Risks of Using Crypto Faucets

While crypto faucets are generally built by people with good intentions, there are still some risks associated with interacting with them. Common risks include data farming or possible scams. Let’s dive into the potential risks of using crypto faucets.

Possible Scams

There are many legitimate crypto faucet platforms that can help you earn cryptocurrencies, such as the ones listed above. But hackers and scammers can easily use the lure of free cryptocurrencies to ensnare unsuspecting victims. Malicious crypto faucets can be used for a range of nefarious things. For example, some may try to infect your device with malware, while others may try to steal your credentials through phishing. Or, if it’s an Ethereum-based crypto faucet governed by smart contracts, you could be tricked into signing a malicious smart contract for approval.

For this reason, it’s important to do proper research on a cryptocurrency faucet platform before connecting your wallet. If you learned about the platform from an unsolicited email, then it’s probably from a scammer. If the platform is offering unusually high rewards, then it’s probably too good to be true. Be cautious about the cryptocurrency faucets you use, and consider using a different wallet from your main cryptocurrency wallet to be safer when withdrawing your rewards.

Data Farming

Remember when Andresen’s crypto faucet had to shut down because it was unsustainable? Well, most crypto faucets now have better business models than offering rewards out of pocket. Crypto faucets now sell ad space to make money, a portion of which is given out as rewards.

But sometimes, a crypto faucet may also sell any data you provide for revenue. This may include your email and wallet address, or even device information.

Low Rewards

It’s worth reiterating that crypto faucets have very low rewards. For example, completing a task might only give you one Satoshi, which is equivalent to one hundred millionth of a BTC. In US dollars, this is a fraction of a cent at the current BTC price. Therefore, crypto faucets don’t make you much money.