What is a crypto airdrop? And how does it work?
Welcome to the future, where you can create money from nothing! Well not nothing. But it certainly feels like it. Indeed, these days you see dozens of crypto airdrops. And many people are now looking to get free token everywhere. Because it’s free of course, it’s made from air. So what is a cryptocurrency airdrop?
What is a crypto airdrop?
Let’s start with the airdrop cryptocurrency meaning. A crypto airdrop, short of cryptocurrency airdrop, is an event during which a coin project distributes tokens or coins to early adopters, for free.
And there aren’t many requirements to get the free tokens or coins. But you may have to give up a little bit of privacy… Universa.io for example, was asking users to share their Facebook contact list for example. Or POW Token was asking to create a post about their coin airdrop.
Also, you may have to have coins from the specified blockchain in your wallet. OmiseGo, which made a very popular airdrop, required participants to have Ethereum for example. A coin airdrop may be done on any blockchain. But the most popular ones are bitcoin and ethereum.
Beware of scams!
Anyone can offer a crypto-airdrop, and that includes unscrupulous people. If a developer asks for your private keys, don’t share anything. Otherwise your coins will be stolen!
How does a cryptocurrency airdrop works?
Now that you know the crypto airdrop meaning, how does it actually work? Airdrops are a brand new format to distribute tokens in the crypto world. And there’s no standard rules yet. Maybe in the future, with the increasing popularity. But right now, each team offers a different set of rules. Despite a few websites displaying the rules, you may have to contact the developer directly to learn more.
Midas’ touch
You should register to bitcointalk forum to keep updated about crypto airdrops, or even apply to some of them. And make sure you’re an active member with a few posts. Because the developer may decide to kick out the noobs…
In the case where you need to have specific coins in your wallet, the dev team will make a photo of the corresponding blockchain. And people holding the cryptocurrency in their wallet at that time will be entitled to get the tokens. While sometimes you may get the tokens automatically, you could also have to claim them on the project’s website.
For the airdrops on social media, you may have to share or retweet the link of the project. Therefore, you may need a certain number of followers to be eligible. Some developers also require to share your contact details.
Surprise airdrops, really?
This is the best part! Indeed, you may have received some free coins, without even knowing it. I mean until you check your wallet. Because some platforms did give away some tokens to the users holding some of their coins, just like that.
I’d recommend you to hold a little bit of each coin, at least the most popular ones. Because the more coins in your portfolio, the more freebies you can get!
Why TF do people give away free tokens?
To raise awareness for their crypto-currency project, of course. Indeed, it’s free advertising too. And to create a community around it. Because if you give some coins to a user, he’ll get involved to make it bankable. Finally, to cause the new currency to appreciate.
Finally, it could be also to create a lead database for a cheap price. Indeed, these companies collect all the data they can in exchange of a few worthless tokens… You know the saying: If you’re not paying for it, you’re the produtc!
What to do with my airdropped coins?
Youhou, you got some free coins! But what now? Well, at the beginning there’s nothing much to do. Because nobody knows this currency… And it’s not even available in the exchanges. Sure, you can receive and send some coins with your friends, but what for? Despite the value the project announces, it’s really worth nothing.
It becomes interesting when the new crypto arrives in the exchanges. And you can know the real price of what you got. The chance is that most people want to sell their coins, to get “real” money from it. So the price may not be up to your expectations… But you don’t have to sell your free crypto, you can hold it and use it later.
How do I keep my new cryptocoins safe?
First of all, you need a crypto wallet, to be able to receive, hold and send the new crypto. Then you have to own the private keys to your coins & tokens. Otherwise they’re not yours, period.
Also, you can share your crypto address, to receive your cryptocurrency airdrop. But you must never share your private key! If you do, someone will steal your coins, for sure.