[EDU] Faucet risks

[FaucetWorld]

Why do you think ever that a faucet owner want absolutly make profit...
For you if a faucet owner gives more than his income...than you are doubtfull.

BIG +

Wiki:
"Faucets definitely played a role in the very beginning of Bitcoin. They helped spread Bitcoin and generated a part of the early user basis. Giving out numbers of Bitcoin for free was very common back then, since there was no idea about the value of them yet. That has changed a lot since then, and nowadays faucets usually do not give out more than amounts that are far away from any fiat value. Instead, they encourage the users of the faucets to spread links in order to be rewarded and therefore promote spamming."

Intention was to popularize Bitcoin .. what we have now doesn't look nice.. :/

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[neochiny]

nice. you have such knowledge..thanks this thread helps a lot for those faucet users...
because of this they can avoid the faucet that doesnt pay and just scammers of time..

[winspiral]

nice. you have such knowledge..thanks this thread helps a lot for those faucet users...
because of this they can avoid the faucet that doesnt pay and just scammers of time..

Not so easy like you say:
you cannot know in advance if it is a scam or if you are 100% sure it's a scam you cannot know if the scam process has already started.
take my gfaucets for example:
you cannot know in advance if it's scam or not scam...
I'm laughing out loudly whe i hear people talking about...we cannot know in advance...and in few cases it was just ...delaid payouts or technical problems

[lol3c]

The faucet world is over-saturated right now, not every faucet that will use the sample template will have profit, it's true that some of them are making loads of money everyday but they get there only by a twist made to their strategy. Considering the low payouts that faucets have, there are still plenty of users that are using them. So faucet's world i don't think will end soon. We'll see.

[FaucetWorld]

The faucet world is over-saturated right now, not every faucet that will use the sample template will have profit, it's true that some of them are making loads of money everyday but they get there only by a twist made to their strategy. Considering the low payouts that faucets have, there are still plenty of users that are using them. So faucet's world i don't think will end soon. We'll see.

I will do everything to FaucetWorld will never die..

[lol3c]

The faucet world is over-saturated right now, not every faucet that will use the sample template will have profit, it's true that some of them are making loads of money everyday but they get there only by a twist made to their strategy. Considering the low payouts that faucets have, there are still plenty of users that are using them. So faucet's world i don't think will end soon. We'll see.

I will do everything to FaucetWorld will never die..

Will not in the near future, only the best faucets will survive and make some money out of this .

[FaucetWorld]

The faucet world is over-saturated right now, not every faucet that will use the sample template will have profit, it's true that some of them are making loads of money everyday but they get there only by a twist made to their strategy. Considering the low payouts that faucets have, there are still plenty of users that are using them. So faucet's world i don't think will end soon. We'll see.

I will do everything to FaucetWorld will never die..

Will not in the near future, only the best faucets will survive and make some money out of this .

This thread is about education, not speculation.. Anyway you have right - will survive only services with trust and experience.

[knowhow]

well faucets has others business online has a risk involved on it thats why scamers make several new projects and attract investors then run away,to play and profit with faucet need support and has a good reward,some people just claim satoshis doesnt even click 1ads a week or month,this way the project will fail ,and is wizzard why google that has huge rules and restritions supports faucets ... but well they get more money from it then any other place.

[jonasl]

There is also the risk of being traced. Since Bitcoin is (kinda) anonymous and you are giving away you'r Bitcoin adress there is a connection between your IP-adress and your Bitcoin adress.

[shorena]

There is also the risk of being traced. Since Bitcoin is (kinda) anonymous and you are giving away you'r Bitcoin adress there is a connection between your IP-adress and your Bitcoin adress.

Thats a good point thanks. Ill write an update soon, but I will probably not be able to cover all ways to defend against tracking.

