Many of us have come across the term Airdrop a couple of times, but probably don’t know how to make money with this. In simple term, Airdrops mean free money and an opportunity to earn cryptocurrency without any investment. This post a guide for beginner to learn about Cryptocurrency Airdrops.
What is Airdrop?
Why do Crypto Airdrops?
How can we get Airdrops?
Why would A Company Give Free Tokens?
How Can I Learn About Future Airdrops?
And the most important how to collect Airdrops in your wallet Address?
How to exchange Airdrops in money?
What is an Airdrop ( Cryptocurrency Airdrops)
Airdrop refers to the FREE coins (free bitcoins/free crypto) given during the Intial Coin Offerings – (ICO) of the crypto companies in the hodlers’ wallet in order to publicize their tokens. Airdrops involve cryptocurrency projects (or blockchain companies) rewarding users free coins in their existing wallets, subject to meeting certain conditions. It’s become quite the trend as — as it essentially translates into ‘free money’ for the users receiving them (provided the coins being given out are valued by the market).
Why Do Crypto Airdrops ( Cryptocurrency Airdrops)
Airdrops are done for a variety of purposes, but mostly they are done to try and promote a new project. Think of crypto airdrops as a form of advertising. A newer project gives away a small amount of tokens to enthusiasts in exchange for as little as joining their Telegram group or email list, facebook page, twitter following etc. Many times you just have to hold another major crypto like Bitcoin or Ethereum and projects will take a “snapshot” of all holders on a certain date and issue tokens to those people in an airdrop.
How Can I Get Airdrops?
There are a few good ways to get your free tokens through airdrops. The first is to hold major coins like Bitcoin or Ethereum and keep notice of when new coins fork or tokens are going to holders of major coins. Keeping track of hard forks of coins can be just as daunting as airdrops, but essentially they are the same thing. I use CoinMarketCal.com to keep abreast of upcoming forks (and also general crypto events).
The other way to check cryptocurrency airdrops is to use a popular airdrop listing site. This site will navigate you to Cryptocurrency Airdrops.There are a few sites out there that do a pretty decent job of listing all the upcoming airdrops and what you have to do to get them. Here are 5 sites where you can keep track of upcoming cryptocurrency airdrops.
Why Would A Company Give Me Free Tokens?
As mentioned, the market for ICOs is over-saturated beyond belief. Most people are more likely to roll their eyes when they see a new cryptocurrency rather than invest. That said, if the team behind that new currency gives out free tokens for attention, they are much more likely to get it. In marketing, first impressions are incredibly important. How could you not think highly of a company that pays you upon meeting?
If a company sends some of their token to your wallet and you notice it, it might prompt you to look into their project more and if you like what you see you might decide to invest in them. It’s free marketing for the token sale or coin launch really, it costs the company nothing to provide these tokens to you but could help them with brand recognition.
How Can I Learn About Future Airdrops?
Airdrops aren’t always a surprise. Some companies announce their intentions via press release, while others will “reward” you for joining their social following within a limited time frame. These teams are more selective as to who gets their free currency, rather than giving it out to the whole blockchain.
Various groups on Telegram or Facebook keep track of upcoming ICO’s and announce any relevant airdrops. Websites like airdropalert.com are always tracking new giveaways as well. Some companies will use an airdrop to promote their wallet or application, stating that the first 50,000 downloads will receive the respective currency. Other projects will even ask you to promote them on a forum or website in exchange for tokens.
How to collect Airdrops in your wallet?
The foremost question is “how to collect Airdrops in your wallet”. Please remember, you can’t use your normal Ethererum Wallet address having from Coinbase, Blockchain etc to collect free Airdrops.
Yes, you need a specific Ethereum Wallet and that is ERC-20 tokens wallet. As, the most popular blockchain airdrops by far is Ethereum, and many of the tokens created with be ERC-20 tokens platform. If you use normal Ethereum wallet , you will not be able to receive Tokens in your wallet.
In summary, all you need an ERC-20 wallet (I use MetaMask), to store your tokens though. Each airdrop is a little different and there is no real “standard” way of doing it.
The best wallet to use for Ethereum is MyEtherWallet, read our guide to find out how to set up one.
You can also use a Hardware wallet such as the Trezor or Ledger which interacts with the MyEtherWallet website, this is the safest way to store your cryptocurrency as your private keys are never exposed to your own computer which means even if you are infected with a virus or malware, they are unable to steal your keys.
The Waves platform also has a lot of airdrops of new tokens so to make sure you have the highest opportunity to receive free airdrops you should create wallets for both and hold some coins in your wallet.