What Are Bitcoin Faucets?
At its simplest, Bitcoin faucets are applications or websites which generate rewards for users who complete various micro-tasks. Think of it as an automated bounty-hunting mechanism, whereupon completion of a simple task or captcha rewards users are rewarded with a set amount of Satoshis (one-hundred-millionth of a Bitcoin).
For reference, below is a chart breaking down a Satoshi’s equivalent in BTC.
You’re probably wondering, “How are Bitcoin faucets able to give away free Satoshis?”
The answer is simple — ad revenue. Most of these Bitcoin faucet sites and applications host numerous advertisements (pay-per-impression, pay-per-click, etc.), so they are able to offset their expenditures that way.
In order to receive Satoshis from a Bitcoin faucet, a user will first have to create and manage a cryptocurrency wallet or microwallet (a version of traditional Bitcoin wallets which authorizes users to collect small amounts of BTC before transferring them out).