Anyone explain how exactly the faucet works? Don't I need a separate XCP address instead of my current one in my profile?
You mean the testnet faucet?
I don't know what you mean by "your current one in your profile" (what profile?).
You need to use the testnet Counterwallet where you create a new wallet with "fake" XCP's that you get from the faucet.
https://testnet.counterwallet.co