How bitcoin faucets exists?
Rewards are in place to attract visitors to the faucet’s webpage. These faucet sites usually contain advertisements. Advertisers pay the faucet owner to display these ads on his site. Advertising costs are calculated on Cost per Thousand impression (CPM) basis. This means, if the site gets more visitors and if each visitor spends more time on the site, then the site owner gets more money from displayed ads. These rewards attract more visitors and they come back regularly to claim their rewards. The visitor generally ends up spending more time on the faucet.
In simple words — Faucets get more repeated visitors to the site; in turn, the owner gets more money from the advertisers.
Faucets also play an important role in the bitcoin ecosystem. It encourages more people to understand and adopt bitcoin.
So, a Bitcoin faucet is a World Wide Web website that gives out “free” bitcoins (BTC) in exchange for doing a simple task, such as clicking on an advert, solving a CAPTCHA, or viewing a webpage for a certain amount of time. There are also faucets that dispense alternative cryptocurrencies.
Faucets usually give tiny amounts that typically fluctuate according to the value of bitcoin. Typical payout per transaction is less than 1000 satoshi,[note 1] although many faucets have random larger rewards. Normally faucet saves up these small individual payments in its own ledger, and they add up to make a larger payment that is sent to your bitcoin address. This is to reduce mining fees.Some faucets use immediate off-blockchain transactions, which have no fees.
Bitcoin faucet rotators can ‘rotate’ through a large list of faucets by clicking a button on a single websites, meaning more sites can be visited than entering the URL of site after site. The website earns money through a referral system for each website visited. Faucet rotators can also prioritize faucets by their level of average payout and will only visit sites if the time limit in between payouts has been reached.
The business model of bitcoin faucets is to get advertisement revenue from banner ads and distribute only portion of that money to users. A time limit is imposed between payouts to stop bots, human CAPTCHA solvers in third world countries, or avid users performing repeated withdrawals.
To give something back: Faucets are a great way to help introduce new people to bitcoin, or to your favourite altcoin. Many faucets provide information to newbies as well as offering them some free coins so that they can ‘try before they buy’, experimenting with a test transaction or two before putting real money on the line. Since this whole area is so new and a bit scary to some people, who perhaps don’t quite trust it with their hard earned cash yet, this is a great way to promote digital currency and bring in new users. If you have done well out of your involvement in digital currency, or if you have made a big investment and want to help it to succeed, then perhaps it’s time you gave something back by running your own faucet?
To get traffic: Faucets are high traffic websites. It is not all that difficult to get a huge number of page views per day to a site which is giving away free money. If you have other content or services you would like to promote to Bitcoin users – especially new users – then a faucet can be a great way to bring them flocking to your site and make them familiar with your brand name.
To make money: Making a healthy profit from a faucet site on its own is a lot harder than just making a popular faucet, but it is still possible. There are a lot of these sites around today, so its a very competitive market, and earning enough from advertising to cover the cost of the coins you are giving away is not easy. Adding additional content to your site, or creating some kind of unique or interesting twist, can help.