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The Evolution of Crypto Faucets

Cryptocurrency faucets have been a part of the cryptocurrency community since bitcoin was first introduced.

What is a crypto faucet?

It is no secret that bitcoin, altcoins and now other cryptocurrencies are all gaining significant interest in the world today. It has hit the mainstream media by storm as of late, with many people hearing for the first time about cryptos simply because of huge price jumps.

However, it is also no secret that these digital currencies are quite volatile, both in terms of their values relative to traditional fiat currencies (i.e., USD) and their ability to crash without warning. If you have been investing in crypto coins for any time, you will know this value volatility all too well, so keep your finger on the pulse at all times!

That said, though, despite this risk, there are still plenty out there who want to get involved. For those curious individuals, one way to do it is with crypto faucets.

A crypto faucet is a term used for a site that gives out tiny amounts of bitcoin or other cryptocurrencies in exchange for completing basic tasks such as captcha verifications, watching videos and visiting links. Most sites make you wait between 5 minutes to 1 hour before you can claim again, but some enable instant claiming.

Almost all “Bitcoin Faucets” allow the user to earn small amounts of satoshi by doing simple tasks like solving a captcha or just by viewing adverts. The more ads viewed or captchas solved, the higher the reward. All payouts are sent instantly to your wallet, where it can be converted into Bitcoin and sent to your personal wallet address.

This form of earning does have a downside in that it is not known for producing large amounts of bitcoin, but instead for introducing newcomers to the world of crypto (i.e., what is Bitcoin? How do I get some?) and also enticing them to either spend their “free” bitcoin on gambling sites or purchase products from online merchants who offer bitcoin or crypto-paying options. They are widely used as marketing tools by cryptocurrency developers, mining pools and even casinos!

Now let’s go back in time to when faucets first began:

The first faucet was run by Gavin Wood (in fact, it was called Gavin’s Bitcoin Faucet) on the 19th of July 2010, where each visitor was given 5mBTC or about half a cent begin with. The payout rate has gradually increased over time until it stabilised at 50mBTC for every 1000 pageviews from around May 2011.

Gavin stopped his faucet suddenly in January 2014 after achieving a milestone of 1 million bitcoins given away – equivalent to Β£738,400 / $1,000,500 / €890,513 at the time and still now considering Bitcoin’s rise during those years from just being worth around $10-$20 per coin! He cited high costs as to why he ended it despite having donations which amounted to 40 BTC that month alone.

As might be expected, due to the ease of creating new faucets with simple scripts available online, there are now hundreds if not thousands of faucets currently operating, which all claim to have some unique feature or draw for visitors. Some also allow you to earn additional cryptocurrencies with their faucet by enabling it with special mining software.

Other examples of widespread faucets today include Cointiply and Firefaucet. Of course, they were among the first, but these days, there are many more options.

Let’s take a closer look at each one…

The most common type of faucet is essentially just a website that gives out satoshi (literally named after bitcoin creator Satoshi Nakamoto) to complete easy like captcha verifications and watch videos. The most popular of these faucets include Satoshi Hero, FaucetCrypto and Freebitco.in.

However, if you want to earn crypto, the best idea might be to try out one or more that offer additional cryptocurrencies, such as Dogecoin ( DOGE ) – which is practical given the rise in altcoins (i.e., alternative cryptocurrencies).

So whether it’s bitcoin, Litecoin ( LTC ), Dogecoin, Binance Coin ( BNB ), Cardano ( ADA ) or any other type of coin that you’re interested in, then there’s a faucet available for each.

Please note: I would discourage anyone from using a faucet as a long-term source to earn crypto – it shouldn’t be seen as an alternative to owning and trading, rather complementary. If you have some spare time and want to supplement your crypto income, faucets can be fun but by no means should they become your focus!