What are Bitcoin faucets?
What are Bitcoin faucets?
Bitcoin is currently the largest cryptocurrency in the world. The market cap of Bitcoin is currently estimated to be more than $145 billion, the largest of all cryptocurrencies. And although Bitcoin has gained a lot of popularity around the world, there are still somethings most users don’t know about the cryptocurrency.
Bitcoin faucets are important in the use of Bitcoins. However, quite a number of users still do not know what they are. This article would walk you through the fundamentals of what faucets are and how to make the most of them.
What are Bitcoin Faucets?
Defining them in simple terms, Bitcoin faucets are online applications or websites that are part of a reward system for Bitcoin users who complete set tasks by the website or app. For completing these tasks, the users are awarded one Satoshi which is one-hundred-millionth of one BTC. This earned Satoshi is usually directly deposited into an individual’s wallet or micro wallet.
It is important to note, however, that Bitcoin faucets are not Ponzi schemes. As a matter of fact, the reward amounts involved are usually very small and can vary depending on the current values of Bitcoin. This is why most users of faucets often allow their earnings to accumulate over time before moving it to their wallet. This also helps to avoid mining fees. The next question is; what is the basis of these Bitcoin Faucets.
The Purpose of Bitcoin Faucets
As it stands, a lot of people around the world are still learning about Bitcoin and the entire concept of cryptocurrencies in general. Therefore, a lot of people might be somewhat skeptical about investing or incorporating Bitcoins in their finances. This is why Bitcoin faucets were established. Faucets serve as a method of introducing Bitcoin to people without the risks of investing. These faucets are designed to provide information about Bitcoin to new users. The rewards help to further encourage new users and show them how it works. Faucets are now quite popular, especially among Bitcoin enthusiasts. And interestingly, there are several faucets available online.
Where Does Your Satoshi Go?
Once you get started with Bitcoin faucets, you get the opportunity to start accumulating Satoshi. And in case you’re wondering where it all goes or what you can do with it, there are quite a number of things to consider. Firstly, all earned Satoshi is directly deposited into your wallet, which serves as a digital account. The Bitcoin wallet is just like your typical wallet. You keep your wallet secure with your Bitcoin card or key. The keys can be linked directly to your bank account.
There are several types of wallets when it comes to Bitcoins, it all depends on what you want. Although, some wallets can be more secure than others. Micro wallets are also variants of Bitcoin wallets.
What Are Micro Wallets?
A micro wallet is simply a variant of the typical Bitcoin wallet that allows you the opportunity to remove small amounts of Bitcoin before moving them to your own wallet. This is because the charges involved in transferring very small amounts of BTC can totally cancel out the earnings. Especially with faucets where the rewards earnings are often very small. Using a micro- wallet allows the earnings to be paid to the micro-wallet provider of the user. It is, however, important to note that micro-wallets have limits which can vary from 5,000 and 10,000 Satoshi. Once a user gets to the limit, the Satoshi is then moved to the User’s main wallet.
Bitcoin faucets are very effective in getting new users. This is why some websites use the approach to achieve a number of goals; from boosting traffic on their websites to getting money from ad clicks. Usually, most faucets get high traffic. Therefore, a faucet can even serve as a good platform to promote your brand or company.
Why Do Faucets Give Away Free Coins?
Although it might sometimes seem like random giveaways, Bitcoin faucets don’t just give out coins. The faucet also makes money from ads. By rewarding users of their website, they get to get a lot of traffic which helps generate income from ads.
Most popular faucet websites and apps often host a lot of apps and as a matter of fact, some of the tasks they offer are directly or indirectly involved with these ads. Some of the types of ads found on faucets include;
• Pay-per-view ads
• Pay-per-click ads
Faucets help new users learn about Bitcoins and even earn some in the process. This makes them one of the best ways to kick-start your journey if you are just getting started with Cryptocurrency. Most faucets are safe and secure, you only must ensure that your wallet keys remain protected always.