4 min read
Lately you may have been hearing that some users have been given cryptocurrencies for free and, whether you like it or not, everything that is free attracts thousands of users. Cryptocurrency airdrops are an effective way to advertise and generate a new community of users around a project or cryptocurrency.
Airdrops consist of “giving away” cryptocurrencies or tokens as a reward. The most popular network for airdrops is Ethereum because of its ease of creating ERC-20 tokens.
They are an excellent way to attract the attention of many users and make the new project known. Moreover, in this way, they encourage some users to start using the given cryptocurrency, expanding the number of users and, consequently, allowing greater decentralization. Some of the best known airdrops are Stellar, Tron or Uniswap.
Is it possible to participate in a cryptocurrency Airdrop?
Yes, however the way to participate in one airdrop or another will depend on the type of airdrop in which you are going to participate, as there are different types.
- Airdrops in which for holding a certain cryptocurrency or token you can be rewarded for doing absolutely nothing. However, in order to participate in this type of airdrop you must have your cryptocurrencies in your own wallet, i.e. you cannot have them stored in an exchange. Generally, the more cryptocurrency you own, the more you will be rewarded by the airdrop.
- Airdrops for performing tasks. It is one of the best known. In this case in exchange for you promoting that cryptocurrency, for example, following a Twitter or Instagram account, joining a telegram group or filling out a questionnaire, in return you will get a specific amount of cryptocurrency.
- Airdrops for having an account in a certain exchange. In some airdrops, simply by having an account in an exchange you are already a participant. The project creator of the airdrop chooses an exchange and offers them an amount of cryptocurrencies or tokens to supply that cryptocurrency in the exchange.
- Airdrops for installing a specific application. There are some applications which offer very small amounts of cryptocurrencies per day for the simple fact of having it installed.
Most airdrops notify you with a warning in which they recommend you to have a wallet compatible with ERC-20, since as we have said before, the most popular network for airdrops is Ethereum. However nowadays a vast majority of wallets are ERC-20 compatible so this should not be a problem.
Are airdrops reliable?
Airdrops are a great marketing strategy to promote a new project. This is why you should be especially careful and not get carried away by emotions, as some airdrops can end up being a scam. Specifically those that require you to contribute in some way either through money or by saying what your private keys are.
Here is a list of some tips to avoid falling for a cryptocurrency airdrop scam
- Check the social networks and official page of the project that is supposedly performing a new airdrop, to make sure it is not a scam.
- Do not share your private keys with anyone, because if you share your private keys they will be able to access your cryptocurrency wallet.
- The airdrops are completely free, do not send money to anyone as a requirement to participate in the airdrop.
- Remember to always be alert and do not share more information than necessary, value your privacy.
In addition to being a good way to promote yourself, airdrops can also be very useful for getting to know new projects as well as allowing the possibility of making a long-term profit if the tokens appreciate in value over time.