On blockchains like the Ethereum Mainnet, fees represented in the blockchain’s cryptocurrency units must be paid for transactions to be performed and recorded. From exchanges, one can purchase Ether (ETH), the native cryptocurrency of the Ethereum blockchain, and pay the transaction costs. However, alternative Ether distribution mechanisms are utilized on test networks like Rinkeby and scientific research blockchains like Bloxberg.
One such method is a faucet, which grants users free cryptocurrency following some predetermined rules. In general, faucets provide a fixed amount of money for a specific time or block. For instance, Bloxberg Blockchain’s web-based faucet offers 0.2 ETH.
Related: What is cryptocurrency? A beginner’s guide to digital currency
So, if you are still wondering, does “free crypto” really exist? The answer is yes! A crypto faucet is nothing more than a website that awards you token sums of cryptocurrency in exchange for performing easy tasks like solving quizzes, watching ads or videos, etc.
But, what is the purpose of a crypto faucet? Crypto faucets are designed to provide users with free cryptocurrency to start learning about digital assets and eventually use them. For instance, the low-income unbanked population can access financial services through a blockchain-powered permissionless network.
In this article, you’ll discover what crypto faucets are, their purpose, the types of crypto faucets, how they work and the various risks associated with crypto faucets.
How does a crypto faucet work?
A crypto faucet’s operation is simple—all you have to do is to register with a digital asset service or visit a cryptocurrency faucet website or app that rewards you with free crypto for playing games, taking part in surveys and watching videos or ads, etc.
The earned cryptocurrency is then sent to your online mini-wallet by the crypto faucets’ website or app. A micro wallet is a type of wallet that is comparable to standard wallets but can hold only modest quantities of cryptocurrency assets. Micro wallets are typically established immediately when you sign up for a crypto faucet.
Advantages of the mini wallet include:
However, you can’t cash out until this micro-allotted wallet reaches a minimum level of rewards (say, $10 cryptocurrency). When that occurs, all of the cryptocurrency is automatically transferred to your actual cryptocurrency wallet. Please note that some websites may place a time limit on how long users have to claim their…
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