No skydiving, paragliding or hot-air ballooning involved!
In the cryptocurrency world, an airdrop is the process in which cryptocurrency projects distribute free coins/tokens to users. Airdrops are usually distributed by crypto projects that wanted to raise awareness. Established cryptocurrencies can give out free tokens as well.
Airdrops can occur in various forms, including: mass-dropping to wallets (for example, all Crypto.com wallets will get a certain amount of the CRO token), and free tokens upon performing simple tasks like following the project’s social media accounts.
Usually the amount given out during airdrops is small in terms of fiat value (hey its free), but if you picked a good project and hang on to the tokens for a period of time, the tokens may grow in value, making the airdropped tokens worth a significant amount when measured in fiat.
Take note though that there are thousands of cryptocurrencies floating out there and most of them will likely die off at some point or other. Don’t waste your time on obscure projects. I personally don’t look too far beyond the top 10 coins or tokens by market cap unless the project has some exceptionally compelling factor.
The first step is to sign up for online services that provide timely information about airdrops. These include websites, Twitter accounts, Telegram groups and online forums. Some examples include Cocoricos and Airdrops.io. Additionally, platforms like Earn.com allow you to sign up for airdrop lists and have your address publicly available to be airdropped into.
You’ll need to have a cryptocurrency wallet to receive the free coins or tokens. It is good to get an ERC20 compatible multicurrency wallet since the majority of the cryptocurrency tokens in the market are ERC20 tokens.
Provide your wallet address at the campaign site then wait for the free tokens to be credited to your wallet. The distribution time varies according to the projects, some could reach your wallet within months and others could ask you to wait until the Public Sale is completed (which could take a year or more).
When participating in airdrops, it is important to put security first and not fall victim to fraudulent airdrop campaigns. Some airdrops are designed to hack wallets and steal private keys.
Here are some key points to keep in mind:
- Don’t pay for airdrops: Airdrops are free, so you shouldn’t be parting with money for them. If you’re ever asked to part with money for an airdrop, you are being conned.
- Don’t reveal your private keys: Don’t reveal your private keys: Your private keys are like the passwords to your email account. No one except for you should know this, so never disclose your private keys to anyone.
- Cross-check against credible sources: Always verify that information that you have is from a credible company. Look up the company’s official website or Twitter account. The number of followers (for Twitter accounts) or downloads (for apps) are usually tell-tale signs.
- Beware the Telegram scammers: Many crypto projects have crypto channels. Many channels are just informal groups with no representatives from the project present. Even if the channel is an official channel of the token project, there are bound to be scammers lurking about and PM-ing you upon your joining the group or posting a message, claiming to be an administrator/moderator.
***Disclaimer: This post is for informational purposes only and does not constitute a recommendation to buy cryptocurrencies. Please do your own due diligence before taking any action.