What Are Airdrops and How Do You Participate In Them?

What is An Airdrop?

The Major Reasons for An Airdrop

Almost every new cryptocurrency engages in an airdrop to ensure fast promotion and circulation of their coin. On the other hand, every company that owns coins has the intention of making a huge profit with them in the near future.

To create awareness about their new coin:

At the time of writing, there are more than 6,000 coins in existence in the crypto space, according to Statista. With this high number of cryptocurrencies in circulation, it would require huge promotion (giving thousands of coins for free) for the new coin to gain popularity. Statistics recorded that over 95% of all new cryptocurrencies use airdropping as their major means of promoting the coin.

To get people’s interest:

Whenever people hear that a new cryptocurrency is out, people tend to be interested in learning more about it.

As an alternative to getting coins:

As some countries have banned cryptocurrency trading, the airdrop method is now the easiest way of getting cryptocurrencies for people in those countries, as it helps those users to get coins even without paying.

To appreciate supporters:

Airdrops favour everyone that helped in promoting the new crypto that the company just launched.

How to Participate in an Airdrop

Below are the key things you need before participating in airdrop:

  1. A valid email address: This email must be valid and you must have access to it. To register for an airdrop, your phone number might not be required, however, you will need a valid email address which the company can use to contact you or verify your account.
  2. A cryptocurrency wallet: When hustling for free coins, you need to have a wallet where those coins that you will be rewarded with will be sent to. We recommend that you create your wallet to ensure that the coins you are rewarded with are safe. The most popular tokens to give away are the ERC-20 tokens on Ethereum. So, it might be a good idea to create an ether wallet for instant airdrops.
  3. Active social media accounts: Most of these airdrops require you to use your social media accounts to promote the coin, as this is an easy way to spread awareness about the coin.

Types of Airdrops

There are several types of airdrops. They are:

Bounty Airdrop:

This type of airdrop requires users to perform some tasks which involve using social media platforms like Facebook, Twitter and Instagram, etc. to promote and market the cryptocurrency.

Standard Airdrop:

This is the type of airdrop that rewards users with coins when they successfully register with the airdrop company’s website and subscribe to their updates.

Exclusive Airdrop:

These are airdrops that are managed and hosted by websites and social media. When you have registered with the site that offers this airdrop, or when you begin to follow their social media accounts, you will be regarded as part of those that are promoting the cryptocurrency. In turn, they will reward you with some free coins.

Pros of crypto airdrops

  • You can use these airdrops to boost your crypto portfolio even when you don’t have money to purchase new cryptocurrencies.
  • You can use the free coins to understand the crypto market at a low cost.
  • You can easily trade with the free coins you got from airdrop once the coin is listed in a cryptocurrency exchange

Cons of Airdrop

  • The coins you got from airdrop may not eventually be recognized in the coin market, which will make all your effort to get the coins useless
  • Airdrops are quite time-consuming.
  • You might have to spend some money to get more free coins, in the hopes that the coin will soon go viral in the coin market.

The Risks Involved in Airdrop

Although airdrops are very common in the crypto world today, they can be used to scam a lot of people, especially people with little or no experience of cryptocurrency.

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