How to Use Crypto Faucets to Get Free Bitcoin
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When you think of “faucets,” the first thing to come to mind is probably plumbing, not bitcoin (BTC). But crypto faucets can be a legitimate way to receive free bitcoin — with a few important caveats.
It’s no wonder why cryptocurrency investors are eager to get free bitcoin. The price of the most well-known and largest coin by market cap reached as high as $113,000 in September — nearly double its value from a year earlier.
Using a crypto faucet to get free bitcoin can be a legitimate way to earn valuable coins and tokens. It can also be a good way for crypto newcomers to get a feel for the blockchain-based landscape.
Here’s what you need to know about the basics of crypto faucets and — importantly — how to protect yourself.
What is a crypto faucet?
A crypto faucet is an online platform that gives users free cryptocurrency for performing simple online tasks like taking surveys or watching ads. It’s a task-to-reward structure similar to what some online games offer: If you run out of whatever store of value you need to play (energy, lives, etc.), you can obtain more of that resource by watching video ads.
The very first crypto faucet — simply called The Bitcoin Faucet — launched in 2010 by bitcoin developer Gavin Andresen. It originally rewarded users up to 5 BTC per day for solving captcha to drive adoption at a time when crypto was unfamiliar to most Americans and the value of bitcoin had yet to break above $1.
Bitcoin has come a long way from those humble roots, but the basic premise of a crypto faucet remains the same: It is designed to increase visibility and circulation of smaller, lesser-known altcoins.
Similar to crypto airdrops, these interactions are intended to increase adoption and demand for newer, smaller coins. Now, there are also crypto faucets that function as standalone, ad-based businesses (similar to a typical business model for online gaming platforms). Some faucets are attached to crypto trading platforms — which can be helpful if you’re interested in using a crypto faucet to get free bitcoin — and some are run by networks to let new users earn gas fees to cover their trading costs in an effort to attract customers and trading activity.
How to use a crypto faucet to get free bitcoin
A crypto faucet bears an important metaphorical similarity to the bathroom fixture: Just like a dripping faucet can add up to big water bills over time, carrying out the tasks required of crypto faucet users is an easy way to build up a stockpile of crypto over time. You can use that value to purchase other coins or tokens, or you can exchange it for fiat money on a crypto exchange.
If you’re new to the world of crypto, the first step to earning free tokens from a crypto faucet is opening a crypto wallet. (Money’s guide to the Best Crypto Wallets is a good place to start) These app-based digital wallets or hardware devices are secure places to store the digital “keys” that function like passwords and allow you to access and manage blockchain-based digital assets.
After you have your crypto wallet set up, conduct your due diligence on faucets. You want to make sure that you choose one that’s well-established and has a good reputation. Resources such as crypto news sites and crypto communities — common on social platforms like Discord and Reddit — can help you educate yourself.
To register for a crypto faucet, you can expect to have to provide basic information like your name and email or wallet address. The faucet will likely provide you with a “micro wallet” to hold the small amounts you earn before transferring those tokens to your crypto wallet.
Aside from making sure that the faucet you choose is legitimate, you also want to make sure that it’s going to be worth your time. It’s typical for faucets to put limits on how much you can earn in a set period of time (e.g., hourly or daily) or limit the operating hours. Calculate how much you can potentially earn and how long it will likely take so you can determine if that particular faucet will be worth your time.
To turn your earnings into free bitcoin, you’ll need to transfer them from the faucet’s micro-wallet to your own crypto wallet. You might have to pay fees to conduct these transactions, so make sure you know what those costs are before signing up. Additionally, it’s common for faucets to set a minimum amount you have to accrue before you can transfer it.
Once those coins or tokens are in your crypto wallet, you can access a crypto exchange or brokerage to swap them for bitcoin or other assets. Keep in mind that if you’re paid in a lightly traded, less-liquid coin — a common occurrence when it comes to crypto faucets — waiting for the right time to exchange or sell those tokens is important.
How to avoid scams and theft
While using a crypto faucet to get free bitcoin is relatively simple and accessible, it’s important to make sure you protect your personal information and your digital assets. Like many aspects of the blockchain, cybercrooks can and do take advantage of crypto’s inherent anonymity and opacity to scam unsuspecting users out of their holdings or steal their personal information. Because crypto faucets can be a great way for crypto novices to become familiar with the mechanics of blockchain networks and crypto trading, scammers take advantage of this inexperience.
If you’re a seasoned crypto trader and have amassed significant assets, consider setting up a second crypto wallet unconnected to your primary one and don’t store significant value in it. If you’re worried about your personal information being compromised, this could be a good use case for a no-KYC crypto wallet, which offers greater anonymity. (For example, Best Wallet is a noncustodial digital crypto wallet without KYC requirements.)
Be on the lookout for red flags that suggest you might be dealing with a bad actor. At best, you could find yourself with counterfeit crypto or valueless tokens on your hands. Some faucets can be trojan horses for phishing schemes or to plant malware. If you’re prompted to click a link, first verify that the URL is authentic, and make sure to keep your antivirus software up to date.
It’s also smart to avoid faucets that promise unrealistically high payouts or have vague or little information about the quantity of tokens you can earn and the rules for doing so. As a rule of thumb, stick to faucets that let you earn established cryptocurrencies and which are operated by legitimate companies. If you learn about a crypto faucet via an unsolicited message, that’s one to avoid.
And stay far, far away from any crypto faucet that requires you to provide sensitive personal information or pay for access — including requirements to buy crypto tokens upfront.
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