As a means to earn cryptocurrency for free, many doubts the authenticity of crypto faucets. Let's learn and explore this here. Who knows it might be your favorite way of getting free coins.

There are many ways for one to gain a crypto asset. Some of it entails processes such as trading, mining, and airdrops. However, there are other ways to gain crypto assets like Bitcoin, Ethereum, and others for free. One of which is crypto faucets. What are they, and how do they differ from something like airdrop? Is it too good to be true?

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The Definition

A crypto faucet (or faucet crypto) is an app or website that distributes various crypto assets in small amounts, usually as gifts. Those are typically given away after users of the said app and/or website finish easy tasks like downloading another app or watching ads.

Crypto Faucets

It is done to gain interest from people, especially those who aren't yet familiar with crypto assets. A large part of the reason behind this is that despite some degree of familiarity with crypto assets among the common folk, not many fully understand what crypto assets are and what can be done with them.

 

The Practice

Crypto faucets are done through completing easy tasks as well as participating in promotional campaigns and activities. Websites and/or apps that provide said crypto faucets can then change the amount of rewards as well as implement timelocks for users who had already claimed their gifts. To participate, users generally are only needed to register and make an account by inputting personal information and their wallet address.

After that, users can immediately finish any task asked by the crypto faucet providers. Upon the completion of said tasks, crypto assets will immediately be delivered to said participant's micro digital wallet. Different than your usual wallet, micro digital wallets are provided automatically by a provider as means to save crypto assets in minimum amounts.

It is worth noting that every crypto faucet providers have different minimum limits that must be fulfilled before a user can withdraw the assets to their true wallet.

 

Crypto Faucets vs Airdrops

At a glance, crypto faucets look to be similar to airdrops. Given that both have the same goal of giving away free crypto assets, the terms have been mistaken for one another. This is evident to those who are unfamiliar with the intricacies of crypto assets.

Let's look first at crypto faucets. In crypto faucets, you are heavily recommended to visit periodically a predetermined website. In there, you are not only completing tasks but also captchas to make sure you are not a robot. Given that most of the given tasks are repetitive, you'll find yourself spending quite some time on a crypto faucet's website.

Crypto faucets' rewards are given away throughout the day, in small amounts each time. This is done to keep the user engaged and visiting the site as frequently as possible. The rewards vary but usually, they are cryptocurrencies that already exist but not many know of them.

In regards to those, airdrops are completely different. Airdrops are primarily a means for promotion. Usually, a startup or new company distributed their newly-minted coins or tokens early in massive amounts as rewards to push and raise awareness of their crypto assets.

As such, airdrop's primary target is to attract and form communities instead of retaining individuals. If said newfangled crypto coins or tokens successfully attracted the attention of communities, there's a higher chance that they will be accepted, developed, and even adopted.

 

Genuine Giveaway or Scandalous Scam?

As with everything else in the world, there are bound to be bad apples and threats that mask themselves as crypto faucets. It means you should be extra careful to discern which one is a reputable crypto faucet and which one is an elaborate scam trying to reel you in.

A form of threat masking as crypto faucets is the faucet wallet. In this scam, a malicious actor posing as a crypto faucet provider will try to get you to make a wallet and deposit some coins. They often come with reasons such as collateral so you won't immediately bail from the tasks.

Then, after you are done with your tasks and trying to withdraw, you'll find that the withdraw option doesn't work. It means the scammer has gotten away with your deposited assets on the newly-made wallet, making all your works go to waste.

Another variation of the faucet wallet scam is wallet manipulation. In this case, as you spend more time and do more tasks to achieve the minimum withdrawal limit, the scammer purposefully designed the website to siphon away your crypto gains, making sure you never reach the withdrawal limit.

 

Considering the schemes, it's better to be cautious and only apply to well-known crypto faucets. Don't quickly trust a faucet that asks you to deposit some coins in their wallet before completing any task. The basic principle of crypto faucets is to give away coins for free so it doesn't make sense for them to ask for some collateral. If you're not careful enough, you might fall into some kinds of cryptocurrency frauds that threaten your assets' safety.