What is a Crypto Faucet and How Does It Work?

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The cryptocurrency market is a wonderful and nascent financial space that is still under development. There are many unique and interesting opportunities to come out of this market. One such option is a crypto faucet.

At first glance, most cryptocurrency investors are bound to ignore or dismiss such an idea. However, the reality is that cryptocurrency faucets are real and legitimate. In this article, we are going to talk in detail about crypto faucets and how to recognize authentic sites.

What is a Crypto Faucet?

A crypto faucet is a concept that can be a website or a mobile application. This is a free giveaway of cryptocurrencies as a reward for investors. Many scammers defraud users by setting up scam sites that are masked as crypto faucets. Therefore, most cryptocurrency investors may dismiss any project that claims to be a crypto faucet.

However, the reality is that there are many legitimate crypto faucets. These sites operate following business models that are profitable for both the administrators and the participants. Crypto faucets are not like IPOs or ICOs, and they are named because they offer small amounts of cryptocurrency giveaways, much like a real faucet that is leaking tiny drops of water.

How do Crypto Faucets Work?

There is a rule in economics called TANSTAAFL which means that there are no such things as free giveaways in the realm of business and finance. Many people are aware now that free social media sites collect data from their users and make profits by selling them to advertisers.

Therefore, it is wrong to assume that crypto faucets are some type of charity initiative that is set up to grant free cryptocurrency rewards to their consumers. The main objective of a crypto faucet is to spread awareness about a certain cryptocurrency.

The tradition started with Bitcoin when it was only acknowledged by a few people in the technology sector. However, following the introduction of the Bitcoin faucet, many more people were able to interact with the flagship coin.

At the same time, the users who were not familiar with how Bitcoin works learned about ways to store and use it. On the other hand, there are several crypto faucets that adopt digital market methods to justify the rewards.

They offer users an option to view ads, answer surveys, write reviews, or click on shortlinks.  All of these options work by generating PPV or Pay-Per-View revenue for the crypto faucet site. The users are asked to provide their digital wallet address during the sign-up process.

Most crypto faucet sites generate micro wallets automatically for every new user account and keep transferring the cryptocurrency rewards to their main wallet by transfer. There are minimum rewards withdrawal limits, and the tasks to earn crypto rewards are often time locked.

Origin of Crypto Faucet

The first crypto faucet was created by Computer Scientist and blockchain developer Gavin Andersen in 2010. He introduced a Bitcoin faucet, and at the time of its introduction, it was rewarding each new user with as many as 5 Bitcoins.

According to careful estimates, this faucet rewarded a total of 19,700 Bitcoin throughout its tenure. Considering that Bitcoin prices were capped at $15.76 at the time, the total giveaway estimates seem realistic. Andersen asked the users to complete easy online tasks to earn these Bitcoins.

His main intention was to spread awareness about Bitcoin and its utility among users. Furthermore, at the time of the Bitcoin faucet creation, the cryptocurrency was not listed on limited cryptocurrency exchanges. The introduction of Bitcoin Faucet in 2010 can be viewed as a long-term marketing investment that paved the way for more users to get interested in digital currency.

At the same time, this idea gained considerable popularity among users, so much so that many other cryptocurrency projects adopted the same method.

Are Crypto Faucets Useful?

At present, the price of Bitcoin is around $24K during its peak in November 2021; the genesis crypto coin gained as much as $69K per unit. However, the eventual peak of Bitcoin was not a coincidence. Developers like Gavin Andersen and others worked to ensure that the information about Bitcoin spread across the globe using social media and crypto faucets.

In this manner, more people became aware of the existence of cryptocurrencies like Bitcoin, and as more users became stakeholders in Bitcoin, they, in turn, advocated for the promotion and adoption of the firstborn cryptocurrency.

The non-technical users who felt uneasy interacting with technical entities like blockchain were easily able to interact with faucets sites. It was a fun way for mainstream users to learn about cryptocurrencies and interact with them without struggling with technical complications.

At the same time, the users also learned to store and manage their cryptocurrencies and became familiar with the use of cryptocurrency wallets. Crypto faucets encouraged a new generation of internet service users to get curious about cryptocurrencies and learn more about them.