[BTCforJoe]

Intro

#1 Fees and dusty inputs

The most common problem when using faucets is the small payment. Every time you receive a bitcoin payment to your wallet you have a new input to spend at a later date. Think of this like a lump of bitcoin you can use later. When you later want to use these lumps of bitcoin they need space as part of the transaction your wallet creates for you. This is usually 180 bytes per input. A bigger (in terms of byte) transaction will need more fees in order to be confirmed in a reasonable amount of time. Each block offers only a limited amount of space (currently 1 MB) and if you need a big chunk of the space a big chunk of your available funds will be used as fee for the miners. Faucets try to counter this by creating payout limits, but they are often set very small. A reasonable fee for a transaction with less than 1000 byte in size is 10,000 Satoshi. If the payout limit is 100,000 Satoshi and you try to spend this input, you will have to spend 10% on fees. If you want an example how bad this can end, I helped someone recover from this a while back, in numbers:
~0.5 BTC from faucets, collected over ~2 years, ~2000 inputs, ~350,000 bytes, ~0.09 BTC in fees.

I'm very new to Bitcoin, and this... This is a bit confusing. So, in other words, what does it mean if I collect a lot from faucets? Will my wallet be affected negatively after some time?

And faucets are the reason why I found out about Bitcoin. I searched Google for "What is a bitcoin" and one of the top results was a faucet. But yes, it seems as if faucets draw much negative feedback in the btc community. *shrugs* I love the faucets; gives me something to do in my free time while I make some bits. I'm okay with that lol

[shorena]

Intro

#1 Fees and dusty inputs

-snip-

I'm very new to Bitcoin, and this... This is a bit confusing. So, in other words, what does it mean if I collect a lot from faucets? Will my wallet be affected negatively after some time?

Yes, unless you mitigate this somehow. Your bitcoin wallet or service shows you a balance, but bitcoin does not work that way. Its made up of transactions on the blockchain. Every transaction you received in the past can only be used by you, but it also needs space and that space is paid for with the transaction fee. The more transactions you receive the more space you need to spend the balance they created. The more space you need the higher is the fee you have to pay. My best guess currently is that you are fine as long as you keep payouts at ~0.01 btc. Another thing you can do is to use special wallets like xapo that allow transactions from the faucet to your wallet without using the blockchain. They use internal bookkeeping if you will. This will however only work with faucets that also use xapo. Xapo also has a very high for transactions outside of their internal system. Thus if you want to send bitcoin to someone that not uses xapo you have to pay a high fee every time even if you dont have to use many old transactions. This info is outdated, xapo no longer charges any fee no matter if you send to another wallet. Thanks winspiral.

And faucets are the reason why I found out about Bitcoin. I searched Google for "What is a bitcoin" and one of the top results was a faucet. But yes, it seems as if faucets draw much negative feedback in the btc community. *shrugs* I love the faucets; gives me something to do in my free time while I make some bits. I'm okay with that lol

I started out with faucets as well, I think most have. As long as you are aware of the downsides there is nothing that speaks against faucets. Its an easy way to test this magic internet money. While bitcoin is somewhat easy to use (not grandma easy, yet) it is very complex in its details. Which result in the above effects that a transaction for 1 BTC from a single old transaction is less expensive (~10k satoshi fee) than a transaction for 1 BTC from 100 old transactions for 0.01 BTC each (~180k-200k satoshi fee).

[BTCforJoe]

Yes, unless you mitigate this somehow. Your bitcoin wallet or service shows you a balance, but bitcoin does not work that way. Its made up of transactions on the blockchain. Every transaction you received in the past can only be used by you, but it also needs space and that space is paid for with the transaction fee. The more transactions you receive the more space you need to spend the balance they created. The more space you need the higher is the fee you have to pay. My best guess currently is that you are fine as long as you keep payouts at ~0.01 btc. Another thing you can do is to use special wallets like xapo that allow transactions from the faucet to your wallet without using the blockchain. They use internal bookkeeping if you will. This will however only work with faucets that also use xapo. Xapo also has a very high for transactions outside of their internal system. Thus if you want to send bitcoin to someone that not uses xapo you have to pay a high fee every time even if you dont have to use many old transactions.

Oh wow, thanks so much for all this information! I think I will reserve my Blockchain wallet for larger transactions, while I use my Xapo for these faucets and micropayment caches.

Thanks much for your help!

[winspiral]

Yes, unless you mitigate this somehow. Your bitcoin wallet or service shows you a balance, but bitcoin does not work that way. Its made up of transactions on the blockchain. Every transaction you received in the past can only be used by you, but it also needs space and that space is paid for with the transaction fee. The more transactions you receive the more space you need to spend the balance they created. The more space you need the higher is the fee you have to pay. My best guess currently is that you are fine as long as you keep payouts at ~0.01 btc. Another thing you can do is to use special wallets like xapo that allow transactions from the faucet to your wallet without using the blockchain. They use internal bookkeeping if you will. This will however only work with faucets that also use xapo. Xapo also has a very high for transactions outside of their internal system. Thus if you want to send bitcoin to someone that not uses xapo you have to pay a high fee every time even if you dont have to use many old transactions.

