In the cryptocurrency world, there are several ways to make money fast, but it’s not all of them that are securely trusted and legit. Anyways, airdrop is just one of those genuine ways to earn bitcoin online.
Here at CryptoStaunch, i am going to detail everything about airdrop meaning in cryptocurrency, so you will have full knowledge of finding out legit ways to earn more bitcoin and also claim airdrop cryptocurrencies without risks.
Are you getting to hear about cryptocurrency airdrops for the very first time? Are you confused about what crypto airdrop really mean?
Ok… fine! I am obviously not talking about airdrop in iPhone or iPhone 7. I am talking about airdropped coins (i.e. upcoming airdrops in cryptocurrencies)
Now, let’s get started with answering everything about the crypto airdrop meaning by answering according to some points, following these questions below:
- What is airdrops cryptocurrency?
- Why free crypto airdrops?
- What is airdrop coins?
- How does airdrop work?
- How to participate in crypto airdrops
- How to find upcoming airdrops
What is Cryptocurrency Airdrops?
When someone hears about cryptocurrency airdrops for the first time, it will sound like as if cryptocurrencies are falling from the sky.
But that is not true in any way at all. The simplest answer to this question is; it is a couple of new coins that comes up in your cryptocurrency wallet, because you already have an existing coins in it, and it is a kind of compensation for keeping those coins until then. Or new tokens that is offered by cryptocurrency startups to promote their brand new crypto projects or DApps.
In the right definition, airdrops are processes, whereby new tokens or coins are awarded or distributed to investors that has already existing coins (like, Bitcoins or Ethereum etc.) they’re HODLing just before the airdrop started.
What is airdrop coins?
Like i have said earlier, cryptocurrency airdrops are not coins that fell from the sky, and that is to say, Airdrop coins are those new token/coins you get as reward for HODLing some of the early popular cryptocurrencies of a project. Or simply put that, airdrops are those tokens you’re rewarded with, for holding some kind of metamorphosed coins. It is also, those tokens you’re given as reward to completing certain social tasks online.
How does crypto airdrops work?
In other words, if you HODL any coin that evolves into other new coins, you’re automatically eligible to claim all the new tokens that drops as long as you have the morher coins already in your wallet before the free droppings starts.
Why are there free crypto airdrops?
Actually, in cryptocurrency world, there are so many ways to create buzz or hype for distributing the supply of new DApps and tokens (most known as Crypto Coins), these are the general free use of airdrops.
Now, let’s discuss about most of the reasons why there are crypto airdrops as well as the general free use of airdrops:
New coin even supply and distributions
The first reason why there are airdrops in cryptocurrencies, is to evenly distribute the total supply of tokens, and that will lessen the centralization in terms of HODLers holding large amount of coins to themselves.
Rewards to early investor’s faithfulness
This is an idea to make parent coin investors to hold their tokens for a longer time. Most companies also use this process to reward their early ICO investors for patronizing their new projects.
Creating awareness for new tokens
Most times, to create awareness for latest coins that are emerging into the crypto space, airdrops are offered to the HODLers of early DApps like Bitcoin, Ethereum, Monero etc.
Buzz or hype for marketing
Airdrops recently, is becoming one major form of marketing techniques to attract investors and also collect leads for business opportunities and expansions. These kinds of airdrops are called Crypto Bounties. Bounties are the new tokens given to individuals for completing a task (e.g. Sign ups, Referrals, Joining Telegrams or Following on Twitter etc.)
Cryptocurrency Soft/Hard forks
Forking is a technique used for bringing out and awarding HODLers some new tokens or coins, for holding most of the trending and popularly known cryptocurrencies like; Bitcoin, Ethereum, Monero, Litecoin or even creating new coins that are distributed to the early investors of those coins. That is to say, as an investor in cryptocurrency, it will be very profitable to have a good number of cryptocurrency in the crypto portfolio you’re holding.
