Crypto Terms: Letter F

What is Faucet?

Faucet - is a cryptocurrency reward system based on an application or website that distributes prizes to users and cryptocurrency holders who successfully perform specific tasks.
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Let's find out Faucet meaning, definition in crypto, what is Faucet, and all other detailed facts.

Faucet is a cryptocurrency reward system based on an application or website, that gives away rewards for users and cryptocurrency holders that manage to complete particular assignments such as viewing ads or finishing captcha tasks.

For instance, Bitcoin Aliens is a faucet that was created in 2014. This faucet lets users gain a particular quantity of major cryptocurrencies like Ethereum, Bitcoin, Litecoin, or Bitcoin Cash directly from their phones as a reward for playing games.

It is seen as an easy way to gain crypto assets without the need for any knowledge, as opposed to cryptocurrency trading. Besides, the reward system was developed to encourage people to buy cryptocurrencies and altcoins, which are an alternative to Bitcoin.

Besides, Bitcoin faucets are one of the most utilized and popular forms of faucets. It was first created in 2010, by Gavin Andersen, and in the early phases, Bitcoin faucets were valued at about 5 BTC.

Moreover, the faucet was rewarded in the form of a satoshi (a hundredth of a millionth of a Bitcoin). It was named after Satoshi Nakamoto, the inventor of Bitcoin.

However, faucets must not be confused with airdrops and bounties, which are two different methods of obtaining cryptocurrency prizes. As a result, airdrops are typically issued by cryptocurrency start-ups and provide a one-time payment for assisting a company with community growth.

The bulk of faucet rewards is paid straight to a user's wallet or third-party wallet. However, in order to qualify for the little amount of bitcoin, users usually need to complete a captcha.