You’ve probably heard about these “free” and “possibly profitable” airdrops if you’ve been following the crypto world for a while. If not, you’re in for a surprise.
Airdrops are free cryptocurrency tokens given to individuals who have held a base coin for an extended period.
What Exactly Is an Airdrop?
To put it simply, an Airdrop is on event in which a blockchain project pays people with free tokens. Tokens are often distributed for free to members of the crypto community in exchange for their assistance in spreading the news about a new coin or initiative in the sector. The free currencies can be exchanged for Bitcoin, Ethereum, and Litecoin, among other cryptocurrencies.
Rather than spending a lot of money promoting and marketing a new product, the firm behind an ICO might use the blockchain of an existing token to collect all of the people who have coins in their wallets. They will then give out their money for free in proportion to the number of coins in their digital wallet.
An Airdrop may be obtained by enrolling on the website of a new blockchain project and providing specific information such as an email address, bitcoin address, and recommendations to other individuals.
How to Participate in an Airdrop
First and foremost, you’ll need a wallet that can hold many forms of bitcoin. Most wallets will support a variety of ERC20 tokens that are eligible for these airdrops. The Ethereum blockchain serves as the foundation for many of them.
Most bitcoin firms will ask you to register on their website to qualify for the airdrop. Some will go into further detail, such as…
- Subscribing to their Telegram channel
- Joining their Discord chat room
- Leaving a remark or private message on a forum
- Retweet a corporate message
Following the protocol, you will be forced to have a particular quantity of bitcoin in your wallet. The requirements for wallet storage might vary depending on whether it is an online soft wallet like MyEtherWallet or one hosted on a cryptocurrency exchange like Binance.
Different Types of Airdrops
There are several sorts of airdrops, each requiring a unique set of procedures or compliance with standards. Airdrops are classified into the following categories:
- Default airdrop: A standard airdrop generally entails signing up for updates or newsletters on the project’s website. All you’d have to do is provide your name and email address.
- Bounty Airdrop: To participate in a bounty airdrop, you must do some social activity, such as tweeting a link to the project’s website or recommending other users to the airdrop. For each action that you do, you will be rewarded with coins.
- Holder Airdrop: To be eligible for this airdrop, you must have a certain coin in your cryptocurrency wallets, such as Bitcoin (BTC) or Ethereum (ETH) (ETH). The project will set the ratio in which you will get airdropped coins. A 1:5 BTC ratio, for example, lets you get 5 airdropped coins for each BTC you hold.
- Exclusive airdrops: Popular websites and social media accounts are frequently involved in and host exclusive airdrops. You will be qualified to participate in an airdrop that is only open to members of that community if you are a member of the site or a social media account follower. Airdrop.io, for example, allows you to participate in special airdrops if you sign up for their newsletter.
Why are Airdrops Used?
The ICO industry is highly crowded, which creates a significant challenge for new ventures seeking much-needed exposure. On the other hand, a developer’s team always has a higher chance of acquiring much-needed publicity by giving out free tokens that can become valuable in the long term.
After acquiring free tokens, it is typical for consumers to investigate a project and what it includes.