Airdrops aren’t anything new for the people in the cryptocurrency market. Actually, airdrops are common as companies announce them frequently. Airdrops are one of the best ways to make money with crypto.
Although, if you’re one of those people who have never participated in an airdrop before, you are at the right place! Because we’re going to cover some important questions related to airdrop. What is an airdrop? How do airdrops work? How you can make money out of them? It will give enough information to start using the airdrops.
What is an Airdrop?
Airdrop is a term related to cryptocurrency and blockchain networks. Generally, airdrops are tokens or digital currency. They are distributed to the normal public. However, you need to meet certain conditions to take part in Airdrop activities.
Normally they’re distributed for free via different events. Such events are completely different from ICO ( Initial Coin Offering ) events. Because in ICO, users need to buy digital currency with other coins or currency. while Airdrops are completely free of cost for everyone.
The amount of free currency distributed for free via airdrops is small. But it’s enough to spread awareness for new coins.
How does an Airdrop work?
Airdrops are a kind of promotional/marketing strategy. which is used to spread awareness and attract more potential users. Whenever a new currency is launched the company holds events for promoting. Such promotional events include the distribution of a fixed amount of cryptocurrency for free during the event period.
Sometimes, the users must hold a certain amount of tokens accessible via a public wallet. So whenever the company takes a snapshot to finalize the distribution process, you can receive the rewards without any problems.
While event holders can also ask you to perform tasks such as sharing that event with others on social media platforms. Allowing the company to reach more potential users easily. These activities help new startups in the cryptocurrency industry, to get the attention of existing blockchain users.
How to earn free cryptocurrency from Airdrops?
With enough knowledge and monitoring, you can actually generate a good amount of revenue from Airdrops in 2021. It also depends on luck sometimes, as the crypto airdrops are distributed randomly.
But participating in new airdrops and maintaining a certain amount of balance in your crypto wallet can help you with it. As many companies hold airdrop events frequently. So the users who are loyal to them and holding their coins for a long time can benefit.
Risks of crypto Airdrops
No doubt Airdrops are great for generating a good amount of side income. But you can not neglect the fact that not every airdrop is completely genuine.
There are tons of airdrops that are announced every day, even if the company isn’t well-known. People often get attracted to newly launched airdrops in the market. That requires them to complete certain tasks and provide details such as wallet address, which is sensitive information in some cases. So there’s a high probability of data loss or scams when trying new airdrops.
The main motive of any Airdrop program is to spread awareness. For any new cryptocurrency or token launched recently in the market.
Therefore, new users can enjoy the free rewards and benefit from them. Additionally, you can hold such free tokens/coins into a wallet. Later you can sell them when their prices hike, to get more profit!
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