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What is a crypto airdrop

What is a Crypto Airdrop | The Good The Bad and The Ugly

Crypto airdrop Is a means of distributing Cryptocurrency for free to the public. This can be to create awareness, show appreciation to early adopters, as a method of low-cost advertising, and to ensure even distribution of the crypto.

Cryptocurrency, also commonly known as Crypto or Cryptocoin, is a digital asset that serves as a medium of exchange at this time.

It seems almost impossible to scroll your phones, tablets, or computer without coming across an article on Cryptocurrency. There are thousands of cryptocurrencies available with Bitcoin being the most popular out of them all.

As widely available as Cryptocurrency is, not everyone can readily afford to buy. When it comes to accumulating crypto, some people use fiat, others work as freelancers and collect crypto as the payment method, complete surveys, and even app testing.

There is a legit, secure, and free method to own crypto, and that is crypto airdrops. We will dive in a discuss the pros and cons of airdrops and how you can get involved.

 

What is Crypto Airdrop?

There are a lot of reasons why Coin is Airdropped. This is mostly a marketing strategy used by many companies sometimes to save the cost of advertisement and other times to create fast awareness about a newly created Coin.

Most times, an airdrop campaign will allow you to earn additional crypto by creating a referral link that you can share with people. This referral scheme creates the enthusiasm to share with as many contacts as you can, to earn more of the Airdropped Coin.

Coin Holders also receive Airdrop in their wallet. This type of Airdrop is commonly referred to as “Holder Airdrop.”

 

Why give free crypto?

There is a lot of reason to give out free crypto to the public, and sometimes it is a show of appreciation to early investors of the coin, other times it is to decentralize the possession of the crypto. Some of the reasons include:

To create awareness

This is a marketing technique to get a new Crypto into the market. The new coin is offered for free to early holders of popular coin to increase the popularity of the new crypto. This technique is commonly used to create a buzz around an upcoming or new coin. The referral bonuses also motivate people to spread the word to their contacts and on their social media page.

Appreciation to early investors

This is a method often used to make investors hold on to particular crypto for a more extended period. It is also used by companies to appreciate their customers for indulging them early.

Decentralization

To ensure even distribution of coins, free giveaways are often done. This is a method commonly used to reduce the centralization of crypto as many investors tend to hold on to a more significant percentage of crypto, making them the sole controller of the market.

To create a community for the coin

One thing every coin holder has in common is the will to make the crypto bankable and also cause the crypto to appreciate.

Low cost of Advertisement

The referral bonus often included when applying for a crypto airdrop campaign stimulates the audience to spread the news further to increase the amount of coin they receive, this suffices for the high cost of advertising.

 

How does Crypto Airdrops work?

Now that we understand what Crypto Airdrop is, and why it is done, you must be wondering, how does it work?

Airdrop is new to distribute crypto to the public in the Crypto world, and for now, they are no general rules for distribution. For now, each distributor specifies their terms based on the audience they want to share with, or the result they wish the distribution to generate.

A few examples of some requirements are listed below:

  • You are sometimes required to follow the company’s social media accounts, commonly twitter, and telegram. You may be required to perform activities such as liking, commenting, sharing, and joining groups.
  • You may be required to refer several audiences to get a certain amount of coin.
  • You are sometimes required to provide a valid means of identification primarily when the company works with KYC (Know Your Customer).

If terms like decentralized, centralized, KYC etc are not familiar to you we created an A-Z glossary to help you understand and maneuver through the crypto market called, ‘Crypto Terminology | A Helpful Crypto Glossary.’

Recommended Crypto Tools

 

How You Can Make Money From Crypto Airdrops

There are mainly four types of airdrops. They are classified based on their requirements; the types of requirements are:

Standard Airdrop

For this package, you are only required to sign up for company updates through the newsletter. You need only your name and email address for this.

Bounty Airdrop

This type of Airdrop requires you to follow the company on social media and also refer others to partake in the distribution of the free Cryptocurrency. You may sometimes be asked to tweet or retweet content as a means of promotion.

