Bitcoin and other cryptocurrencies have exploded into popularity over the past few years with even institutional investors taking notice. However, crypto’s rise to fame hasn’t been an easy one.
From government intervention to market manipulation, investing in cryptocurrencies is an extremely volatile and risky affair. Still, this hasn’t stopped more adventurous investors from jumping in with both feet.
And for the more risk-averse amongst us, there are also ways to tap into the crypto market without risking your capital or sanity — enter Bitcoin faucets.
What Are Bitcoin Faucets?
In a nutshell, Bitcoin faucets are websites or apps which reward visitors with small quantities in exchange for completing a series of tasks.
Tasks range from completing surveys to watching videos and even playing games. You can find out more about them here: https://blog.tezro.com/what-is-a-bitcoin-faucet/
So, you’re probably asking yourself why are some folks paying out Bitcoin for free? And, what’s the catch?
It’s simple, really — so let’s take a look at some of the ways these websites make money.
3 Main Ways Bitcoin Faucets Make Money
1. Commissions
Faucets use Bitcoin payouts as a means to attract and provide visitors with an incentive to complete certain tasks. For example, survey companies may sometimes use faucets to gather information from a pool of individuals. And after visitors have successfully completed the survey, they’re rewarded with small quantities of Bitcoin.
2. Affiliate Links/Referrals
Another way for faucets to make money is by partnering with sites to offer affiliate links and referrals. This means that faucets get paid for passing along traffic to their partners and recommending new users.
Take crypto wallet affiliate links for example. Because you’re going to need a crypto wallet to hold your Satoshis, a Bitcoin faucet may offer referrals or affiliate links that let you sign up with a certain wallet. So that way, this allows the faucet to earn money by passing along new customers to its partner.
3. Advertisements
The popularity of Bitcoin and other cryptocurrencies means that faucets receive significant amounts of traffic which makes them an attractive choice for advertisers. Hence, a crypto faucet owner may choose to display ads on their site to earn commissions from advertisers.
Can YOU Make Money From Faucets
Now that we’ve seen how crypto faucets make money, is it possible for you to make money from them?
The answer is definitely yes. You can make money from crypto faucets, but you have to keep the following in mind.
1. Rewards From Faucets Are Small
Bitcoin faucets are not a way to get rich overnight. Rewards paid out by these faucets are measured in the form of Satoshis i.e. the smallest measurement of Bitcoin. For context, 1 Satoshi is equivalent to about 0.00000001 BTC which means that you’ll have to collect a lot of Satoshis to get even 1 Bitcoin.
But if you’re looking to experiment with cryptocurrencies, then faucets are a great way to learn more about them. They present you with a risk-free way to invest in cryptocurrencies without having to fork out a cent. But given how small the rewards are, don’t expect to earn much by visiting a faucet.
2. Tasks Are Repetitive and Laborious
While crypto faucets give you free coins, do keep in mind that the tasks required of you can quickly get boring. After all, there are only so many times you can keep watching videos or answering surveys before things get boring.
Furthermore, the extremely small rewards and time-consuming nature of these tasks mean that farming crypto faucets may not be profitable at all.
3. Some Faucets Are Scams
Most importantly, keep a lookout for suspicious-looking crypto faucets. As digital assets have become extremely popular in recent times, cybercriminals have taken to setting up fake faucets in order to lure in unsuspecting visitors.
From here, users are asked to provide their financial details or personal information which can then be used to commit identity theft. Other fraudulent sites install malware or tracking software that damages your device and spies on you.
Closing Thoughts
Bitcoin faucets are legitimate platforms that allow enthusiasts to experiment with cryptocurrencies safely.
However, you should always be careful when visiting certain faucets in order to protect yourself.
For more information, visit whatsmind.com
