The Basic Guide to Cryptocurrency Airdrops for Beginners
Start exploring crypto airdrops today and unlock your future wealth
A cryptocurrency airdrop is when a project gives away its token to eligible participants. The reason a project does this is to generate hype or reward loyalty to existing token holders. To get involved, you must know where to find the information on an airdrop and follow the directions for participation eligibility. One good site to get started is airdrops.io, but there are many more, and I’ve listed some below. It’s worth mentioning. You must be careful when joining an airdrop. Like dubious projects, airdrops can ask for more information to perform a task than needed. Information can compromise your crypto wallet or expose your private keys. But don’t be discouraged. Some airdrops succeed and reward their participants well. So, always remember to do your research.
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What is a cryptocurrency airdrop?
A cryptocurrency airdrop is when a project gives away a certain amount of its token to participants who’ve followed the directions to be eligible.
Why would a cryptocurrency project give away its tokens in an airdrop?
New projects use airdrops to generate hype about their project. And it can be more effective than paying for an ad campaign. Also, longstanding projects can use airdrops to promote a new branch project or show appreciation for longtime holders.
How do you participate in a cryptocurrency airdrop?
First, visit a website with information on upcoming airdrops. Then, fulfill any requirements the airdrop has for eligibility. Finally, wait to see if you receive the reward.
What are some excellent sites to help you find crypto airdrops?
How do you tell if a cryptocurrency airdrop is legitimate?
A major red flag an airdrop is up to no good is if the requirements ask for any KYC information. For example, social security numbers, driver’s license numbers, or the airdrop asks for any login information. Basically, anything other than simple basic information.
How many airdrops have succeeded in making participants money?
More projects have failed than succeeded. And many of these projects use airdrops. Therefore, their airdrops provide you with nothing but useless tokens in your wallet. However, a few succeed. And here’s a shortlist.
- Bitcoin Cash
- Uniswap
- 1inch
If few cryptocurrency airdrops succeed, is it worth it to get involved?
What is your risk tolerance?
If you do your research as you would for any project, your chances of participating in a successful airdrop increase.
However, it’s a big gamble like investing in an ICO or a new project with a low market cap. Even if you do your research, you can still lose (though less likely). So, perhaps, if you don’t like taking any risk, then you drop the idea of airdrops. Or, you can find an airdrop requiring the bare minimum amount of information — for example, name and email address.
It’s a self-examination. Just don’t let FOMO push you into doing something where you aren’t truly comfortable.
Wrapping it up
An airdrop is when projects give away their tokens free to those who’ve followed the directions to join the event. Projects give away their tokens to promote the project or reward existing token holders for loyalty. By visiting airdrop information websites, you can see when the following airdrops are coming up. Sites like airdrops.io are a good start, but there are more. So pick one that suits you. However, just like new projects, you must do your research to avoid getting scammed. You can check an airdrop by vetting the project or looking for red flags. Only a few airdrops have succeeded in the history of airdrops. Many more have failed. But the few that have done well really rewarded their participants. Ultimately, you must know your risk tolerance and make the judgment call.
Stay strong.
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