One of the best things about cryptocurrency is that you don’t always have to purchase them with money. There are several ways you can earn various coins or tokens – for free. One such method is an airdrop. In the blog post, we will describe what cryptocurrency airdrops are, outline some of the different kinds that exist, and discuss why they happen?
What Is an Airdrop?
Have you ever been to a supermarket and noticed companies giving away free samples of their product? They do this in an attempt to market their product and entice potential customers. In the same way, an airdrop can be seen as a blockchain organization giving away free samples of their cryptocurrency.
A cryptocurrency airdrop is defined as the free distribution of digital coins or tokens to a large number of qualifying wallet addresses. We know what you might be thinking. Giving away free coins sounds too good to be true right? As it turns out, there are a few reasons why projects would give away coins for free.
Firstly, companies may use airdrops to help spread awareness of their project. In this case, free coins and tokens are awarded to participants for performing various social media promotional activities, such as sharing, liking, retweeting, etc.
Airdrops can also be used for gathering marketing leads. The basic information you use to register for the airdrop (usually an email address) can be added to a database for future marketing campaigns. In exchange for submitting this information, you are rewarded with ‘free’ coins.
Some projects may use airdrops as a type of retention strategy. Blockchain companies can issue free coins or tokens as a reward to loyal cryptocurrency holders. Thus, providing an incentive for users to hold on to their digital currencies for as long as possible.
How to Become Eligible for an Airdrop?
Airdrops are not a random event. To receive coins or tokens in your wallet address, you need to first qualify for the airdrop. The organization conducting the airdrop will usually detail the qualifying requirements on their social media page or website. Some of the most common conditions include:
- Holding a particular coin/token – This type of airdrop requires users to have a specific cryptocurrency in their wallet. The airdropped currency is then distributed to all the eligible wallet addresses. For example, on June 26, 2017, Stellar Lumens airdropped XLM coins to all registered wallet addresses holding Bitcoin.
- Performing social media tasks – Some airdrops may require users to perform various social media tasks. Participants can earn rewards by sharing posts, retweeting, joining a telegram or discord channel, etc.
- Signing up for their platform – Another possible requirement for becoming eligible for airdrops is signing up for the company’s platform. This usually involves going to the company’s website and creating an account with a username and password.
These are only examples of some of the most common airdrop requirements. You should consult with the appropriate channels to verify the exact requirements for the airdrop you are interested in. Keep in mind, however, that there is typically a waiting period to receive the coins after you have registered for the airdrop. This can usually range from weeks to months.
Can Airdrops Be Used to Earn Money?
Absolutely! Once you have received your airdropped coins and tokens, they can be sold or traded. However, airdrops are usually performed before the cryptocurrencies are available on exchanges. Therefore, it may take some time before the coins or tokens can be sold. Also, keep in mind that newly airdropped currencies do not possess much value. It is generally worthwhile to hold on to them until their price increases before selling or trading.
Where to Find Crypto Airdrops?
You can usually find airdrop announcements on various social media channels. However, the easiest way to discover the latest ongoing and upcoming airdrops is to visit dedicated airdrop websites.