Bitcoin. It’s so hot (and then cold) right now.
In fact in the past month, Bitcoin prices have cooled off to a 6 month low.
Regardless, the demand for acquiring Bitcoin as a vehicle for long-term financial gains is still high. And with the volatility of Bitcoin prices versus the US Dollar, potential investors like us are seeking other options to increase our Bitcoin balances without risking our hard earned cash.
That’s where Bitcoin faucets come in.
What is a Bitcoin faucet exactly?
In simple terms, a Bitcoin faucet is a website or app that rewards users with Bitcoin (or a part thereof) for completing a certain pre-defined action. In other words these faucets give away small amounts of Bitcoins to their users. Users of Bitcoin faucets are usually awarded with a handful of Satoshi (one Satoshi is equivalent to one-hundred-millionth of a Bitcoin). To give you a feel for the value of one Satoshi, in today’s market 15,000 Satoshi is equivalent to 1 USD.
The reward amounts from Bitcoin faucets are typically quite small and will fluctuate depending on the value of Bitcoin at any given time. You won’t become an overnight millionaire by staying up all night using faucet sites, but over time you can build up your earnings until you have a large enough balance to send to your wallet. Coupling this with the potential for Bitcoin to rise sharply again in price in the future make Bitcoin faucets a worthy ‘investment’ of your time if you have nothing better to do.
Users generally get involved with faucets because they are lured by the prospect of earning free coins. The good news is, this is absolutely plausible and the very reason that they exist. Well, there is one other reason….
Why Bitcoin Faucets Exist
Bitcoin is still relatively new, so many people around the world are still learning what it is, let alone how to get their hands on some. Essentially that’s the reason why Bitcoin faucets were created. They were designed to serve as an introduction to acquiring Bitcoin without the standard risks associated with investing. You will find that most faucets actually strive to offer information about Bitcoin to new users, in addition to the incentivised payments they offer.
But why do they offer free Bitcoin in the first place?
Faucet owners make money by placing ads on their websites.
Popular and successful faucet sites generally display a LOT of ads, allowing them to pocket a steady stream of ad revenue. In fact, it’s common for faucet sites to be so overloaded with ads that the site can become hard to use. Unfortunately this is something you’ll have to bear as this is the trade-off to get a few free Satoshi in your virtual pocket.