What is Ethereum Faucet?
Ethereum faucets are websites or applications that give out a small amount of Ether tokens to users (for free) on completion of some simple tasks on the website set by the faucet owners. The tasks are very easy and do not require users to have expert knowledge of blockchain or cryptocurrencies. New and low-key investors who don’t feel confident enough to invest in cryptocurrencies find faucets very useful because they can earn free ETH tokens without risking their own capital.
How does Ethereum Faucet work?
All crypto faucets, be it Bitcoin faucet, or Ethereum faucet or the not-so-popular Monero faucet works on the principle of divisibility of cryptocurrencies, which says that each unit of the cryptocurrencies can be divided into infinite pieces, and so the faucet can reward users with a small number of crypto coins based on the nature of work accomplished by them.
Faucets are similar to pay-per-click services where anyone clicking on a product advertisement or viewing a video advertisement can earn rewards. The only difference is that instead of a free coupon, users can earn free ETH tokens that they can store in their ETH wallet for future use.
For accessing the Ethereum faucets, users are required to first sign-up at any faucet website that gives out free Ethereum tokens to users who complete the tasks within the stipulated time. Each registered user is assigned a micro wallet where rewards earned by the users are first stored till it reaches the minimum threshold limit as set by the faucet owners. As soon as the reward pool reaches the threshold, the rewards get automatically credited to the main wallet of the users.
Some of the popular ways how Ethereum faucets work is:
- Pay-per-click faucets: These faucets reward users for driving traffic to their websites or for actively interacting with their applications.
- Impression faucets: These faucets reward users for viewing an advertisement or for visiting a website.
- Daily faucets: These faucets reward users for accomplishing some simple tasks such as sharing a post, or recording a video, etc.
- Email faucets: These faucets reward users for sharing their email addresses and allowing the faucet owners to link their email addresses to the faucet database.
- Location faucets: Users are rewarded for scanning a QR code.
What to Look for in an Ethereum Faucet
Faucets are all the same but there are telling signs that imply that only a handful of them are reliable and therefore users must choose faucets wisely. Some of the important considerations when choosing Ethereum faucets are:
Referral or Bonus/ Loyalty Program
Reliable faucets offer lucrative loyalty programs to registered users by which users can increase their earning opportunities when their referrals begin performing actions.
Users should check how much they can earn per task and how often are they allowed to claim their rewards.
It is important to check whether the particular faucet would provide the micropayment wallet where the rewards would be stored initially. If the Ethereum faucet does not provide a micro wallet, users would have to download it themselves.
This determines how often a user withdraws his rewards. A high minimum withdrawal means a user will have to wait longer before he has enough rewards to cash out.
A timer is a refresh frequency, set by the faucet owners at regular intervals. The shorter the timer, the more are opportunities to earn. However, this is not always true, some faucet websites may have shorter refresh times but offer smaller payouts. Therefore, users should look for faucets that have a shorter refresh time and higher payouts simultaneously.
The more the transaction speed, the faster would be the reward pool reaching the minimum threshold.
Are Free Ethereum Faucets Safe?
Not all Ethereum faucets are safe and faucets are randomly used by hackers as spamming tools to infect users’ devices or to steal funds. Moreover, the rewards are also so minuscule that they cannot warrant the tasks set in by the faucet websites.
Are Free Ethereum Faucets Really Worth It?
Low-risk investors who are not very confident in dealing with cryptocurrencies but want to have some crypto coins in their portfolios find crypto faucets (be it Bitcoin or Ethereum) very useful. It is not a bad idea to devote some spare time to complete some simple tasks and earn some free Ethereum tokens. The best part is users do not lose anything in the process so why not do something productive if they have some spare time?
Legit faucets can help users to earn some free crypto coins by completing some simple tasks but there are a lot of duping faucet sites doing illegal businesses. Therefore, users should do proper research before signing up on any faucet websites or mobile applications.