Free cryptocurrencies? Who would ever think of giving away money? Is it real?
Yes, it is real and it has a name: Airdrops.
Below we will see all the features of them and how we can benefit from them as long as they exist. Let us start at the beginning…
What are airdrops?
An airdrop is when a project based on blockchain gives for free cryptocurrencies or tokens to the community. That is it.
Everyone likes everything that has ‘free’ on its name and because of that many of these projects take advantage of this part of human nature. But…
Why do they do that?
Simple: it is just a new online marketing strategy.
What is better to get visibility for your new business than giving coins for free?
The crypto industry is rapidly becoming full of new projects of all kinds and conditions. Practically every day there is a new company that launches an ICO (Initial Coin Offer) and therefore it is becoming more and more difficult to distinguish between the rest.
Think about it, right now there are more than 2,000 different cryptocurrencies and tokens. No investor can analyze so many projects at once. So imagine a normal person who is not professionally dedicated to investing. Would be impossible.
The team who carries out an airdrop use to try to use the airdrops to viralize their project and give it visibility.
In marketing, the first impression is very important. How can you not think well of a project that pays you to know it?
There are also those who suggest that when someone receives a token and becomes the owner of it, automatically gives it a higher value than the tokens of other projects, simply for owning it. In this way, many individuals who receive a certain airdrop end up becoming investors in it and accumulate more project tokens than they have initially received.
The second reason for creating an airdrop is the construction of the ecosystem, that is, a project may choose to launch tokens as an incentive to use its platform or to help decentralize its currency.
An example of this was OmiseGO, which sent large quantities of its tokens to anyone who had Ethereum shortly after its successful ICO, reporting this on their website:
At OmiseGO we believe that tokens are most useful when they are as widely distributed as possible. In the case of a proof-of-stake (PoS) network, especially one with a decentralized exchange of high economic value that operates in both cryptocurrencies and real money, a wide distribution is also of critical importance for network security.
And the third reason to create an airdrop is that there are also joke cryptocurrencies, such as the Useless Ethereum Token, Jesus Coin or the best known, Dogecoin, for which no one in their right mind would pay and which are therefore given away by airdrops.
Types of Airdrops
There are several ways in which these tokens or cryptocurrencies are distributed:
1. Making an action
This is the best-known type of airdrop and usually gives more visibility. The project gives you a specific amount of coins in exchange for you carrying out one or more marketing actions, such as following their Twitter account, joining their Telegram group, providing your email address or filling out a questionnaire, for example.
It is also common to be provided with a referral link to invite others to do the same and, for each of them, give you an even greater amount of cryptocurrencies or tokens.
Be aware that you will not get airdrop cryptocurrencies straight after you make these actions. Usually, take several days or weeks to be reflected in your wallet.
2. Simply owning other cryptocurrencies
In some cases, the simple fact of owning a type of cryptocurrencies gives you the right to participate in the airdrop without doing anything at all, although for that those cryptocurrencies must not be in exchanges (such as Coinbase) but in individual wallets (such as MyEtherWallet) and must be from the same blockchain, as we will detail later.
For example, everyone who once had a minimum balance of 0.1 ETH in their wallet received 777 INSP tokens without doing anything.
3. Having an open account on certain Exchanges
This type of airdrop is similar to the previous one but it differs in that it is only necessary to have an open account in a specific exchange that is actively promoting the project. A known case of this type of airdrop is the 500 TRX tokens received by all users of the Liqui crypto exchange.
The best-known exchange right now and that usually performs more airdrops for its users is Binance, but it is also worth opening an account in Bitmex, for example.
4. Installing a specific app
There are applications for smartphones and tablets such as v that provide you with small amounts of cryptocurrencies every day just for having them installed and that increase the percentage they give you if you invite other users.
In this case, the amounts are usually very small (as you can see on their website), but with the constant movement of prices of cryptocurrencies, you never know how much they may be worth in the future…
Do I need a specific wallet to get the Airdrops?
The most popular blockchain for airdrops is Ethereum, as many of the tokens are based on their ERC-20 standard. Waves platform also has many new token airdrops, so it is ideal to create wallets for both and keep the coins there.
You will see that most airdrops post a notice that they “require you to have an ERC-20 compatible wallet”, which means any wallet that supports the Ethereum blockchain.
The best in this case as we mentioned earlier is MyEtherWallet, although you can also use a hardware wallet like Trezor that interacts with the MyEtherWallet website. That is the safest way to store your cryptocurrencies since your private keys are never exposed on your computer, which means that even if you are infected with a virus or malware, they cannot steal your keys.
How much could I earn with Airdrops?
It is impossible to make an accurate estimate, as it all depends on several factors:
- How many airdrops you register in
- How many people you invite to get even more tokens
- How long do you keep those cryptocurrencies before you sell them
- The general evolution of prices in the crypto-industry
However, some projects that are now among the top 10 of the crypto market such as Ripple or Stellar Lumens made airdrops. The people who took advantage of them perhaps invested 10-15 minutes of their time and now they could have some hundreds of euros for free.
Most airdrops are made when a coin has a low value, in the hope that many people will invest in it. There is a chance that these tokens will never go up enough to be worthwhile and that is something you can never know for sure.
So you never know exactly how much you will earn, we will never become millionaires but it is worth making that small investment in time if you are interested in this world and can also be a very valid way for those who do not have the capital to start investing.
To sell those tokens, it is best to wait a while until they are revalued and listed in some exchange. After that, you will be able to sell them without any problem.
How do I know about the incoming Airdrops?
Airdrops are not always a surprise. Some companies announce their intentions through press releases and a number of websites keep track of upcoming ICOs and announce relevant airdrops.
There are no official rules about what an airdrop should look like, so each project does it its own way and you decide if you want to get involved.
Luckily, our team has designed the simplest possible way for you to find out every day which airdrop you can participate in. If you want to know how just enter your email address below (you can unsubscribe at any time):