A cryptocurrency reward system usually on a website or app, that rewards users for completing certain tasks.
Faucet is a cryptocurrency award system which rewards cryptocurrency holders in order for completing certain tasks on a website.
It is considered an effortless way to earn crypto assets which doesn’t require any expertise unlike cryptocurrency trading.
The tasks can involve viewing ads or completing captcha tasks.
The reward system was designed to incentivize purchases of cryptocurrencies, particularly altcoins, which are alternative digital currencies to Bitcoin.
After cryptocurrency prices rose in 2019, payouts from faucets have become increasingly low.
Faucets usually require a user to complete a captcha in order to qualify for the small portion of coins.
Bitcoin faucets are unsurprisingly one of the most popular forms of faucets.
Developed in 2010 by Gavin Andresen, Bitcoin faucet was the first to be developed.
In the early days, Bitcoin faucets used to be worth five whole BTC.
Faucets tied to the likes of Ethereum, Dogecoin and Litecoin later emerged.
In the case of BTC, the faucet is rewarded in the form of a satoshi, which is the hundredth of a millionth of a Bitcoin.
Satoshi was named after Bitcoin’s founder, Satoshi Nakamoto.
Most faucet rewards are paid directly to a user’s wallet or whichever third-party wallet is being used.
Faucets should not be mistaken with airdrops and bounties, which are also other ways of achieving cryptocurrency awards.
Airdrops are usually distributed by cryptocurrency start-ups and give a one-time reward for helping a firm with community building.
Bitcoin Aliens is a faucet which was developed in 2014. It allows users to earn a number of key cryptocurrencies such as Bitcoin, Litecoin and Bitcoin Cash from your phone as a reward for playing games.