What is airdrop and how it works

Let's figure out what airdrop is, why it is needed and how it works. It's no secret that the crypto market has become very competitive for a long time. New startups and tokens are trying to win their audience, and it's getting harder to do it. You need to stand out, attract attention, offer something in return for the initial interest, which further need to be developed and maintained.

And just for this purpose, there is airdrop - a kind of marketing strategy of the crypto world, when the newly created cryptocurrency is distributed free of charge to current or potential users, usually in exchange for simple actions to promote the project. Absolutely any user can become the owner of the airdrop, the only prerequisite is the presence of a crypto wallet, to which the transfer is made.

Types of airdrops

Airdrops are classified according to the methods of carrying out into the following types:

1. Standard airdrop. To get a cryptocurrency, you do not need to do anything at all, just the desire of a potential user is enough.

2. "Bounty airdrop". Here you will already need to complete simple tasks - to retweet about the project, join the appropriate group, subscribe to the channel. For example, in 2021, in order to receive the SAND token from the blockchain game and The Sandbox metaverse, it was necessary to register on Binance and CoinMarketCap, provide data for KYC verification, watch videos about the game and take part in a quiz.

3. Exclusive airdrop. These programs are created for people who have been closely cooperating with a particular project or exchange for a long time. In other words, for loyal loyal customers. 

4. Limited airdrop. It involves the distribution of tokens to a certain group of people - for example, those who decided to become early investors of the project.

4. Distribution of the hard fork. A hard fork is an update of the cryptocurrency code, due to which its blockchain branches off and a new project begins to exist on a newly created "branch". After that, those who own the original digital asset receive an equal number of new tokens to their wallets.

Is it possible to earn on airdrops and how much

Of course yes, but it all depends on the number of hands, their volumes and the cost of the tokens themselves. As a rule, you can earn from a couple of dollars to several tens in one hand. Earning opportunities expand if the market is bullish (that is, growing) and the cost of a new cryptocurrency grows with it. Nevertheless, airdrops are rather a pleasant addition to the income from the crypto market, but not its main source. 

Where to look for airdrops

Of course, information about the giveaways can be drawn from the thematic channels of bloggers or market participants, or you can not wait for tips from third parties and always be aware of upcoming events with the help of special resources. Here are just a few of them.

Airdrops.io – an excellent detailed website with information about airdrops that have already passed, are currently underway and only planned.

CoinMarketCap is a very easy–to-use tool for selecting airdrops, as well as whitelists (buying cryptocurrencies at a certain price)

The Coinlist resource makes it possible to participate in projects with large percentages, assumes proof of identity to eliminate the risk of creating multiaccounts.

What you should pay attention to when participating

Firstly, the fact that this particular project is not fraudulent. Under the sauce of the free distribution of tokens, you may be asked to provide the private keys to the crypto wallet, bank card details and accounts. Other "craftsmen" send links for allegedly downloading special software or registering in the system, which eventually turn out to be phishing, that is, they steal your personal data. Therefore, vigilance and vigilance again.

Other rules are also quite obvious - carefully study the rules of participation in the project, be prepared for the fact that some tokens are transferred only after a while and not all of them can be withdrawn from the platform or sold. And yet, despite the quite natural presence of some pitfalls, airdrops are something that is definitely worth paying attention to. Because this is another good opportunity to get more from the crypto market.

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