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What Is Bitcoin?

Bitcoin is a digital currency created in January 2009. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto.1 The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and, unlike government-issued currencies, it is operated by a decentralized authority.

Bitcoin is a type of cryptocurrency. There is no physical bitcoin, only balances kept on a public ledger that everyone has transparent access to. All bitcoin transactions are verified by a massive amount of computing power. Bitcoin is not issued or backed by any banks or governments, nor is an individual bitcoin valuable as a commodity. Despite it not being legal tender in most parts of the world, bitcoin is very popular and has triggered the launch of hundreds of other cryptocurrencies, collectively referred to as altcoins. Bitcoin is commonly abbreviated as "BTC".

What Are Crypto Faucets?

A crypto faucet is an app or a website that distributes small amounts of cryptocurrencies as a reward for completing easy tasks. They’re given the name “faucets'' because the rewards are small, just like small drops of water dripping from a leaky faucet. However, in the case of crypto faucets, tiny amounts of free or earned cryptocurrency are sent to a user’s wallet. In order to get free crypto, users need to complete tasks as simple as viewing ads, watching product videos, completing quizzes, clicking links (be careful!) or completing a captcha.

Crypto faucets are certainly not a get rich quick scheme. The simpler the task, the lesser the reward. Most websites offer a minimum payout threshold, so the rewards earned by completing tasks are deposited into an online wallet of the site. A user can withdraw this reward only after reaching the minimum set threshold. With the best crypto faucets, this might take just a day, but often, it can take longer than a week.

But, what is the purpose of a crypto faucet?

Though cryptocurrencies have had a great last year, they are yet not completely mainstream and are still new to many people around the world. The idea behind crypto faucets is to give free cryptocurrencies to people so they would take the time to learn about digital assets and hopefully invest in them.

How Does A Cryptocurrency Faucet work?

The operation of a crypto faucet is mainly based on finishing simple tasks as well as participating in established activities. The faucet website can fix the rewards and can set a timelock for users to claim the rewards.

Usually, users need to register on a crypto faucet by entering their details along with the wallet address. After solving a task on the website, the reward earned goes to a micro wallet — a wallet similar to traditional wallets, but one which is capable of collecting small amounts of crypto assets. For most crypto faucets, micro wallets are automatically created upon signing up.

As soon as these micro wallets are filled, the rewards are automatically sent out to the main wallet of the users.

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