What are BTC Faucets?

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.

Bitcoin units of measure

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).

Updated: May 17, 2019 — 12:01 pm

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  1. Having read this I thought it was very informative. I appreciate you taking the time and effort to put this article together. I once again find myself spending way to much time both reading and commenting. But so what, it was still worth it!

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