Source: coinmarketcap.com

Ever since the advent of cryptocurrency, with Bitcoin at its helm since 2009, the market has only grown and grown in value. Even if a cryptocurrency dips in value for a few days, it rises back up again higher than before. Bitcoin was a small venture when it started out as a cryptocurrency, with its coins only valued at 10 cents per bitcoin. That value has skyrocketed enormously, with each bitcoin now worth about $60,000. That is huge, which is why every investor who didn’t invest before is currently looking to invest in cryptocurrency.

All that being said, buying bitcoin is a lot easier said than done. First of all, there is the financial aspect. You need to have $60,000, which is the average monthly salary of an American working man, to even think of buying an entire bitcoin. While you can buy bitcoin in parts, it’s still a substantial financial investment. Secondly, you need the experience to invest in cryptocurrency. The market can be very volatile, and if you don’t know how it works, you can end up losing lots of money. Lastly, it would be best to spend actual time and effort understanding the market and investing at the right time – an option not preferable for busy people.

If you think you have all these factors in your control and can invest in cryptocurrency with confidence, you can visit this site to get started. On the other hand, if you can’t, then don’t get disheartened. There is still an option for you to earn cryptocurrency that only requires you to do the simplest of tasks from your home – this option is using a cryptocurrency faucet, and in this guide, we’ll tell you exactly what it is and how it works.

What is a cryptocurrency faucet?

Source: unsplash.com

A cryptocurrency faucet is nothing but a website that gives you minuscule amounts of cryptocurrency when you do simple tasks on it. These simple tasks can be anything like watching continuous ads, playing specific games, watching videos, solving quizzes, or solving captchas. In return for these tasks, you get a particular amount of cryptocurrency, which is transferred into the website’s mini-wallet that the website creates for you. When the mini-wallet reaches a threshold, it moves the earned cryptocurrency into your real wallet.

A crypto faucet is quite convenient. All you do is execute simple tasks on your computer or smartphone, which you would normally do anyway while browsing on the Internet, and then you get paid in cryptocurrency for it! Sounds neat, right? In reality, it’s not. A crypto faucet only gives off a few dollars worth of cryptocurrencies, even if you use it for prolonged amounts of time. Thus, a crypto faucet cannot be an active source of income but rather a source of passive income that you can earn while surfing the Internet.

These crypto faucets were never intended to be used for revenue generation or as a source of earning cryptocurrency. They were initially created by one of Bitcoin’s primary developers Gavin Andersen in 2010 to let everyone know what bitcoin is and how profitable it can be if you believe in it. These crypto faucets he created gave out five or so bitcoins at the start. These same faucets only give satoshis now, so unless you used a crypto faucet years ago when it came out, there is no way to be a billionaire by using crypto faucets.

How does a crypto faucet work?

Source: unsplash.com

A crypto faucet is straightforward in its work. All you do is go to a crypto faucet, watch ads or play games or complete puzzles, and then the crypto faucet gives you cryptocurrency for it. You don’t get this cryptocurrency directly, but rather it’s transferred to your mini-wallet present on the website. This mini-wallet has a specific capacity, and you don’t receive any bitcoins until that capacity is fulfilled. When it does, all the cryptocurrency is transferred automatically to your actual crypto wallet.

To put it into perspective, let’s take Bitcoin as a real example of how it all works. A crypto faucet that uses bitcoin as its cryptocurrency is called a bitcoin faucet. A bitcoin faucet gives you minor units of bitcoin, a Satoshi, which is about 1/100 millionth part of a bitcoin. When you do the tasks assigned to you, you get satoshis transferred to your mini-wallet and then to your actual wallet once the limit has been reached. There are also other crypto faucets like Ethereum faucet, Bitcoin cash faucet, etc.

By now, you might be wondering, what does the crypto faucet owner get from running a crypto faucet on the Internet? The answer is simple. They earn by – a) mining on your computer for cryptocurrency while you are doing the tasks and b) posting several ads on their website and giving you ads to watch as well. These two are the primary sources of income for a crypto faucet owner, which is why running a crypto faucet is a profitable venture to date.

Should you use a crypto faucet?

Source: unsplash.com

It all comes down to the time you have and your experience with the cryptocurrency market. If you are already an experienced crypto investor who understands the market and spends quite a lot of time studying it, then crypto faucets are not for you. On the other hand, if you are a college student who browses the Internet a lot and wants to invest in a cryptocurrency but hasn’t done so before – then a crypto faucet is the perfect option.

Why we recommend a crypto faucet is – if you are spending large amounts of time playing video games or surfing the Internet anyway, then why not get paid in cryptocurrency for it? This way, you’ll have your hands on some actual cryptocurrency without spending a dollar buying it. You can then invest this cryptocurrency in the market to see what happens and understand how the cryptocurrency market works.

Conclusion

A crypto faucet can be either a blessing for you or simply a waste of time, depending on your position and how you use it. We hope this guide helped you understand crypto faucets, and if it did, please consider following our website for regular updates, as it will help us immensely.

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