is a wide range of helpful services and tools to make the faucet website.
- The most popular method is using micropayment services like Faucetbox, Microwallet or Paytoshi, which provide an API for tracking claims and referrals, and usually, provide a basic website script.
- The best way to go is to build personal fully independent site. This method provides more freedom to create a unique user experience that will attract visitors. Although it is crucial to be familiar with the terms of security, as people will try to exploit any vulnerabilities in the faucet website to steal the coins.
There are following ways to promote new bitcoin faucet:
- Most faucets have a referral program which pays out a commission to anybody who sends new users to the site
- Many faucet visitors use rotators, which help them to navigate through the best paying faucets.
- Social Media: sharing from personal profiles may provide a few regular users to get the ball rolling.
- BitcoinTalk: the forum is a great place to create a thread announcing new faucet to the world.
Experts opinion on Bitcoin faucets
People still argue about bitcoin faucets safety and whether they are fraud or not. This is not true. The owner of this site does not earn on contributions from visitors, and on advertising. A part of the income received is transferred to registered users, and the remaining share remains in the owner’s wallet. Atoz Markets collected some expert opinions on the bitcoin faucets.
Milan Komar worked at Indian Institutes of Technology
“A bitcoin faucet is a certain feature on websites which steadily drips bitcoin. Like for instance, a website might dispense a fraction of free bitcoin every second as a promotion. It’s usually an extremely small amount, awarded to one user every few minutes. If a faucet holds visitors on a website, it may translate to higher ad revenue, increased engagement or other benefits for the site’s owners that make it worthwhile.”
“Most of the top Bitcoin faucets are generally safe. They are a good way to earn money for beginners who are just seeking to get some few satoshis for free. However, you should always do your own research before investing your time and effort signing up for bitcoin faucets websites. I consider freebitco and cointiply as a trusted option to earn some free bitcoins. You just have to obtain a wallet, and then you do a task and a really small amount will be sent to your wallet. It is a good way to dip your feet in the bitcoin world, but it is really small and takes a lot of time, not for big gains!”
Please share your thoughts in the comment box below.