A Guide to Understanding the Concept of Cryptocurrency Airdrops

Cryptocurrency Airdrops are designed to promote any upcoming crypto project by issuing free tokens to the community members of the said cryptocurrency.
There’s no definitive way to become eligible for airdrops, but being aware of all that’s happening in the crypto scene gives one a chance to get a seat at the airdrop event.

What are Cryptocurrency Airdrops?

Airdrops basically involve developers of blockchain-based projects sending out free tokens of their project to users as a marketing move in order to promote the adoption of that cryptocurrency.

The main motive behind sending freshly minted tokens to hundreds of thousands of wallet addresses at random is to bank on the possibility that the recipients will be inclined towards engaging more with the platform, even if it is in the form of cashing out free tokens. However, crypto airdrops are not entirely about sending free cash to users; they are more of an initiative to create buzz around an upcoming project.

In most cases, crypto airdrops are only issued to users after they have completed an assigned task. These tasks include following a certain social media account, sharing or retweeting a certain post, including hashtags, sending or receiving transactions using a particular wallet, etc.

In some cases, there’s no such requirement; the crypto is issued without completing any tasks.

Eligibility for Crypto Airdrops

Since crypto airdrops are solely designed for promotional purposes, it is tough to ascertain eligibility for future drops. Not all drops are the same and due to that, eligibility for each drop is different; however, it’s not so tough to find them. Listed below are some ways in which you can keep yourself alert about future airdrops.

The first and easiest way is to look up #airdrop on social media. This may give you insights into recent events and events that are about to happen.

Next up is consistently following crypto news. You can do this by subscribing to any online newsletter, crypto forum, etc.
Another way is to be involved in the on-ground crypto scenario by buying and selling crypto products often.
The last but not the least effective way is to search for websites dedicated to crypto airdrops. Like promotional emails that you get from online shopping websites, these airdrop websites will send you reminders of upcoming airdrops via email.

The primary requirement for receiving crypto via airdrops is to own a crypto wallet. Without a crypto wallet, a user can neither receive crypto tokens nor send them to someone else.

However, an exchange address works for normal crypto transactions but might not be convenient for airdrops. In place of exchange addresses, it’s better to use a cryptocurrency wallet that can store your funds. Some of the leading crypto wallets on the market are MetaMask, CoinBase, etc.

Why do Blockchain Networks Arrange Airdrops?

As we discussed above, airdrops are part of any crypto project’s marketing program. With this, they aim to raise awareness about the project. By issuing free crypto tokens to the users, the team can evenly distribute the tokens in its community right from the start and bootstrap the project as well.

In order to promote the project and create hype around it, the developers of these projects incentivize the recipients of these tokens. This is done to extend the reach of the token to a wider audience until it starts trading on exchanges.

Radhe