What Is Ethereum Faucet?

An Ethereum Faucet is a reward system that is designed to award users Ethereum for completing tasks like solving captcha.

Anyone who wants to own some Ethereum but they do not have enough money to buy any or acquire a mining rig; they can go for an Ethereum faucet.

Opportunities of Ethereum Faucet

The cryptocurrency market is packed with many investment strategies: from purchasing coins and trading on exchanges to mining and crypto faucets. Besides the latter, the other crypto-making techniques demand a particular degree of technical expertise.

Opportunities such as those provided by Ethereum faucets help fill the knowledge gap and spur the adoption of digital assets. Most Ethereum faucets offer games, ads, captchas, and loyalty programs, among other possibilities, for earning and learning.

Ethereum Faucet Overview

An Ethereum faucet is a reward system. It gives users ETH for completing simple tasks like solving a captcha or clicking on a link. Thus, people can own ETH without having to buy or mine any.

How Do Ethereum Faucets Work?

An Ethereum faucet is built around the set of tasks that users must perform to earn a particular reward. It can be a website or mobile application that is generally configured with a specific threshold of ETH to allocate to a faucet pool. This includes the minimum amount for withdrawal. There is also a time clock for claiming the rewards.

After the participant signs up, they are given tasks to complete. Then, they keep earning rewards in the form of gwei (a fraction of Ethereum).

The rewards are often called micropayments and don’t work with your regular crypto wallet. You will need a micro wallet. Micro wallets might charge tiny fees for withdrawals. 

Advantages and Disadvantages of Ethereum Faucets

There are several reasons to make a choice in favor of Ethereum faucets.

• They allow novice users to start earning coins quickly, though a small amount.
• They introduce Ethereum to new users by providing information alongside the free coins. 
• They allow people to earn from anywhere as long as they are connected to the internet. 
• They provide an opportunity for low-risk investment. You can hold the cryptocurrency without worrying about losing your money.
• They generate high traffic for the website owners who expose visitors to other content.
• They help the websites get income from the traffic.

Despite the benefits, Ethereum faucets have serious drawbacks. Two of them are mentioned below.

• They pay out very little, which means it may take you too long to make a significant amount of ETH.
• Scams are rampant -- some sites deny users their funds or slow the rates just as they approach the minimum withdrawal limit.

What Are Some of the Tasks to Expect?

Ethereum faucets have different tasks for their users. Have a look at the most common ones.

• Filling a CAPTCHA: Free-Ethereum.io allows you to earn ETH by completing a captcha. It usually refreshes at specific intervals, mostly minutes or a few hours. Some faucets have shorter breaks. Moreover, the balance you leave on their site starts earning interest once you meet the minimum threshold.
• Mining: some faucets offer a mining opportunity in addition to other tasks. A good example is Allcoins.pw, where you can sign up to mine crypto using their web or CMD miner features. They also have a multi-option attribute that allows you to run auto faucets on several cryptos simultaneously.
• Playing games: with Dutchy CORP, you can play games to earn crypto in addition to solving captchas.
• Ads and links: most Ethereum faucets let you earn crypto by interacting with ads and using short links. Great examples here would be Fire Faucet and Faucet Crypto.
• Referral Programs: another common trend among faucets is providing users with loyalty programs. You can start earning a commission for onboarding other users. Althub and Flyeth, for instance, have a 20% and 50% affiliate rate, respectively.

What to Look for in an Ethereum Faucet

There are many faucets to choose from, which can confuse you a lot, especially if you don’t know which boxes to check. So, here we go.

Payout: how much ETH/gwei can you earn, and how often can you claim that amount? The general rule of thumb is that complicated tasks take longer to refresh but pay more.

Timer: this is the refresh frequency, often set at every few minutes or several times a day. The shorter the time, the more you make. However, some sites may have a shorter refresh time and smaller payouts. You have to look for something that strikes a desirable balance between the two.

Minimum withdrawal: how often do you want to withdraw? A high minimum withdrawal limit means you may have to wait longer before you have enough to cash out.

Withdrawal method: you need a micropayment wallet, which some faucets may provide, or you may have to download it.

Referral/Loyalty programs: increase your earning opportunities when your referrals start performing some actions.

Apart from these features, you should also pay attention to how reliable the faucet provider is. One way forward would be to search for user reviews — this is a reliable source of information.

Conclusion

If you find a reliable faucet that pays out regularly, then you are lucky. Besides making some ETH during your free time, you will have an excellent opportunity to learn more about cryptocurrencies, blockchain networks, digital wallets, and much more.