Bitcoin faucets used to be very popular when the “crypto boom” was in full swing. If the traders weren’t busy speculating on the market, you’d mostly find them on random websites, watching random videos and filling in captchas for no apparent reason. Well, back then, grinding on these websites was actually a really good way to make some extra cash on the side with cryptocurrencies. These sites are called Bitcoin faucets or crypto faucets. So what are they?
What is a Bitcoin faucet?
If you are new to the cryptocurrency sphere or have moved over from traditional financial markets, then seeing these two words together may be confusing. Try to imagine a handout from a company for doing a very small task.
One of the best examples for your financial market migrants out there is the Forex no deposit bonus – where you only sign up with the company, and you get some money. It’s pretty much similar with Bitcoin faucets, but it requires way more than just signing up.
How they work
Usually, Bitcoin Faucets are just websites that offer visitors to “work for cryptocurrencies”, meaning that you sign up, get a small bonus, and then you do a small task and also get a bonus. The tasks are usually extremely simple, but quite time-consuming if you do them en masse. For example, the simplest task can be to watch a video, or like it, share it, etc. There are also examples where people are just tasked to fill in the captcha. Usually, the reward for these tasks is now around $0.01. In the past, however, when Bitcoin was at its peak price, the rewards were somewhere around $1.
So let’s now break it down. You go to a website, sign up and get some money. Then you do extremely simple tasks and get money as well. Sounds great right? Well, no, not anymore at least.
Why you should not even bother with Bitcoin faucets
As I already mentioned, the pay-out for a single completed task is around $0.01 in Bitcoin or Satoshi. Sure you may have a lot of time on your hands during the day, but that won’t help as well.
The videos are usually around 30 seconds long, so watching non-stop can indeed land you $6 every hour. But, the faucet owners know about this, therefore they imposed some restrictions. You cannot continuously grind on the website anymore. After 15 minutes of watching the video, you’re forced to wait for at least another hour. So your earnings are restricted to somewhere around $0.3 an hour. There’s so much more you can do within that 15 minutes of mindless clicking.
Comparing faucets to trading
Bitcoin faucets do not require any money to access, and that’s their primary advantage. However, as already illustrated, the generated amount is not even noteworthy. Let’s now look at actual trading and compare them. Let’s say you just bought $10 worth of some small currency, which was extremely cheap. Thanks to the massive volatility of the crypto market, and the relative cheapness of the coin, it is actually realistic to see a 100% increase on your investment within an hour. So you just invest $10 in the beginning, do absolutely nothing for that one hour and get another $10 in the end as a profit.
As you can see, at the end of the day, you’re far better off just trading the coins, rather than generating them on a random website. Even if you can include those Bitcoin faucets while you’re trading, it’s way better to focus on one thing at a time. Most crypto trading happens within minutes or seconds, thanks to the volatility, and you definitely don’t want to miss a spike.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.