The cryptocurrency industry, although relatively new, is exciting. Like the technology itself, the industry keeps on innovating. One of such emerging trend in this space has been cryptocurrency airdrops. What are airdrops and how do you acquire them? Let’s find out!
What are Airdrops?
After the remarkable popularity of bitcoin, a number of cryptocurrencies were launched through the models of IEO and ICO. An innovative approach was essential for making the ‘coin’ stand out. Enter airdrops!
Airdrops are essentially free crypto coins or tokens that are distributed to users who are already holding a specific base currency in their wallets. As the word suggests, airdrops refer to the free ‘dropping’ of coins or tokens in a user’s wallet. The new tokens are distributed to those who have been ‘Hodling’ a specific cryptocurrency like bitcoin and ethereum for a long time.
Airdrops have become an effective technique in the crypto sphere to showcase a cryptocurrency project. There are a number of airdrops that occur each month, including for some of the popular tokens in the cryptocurrency market.
How Do Airdrops Work?
There are a number of reasons why airdrops have successfully worked for cryptocurrency tokens.
With the market filled with more than 5000 cryptocurrencies, airdrops became an effective marketing technique to make a token stand out. Additionally, before the launch of the token through ICO or IEO, it helps in generating the hype about the cryptocurrency token.
Airdrops have become an innovative and cost-effective marketing technique for cryptocurrencies. They are an effective approach for building brand recognition and further collecting leads that can be used for future campaigns. Moreover, it directly targets users who already possess different crypto coins in their wallet.
Another benefit of airdrops is that it ensures even distribution of tokens such that it is held by a wider number of users. This prevents centralization as a few holders holding the token can eventually affect its value in the market.
Airdrops are also used as rewards for holding a particular parent token for a longer time frame. By dropping tokens as a reward, it promotes parent coins as well as reward loyal crypto investors.
Tools For Free Airdrops
Rewards in an airdrop can range from nothing to even earning $100+ in token value. Not bad, considering the tokens are free.First and foremost, you would need a wallet wherein the tokens can be stored. Most of these cryptocurrency tokens are based on the ethereum blockchain. Hence, you would need a wallet compatible with ERC 20 token.
Most of the airdrops require you to fill up specific information or perform tasks that may include
● Filling a google sheet
● Joining their telegram channel
● Sharing a post or retweeting a tweet
● Signup on their website
● Refer a friend
Once the required task is done, you might be asked to hold a base currency like ethereum in your wallet for a specified time frame.
How To Become An Airdrop Hunter?
There are a number of dedicated telegram groups that also keep a track of the upcoming ICO’s or IEO’s and their airdrop tokens. Many online dedicated websites also keep a track of all the past, active, and upcoming airdrops. These websites also enlist details of the upcoming airdrop such as requirements, new giveaways, days left, etc.
Staying Safe With Airdrops
Airdrops are an effective way to receive new crypto tokens. However, not all airdrop listings may be legit and some might try to scam. There are a few key steps you should take into account before signing up for an airdrop listing.
● Don’t share your private keys: If at any step an airdrop is asking you to enter your private keys, immediately back out from it.
● Asking For Money- If any airdrop asks you to pay up-front for participating, this is a negative sign. Conduct proper due diligence.
● Suspicious Activity- Before participating one should also check details pertaining to the official website, team, and social media accounts.
Additionally, creating a dedicated email address solely for airdrops is also one of the effective measures that can be implemented.
It is undeniable that the crypto niche has some of its own innovative approaches for doing things and airdrops are certainly one of them. Spending a bit amount of time and looking at the right places is a definite way of finding legit and rewarding airdrops. Moreover, freely distributed tokens do have the potential to become the ‘next big bitcoin.’