With the ever-increasing spread and popularity of electronic currencies, there are quite a few people who would love to get cryptocurrencies for free, without having to spend a single penny. The good news is that, although it may seem hard to believe, a way to earn e-currencies without having to lay hands on your wallet is there and it’s pretty simple to apply.
Thanks to Airdrops, which have become increasingly frequent and popular after the ICO boom of 2017, it is now possible to receive tokens, cryptocurrencies and NFTs completely free of charge. But exactly what are Airdrops and how do they work? We have gathered for you everything you need to know about them. Let’s see it together.
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What is Cryptocurrency Airdrop
As perhaps suggested by the literal translation of the term (“launching supplies from above”), the Airdrop of cryptocurrencies consists in the free distribution of tokens that have just been launched on the market or that have just passed the development phase. It is, therefore, a real marketing strategy, which aims to raise awareness of the cryptocurrency and attract new investors. Offering tokens through Airdrop has, in fact, a minimal cost for companies, but it allows them to advertise quickly and increase the visibility and popularity of their coins.
In addition to attracting the attention of the media and investors, the Airdrop facilitates the distribution of the cryptocurrency itself. Once in possession of the token, the investor has, in fact, the opportunity to familiarize himself with it and learn more about the project behind it, being able, then, eventually, to choose to continue investing in it, favoring its growth. Even if at the moment of distribution the tokens have almost no value, it is, in fact, possible that over time they will acquire interesting values, depending on the validity and originality of the project. This is why it is important to keep an eye on all opportunities.
The first cryptocurrency Airdrop in history came with Auroracoin, the cryptocurrency designed by Icelandic programmer Baldur Friggjar Odinsson as an alternative to Bitcoin. In March 2014, he distributed 31.80 Auroracoin (AUR) to the entire population of Iceland, motivated by a desire to begin a process of truly “democratizing” money. However, a few months later, the value of Auroracoin plummeted and the project was virtually abandoned.
On the other hand, an example of a very successful Airdrop is Ontology (ONT), which took place in January 2018. All newsletter subscribers were offered 1000 ONT tokens, which had no value at the time of the transaction. However, just two months later, an ONT token was worth about $11. This means that participants had obtained tokens worth as much as $11,000.
How Airdrop Works
As we have seen, cryptocurrency Airdrop is, therefore, a very convenient practice for both companies and investors. But how exactly does it work?
Actually, since it is a relatively recent phenomenon, there are no precise and uniform rules yet. Generally, the organizers start by promoting the Airdrop on their official website or on industry sites and forums, in order to draw the attention of all potential investors. It may happen, however, that Airdrops happen by surprise, especially if they are already established companies.
Even with regard to the actual distribution, there are no fixed rules. Companies may decide to offer their tokens to users who have interacted with the platform by a certain date or to those who have specific tokens or a minimum amount of coins in their wallet. In some cases, they may require that, in exchange for their cryptocurrencies, certain tasks are performed, such as, following the project’s social media accounts, signing up for a newsletter, etc.
How to Get Free Cryptocurrencies
But, then, what do you actually need to do to get free cryptocurrencies thanks to Airdrop? Is it really that simple?
The winning strategy to earn cryptocurrencies with Airdrop must undoubtedly start with information. Since the most established and long-lived projects generally do not offer Airdrop, the first thing to do will definitely be to look for new and interesting projects that have the potential to launch successful tokens. This initial search might seem complex in the eyes of a beginner, but it should not scare you. To get all the necessary information, all you will have to do is visit industry sites, forums and social networks or, for example, attend Discord events that have cryptocurrency as a theme.
Once you’ve found an interesting Airdrop, you’ll have to get more detailed information to evaluate whether the project is credible or not. In this regard, we are helped by specialized platforms such as: CoinMarketCap, Binance, Airdrops.io, ICOmarks and Airdrop Bob, which, in addition to offering up-to-date and reliable information, also allow, in some cases, to participate in the Airdrop itself.
Essential to be able to receive free cryptocurrencies via Airdrop is, moreover, to own a wallet, a cryptocurrency wallet where you can store your coins. To make sure you proceed safely, it will necessarily have to be a personal and private wallet, such as those supported by Ethereum (MyEtherWallet or MetaMask), or a hardware wallet, such as Trezor, Nano Ledger and Keepkey, with private keys. You also need it to be an active wallet, since the platforms check if you are trying to sign up for the same Airdrop using multiple wallets or different addresses.
In addition to the cryptocurrency wallet, you need to have a valid email address, with which you will need to create your account on the organizing platform’s website or sign up for newsletters, which are often an eliminating factor for being able to participate in the Airdrop. Having an e-mail address dedicated only to the Airdrop could be ideal to avoid receiving spam and keep our main e-mail accounts safe.
We will need, then, to have social media accounts such as Facebook, Twitter, Telegram, etc. This will not only allow you to get real-time information about the new Airdrop scheduled, but also to perform the tasks that are often required to get the free tokens. Again, it is advisable to use an account exclusively dedicated to Airdrops, so you will always have an eye on updates and keep your main accounts safe.
In order to get free cryptocurrencies, you will need to take note of the deadlines and requirements of the various platforms and follow the instructions. The duration of the Airdrop is generally variable, but in some cases it can take several months before the tokens are recognized, especially if the Airdrop occurs in conjunction with an ICO. Anyway, if you have complied with all the established rules and deadlines, you can be sure to receive your free coins without any problem.
Types of Airdrop
We have seen that participating in an Airdrop is really simple and that there are many benefits to be gained. But how many types of Airdrop are there? Simplifying to the maximum, we can distinguish between 4 different types of Airdrop. Let’s see them in detail.
- Standard Airdrop: these are standard Airdrop, which have no requirements or specific tasks, except for the simple subscription to the project newsletter.
- Holder Airdrop: unlike the Standard Airdrop, in addition to subscribing to the newsletter, they also require the possession of a minimum amount of specific cryptocurrencies in the wallet.
- Bounty or Task Airdrop: require you to complete certain actions on social media such as sharing posts, following a page, tagging someone, etc. You get rewarded for each completed task.
- Exclusive Airdrop: as the name suggests, these are exclusive Airdrops where the developers themselves choose the users to whom they want to send their tokens. Usually, the recipients are active community members or supporters of the project.
Opportunities and Risks
It is obvious that getting free tokens through Airdrop can be very beneficial. However, we cannot conclude without first mentioning the risks as well. As in all activities on the Internet, even in the case of Airdrop, there is, in fact, the risk of running into malicious people, ready to steal the sensitive data of unsuspecting users.
A good way to make sure that the Airdrop of our interest is legitimate and safe is to monitor the official website of the project, and/or social groups, forums, industry sites, etc., looking for information. This will allow for an extra margin of safety regarding the veracity of the event. In general, the charging of registration fees or the request to share a private key must be taken as serious alarm bells. Please be careful and rely only on reliable sources.