A Bitcoin faucet is a reward system, in the form of a website or app, that dispenses rewards in the form of a Satoshi, which is a hundredth of a millionth BTC, for visitors to claim in exchange for completing a captcha or task as described by the website. There are also faucets that dispense alternative cryptocurrencies.
The first Bitcoin faucet was called The Bitcoin Faucet and was developed by Gavin Andresen in 2010. It initially gave out 5 BTC per visitor.
Other early faucets were developed by BitPay and Bitcoin Foundation.
Bitcoin faucets usually give out fractions of a Bitcoin, but the amount will typically fluctuate according to the value of Bitcoin. Some faucets have random large rewards.
To reduce mining fees, some faucets also give out Litecoin, Dogecoin, Ethereum or other cryptocurrencies. Faucets are usually sponsored by advertisements but these ads only run to keep the faucet alive and are not used to generate revenue for the owners.
Most faucets either pay out directly to your wallet or use a 3rd party microwallet service like Faucethub or Coinpot. Microwallet services collect all your earned cryptocurrency in one place and allow you to make one withdrawal when you reach the minimum threshold (like 0.
0001BTC). This saves you from having to wait for multiple confirmations on multiple withdrawals from different faucets.
Withdrawals from Coinpot can be made to your personal wallet at any time or converted to other cryptocurrencies with just a few clicks. You can also use Coinpot to convert your earnings into different fiat currencies like USD, EUR or GBP which can then be withdrawn to your personal bank account.
A free bitcoin faucet is an excellent way to get started with cryptocurrency trading. By offering small amounts of coin for completing simple tasks, faucets introduce newcomers to the world of blockchain technology and digital assets in a fun and easy way.
Withdrawing your earnings to a personal wallet or microwallet service is quick and simple, meaning you can start accumulating cryptocurrency without any hassle.