What Is a Crypto Airdrop?
Crypto Airdrop Meaning
The term "airdrop" refers to the procedure for distributing free tokens. Sometimes they go to the owners of certain coins for their storage in crypto wallets, but more often the distribution of the currency occurs as a reward for subscribing to the accounts of the blockchain project in social networks, retweets and other simple actions. Users who want to make money need only spend a little time.
Cryptocurrency airdrop is carried out to attract the attention of a large number of users by the time a new product is released. The project developers are integrating coins into the internal ecosystem and need to advertise their startup. The process is comparable to issuing a free product sample to find new customers and form a community of primary users.
A few years ago, social networks (Facebook, Twitter, Youtube and others) banned paid advertising and promotion of digital assets (cryptocurrencies). As a result, airdrop as a marketing solution has gained popularity among blockchain startups.
How Does a Crypto Airdrop Work?
Crypto airdrop meaning is the following: to receive cryptocurrency, the user does not need to perform any complex actions. It is necessary to have an account in the blockchain payment system on which the project will issue a token. If there is a distribution of ERC-20 or BEP-20 coins, then you need a wallet that supports the Ethereum or Binance Chain networks, respectively. Sometimes you need to fill out a small report to automatically control actions. As a rule, an airdrop participant needs to provide details for receiving coins and links to social media accounts.
Airdrops are held with simple conditions for users. The project developers indicate specific dates when you can participate in the distribution. At the end of the ongoing campaign, they manually or automatically send free coins to users' wallet addresses.
Types of Airdrop
There are 2 types of incentive programs from marketers of start-up projects to find the first users of cryptocurrencies. In some cases, users are required to perform simple actions, in others, it is enough to store coins in a wallet or on an exchange.
To participate in the distribution of tokens, you must:
Subscribe to the social networks of the project.
Make a repost in your account.
Leave a comment below a product video, such as a YouTube review.
Answer a few questions about cryptocurrency in the questionnaire.
All actions usually take up to 5-10 minutes.
Next, you will be asked to fill out a Google form or a report in a Telegram bot with a link to your social media accounts, as well as the address of the cryptocurrency wallet to which the developers will send coins.
This type of airdrop implies that no action is required from the user. Such distributions are provided for owners of popular cryptocurrencies. Recently, airdrops for holders of exchange tokens have become common.
To receive a new type of cryptocurrency, the user needs to have a certain number of coins on the balance of the wallet. Next, a snapshot is taken – an instant snapshot of the state of all participants in the announced project. At the specified time, tokens are sent from the startup.
Can I Make Money From Airdrops?
Do not expect profit in the first 5 minutes. The distribution of free crypto assets does not imply instant earnings of tokens and their sale on the same day on the exchange.
It will be possible to fix the profit from the airdrop no earlier than a few weeks or months after the conditions are met.
First you have to wait for the developers to send what they promised. Next, you need to learn about the upcoming listing of the coin (in case it is not yet listed on CEX or DEX crypto exchanges).
The profit from one airdrop directly depends on the success of the project and the popularity of the altcoin after it appears on the trading platforms. It often happens that a coin does not even go to the exchange, it cannot be sold and a profit can be fixed. According to statistics, for participation in one airdrop it is really possible to earn up to 5-20 dollars.
In the past, there have been many examples of successful giveaways with benefits for both parties – the creators of the project and the primary users. Participants in the advertising campaign were subsequently able to exchange free tokens for several thousand dollars, but such cases are rare.
How Do I Get Airdrop?
There are several ways to find new relevant cryptocurrency airdrops:
Firstly, large forums about altcoins, where tens of thousands of users daily, including investors, traders, developers, entrepreneurs and ordinary users, communicate and share information.
Social media. A developing project necessarily creates pages in several social networks and posts up-to-date information about bounty programs and airdrops.
Messengers – a lot of useful data on the topic of free distributions can be found in Telegram, in which there are various channels, chats and bots on cryptocurrency topics.
If you enter the hashtag #airdrop in the Twitter search bar, then there are many accounts that regularly update the current crypto airdrop lists.
These are sites that explore new projects and host information about crypto airdrop meaning, future free programs, as well as a lot of other useful data about digital coins that are being prepared for release.
Recently, airdrops are often held on well-known marketplaces. In search of distributions, you should visit the best exchanges. These platforms have special sections where you can find profitable and easy crypto airdrops to participate in.
To search for distributions of tokens that have already entered the market, it is recommended to go to popular services with cryptocurrency ratings and Earn sections.
Users of such resources have the opportunity to receive coins by visiting the project page and watching short videos, as well as answering questions about the new cryptocurrency.
You can find out about current and upcoming free coin distributions in the news feed on the website or through social media accounts of a specific project.
On popular cryptocurrency trading platforms, it is really possible to find out which tokens have already been listed, and which ones will have to wait. Information about current distributions is provided in the running line located in the site header or in the news feed. The older and more famous the site, the more likely it is to find a project there that will not fail, will not stop developing and will not disappear from the market in the coming months.
This point should be approached with particular care. Not every airdrop will bring benefits and earnings. There are many fraudulent companies on the Internet, as well as blockchain startups that do not carry any value. It makes no sense to participate in all distributions in a row, because often the fulfillment of the conditions will not bring profit.
When choosing an airdrop of cryptocurrencies, it is important to pay attention to the product website and the development team.
You should beware of landing pages with a “clumsy” design and creators about whom there is no information on the Internet. You need to make sure that the project has a whitepaper. If there is no such document, it means that the team was not puzzled by the concept for the business and aims to cash in on gullible investors.
An important reference point is the accounts of a startup and developers in social networks.If a page on Facebook or a blog in Medium was created a couple of days ago, only 2-3 posts are posted on Twitter, and there are a hundred people in the Telegram chat, such a project is best avoided.
Where to Sell Tokens?
When the altcoins arrive on the balance of the crypto wallet, it is necessary to understand where you can sell these assets and earn a profit. You need to go to the official website or telegram chat of the project. There you can read or ask about the listing of the coin.
Sometimes it turns out to be more profitable not to sell them immediately, but to wait for an explosive price increase.
Is Airdrop Crypto Safe?
There is practically nothing to fear when participating in crypto airdrops. The main risk is the loss of time. In addition, you must try not to fall into the trap of intruders.
Fraudsters, under the pretext of distributing tokens, may try to get hold of confidential information. In the best case, this will be the full name and email address, and in the worst case, access to the wallet can be stolen from a gullible user and cryptocurrency assets appropriated. If the project is good and the distribution is fair, then no personal data will be required from the participant, and there is nothing to be afraid of.
To earn money on cryptocurrencies, users do not need any knowledge and skills. It is enough to spend a little time completing tasks in social networks, for which you can get new coins on your account. Some giveaways bring in hundreds or even thousands of dollars.
Among the minuses, one can note the existence of a huge number of scammers who will try to take over personal data and steal money. It happens that new projects do not collect the required amount of funds during the ICO, the product remains unrealized. This means that time will be wasted and the promised tokens will be worth nothing.