Oh wow, thanks so much for all this information! I think I will reserve my Blockchain wallet for larger transactions, while I use my Xapo for these faucets and micropayment caches.

Thanks much for your help!

This will however only work with faucets that also use xapo. Xapo also has a very high for transactions outside of their internal system. Thus if you want to send bitcoin to someone that not uses xapo you have to pay a high fee every time even if you dont have to use many old transactions.

Do I have fees if I send satoshi from my xapo wallet to a non-xapo wallet?

[shorena]

Yes, unless you mitigate this somehow. Your bitcoin wallet or service shows you a balance, but bitcoin does not work that way. Its made up of transactions on the blockchain. Every transaction you received in the past can only be used by you, but it also needs space and that space is paid for with the transaction fee. The more transactions you receive the more space you need to spend the balance they created. The more space you need the higher is the fee you have to pay. My best guess currently is that you are fine as long as you keep payouts at ~0.01 btc. Another thing you can do is to use special wallets like xapo that allow transactions from the faucet to your wallet without using the blockchain. They use internal bookkeeping if you will. This will however only work with faucets that also use xapo. Xapo also has a very high for transactions outside of their internal system. Thus if you want to send bitcoin to someone that not uses xapo you have to pay a high fee every time even if you dont have to use many old transactions.

Oh wow, thanks so much for all this information! I think I will reserve my Blockchain wallet for larger transactions, while I use my Xapo for these faucets and micropayment caches.

Thanks much for your help!

This will however only work with faucets that also use xapo. Xapo also has a very high for transactions outside of their internal system. Thus if you want to send bitcoin to someone that not uses xapo you have to pay a high fee every time even if you dont have to use many old transactions.

Do I have fees if I send satoshi from my xapo wallet to a non-xapo wallet?

Yes, xapo to xapo is free, but if you transfer from xapo to non-xapo you pay extra, 5 times normal fee IIRC.

[winspiral]

Yes, xapo to xapo is free, but if you transfer from xapo to non-xapo you pay extra, 5 times normal fee IIRC.

I have never noticed this fees...
where can I see them?

How much does it cost to send bitcoin?

Xapo has eliminated all transaction fees for transactions between two bitcoin addresses.


Previously, anytime a user sent bitcoins to someone who did not have a Xapo account, the user was charged a small fee by the bitcoin network to send your bitcoins. These fees serve as both a reward and incentive to the people who operate the bitcoin network. Now, anytime a user sends bitcoins to another bitcoin address, Xapo will pay these fees and you will not be charged to send payments to other users.


Please note that fees will still apply for other types of transactions, such as buying bitcoins or using the Xapo Debit Card, as described in more detail in our Terms of Use but there will no longer be network transaction fees for sending funds between bitcoin addresses.

[shorena]

Yes, xapo to xapo is free, but if you transfer from xapo to non-xapo you pay extra, 5 times normal fee IIRC.

I have never noticed this fees...
where can I see them?

Nevermind, its old info.

Xapo has eliminated all transaction fees for transactions between two bitcoin addresses.

Previously, anytime a user sent bitcoins to someone who did not have a Xapo account, the user was charged a small fee by the bitcoin network to send your bitcoins. These fees serve as both a reward and incentive to the people who operate the bitcoin network. Now, anytime a user sends bitcoins to another bitcoin address, Xapo will pay these fees and you will not be charged to send payments to other users.

Source: https://support.xapo.com/how-much-does-it-cost-to-send-bitcoin

[thebonenz]

Thanks for this it really helped!

[BigFaucet]

By the way Xapo is very complicated microtransaction service. My opinion is use more reliable services like faucetbox and quantity of faucets with Xapo wallets is not so big. In other case you can visits faucets only with direct wallet -> to wallet transactions WITHOUT and aggregator services, but there is could be little fee(far not always).

[Sir_lagsalot]

How can I know which admin pinned this thread?