Have you ever come across the concept of crypto airdrops? Free cryptocurrencies are one of the most exciting ways people can acquire free cryptocurrency. Now, imagine that you can receive free tokens that can be worth thousands of dollars just for being a part of the community or for using the product early! Sounds amazing, right?
So, in this article, we are going to break down everything you need to know about crypto airdrops, how they work, and also how you can claim your own.
What are Crypto Airdrops?
The term crypto airdrop refers to the event when a company or project doles out free tokens to users. It’s sort of like a digital giveaway, but instead of handing out free shirts or stickers, you hand out cryptocurrency. These airdrops are given to some people that fulfill some criteria such as being earlier supporters of a project or participating in some activities.
Let’s imagine that a new store opens up and gives away free samples to promote the brand. Companies involved in Web3 and the blockchain leverage the power of the air drops to reward loyal people and create awareness around their tokens.
Why do Companies Give Out Airdrops?
Some reasons companies use airdrops include:
- Building Awareness: Airdrops can be a great tool to grab people’s attention for a new project or token.
- Creating Demand: People who receive free tokens may trade or use them therefore creating a market for the token.
- Rewarding Loyalty: Thankfully, the companies often also use the airdrops as a ‘thank you’ and coax the early supporters who believed in the project from the initial stage.
- Onboarding New Users: Airdrops can be very interesting to get people on the platform product.
Types of Tokens in Airdrops
The tokens given out in airdrops can vary depending on the project:
- Utility Tokens: These are tokens used to pay for services or access features within a particular platform or ecosystem.
- Governance Tokens: These allow holders to vote on the future of the project incl rules changes or new features among other things.
By distributing these tokens, the companies will kick start their token economy and can even contribute to how much perceived value the project holds.
How to Get a Crypto Airdrop
Usually, you will need to participate in some manner to get a crypto airdrop. In any case, here are the basic steps that will increase your chances of spotting a real full moon.
1. Set Up a Crypto Wallet
In order to receive an airdrop, you must have a wallet which can hold cryptocurrency. MetaMask, Phantom, Coinbase Wallet and OKX Wallet are popular wallets. The good thing about these wallets is that they allow you to store your private key securely, which is important for keeping your crypto secure.
2. Add Funds
For the most part, you’ll need to put a small bit of cryptocurrency into your wallet to pay for gas fees (you’ll need to pay these transaction fees on the blockchain). For example:
- Ethereum users will need ETH.
- For instance, BNB will be required for those using Binance Smart Chain.
- Solana users will need SOL.
- Polygon users will need POL.
3. Participate in Communities
Find communities that you are interested in (e.g., social media, discord, telegram) and join it: especially be active there because while being there you will be the first that sees the new airdrop.
4. Engage with Projects
In some projects, you need to engage with their platform. This could mean:
- In terms of standardized cryptocurrency exchange protocols, it refers to swapping tokens on a decentralized exchange (DEX).
- Staking tokens to provide liquidity.
- The testing of the new features on blockchain testnet.
- Some gaming or NFT based projects might airdrop tokens to users who hold or stake a specific type of NFT.
5. Play Games
The gaming world has seen a few projects make tokens available for playing in a playtest or achieving a certain milestone in the game.
Different Types of Airdrops
There are many forms of airdrops. Here are some common types:
- Standard Airdrop: This is the simplest form. There are certain requirements you have to meet and the tokens are sent from there directly to your wallet.
- Bounty Airdrop: In this case, there are tasks that you need to do (for example, promoting the project on social media, writing articles, making videos, etc.).
- Exclusive Airdrop: These are for a set of users, early adopters, long time community members, etc.
- Holder Airdrop: Depending on what token or NFT you hold, you may be eligible for a related airdrop.
- Retroactive Airdrop: These airdrops are based on their past actions such as being a beta tester for a project.
How to Stay Safe
While airdrops are exciting, they do carry risk. Here are some tips to keep in mind:
- Be Wary of Scams: They may also be dumping fake projects to steal your private key or scam you into sending their fund. Never send a private key, or money to claim an airdrop.
- Check the Source: Always be sure the project is legitimate. Check their website or follow official social media accounts for their announcements.
- Use a Separate Wallet: A secondary measure would be to use a separate wallet for airdrops to avoid the risk of losing your main funds.
Where to Find Airdrop Opportunities
Finding airdrops isn’t always easy. You will need to be proactive and keep track of the next projects to emerge. Here are some tips:
- Join Social Media Groups: Projects often announce airdrops on twitter, discord and telegram.
- Monitor Blockchain Platforms: There are pages for upcoming airdrops on some platforms.
- Follow Airdrop Aggregators: There are websites and newsletters that are particularly focused on listing airdrop opportunities.
DeFi and Game Project Airdrops
Airdrops are regularly distributed by DeFi (decentralized finance) projects to users who provide liquidity, stake tokens or frequently use their platforms. If you do participate in any DeFi ecosystem, there’s a higher chance that you’ll be qualified to participate in future airdrops.
In gaming, projects can reward people that hold Genesis NFTs, play test, or participate in community through content or feedback.
Final Thoughts
Airdrops are one of the more fun and potentially lucrative ways to get into Web3 and blockchain. There are many different ways to qualify for airdrops, whether you are an addicted gamer, a DeFi fan, or just curious about new projects. Remember to stay safe, get involved in communities, and check for new opportunities. Who knows? That could just turn out to be your next big airdrop!
With a little effort and little participation, you would have made it far in the crypto space to get the free tokens and explore new projects.
Also read: Transaction Simulation Spoofing: The New Crypto Scam to Watch Out For