How can I Earn Rewards Using Crypto Faucets?

If you are new to the concept of crypto faucets, it can seem like a challenge to understand the process of crypto faucets and how to use them to earn free rewards. Here are some easy and simple steps that anyone can follow to qualify for earning rewards from a crypto faucet:


Crypto faucets operate as part of the DeFi ecosystem such that they are not regulated. Therefore, most users are not required to go through extensive scrutiny during the sign-up process, such as KYC and AML.

The users can sig-up using their working email address easily and quickly. The only important prerequisite for Crypto Faucets is a cryptocurrency wallet. The users are given micro wallets that are built-in the faucet site, but the users need to connect their original crypto wallet to withdraw their cryptocurrency reserves once they have reached the required minimum limit.

It is a good idea for the users to go through the terms and conditions of the crypto rewards during the sign-up process.

Captcha Entry

A closed captcha is an online account verification method that every internet user is aware of. There are many sites, such as email service providers, that require their users to complete a closed captcha to make sure that they avoid getting attacked by bots.

Crypto faucets give their users a chance to earn small crypto rewards by assigning them a predetermined amount of captcha to solve within a limited duration.

Video Credits

Many content creators pay advertisers to increase their daily views. As technology is getting better, there are fewer ways to complete these obligations without real user input.

Faucet sites incentivize their users with tiny crypto rewards by offering them to earn credits by watching videos on online streaming services.

Online Polls

Taking an online poll can be annoying and time-consuming. However, account holders on faucets can earn credits by participating in various types of online polls.

In return, they can earn points and use these points to earn cryptocurrency rewards by redeeming them.

Crypto Games

Crypto gaming is gaining more popularity among investors. However, there are not many participants who are using these sites. Therefore, the users can gain access to play online games that are made available by crypto faucets and earn reward points for completing new levels and registering new achievements in return for cryptocurrency rewards.

Online Advertisements

In most cases, users try to avoid any and every online advertisement. However, when the users are on crypto faucet sites, they can spend time watching these annoying advertisements to earn points and redeem them for crypto rewards.

Referral Programs

The main aim of crypto faucet sites is to spread more awareness and recruit as many new people as possible. Therefore, many applications and sites grant users referral links that they can share with their friends or family members.

Whenever a new user signs up using their referral link, the users are bound to earn more points for crypto rewards.

Similarities Between Crypto Faucets and Crypto Airdrops

Airdrops are cryptocurrency rewards that are issued by crypto startups to incentivize their first investors. The idea is that the new concept of cryptocurrency projects is trying to gather clout and earn the funds to establish their organization.

Therefore, these new companies can announce Airdrops for the investors who are going to invest in these projects before they have made their public debut. Investors seek such projects in the hope that they can earn a new cryptocurrency with enough potential at a very small or negligible price.

And they are hoping that these cryptocurrency projects undergo several folds appreciation and become profitable for them in the future.

At the same time, this initial layer of investors also serves the purpose of being liquidity providers. On the other hand, there is always considerable media hype built around any new Airdrop, and many people can take to social media sites to spread the word about the startup they are invested in.

In some cases, airdrops can also work to break the monopoly of a certain established cryptocurrency brand. In the end, airdrops work as advertisements for a crypto startup, but they earn money during this process rather than issuing cryptocurrencies as free rewards.

When faucet sites distribute cryptocurrency rewards, they already have some value in the market. Meanwhile, when airdrops distribute these rewards, their crypto giveaways do not have any real value because they are not yet launched.

Limitations of Crypto Faucets

Here are some risks that are associated with crypto faucets that every prospective participant should be aware of:

Scams and Frauds

Scams and frauds are very common when it comes to crypto faucets. Many investors are attracted to such projects on account of social media hype. They may join such sites after hearing about them from their peers.

In some instances, Faucet sites can entrap the users by operating legitimately for a small duration, and when their rewards grow substantially high, they don’t allow them to make withdrawals.

In other cases, scam sites can ask their users to give them money or cryptocurrency for the sign-up process with a false promise of doubling their returns.

Identity Theft

All crypto faucet sites require their users to sign up using their email addresses. Many users can make the mistake of using their real and main email addresses for signing up.

