Everyone likes free things, but we often approach them with suspicion. We’re conditioned to believe that free offers are bait to lure us into something else. As a result, people tend to avoid free offerings, especially free money. However, in the cryptocurrency world, there is genuinely free money known as an ‘Airdrop.’
What is Airdrop
Airdrops refer to the process where a cryptocurrency enterprise distributes its tokens to users’ wallets free of charge. Typically, start-ups conduct airdrops, although established companies or platforms may also participate. The airdropped coins are usually low in value or used within a specific platform’s ecosystem, but they have the potential to grow.
Airdrops function like marketing campaigns organized by cryptocurrency startups to raise awareness about their services or products. This approach helps generate interest and exposure.
As information about the airdrop and its associated token spreads within the community, awareness increases. This heightened attention can lead to a higher trading volume for the coin once it gets listed on an exchange. There are essentially two types of airdrops: surprise airdrops and those announced in advance.
Airdrops are different from Initial Coin Offerings. While ICOs involve a private sale where investors purchase tokens in a private sale often followed by a public sale round where small investors purchase tokens. However, airdrops do not involve any purchasing and are just token giveaways.
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How to get free coins
Now that we’ve established that airdrops are essentially giveaways, here are the simple steps to participate in one. First, sign up for an airdrop by filling out a form. Next, provide your wallet address to receive the coins. Free tokens will then land in your wallet at the specified time.
You can also sign up for online services that provide information about airdrops, such as Airdropalert.com or Airdropaddict.com. These services will alert you when there’s an airdrop. Additionally, there are Telegram groups and Twitter accounts of various coins that announce new airdrops.
Beware of Airdrop Scams
There are many scammers ready to exploit any situation, and the cryptocurrency industry is no exception. Since it is still largely unregulated and rapidly growing, many scammers create crypto projects to defraud users. Therefore, one must be very cautious.
Some airdrops are designed to hack into the wallets of unsuspecting users and steal their private keys. Ensure the airdrop is authentic before participating. Additionally, consider storing your cryptocurrency in cold storage to prevent theft.
What other thing do you know about airdrops? Share your opinion with us in the comment section below.
Disclaimer:
The information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge, or prerequisite for decision-making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.
