Airdrops – All You Need to Know

Airdrops are a way for you to get free coins from cryptocurrency projects. It’s kind of like getting free money—you just have to know how to get your hands on it!

That’s where we come in. We want: you to be able to take advantage of all the free tokens out there, so let’s get started!

What is an Airdrop?

An airdrop is a marketing strategy used by blockchain projects to distribute free tokens to the community. It’s a way for companies to get their name out there and create a sense of excitement around their project. These tokens can be stored in popular wallets like MyEtherWallet or MetaMask.

Airdrops can also be used as an incentive for users to sign up for a new service. For example, some companies will give away free tokens if you sign up for their newsletter, or hold some of their tokens in your wallet. Airdrops are often part of marketing campaigns aimed at getting more people interested in a new project or product.

Airdrops have become popular with ICOs because they are better than bounty campaigns and allow investors to get their tokens for free. 

Types of Cryptocurrency Airdrops:

Airdrops based on social media activity:

The most popular type of airdrop is based on social media activity. Developers distribute tokens among their followers, who in turn have a certain number of followers or subscribers. If you want to participate in such an airdrop, you need to follow all the official channels of the project and share posts related to it regularly on popular social media platforms.

Airdrops based on blockchain balance:

Another popular way to get free coins is through an airdrop based on your balance in another wallet or exchange account. If you have some ETH, NEO, BTC or LTC in your wallet, you can receive some tokens from developers as well! This strategy is used by many projects that aim at attracting new users to their platforms through promotional activities like this one.

What is an Airdrop wallet?

Airdrops are usually done through a wallet that has been specifically created for airdrops (such as Metamask). Some wallets will allow you to enable an option that sends you any coins that are sent to your address. These coins are called “airdropped” coins.

They’re often referred to as “airdrops” because companies will literally drop tokens into your wallet if you meet certain conditions or criteria (like having certain amounts of other cryptocurrencies). 

How does Airdrop work?

The first step is for the project to set up an airdrop contract on the blockchain – this is the contract that will hold all of the users’ addresses and determine who qualifies for the airdrop. Typically this means that if you’ve been on the platform, or using its tokens previously (like in an exchange), then you’re eligible! You can even get an extra bonus by signing up through social media or other methods like Telegram groups or email lists.

Once your address has been verified as eligible, you’ll be able to claim a certain amount of tokens based on the criteria specified by the developer or company.

Most recently, many companies have been doing “snapshots” where they record the balance of each user’s wallet at a specific block height, and then send them their share of the tokens based on this snapshot. This is often done when there has been an upgrade in technology, or some other change that requires all addresses to update their software before they can receive new tokens.

The best part? Many crypto enthusiasts love airdrops because they don’t require much effort! It’s just an easy way to earn free cryptocurrency without having to invest any money into it yourself.

To be an Airdrop ace, a person should be active on different social media platforms like Twitter and Telegram. There are several accounts on Twitter that do this job pretty well such as @OlimpioCrypto, @Abrahamchase09, and @NDIDI_GRAM.

Some big airdrops that happened recently were Hashflow($HFT) which airdropped tokens worth more than 50,000 USD to a few participants. Others like Optimism ($OP), and Aptos ($APT) also created a buzz in the crypto market.

The Hopium Decode –
Pros & Cons of Airdrops

Pros

Airdrops are a way to get cryptocurrency into the hands of people who can’t directly access it or would have a hard time doing so. It’s a great way to introduce a new community to cryptocurrency and create an incentive for them to continue using it.

For companies/start-ups, airdrops are a great way to advertise their project. 

If you are an early bird for a particular crypto that offers airdrop, you are in for a treat, as you are likely to get free cryptos in airdrops. 

If there is any appreciation in value, you get free cryptos, and the profit is yours.

Cons

The flipside, however, is that it’s difficult to anticipate when an airdrop will happen—and if you miss the bus, then all your hard work goes in vain!

It requires a lot of work on behalf of the project team, who need to be able to manage their resources well.

Airdrops can lead to fraud and scams if not handled properly by the project team, so it’s important that they have strong security measures in place.

Receiving free tokens via an airdrop isn’t devoid of risks – the risk of being prone to airdrop scams as soon as you provide details of your wallet, open an account, or transact on exchanges that may not be credible.  

Another hassle is to identify the veracity of a crypto project, especially if you are willing to stake a particular crypto to be eligible to participate in airdrops. Thus you need to do your due diligence before participating or sharing details pertaining to your wallet.

To conclude, the proof of the pudding is most definitely in the eating!
Airdrops are a great way for blockchain companies to make their presence felt. They’re also a great way for people who are interested in blockchain to learn more about it and get involved in the community without putting their own hard-earned money at stake. 

Hopium On!