What is a faucet?
A faucet is a website or app that dispenses rewards in the form of small fractions of a cryptocurrency for visitors to claim. These rewards are dispensed at various predetermined intervals of time ranging from one minute up to 10 hours. Rewards can be claimed by either completing a “captcha” or task as described by the website. While there are faucets that dispense Dogecoins, Ethereum, Litecoins and other cryptocurrencies, most faucets dispense Bitcoins. To be precise, Bitcoin faucets dispense a number of Satoshi’s, the smallest fraction of a Bitcoin. One Bitcoin equals 100,000,000 Satoshi’s.
How does it work?
Rewards are in place to attract visitors to the faucet’s web page. These faucet sites usually contain advertisements. Advertisers pay the faucet owner to display these ads on his or her site. Advertising costs are calculated on a “cost per thousand” impressions basis. If the site gets more visitors and if each visitor spends more time on the site, the site owner gets more money from displayed ads.
Faucets also play an important role in the Bitcoin ecosystem. It encourages more people to understand and adopt Bitcoin as a preferred currency.
Who uses Bitcoin faucets?
If you understand Bitcoin and how it works, then you will quickly realise that the Bitcoin units (Satoshi’s) given away by faucets is of negligible value. You wouldn’t want to spend much time claiming these small rewards. The majority of visitors who use these faucets and claim rewards from them are beginners still learning about Bitcoin or minors who cannot do transactions legally on any of the Bitcoin exchanges.
How to use Bitcoin faucets?
Using a Bitcoin faucet is very simple. Once you visit the faucet web page, you have to enter your Bitcoin wallet address or the email id associated with your FaucetBox account and hit “enter”. A timer will start counting the amount of time you spend on the site. Once you spend a certain amount of time on the site, you can claim your reward by clicking the “Claim Now” or similar button. You will have to prove that you are a human by filling in a Captcha or by solving a simple mathematical problem. This prevents any automated script from claiming rewards at regular intervals. That’s all there is to it. You have claimed your first reward and it will be credited either immediately or on a designated weekly payout day to your wallet.
Typically, faucets have a minimum time interval limit between claims by each visitor to prevent one person from claiming all the available Bitcoins from the faucet’s wallet. This duration varies from 1 minute to 10 hours, depending upon the faucet.
The business model of Bitcoin faucets is to get advertisement revenue from banner ads and distribute only a portion of that money to users. A time limit is imposed between payouts to stop bots, human CAPTCHA solvers in third world countries, or avid users performing repeated withdrawals.
Now, that you understand how a faucet works, let's discover what is a Bitcoin Wallet and create a Bitcoin Wallet or check out the swissadspaysethfaucet and claim Bitcoins if you already have a wallet.