This guide is made for those that are just starting in the cryptocurrency world.
By actualy working with Bitcoin, Ethereum, Litecoin etcetera, for free.
Now, all of the free coins given out do not add up to much in current monetary values, but will give you a larger understanding on how to work with cryptocurrency, whilst you get to keep everything you claim.
Read some short descriptions on how to get some small amounts for free. Find out exactly how easy it is, by working with the real deal. All for free. And what you claim is yours to keep.
Cryptocurrency is a general name referring to all encrypted decentralized digital currency. The technology is generally open-source. This means anyone can copy and/or create their own. Except change an existing one. This is the encrypted part, where every action taken in the program (or blockchain) for each currency, is logged in it's ledger and is programmed so that it cannot be altered later. When writing into the ledger the program first checks the rest of the ledger for if what you are trying to do is allowed. These will be logged as confirmations. Meaning; the information is accepted by the ledger because it confirmed the information first came from the ledger.
The growing popularity of crypto's means that despite volatile prices, market caps and values are growing every year. This popularity is contributed to the fact that it's completely free from government or banks. No bureaucracy and bankers involvement in its creation and distribution.
Popular cryptocurrencies include the original Bitcoin, Ethereum, and Litecoin. These all have different technologies for encryption, mining and sending. They all share one common feature, They're ledgers cannot be altered once information is accepted.
Learn a little about what to expect before you dive into it by reading the short Q&A on how to claim. This method and type of servive was invented to learn in practise how it all works. Followed by some tips you might consider along the way. Keep in mind that faucets are no way to become rich fast. But, it is not nothing and might just help you decide what you want to do in this new world of cryptocurrency.
Faucets, in short, are websites that give away tiny pieces of cryptocurrency. Usually in set time intervals. Thus dripping like a faucet.
Before you start you will need to have a wallet for your chosen cryptocurrency. If you do not have one, it is advised to google this, and then look for a review on the one you like the look of best.
The recommendation to google is because this should automatically filter out any results that might be illegal in your region.
There are some tips to consider when browsing around all the faucets out there on the internet.
Some might be a little on the nose but still worth mentioning.
- Install a free pop-up blocker for your browser.
This will save a lot of time and block a lot of pop-ups. Even though we have them too on our faucets, because faucets cannot survive without its income.
- Pause your adblock when claiming.
Yes, you will get a warning about it every time you visit a faucet to turn it off. After a while this will save a lot of time.
- Use one wallet address per crypto.
Do not make a lot of addresses to claim with. This will get you banned eventually. You will be seen as a bot attack.
- Make or use a favorites list.
There are a lot of faucet rotators you can use for this as well. But, making your own list of faucets to visit regularly will help wasting browsing around and using google a lot.
- To contradict the previous tip:
Visit bitcointalk micro earnings board to see the newest faucets being advertised. These usually have the highest rewards but also usually have the shortest life spans.
- Do not waste all your time.
Of course depending on where you live in the world, this is no way to earn a living. Your claims may eventually make a nice sum, with prices skyrocketing all the time and so on. But, do not think of it as a short term money making exercise. Claim in your spare time, with your mobile, waiting on a bus, watching tv, browsing the internet and so on.
- Use your referral links.
This might not look like it would help much. Or you don't think you know anybody that would visit your referral link. It will help your earnings. Keep in mind various rules on bitcoin and crypto related websites that do not allow referral links.
- Do not fall for large sums of free bitcoin scams.
Seriously, it is amazing how many people still fall for big scams. They advertise free large sums of bitcoin, and at the end of the process ask you to send a little bit for whatever reason. If you are asked to invest or send them coins, just walk away.
- Do not use browser mining.
This is a relatively new thing since 2017. Some websites offer an option to use your computer, laptop, smartphone or whatever device, to mine and send hashes for satoshi's. This is really far more expensive for you than any gain. It will use your hardware and electricity and may even overheat your CPU. The only ones making any profit are the website owners. Be aware that some websites may not even warn you that they have this running. To be sure you are safe you should search for the most recent anti-web-mining extension for your browser.
Lots of faucets are using a service called Microwallet.org as a place where payments are stored before being sent to you.
Microwallet.org is a micropayment cache. Various faucets are using this system for different reasons.
When a transaction takes place on the Bitcoin network it is sent to the blockchain where it is confirmed (this takes time) and a transaction fee is charged. With Microwallet the owners and operators of faucets send coins to an address and they are stored to later be divided up off the chain immediately.
