What if there was a way to get tokens free of charge from promising projects? That's what crypto investors can do with airdrops, exactly.
Airdrops make it easy for everyone to get started with cryptocurrencies while acting as a start-up crypto marketing tool.
An airdrop is a transfer of crypto-currency tokens with no upfront charge to a predefined group of users.
In general, Crypto businesses execute airdrops to drum up interest in their projects. Airdrops can happen randomly or on a predefined schedule.
When a cryptocurrency company executes an airdrop, it will usually reveal it beforehand. This gets an early hype machine going. In order to reward loyal and active group members, Crypto businesses will also run airdrops.
Spontaneous airdrops occur sometimes, but these are edge cases rather than the standard and typically occur when a user is picked from a pool of users already in their wallet who have over a certain amount of another cryptocurrency (such as Bitcoin or Ethereum).
It is advisable to track any initiatives that are of possible interest, while also closely tracking crypto news pages, to keep up to date on which airdrops are coming up in the near future.
The cryptocurrency project will release the tokens free of charge to members of the group who are eligible on the date of the planned airdrop.
Tokens are typically immediately transferred to the wallet of preference of each crypto investor.
Users may often, however, be expected to perform such duties, such as tweeting about the project, joining a Telegram channel, or conducting a survey. These are commonly referred to as "bounty airdrops" as users are rewarded with tokens to complete a number of tasks in succession.
The aim of doing an airdrop for crypto companies is sometimes to raise awareness of their project.
Airdrops are a common advertising strategy and offer almost instant ROI for almost no cost (minus the forfeited future value of any airdropped tokens). They are widely used as a tactic for lead generation, and crypto businesses will also run an airdrop to produce a list of prospects.
Airdrops are also the most productive way for crypto companies to get retail investors to start using their tokens, a crucial step in any token project's growth tale.
It helps businesses equally distribute the distribution of tokens as an added benefit, so that no single investor owns an outsized amount of the token supply.
Airdrops represent an enticing way for retail investors to find out at no cost about potentially successful crypto ventures.
It is relatively easy to take part in an airdrop. You'll need a crypto-currency wallet first of all. Today, most airdrops are carried out by projects using ERC-20 tokens, so it is advisable to have a crypto wallet that provides support for ERC-20.
On individual crypto exchanges, Airdrops can be distributed, so you'll need a verified account there.
Finally, to keep up to date with the latest airdrops on the horizon, you'll want to make sure you're following some airdrop-related news outlets and networks. Twitter is a good starting point for Liquid.
For dodgy airdrops and airdrop places, keep an eye out. Scams, hacks and fraud are common, with users being drawn to malicious websites by the promise of airdrops only to have their private keys stolen.
When engaging in an airdrop on an established location, you should exercise a high degree of caution. Bear in mind, never give out a private key.
New airdrops are released regularly, and all new ventures providing free tokens can be difficult to keep up with.
Other websites with airdrops are also available. Try looking around.
For crypto traders, airdrops are an exciting way to start exploring new tokens at no upfront expense.