Crypto Dictionary

All You Need to Know about Airdrops

Find out what airdrops are and how they work, learn about the different types, and discover where to find the best airdrops. Stay safe and avoid scams!

Over the last two years, the general public's perception of cryptocurrencies has completely shifted. People who were initially sceptical have recently begun to embrace it.
 
Now almost everyone is trying to get their hands on cryptocurrencies. However, not everyone wants to spend hundreds and thousands of dollars to acquire them. What if we told you that you could get your hands on different types of tokens and coins just by doing simple tasks?
 
Yes, you heard us right. Let us look at what airdrops are and how they work.

Key Takeaways

  • Airdrops are a popular way to acquire cryptocurrency without spending large sums of money
  • Different types of airdrops exist, including normal, holder, and bounty airdrops 
  • Airdrop aggregators such as Airdrops.io can be used to find the best airdrops 
  • Be aware of any potential scams when participating in airdrops 
  • Airdrops are a great way to get started in the world of cryptocurrency without having to invest heavily.

Airdrop in a Nutshell

Many cryptocurrency businesses give away free coins to their communities in an effort to raise awareness of their projects, expand the available supply, and enhance trade. These freebies are frequently referred to as “airdrops.”
 
It entails giving away their own cryptocurrency to existing or potential users. Before they can claim, users occasionally need to perform easy promotional tasks like following the project on social media and sharing their posts.
 
The ability to participate in airdrops has never been more straightforward than today, thanks to streamlined web browser wallets like MetaMask. It is no secret that early-stage blockchain companies lack substantial marketing budgets. Cryptocurrency airdrops filled the void by evolving into marketing strategies.

How Do Airdrops Work?

Typically, airdrops are the projects' websites, social media channels, and cryptocurrency aggregator platforms. A recipient might need to have a minimum number of cryptocurrency coins in their wallet in order to be eligible for the free gift.
 
While some projects will distribute the coins without requesting anything more, others will require you to complete specific tasks before claiming them. Alternatively, they might have to complete a specific task, like discussing the crypto on a social media forum, making a trade, etc.
 
In some cases, airdrops are only given to wallets that have engaged with the project prior to a specific date. An example of such an airdrop is Uniswap.

Different Types of Airdrops

The nature of airdrops varies and purely depends on the project that is hosting the airdrop. Depending on their nature, there are different types of airdrops. Let us look at some of the common types:

Normal/standard airdrop

In a normal/standard crypto airdrop, participants who are interested in receiving the airdrop only need to provide a few details. Some airdrops only require you to submit your wallet address and nothing more.
 
Some of the standard airdrops also require you to follow their social media channels, including Telegram and Twitter. A few of the airdrops also require you to like and retweet their tweets.

Holder airdrop

Holder airdrops are different from normal airdrops. One of the most important requirements for a holder airdrop is the possession of a certain amount of a specific cryptocurrency. Since blockchains work as a distributed, public, and transparent ledger, everyone can see how many tokens and coins you hold in your wallet.
 
Holder airdrops are not for everyone, as they require you to hold certain crypto for a specified period of time, which is not possible for everyone.

Bounty airdrop

A bounty airdrop is quite similar to a normal airdrop. However, users are required to do a fleet of tasks that include following their social media channels, retweeting, and referring their friends to their airdrop.
 
Each of these tasks will fetch the participants a few points, and certain bounty airdrops even have criteria to be eligible for the airdrop. For instance, a user has to earn 500 points, and each task might be worth 50 points, to be eligible for the airdrop.
 
Well, the above-mentioned types are just some of the basic types. Some of the other types of airdrops include exclusive airdrops and raffle airdrops.

How and where to find the best airdrops?

If you already have a MetaMask browser wallet installed, participating in most of the airdrops is very simple.
 
This adaptability will be necessary for you to have access to the greatest variety of airdrops. Airdrops.io is one of the most popular aggregators of airdrops.
 
The website has separate sections, including the latest and hottest, for you to hover around and participate in. Once you click on any airdrop, you will be taken through a brief description of the project and the tasks involved in receiving the airdrop.
 
Never forget that airdrops are meant to be free. When someone requests that you send them money in order to receive an airdrop, be wary. You are interacting with a con artist in such circumstances.
 
Similarly, never connect your wallet to websites you haven't verified are legitimate or click on links you aren't absolutely certain about.

Conclusion

Airdrops have become a popular way to acquire cryptocurrency without having to spend large sums of money. There are various types of airdrops depending on the project, including normal airdrops, holder airdrops, and bounty airdrops.

With the rise of cryptocurrency, airdrops have become a great way to get started in the world of cryptocurrency without having to invest heavily.

FAQs

How do I participate in an airdrop?

You can participate in an airdrop by following the instructions on the project's website or social media accounts. Often, this involves signing up for the project's mailing list, joining social media groups, or participating in other activities.

Are airdrops safe?

Airdrops are generally safe, but you should always do your own research before participating in an airdrop. Make sure the project is legitimate and that you understand the terms and conditions of the airdrop.

How much money can I make from an airdrop?

The amount of money you can make from an airdrop depends on the project and the number of tokens or coins you receive.

It can vary from cents to tens of dollars. Exceptionally up to thousands for the most prominent projects. These projects, however, have set demanding conditions for participating in the airdrop.

Generally, airdrops are not intended to be a source of income, but a way for projects to build a community and increase awareness.

What is the difference between an airdrop and an ICO?

An airdrop is when a blockchain project distributes free tokens or coins to the community, while an ICO is an Initial Coin Offering, which is a fundraising event where investors can purchase tokens or coins.

Are airdrops taxable?

In most cases, airdrops are not taxable, as you are not receiving money for participating in the airdrop. However, you may be subject to taxation if you sell the tokens or coins you received from the airdrop.

Are all crypto airdrops free?

No, some airdrops may require you to complete certain tasks or activities in order to receive the tokens or coins.

Share the Article

Did you enjoy reading this article? Don't forget to share it with your friends!

Share the Article

More Keywords

24h VolumeTotal SupplyNayib BukeleWAGMI

Latest Blog Articles

Polygon

7 Things You Didn’t Know About Polygon

Discover the exciting world of Polygon blockchain - from India's first crypto billionaires to Covid tracking and Reddit's blockchain based avatars.

Today at 13:55