This allows for faucets to send a message to the Microwallet.org site saying that you have received some Bitcoin and they move it internally from the faucet address to your Microwallet.org address. Once you have reached a threshold the coins are available to you as an end user to be withdrawn which is when the transaction goes back on the blockchain.
By using a site like Microwallet.org it is easier for a faucet owner to send you micro transactions and saves you the fees by bundling up transactions as well.
What makes this such a cool service is that once you have reached the withdraw limit you do not have to do anything. The coins are automatically sent your Bitcoin wallet address, plus you don not have to do anything to actually get your Microwallet setup. It automatically exists when you use your Bitcoin address on a site that supports Microwallet.org.
Microwallet.org is completely trustworthy, the developers are active on various platforms and the always payout on time. The Microwallet used by MultiHub.Club are powered by Microwallet.org and is completely trustworthy.
While Microwallet.org is not a true wallet but more of a temporary storage space for small transactions it is completely reliable and home of several Bitcoin faucets payouts.
There have been several popular microwallet providers in the past. Like Xapo, FaucetBox, Epay and FaucetFly. Most have stopped, or are almost dead services for various reasons.
At the moment there are only two still very active and reliable:
FaucetHub might not be the most user friendly microwallet when you first visit the website. But, after registering it looks really good and gives you a lot of options. Most important of those are the faucets. They have a large collection of faucets for several crypto coins, including Bitcoin.
Maneuvering through all the faucets listed can be a real hassle. as many people register a faucet there and some just use this to entice you to download malicious software. Or, some are just very difficult to claim. Having to complete multiple captcha's and visit many pages before you can actually claim.
It's best to either make your own faucet list, or use one of many made by other people, like the one on this website next to the actual faucet.
Faucet System is a more easy microwallet where you do not need to register, although you can. Just claim with the same wallet address at multiple faucets and you will be automatically paid every monday after reaching the minimum threshold of 15.000 Satoshi.
They have their own nice rotator for easy claiming.
You can always check you balance just by filling in your wallet address you used for claims.
Coinpot is a private microwallet. Unlike FH and FS they do not accept other faucets for their services. All coipot faucets pay directly to your coinpot account. When registering to any of their faucets, you are automaicly registered with coinpot.
Payment threshold are the standard in this field and payment methods are realy easy. You can convert any coin to any coin within their system. This is not a exchange, but just easy if you claim from various faucets to convert them all to your desired coins.
You can request to payout to other Microwallets, Xapo, Coinbase or your own private wallet address.
To find all coinpot faucets in one place; please visit the Legendary Faucets section.
Every cryptocurrency is different. For the everyday user the difference is only noticeable by the type of wallet they install, the total volume of said coin, and the address structure. For example every Ethereum address starts with '0x' and every Litecoin address with an 'L'.
The other main difference is the transaction fees and speed. While most transfer fees are between 0.001 and 0.0001 of any used coin, the actual cost in dollars differ a lot. When Bitcoin had a market value of $5.000,- your standard fee would be around $2,5- per transaction. The higher the fee you pay, the faster your transactions gets confirmations.
Some coins have a bigger following and thus a more stable network.
A great example of this is Litecoin. Founded with the same principles as Bitcoin, with some technical differences, Litecoin is one of the fasted and stable cryptocoins around. Transactions are cheaper and faster than with Bitcoin. It helps a lot that the main developers are less divided concerning anything they find needs improving.
Ethereum on the other hand works even more different. The Ethereum network can be seen as more of a big machine holding many other coins, called tokens. These tokens can be send and received within the Ethereum network under just one address holding many types.
Here Ethereum is mainly used to pay for transactions, so you don't need to pay from the token share. That's why when making a transaction ethereum is usually referred to as 'gas'.
With this system Ethereum can be used by anyone to make their own token with smart contracts. Very little technical knowledge and skill is needed, and many have taken to use this method instead of hiring a full IT team to develop their own cryptocurrency.
The total volume of any token has a very big influence on the market value and usability. As you might already know the total amount Bitcoins possible is 21million. These all need to be 'mined' before they can be used.
Other coins have different maximum coins, influencing the price and difficulty of the mining process. Some coins like the infamous DOGE coin have no limit and will always be mineable. This of course brings the problem that its value can never fully be determined opposed to others. Then again in case of DOGE this isn't a problem, as it was first introduced as a sort of joke and gift.
Then there are the coins and tokens that are not mined but just created all at once. This is done to ensure many things like; value and usability.
These are usually build on top of another blockchain, like the ethereum network.
