Cryptocurrency Airdrop: 4 Ways to Get, Platforms to Join & more
Airdrops basically are gifts of cryptocurrencies or tokens to the community made by projects that are based on blockchain technology. And their main purpose is to work as a digital marketing technique for the upcoming project.
Why Airdrop was born?
- With the passage of time the cryptocurrency industry has grown exponentially, adding more and more projects in it. This makes it more and more difficult to stand out from the crowd. This is how airdrop was born. The people involved in the project are looking for a way to stand out and draw the attention of users.
- This, in addition to publicizing the project, encourages users who receive the airdrop to invest by buying more tokens of the same project. In this sense, users who were given airdrops at the beginning later become their investors.
- Another reason for an airdrop is to build the ecosystem, by giving away the token the user is incentivized to use the platform or help the decentralization of the currency.
- And the third reason is that there are coins that are simply created as a joke. And since they are not a project with foundations no one would pay for them, then the way to give them circulation is by performing airdrops of them.
4 Ways to Get:
The way in which airdrop delivers cryptocurrencies or tokens, can be classified into four types:
- Performing a specific action: The project delivers a specific amount of coins in exchange for the user performing one or several marketing actions, either by filling out a form, following them on some social network, etc. It is very common that under this type of airdrop a referral link is generated so that you invite more people to do the same. And for each of them you will get a larger amount of cryptocurrencies or tokens.
- Possession of another cryptocurrency: In certain opportunities just by having another cryptocurrency you already have the right to participate in the airdrop, it is not necessary to perform any action. The only condition is that these cryptocurrencies must be in a wallet and not in an Exchange.
- Having an open account in a certain Exchange: In essence, it is very similar to the previous one because it is not necessary to perform any action. But in this case it is necessary to have an account created in a specific exchange.
- Installation of a specific application: Just by having a certain application installed on your cell phone you become a participant of the airdrop. Additionally, each time you invite people the reward percentage increases. Generally the amounts delivered by this type of airdrops are minimal. However, with the constant movement of cryptocurrencies it is not known how much they can be worth.
The most popular platform for airdrops is Ethereum, as many of the tokens are based on the ERC-20 standard. The Waves platform is another one with many new token airdrops, so it is ideal to have accounts on both platforms.
Something to keep in mind is that it is impossible to make a precise estimate of what you can get to earn with the rewards obtained from an airdrop as this will depend on certain factors such as the number of airdrops in which you participate, the number of people invited, the time you keep the cryptocurrency obtained before selling it and the evolution of prices within the industry. Remember that. most airdrops are conducted when the coin has a low value in the hope that many people will invest in it. However, there are chances that these cryptocurrencies will never rise enough in price to be worth the sale, but it is something that cannot be known with certainty.
Generally airdrops are not a surprise, some companies announce their intentions through press releases, in addition, there are some websites or groups that are in charge of tracking upcoming projects and announcing relevant airdrops.
How to Join
It is important to note that since it is a marketing strategy there are no official rules on how to do the airdrop, each project adjusts it according to its needs and executes it in its own way.
Here are the general recommendations when evaluating how to join an airdrop:
Generally airdrops are not a surprise. Some companies announce their intentions through press releases. In addition, there are some websites or groups that are responsible for tracking upcoming projects and announce relevant airdrops.
It is important to note that since it is a marketing strategy there are no official rules on how to do the airdrop, each project adjusts it according to its needs and executes it in its own way. However, as general recommendations when evaluating how to join an airdrop, we leave the following:
- Never give out private keys under any circumstances.
- Do not use your real name in airdrops.
- Do not make any cryptocurrency deposit beforehand.
- Do not download programs from sources that do not generate sufficient confidence.
- Undoubtedly, airdrops are a very interesting strategy when starting a project, since it encourages the user to make transactions for this emerging currency and also allows to know a little more about the project knowing where it comes from, where it is going and what are the foundations and main intentions of it.
On the other hand, it can become an excellent opportunity for people who do not have capital but wish to enter the world of cryptocurrencies because, if everything goes well and the project is accepted by the community, the tokens obtained by the airdrop can be exchanged for some capital ready to be invested in this exciting world.
I am Nikesh Mehta, owner and writer of this site.
I’m an analytics and digital marketing professional and also love writing on finance and technology industry during my spare time. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected] or LinkedIn profile.