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A faction is Vanguard, Crucible, Dead Orbit, New Monarchy, and the Future War Cult.

You will have to get one of the factions to level 3, then when you get it to level 3 you will have your reward at the post master. Also I am %95 sure every time you level up a faction after that you will get another. I think you also get glimmer and Ascendant material.

I did this today and got a legendary shotgun and if I remember correctly 2 Ascendant shards.

Pretty much for everything you level up rank. Not just those you mentioned. I was just saving about like 35+ blue engrams and like 4 legendary encrypted ones and I went to the cryptarch and leveled me up a few ranks to like 12 I believe so and I got 3 packs from the Cryptarch of legendary cases. Each one had from 3-4 items (mostly encrypted engrams and like half being legendary and others blue) but some legendary turned out to be blue items once decrypted.

Yup, I'm looking at my screen shot I saved on my PS4 right now. In the postmaster I have 3 Packages for ranking up 3 times in my Cryptarch rank. The packages are in purple and the package say "Possible Contents: Rare Item and Legendary Item". It feels awesome when they give you and you see these free rewards in the postmaster. lol...my whole vault was flooded with rare engrams and 3 turned out to be legendary and like 30% were coins

ya takes to much time way to much time haha

This doesn't give you any engrams. Engrams are a gamble and not a guarantee. This is a guarantee, it gives you the weapon/armor right at the post master. I'm rank 16 on the cryptarch, and out of everything I got from ranking up only like 4 legendary.

Then you have...shit luck simple. I got legendary engrams. The package say rare or legendary but when I get legendary...its an encrypted engram. Plus I'm sure with or without this post...ppl will eventually notice that as they level up any sort of those rank categories you mentioned...if they haven't come this far across the game progress. Its just impossible to miss with having the green indication over the postmaster.

What sucks is that you can't replay the Nightfall Strikes for farming unlike the other strikes where you can and gives you random items at the end in the scoreboard. I mean...it took a while for me and my friends to do it and we beat it a second time and fuck...we were pissed. I had said idk because it didn't show any "reward" in the description in orbit anymore but they insisted and we got fucked over by doing it 2xs and not getting any mission rewards at all. I already got all the day/weekly rewards such as coins and ascendant materials...its like, we need more. Its easy...

You're not understanding what I am saying. Forget it.

I know what you mean. Yeah, forget it anyways. Peope will eventually get legendaries either way...plus, who isn't farming now a days