See some of the forks that happened
Now that we’ve known almost everything about airdrops, let me also answer the question – How do you find upcoming airdrops?
How to participate in cryptocurrency airdrops?
Most of the times, the distribution process of airdrops differs according to the rules of various cryptocurrencies. For example, some airdrops may require that you follow the company profile on Twitter, while others require joining them on Telegram.
There are different referral programs that are often initiated by different ICOs. If you are interested in participating in a cryptocurrency airdrop, there are things which you need to do first to bypass some of the risks that comes alongside:
Step #1: Get a free or paid strong VPN to help make your cryptocurrency transaction anonymity, very strong.
Step #2: Get a cryptocurrency wallet that is supported by the company offering the airdrop you’re interested in. Ledger and Trezor are mostly supported for airdrops. Meanwhile, be aware that you should never share your private keys to anyone so you don’t face scam, hacking or theft.
Step #3: The wallet must not be the same cryptocurrency wallet you’re using to save all your cryptocurrency investments. This will help to maintain high safety for your existing coins.
Step #4: Create a new email address for the airdrops and avoid using regular emails for airdrop registrations.
Step #5: To participate in any crypto airdrop, you will have to be informed before taking any step because most airdrops are obvious scams.
Step #6: For clarification purposes, you should be aware that some airdrops require a verification with your vital documents like; drivers license, international passport or any other ID (especially if the company is working with KYC – Know Your Customer).
Step #7: After the verification process you will mostly receive a mail for confirmation, sometimes the email may go to your spam box or junk folders. Make sure you check those places in case you do not receive it in your email inbox.
Step #8: Once it gets to the distribution date, you will receive the airdrop coins (mostly known as Tokens).
Step #9: You can follow up with the social medias or news about the airdrops to know what’s happening around it
Types of Airdrops
Airdrops are of different types and they all come with set of actions as well as requirements. The types of airdrops are:
Type #1. Standard Airdrop
It requires that you only sign up for updates or newsletter on the project’s website. Just your name and email address is mostly needed.
Type #2. Bounty Airdrop
This one requires you to perform some kind of social media tasks such as; tweeting out a link of the project’s website and most times you need to refer other people to participate in the airdrop, which in turn, you will be rewarded for any of the actions you take. This is one of the simplest way to make money with cryptocurrencies.
Type #3. Holder Airdrop
This is the type of airdrop you get when you HODL a specific coin in your cryptocurrency wallet before the airdrop starts. The airdropped coin (or token) will be given according to a ratio set out by the project. For example, a 1:5 BTC ratio entitles you to 5 airdropped coins for every single BTC you have inside your wallet already.
Type #4. Exclusive Airdrop
These are airdrops hosted and managed by website and social media accounts with very large followings. As a member of this website or social media group, you will be entitled to some amount of airdrops that is exclusive to that particular community you’re part of as at that time. Website like Airdrop.io allows you to participate in exclusive airdrops if you sign up to their newsletter.
How to find upcoming airdrops?
In getting alerts about upcoming airdrops, there are special tools required to receive free airdrops alerts. Sometimes, most airdrops require that you follow them on social media or join the project community on telegram groups as well as engage in other series of promotional marketing to refer people that will increase your earning when they Sign-up.
Below are list of tools used get updates on new airdrops:
Airdrop Twitter accounts
Conclusion on Airdrops
Undoubtedly, with the popularity of cryptocurrency, don’t be surprised to find out so many scams around crypto coin airdrops. Try to always educate yourself in the airdrops or generally, the entire cryptocurrency world to succeed in making money with airdrops.
Beware of scammy projects that ask for your private keys to be entered at some places, or even sometimes, fool you into entering your private wallet seed phrase words to get paid. These kinds of tactics exists in slack, telegram channels or even twitter account that are hacked to impersonate the original airdrop accounts. Be very careful when dealing with airdrops to avoid loosing all your cryptocurrency investment.