Of course there are a great many other cryptocurrencies around these days, with a great variety of programming languages used. But they still are usually operated and used by the casual user like the aforementioned.
Tokens are a somewhat late addition to the blockchain technology, to help companies and individuals create their own coin, without needing all the knowledge to build one from nothing.
As mentioned before the ethereum network is a great example of this. Anyone can create their own token using a so called smart contract. With this you can easy design your own token. Meaning, give it a name, logo, volume and assign its value. Of course you will need to be backed by others to make it a reality. Or your coin will just be tiny blip that no-one really sees or pays attention to.
The great thing about these tokens at this stage of all the blockchain technology development, is that it's still rather new, and those that are successful creating coins with a purpose give away portions before actual business launch.
All just to improve visibility and give people a chance to invest smaller amounts of money than the big investors, at same rates.
Keep in mind that about half of these fail very early on after launch or even before. There are various reasons for this among the most obvious; It was always a scam.
This does not mean you should not sign up for these give-away's and so called 'airdrops'. Just make sure you have a wallet address and a email address ready. Be sure that you realy want to give away personal information, if they request it. Since the whole cryptocurrencie is founded on more anonymity and not needing all that bureaucracy.
Do not invest actual money/bitcoin if you cannot afford to loose it.
There are a lot of examples of success and failures out there. But, if you haven't actually invested and still received free coins there is no loss. Even if the coin is currently worthless.
Check the 'airdrops' for free coins available to claim.
When looking up any cryptocurrency, you will see a lot of terms and abbreviations used. Here is a list of most used and common terminology with explanations.
- Address. (public key)
Address or wallet address (also known as a public key) is long string of alphanumeric characters that represent your public key from and to which you can send coins.
- Private Key.
Your private key is the second string of alphanumeric characters that can unlock your address in any other wallet. These can be imported and exported in any good wallet software.
The blockchain is the ledger where everything that happens with a coin is logged and confirmed. Once confirmed this can never be altered again. The Blockchain is open to everyone. The Blockchain is maintained and updated constantly by every computer that has it downloaded, like miners.
An altcoin is the community accepted name for any cryptocurrency that is not Bitcoin.
Mining is a term used for finding blocks containing new coins. This method is usually done by sending a lot information till one of those strings of information is the correct one. There are several methods of doing this depending on the coin.
Application Specific Integrated Circuit is a chip specifically created to execute one task. Mining. Currently the most popular method out there.
A fork is when a network or blockchain copies itself onto a new ledger and will continue there with the full history of the previous one. While the original just continues on its own.
A Fork will happen when a 51% attack occurs, a bug in the program, or more commonly a new set of consensus rules come into existence. These happen when a development team creates and inserts notably substantial changes into the system.
- 51% attack.
A 51% attack is a situation where more than half of the computing power on a network is operated by a single individual or concentrated group, which gives them complete and total control over a network. This is against what the blockchain technology stands for. Thus like previously stated; a fork will happen.
A node is a computer connected to a ledger. A node supports the ledger through validation and relaying of transactions. While just receiving a tiny copy of the full ledger for confirmations.
- POW. (proof of Work)
A Proof of Work is a number produced only once for easy confirmations. The downside of this is that it's very costly to maintain. The computer that produced this will have to be running and connected to confirm. This is mainly used by miners to get the fees from transactions.
- POS (Proof of Stake)
This is where you proof your stake in a coin by owning them. Having complete coins in your wallet connected to the ledger will help confirming transactions.
For every transaction with every cryptocurrency you are required to pay a fee. This is usually on top of what you are already sending.
The fee is dependent on the size of your transaction and whether or not your coins have collected 'dust'.
These fees are paid to the computers/nodes/miners that can confirm your transactions. This is where the POW or POS system comes in.
Dust is, as the name implies, when your coins have been in storage a long time and need to delve deep into the ledger before it can be confirmed. This will bring extra transaction fees and is very dependent on whether or not there were many previous transactions to compile your current one.
- Smart Contract.
With a smart contract you can create your own currency on an existing ledger. Once signed the contract can never be changed again.
You create a coin on the Ethereum ledger with 10 coins. Once approved by the ledger and signed by the creator, there can never be more created or deleted.
Gas is the transaction fee. Usually the currency from the ledger on witch a smart contract is created.
- ICO. (Initial Coin Offering)
Initial Coin Offering is an unregulated means by which funds are raised. Bypassing regulations, banks and government to find investors. This is sometimes accompanied by airdrops in order to find early backers.