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What is Bitcoin?

Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Research produced by the University of Cambridge estimates that in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.

What is Bitcoin Faucet?

Bitcoin faucets are a reward system, in the form of a website or app, that dispenses rewards in the form of a satoshi, which is a hundredth of a millionth BTC, for visitors to claim in exchange for completing a captcha or task as described by the website. There are also faucets that dispense alternative cryptocurrencies.The first bitcoin faucet was called The Bitcoin Faucet and was developed by Gavin Andresen in 2010. It originally gave out 5 bitcoins per person.


Rewards are dispensed at various predetermined intervals of time, as rewards for completing simple tasks such as captcha completion and as prizes from simple games like the bitcoin fidget spinner. Faucets usually give fractions of a bitcoin, but the amount will typically fluctuate according to the value of bitcoin. Typical payout per transaction is less than 1000 satoshi, although some faucets also have random larger rewards. To reduce mining fees, faucets normally save up these small individual payments in their own ledgers, which then add up to make a larger payment that is sent to a user's bitcoin address. As bitcoin transactions are irreversible and there are many faucets, they have become targets for hackers stealing the bitcoins.


To introduce users to bitcoin: Faucets are a great way to help introduce new people to bitcoin, or to altcoins. A majority of faucets provide information to new users 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 experience is so new and a bit complicated to people, who perhaps don’t quite trust it with their hard money, this is a beneficial way to promote digital currency and bring in new users.

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 a website has other content or services to promote to Bitcoin users, especially new users, a faucet is a great way to bring them to make them familiar with a 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 it's a very competitive market, and earning enough from advertising to cover the cost of the coins you are giving away and hosting costs is nearly impossible. Adding additional content to a website, or creating some kind of unique or interesting twist, is the only way to generate an income for a Bitcoin faucet.

Referral System

It is typical for faucets to have a referral system, where existing users referring new ones are rewarded with a pro rata portion of new users' earnings from the faucet. Unlike illegal pyramid schemes, earnings do not percolate to the top in the chain of referrals. The exact legal status of bitcoin faucets is unclear and can vary by jurisdiction, refer to legality of bitcoin by country.

Revenue Model


The setting up of a Bitcoin Faucet involves integrating a payments processor/manager. The owner of the Bitcoin Faucet loads some bitcoin into this payments manager's cryptocurrency wallet. The payout for visitors are given out according to the sites rates/kind of operation.


Advertisements are the main income source of bitcoin faucets. Faucets try to get traffic from users by offering free bitcoin as an incentive. Some ad networks also pay directly in bitcoins. This means that faucets often have a low profit margin. Some faucets also make money by mining altcoins in the background, using the user's CPU.

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That’s pretty impressive growth in just over a decade. And the company boasts tons of unlimited and free features. But are all those extra perks truly unlimited and free?

We checked it out for ourselves so you wouldn’t have to, paying for a real, live plan with Hostinger. After that, we set up our own website and began to monitor its performance over the past few months.

Fast Load time

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Hostinger boasts servers in the USA, Asia, and Europe (Cyprus). And each is reportedly connected to a 1000 Mbps connection, which ensures that loading times are stable.

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Last three-month average load time 2018

January average speed: 456ms

February average speed: 465ms

March average speed: 445ms

On average, page loading times were 453ms.

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Hostinger doesn’t disappoint. The company offers live chat support, support tickets, and more.

Live chat is only accessible if you’re logged into a Hostinger account, though.

We had to wait about 10 minutes to wait for a chat support agent, but Hostinger offered to create a ticket in the meantime.

Gytis Z. answered our questions quickly and with a great use of language.

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