There are many ways to earn and collect cryptocurrencies. You can buy, mine, stake, and trade crypto. The problem is that all these methods require some form of initial capital. However, there’s one method that lets you earn crypto without giving away money: a crypto faucet.
Crypto faucets have contributed to much of the community’s wealth during their prime years. Early Bitcoin adopters would earn coins simply by completing menial tasks. Their work has more than paid off given Bitcoin’s current price. But even though faucets don’t offer much these days, you can still earn a little bit of cash that you can reinvest into the market and hopefully make even more money.
This article explains what a crypto faucet is, how they work, and how much crypto you can earn. I’ll also show you where to find faucets for various cryptocurrencies.
What Are Crypto Faucets and How Do They Work?
A crypto faucet is a website that distributes cryptocurrencies to users who complete menial tasks online. Users need to complete surveys, watch ads, read reviews, do quizzes, and complete other easy tasks. The user receives negligible rewards for completing these tasks.
The community decided to name these platforms faucets due to their design. They remind users of a leaky faucet that leaves small drops of water – which is comparable to the small amount of tokens sent to users. However, the catch is that one can earn a certain amount of money by completing many such tasks.
Faucets often enforce a minimum withdrawal amount. You can only withdraw a certain amount of crypto from the platform, meaning that you need to do tons of tasks until you collect $2, $5, or $10 in crypto. On some platforms you only need to complete tasks for a day to withdraw, but others may take weeks.
Can You Still Make Money with a Crypto Faucet?
Faucets have changed drastically over time. Acquiring crypto became more difficult as time went on. There are more investors and miners now, which means that digital assets are not that rare now. But even though you can’t earn a whole Bitcoin like you could at one point, you can still earn tokens from newer projects.
Crypto faucets are often managed and operated by private individuals. During Bitcoin’s early years it was possible to collect hundreds of coins in a short period of time from mining. Bitcoin’s price was low at the time, so the community figured that they could give away coins to spread adoption and teach others about blockchain technology.
Today’s faucets have taken a different form. Exchanges and trading platforms often host a rewards section where users can read about various crypto projects. Once they learn enough, they can complete a quiz. Completing the quiz successfully means they can earn tokens from the project.
Here is an example of the Coinbase Earn program. Coinbase is a leading cryptocurrency exchange that decided to reward users for educating themselves on crypto. Right now you can earn $4 worth of Graph (GRT) or $3 worth of AMP (AMP). All you have to do is read a few articles and watch some videos.
You can complete dozens of such quizzes and earn crypto simply by learning about crypto projects. Coinbase will deposit the tokens to your account once you complete the quizzes. Since many exchanges offer such programs, the rewards can stack up quite fast.
What Types of Cryptocurrency Faucets Exist?
Crypto faucets are categorized according to the cryptocurrency that they distribute. Although Bitcoin faucets represent the most popular option, you can also find faucets for Litecoin, Ethereum and other altcoins.
Bitcoin faucets are known to distribute satoshis (the smallest unit of Bitcoin) nowadays due to the tokens’ insanely high valuation. A single satoshi represents one-millionth of one coin (0.00000001 BTC). You can find Bitcoin faucets on websites such as Cointiply, Firefaucet, and Freebitcoin.
Ethereum faucets distribute Ether, but still only a small amount. Here, you can also solve captchas, watch videos, complete surveys, and read articles. The most popular Ethereum faucets include:
Keep in mind that earning notable amounts of crypto via crypto faucets takes a long time. You might have an easier time earning crypto by searching for airdrops. Airdrops represent a token-distribution system where the owners of a project launch their dApp or token by massively distributing tokens to the community.
Earning Crypto: Alternative Methods
You have many ways to earn cryptocurrency besides airdrops and crypto faucet platforms. Some methods are even passive and require minimal interaction from your side. The most popular passive income strategies include:
However, the catch with these methods is that you must own a certain amount of capital to jumpstart your passive income strategy. It’s also important to note that traders refuse to use these methods because the returns are negligible compared to trading. Moreover, they bring security risks (smart contract exploits, liquidity issues, insolvencies, etc.)
Platforms like Shrimpy combat this issue by enabling you to make passive income while trading. Shrimpy is an automated portfolio management platform that offers automated trading strategies incorporated into trading bots. Luckily for you, I wrote an article that perfectly explains how to make money by using crypto trading bots.
If you want to learn more about making money in the crypto market, I suggest reading the following articles:
Marko is a crypto enthusiast who has been involved in the blockchain industry since 2018. When not charting, tweeting on CT, or researching Solana NFTs, he likes to read about psychology, InfoSec, and geopolitics.
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