Crypto faucets are often an option for investors to get crypto assets for free. Originally, faucets were a way to introduce crypto assets to people who were interested and willing to learn about crypto. Over time, the crypto assets obtained from faucets are mainly used as testnet tokens. So, what is a faucet, and what are its uses? Find out in this article.
Article Summary
- 🚰 Faucet is a mechanism that allows users to earn small amounts of crypto assets for free by completing a few tasks.
- ⚙️ The way faucets work is quite simple. Users just need to register on the faucet website and will get a micro wallet to keep the rewards. After reaching a certain amount, the rewards are moved to the user’s crypto wallet.
- ❓ Many consider faucets worthless because the effort put in is not worth the risk and reward.
What is Faucet?
A faucet is a mechanism that allows users to earn small amounts of crypto assets for free. Users only need to complete a few instructions and are rewarded afterward. The term “faucet” refers to a small amount of rewards, much like a small drop of water dripping from a leaky faucet.
The primary purpose of a faucet is to promote a particular crypto asset. In addition, it also provides an opportunity for people to use and understand how crypto assets work without having to buy or mine them. Thus, everyone can use the crypto asset without worrying about the risks involved.
In addition to faucets, airdrops are another method used in sharing crypto assets for free. Both have the same concept. Users must complete a mission, and those selected will be rewarded with crypto assets. However, the rewards from airdrops are much more significant than faucets.
If you want to know more about airdrops, Pintu Academy has prepared a related article here.
How Crypto Faucet Works
If you’re interested in getting a faucet, it’s pretty simple. Users only need to visit the faucet website and register. After registration, users automatically get a micro wallet, which will be used to keep the rewards from the faucet.
Next, users are required to follow the instructions and complete the given missions. Generally, these missions include tasks such as watching advertising videos, completing surveys, or playing games. Due to the simplicity of the tasks and the minimal capital required, faucets are considered one of the easiest methods to earn crypto assets.
Most notably, users cannot immediately cash out the crypto assets obtained. They must first meet a specified reward limit. Let’s say the minimum cash out limit is US$10 worth of crypto assets. Once the limit is met, the crypto is sent to each user’s crypto wallet. Faucets also typically limit the number of missions that can be run daily. This is to prevent bot exploitation or other fraud.
Are Faucets Valuable?
Faucets were popular when the crypto industry got off the ground a few years ago. Initially, faucets were created to get more people to learn about crypto assets and invest in them. Owning crypto without spending capital and getting it easily can undoubtedly attract investors.
However, many have questioned the value of faucets due to the relatively small rewards they offer. Moreover, the time and effort invested in completing the missions are often deemed insufficient in comparison to the rewards received. As a result, many people consider faucets to be of little worth, given that the effort exerted does not align with the rewards they provide.
Later, the use of faucets has also begun to shift. Today, faucets are mainly used to distribute gas tokens on testnets or new blockchains.
Are Crypto Faucets Trusted?
Although it’s pretty interesting to do, the truth is that there are only some trusted crypto faucet sites. Some analysts and experts warn users to beware of fake crypto faucet sites. In addition, some sites also provide disproportionate pay (The reward is too little compared to the workload).
A trustworthy faucet site has many users and has been around for a long time. In terms of the process, crypto faucets are safe and secure, as users do not need to hand over their private keys.
Conclusion
The popularity of faucets has been waning lately. Moreover, more and more are questioning its value which is not worth the effort. Nevertheless, faucets still make an essential contribution to the crypto ecosystem. Today, faucets tend to be used to distribute gas tokens on testnets or new blockchains. However, faucets remain a necessary element of the crypto ecosystem as they allow users to try and understand how crypto works.
Buy Crypto Assets in Pintu
Looking to invest in crypto assets? No worries, you can safely and conveniently purchase a wide range of cryptocurrencies such as BTC, ETH, SOL, and others safely and easily at Pintu. Pintu diligently evaluates all its crypto assets, highlighting the significance of being cautious.
Pintu is also compatible with popular wallets such as Metamask to facilitate your transactions. Download Pintu app on Play Store and App Store! Your security is guaranteed because Pintu is regulated and supervised by Bappebti and Kominfo.
Aside from buying and trading crypto assets, you can expand your knowledge about cryptocurrencies through various Pintu Academy articles. Updated weekly, all Pintu Academy articles are made for knowledge and educational purposes, not as financial advice.
Reference
- Jagjit Singh, What are crypto faucets and how do they work? Coin Telegraph, accessed on 21 July 2023.
- Werner Vermaak, What Is a Crypto Faucet? CoinMarketCap, accessed on 21 July 2023.