What is Litecoin?
Litecoin (LTC) is a peer-to-peer cryptocurrency and open source software project released under the MIT/X11 license. Creation and transfer of coins is based on an open source cryptographic protocol and is not managed by any central authority. While inspired by, and in most regards technically nearly identical to Bitcoin (BTC), Litecoin has some technical improvements over Bitcoin, and most other major cryptocurrencies, such as the adoption of Segregated Witness, and the Lightning Network. These effectively allow a greater number of transactions to be processed by the network in a given time, reducing potential bottlenecks, as seen with Bitcoin. Litecoin also has almost zero payment cost and facilitates payments approximately four times faster than Bitcoin.
The Litecoin blockchain is capable of handling an high number of transactions at the same time. Due to more frequent block generation, the network supports transactions without a need to modify the software in the future. As a result, merchants get faster confirmation times, while still having ability to wait for more confirmations when selling bigger ticket items.
What is Litecoin Faucet?
Litecoin faucet is a reward system, in the form of a web site or online apps, that give away Litecoin in the form of a litoshi, which is a hundredth of a millionth LTC, for visitors to claim in exchange for complete a captcha or task as described by the web site. There are also other faucets that dispense alternative cryptocurrencies. Rewards are dispensed at various intervals of time. Litecoin faucets usually give away fractions of a Litecoin, but the amount will typically fluctuate according to the value of Litecoin.
Litecoin Faucet is a great way to help introduce new people to Litecoin, or to your favourite cryptocurrency. Many faucets provide information to newbies as well as offering them some free litoshi so that they can try before they buy, experimenting with a test transaction before put real money on the road. 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.
It is important to note that faucets are not a get rich quick scheme, as the reward amounts are typically quite small and change according on the value of LTC/USD at any given time. Because of this, many users who join a Litecoin faucet allow their total earnings to build up over time until they are ready to have a larger payment sent to their wallet. Typically, users get involved with faucets because they have a desire to understand more about the cryptocurrency niche and are excited at the prospect of earning free Litecoin. It’s also a no stress, no-risk way to get started in the crypto industry without have to spend any of your own money on high risk investments.
Why do Litecoin Faucets Give Away Free Litoshi?
Many people have noticed how Litecoin has been growing and has made a handful of lucky people a lot of money. So, why do Litecoin faucets just give away free litoshi? Are they just being generous and kind? The truth of the matter is that by rewarding users with litoshi, faucets receive revenue. How so? Banners Ads! Many of the most popular and successful faucet sites host a lot of ads. Whether the ads are PPC (pay-per-click), CPM (cost-per-mille), or just there, chances are the site is making a big money just by having advertisements on the page. In addition to ads, faucet sites might also have affiliate links that can allow earn free Litecoin if users follow the link and sign up for or buy something.
Unfortunately, it’s common for Litecoin faucets to be totally overloaded with advertisements to the point that they interfere with the user experience. For the time being, though, this is one of the trade-offs of getting a few free litoshi. In addition to educating new users about Litecoin, some web sites choose to utilize Litecoin faucets for different reasons, including to boost web site traffic and revenue. Typically, Litecoin faucets attract high web site traffic. That being said, if a business or web site has other services or content to advertise to Litecoin users, a high traffic faucet is a good way to get the word out and get more people familiar with a company or a brand. Depending on the content being promoted, a web site can also generate income, something that is difficult to achieve in the incredibly competitive niche.
Where Does Your Earned Litecoin Go?
So, you have decided to give Litecoin faucets a try and are racking up Litoshi. Where does it all go, and what can you do with it? For beginners, every Litoshi earned by complete faucet tasks gets deposited into your wallet, known as a secure digital account, protected with your own private keys. In simple terms, your Litecoin wallet functions like your traditional wallet or bank account, and all your private keys can be linked directly to your personal account. For added security and to cater to a wide array of individuals, there are a few different types of wallets to choose from, including desktop, mobile and online wallets. It really depend to personal preferences. And what about micro-wallets?
What Are Micro Wallets?
A micro-wallet is version of a traditional Litecoin wallet that allow users to collect small amounts of Litecoin before transferring out to your own wallet as the fees for transferring small amounts of LTC will cancel out anything earned. Sometimes, when faucets pay tiny amounts of Litoshi, it will be deposited to a user micro wallet provider. From a user’s perspective, there are no extra steps to go through to get a micro wallet. In fact, one micro wallet is automatically created when a user creates an account with a Litecoin faucet. It’s very important to note, however, that micro wallets have limits of anywhere between 10,000 and 20,000 Litoshi. Once that limit is met, the Litoshi will be paid out to a user main Litecoin wallet
How Do Litecoin Faucets Make Money?
Like almost everything on the internet, Litecoin and cryptocurrency faucets make revenue with Litecoin advertising. The more people that visit the web site or online app, the more advertising revenue the faucet can make. The difficulty for the numerous Litecoin faucets is attracting people to begin with. The “best” faucet sites offer the users something do other than clicking a “Claim” button and closing the tab. Some faucets use browser games to boost users engagement, while others offer spin the wheel type contests with payout boosting prizes to allure potential and existing users. Others offer gambling games where users can stake their earnings against the site in the hope of winning more. Unfortunately, some sites use cryptocurrency mining scripts that hijack visitors CPU to mine free cryptocurrency. The majority of sites using scripts of this kind are cryptojacking: stealing your CPU and electricity to earn cryptocurrencies. That said, there are some that use only a small amount of your CPU, and some may even offer the option of turning on the script.