If these sites are set up by hackers or threat actors, they can gain access to the personal information of a given user and may end up accessing their private financial details such as bank accounts or credit card info. Therefore, the users should use other email addresses to sign up on new faucet sites.

Malware and Cyber-attacks

Crypto faucets can be used to trick users into downloading malware on their devices and grant them all the permissions to become operational. The users can become susceptible to cyber-attacks on a personal level, and at the same time, they can spread the infection by sharing the referral links for signing up to earn more credits for crypto rewards.

In other instances, the site users may inadvertently download malware on their devices while watching malicious ads or sites as part of their task requirements.

Shit Coin Rewards

Most Crypto Faucets incentive their users by offering currencies with real value, such as Ethereum and Bitcoin. However, the scam sites may fool the users by offering them shit coins that do not hold any real value in the crypto market.

Consequently, the users will waste their time and energy in hopes of earning big rewards, but they are left with shit coins.

Not Profitable

The legitimate faucets sites do not offer massive crypto rewards to the users. Despite spending hours completing difficult tasks, the users can only hope to earn a small fraction of crypto rewards.

Since Bitcoin has gained such a massive price appreciation at present, the faucet sites that have listed Bitcoin as rewards give them away in the form of Satoshis. For context, one Satoshi is made up of 0.00000001 Bitcoin.

Digital Wallet Security

When using crypto faucets sites, the users are asked to connect their main digital wallet to their accounts. However, if the site is malicious, it can steal sensitive information from the account, such as private keys, during the sign-up process.

Therefore, it is best to connect a new digital wallet to a faucet site rather than using the main digital wallet with the entire crypto portfolio.

How to Avoid Crypto Faucet Scams?

When it comes to crypto faucets, most cryptocurrency investors may dismiss all such sites for fear of getting hacked or scammed.

However, there are plenty of ways to learn about the authenticity of such sites and join them after verification. Here are some tips that users can try to ensure that a faucet is valid or not:

Online Research

The easiest way to ensure whether a faucet is authentic is to run an online search.

Cryptocurrency investors can use forums like Reddit and Bitcoin Talk.  In other cases, it is also possible to run a quick Google search and check any news related to fraud or scams concerning the said project in the news section.

If cryptocurrency investor is resourceful, they may also consult a reliable Cybersecurity firm to learn about the legitimacy of the site.

Reward Size

Authentic crypto faucets offer small and fractional cryptocurrency rewards. It is highly unlikely to make significant cryptocurrency rewards using such sites. However, the scam sites are not planning to reward their users at all, and their only objective is to victimize as many investors as possible.

Therefore, they can declare unrealistically big rewards for seemingly small labor input. It is a very visible sign of possible fraud.

Online Reviews

There are many crypto faucets that are available as mobile phone applications. Before installing such applications, the users can read the reviews added by others on the app store.

In this manner, the users may be able to learn about technical deficiencies and other issues that are related to the faucet. In case the user finds the application lacking or fraudulent, they should also add a suitable review for the benefit of others.

Background of Developers

A user cannot search for anything about a faucet that is relatively new. Therefore, they can be trapped by appealing promises and fake reviews.

In such cases, the users can obtain information about the developers of the said site and run a quick background check on their careers online. In this manner, anyone can find out if they should trust the new site or refrain from using it.

Rewards Value

It is best to trust the faucets that are offering valued cryptocurrencies as rewards. If these sites are offering the user some unknown cryptocurrency with obscure origins, the users should stay away from these projects.

Using VPN

The users are already aware that it is not the best idea to use the main email address or digital wallet to sign up for a new faucet account. Another way to make sure that hackers cannot steal any personal information is to use VPN services.

VPN can mask the IP address of their users, and thus the investors can rest assured that they are protected against any unwanted invasion.


Cryptocurrency faucets are quite intriguing, and they are ideal for users to get familiar with cryptocurrencies and blockchain products such and NFTs.

However, users are always under the threat of getting hacked when using faucets. Therefore, they can utilize the preventive measures mentioned above to secure themselves.

Crypto Comeback Pro is a crypto trading tool for investing in the crypto market with an %88 average win rate on trades and is the #1 trading software for crypto traders from all around the globe in 2022. Try it For FREE Today. (Ad)

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