Holder Airdrop

You can only get the Airdrop Crypto when you have a particular parent crypto wallet. It is distributed based on a percentage basis; the volume of the parent coin you hold will determine the amount you receive.
For example, a particular company decides to reward Bitcoin owners, and you get four airdropped crypto when you have 2 BTC in your wallet already.

Premium Airdrop

Websites and massive social media groups mostly use this. It is a means of rewarding members of the website and social media group. As a member of this website or group, you are entitled to a certain amount of the Airdrop Coin. It might sometimes be based on your activeness in the group.

If you are interested in some tips to help you earn Free Bitcoin we also created an article to help you find these opportunities called How To Earn Free Bitcoin | Little to No Investment Needed.

 

How Do I find Airdrops?

It has become straightforward to get to know about airdrops since most people share and refer to dedicated websites. These dedicated airdrop websites benefit from people since they use their referral link. You should also be active on REDDIT, Twitter, Facebook, and Telegram Cryptocurrency groups.

You can also check these websites regularly to get to know about latest airdrops:

These services list everything, and not all airdrops are legit. Be sure to see our Beware Airdrop Scams below.

You can also search for Airdrop accounts on twitter and Facebook. There are a lot of social media channels that focus on the tracking of Airdrops and post them on their page.

 

 

Do I receive My Airdrops Instantly?

Most times it takes 1-2 months after the end of an Airdrop before you will receive the Coin in your wallet address. The coin cannot be distributed before the end of a Crypto sale; this is the primary reason for the delay in receiving the crypto.

Check your wallet after a month or two after applying for the Airdrop to check if you have received the promised Coin. You can choose to trade for money at this time or leave the coin if you trust it enough to appreciate.

 

What do I do with Airdrop Crypto?

This is a question I had always asked myself back when I heard about Airdrops. What do I do with this little coin? Since you are getting the Coin for free, I mean without paying a dime, there is not much to fear after all.

Cryptocurrency has been known to increase in value over time; you can sell at this time and make cash through them. However, many received coin might never be worth anything as the project might fail, so don’t get your hopes too high. It is worth a try?

 

Beware of Airdrop Scams

This is à very critical issue when you get seriously involved in Airdrops. There are a lot of scam scheme out there portrayed in the image of Airdrops. So many Coin developers do Airdrops with the sole aim to obtain profit by creating short-term buzz.

They disappear or abandon the project once their objective has been achieved.

You should NEVER give out the private key to your wallet out to anyone as this has been used to move Coin from people’s wallet. No legitimate company will ask for your private key.

The only essential information needed to airdrop into your wallet is your wallet’s public address. This type of scam is relatively easy to avoid by just following one simple rule; NEVER GIVE OUT YOUR WALLET’S PRIVATE KEY TO ANYONE.

Some scam schemes also require you to send Coin to an address before you can participate in the Airdrop. No legit Airdrop will as for any amount of money before you receive the distributed Coin.

Overall steps to avoid Airdrop Scam

  • Get a secure paid VPN to keep your transactions anonymous (We recommend Proton VPN for the ultimate protection)
  • Create a Crypto wallet for Airdrops. This should be different from your regular wallet (We recommend TREZOR hardware wallet for top-notch coin security)
  • Create a general new email not linked to any critical information, and this should always be used during registration for Airdrops (We recommend Proton Mail for top-level email encryption)
  • Try to know enough information about the Airdrop you are about to participate in
  • Don’t send Coin to any address all in the name of applying for Airdrops.

 

Final thoughts on Crypto Airdrops

They are a great way to accumulate crypto without spending and money. You have to be careful, but a lot of legitimate companies have successfully distributed airdrops without a problem. There are a lot of scams as well. So always proceed with caution.

This is why we recommend Proton Mail and Proton VPN to protect your identity an not just for airdrops but crypto period. You should always be proactive and not reactive when it comes to protecting yourself in the crypto market.

You can also see our Battle-Test Recommended Crypto Tools to help you get started by using trusted, secure crypto tools and services.

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