HOW DO CRYPTO AIRDROP WORKS?

Crypto-airdrop is a method by which one can earn crypto from projects absolutely free. This is more of a marketing stunt that includes sending tokens or coins to wallets for promoting and spreading information about new currencies (virtual). These tokens or currencies are sent to the wallets of active members in the blockchain community for free or in return for a small service. These small services may include retweeting posts by the company issuing the token or virtual currencies. We can see multiple ways to get these tokens, and somewhere airdrop might be connected with free assets; however, in some cases, a transaction fee may imply. More to this, one can also participate for free in an airdrop. If you decide to invest in cryptocurrency, there are many ways for you to learn them. 

Now you must be thinking, how do crypto airdrops actually work? Cryptocurrency projects hold a significant amount of tokens available. These tokens are sent to people who are able to meet their guidelines. One can accomplish this by delivering and completing tasks associated with the project. Other than that, there are different methods to participate in the airdrop, too, which we will be discussing soon. One needs to sign up for airdrop and complete tasks to win tokens. These earned tokens can be claimed by depositing them in wallets. 

TYPES OF CRYPTO AIRDROPS

Airdrops are of different types and have multiple unique features. Likewise, crypto projects can act as a tool for growth, creating more brand awareness and customer reach from all around the world. There are various types of crypto airdrops – 

STANDARD

The first on the list comes the standard crypto airdrop, where tokens are distributed for free with no particular tasks or actions. One needs to form an account for the wallet. When it comes to standard airdrops, these are highly popular due to the fact that it becomes easier for one to participate and earn free crypto. However, only a limited amount of tokens may be accessible through a standard airdrop.  

BOUNTY

Another one is the bounty crypto airdrop. Here, one can get rewards for certain task completion or social actions relevant to the projects. In the case of Bounty airdrop, one does need to perform a generous amount of tasks to receive free crypto tokens in exchange for energy. Tasks here are more simplified rather than complex but hold a high value in the project itself. The bounty airdrop is gaining wide acceptance due to its efficiency and safety. 

HOLDER

The third one on the list is the Holder airdrop. Through these, one can earn tokens of one cryptocurrency by holding tokens of other currencies. In the case of Holder airdrop, the amount is specified on the basis of the snapshot. The amount depends on the tokens one holds in their wallet. 

SAFETY AND SECURITY OF CRYPTO AIRDROPS

The three typical methods of crypto airdrops may seem safe and risk-free; however, that’s not all. Cryptocurrency is volatile and prone to scams, which makes its applications and projects risky too. Coinbase offers the safest trading; however, they have experienced scam issues and hackers trying to steal the wallet addresses of people with a high amount of tokens. Hackers can steal tokens from wallets by getting access to private keys; hence one needs to play safely in the case of airdrops. One needs to stay aware and updated on airdrops, especially if they hold a higher amount of tokens. It is never suggested to disclose your private keys to anyone, even your family members. 

Crypto airdrops have experienced fraudulent actions in the past, and thus it does not make the system 100% secure. It’s always good to research the team behind the crypto project and then perform an action. 

ADVANTAGES AND DISADVANTAGES OF CRYPTO AIRDROPS

While talking about advantages, Cryptocurrency airdrops are a great attempt to gather acceptance in the tough competition of startups. Many firms associated with crypto airdrops provide excellent services and marketing tools to startups in order to make their airdrop grow. However, when it comes to disadvantages, Crypto airdrops come with warnings and risks. Some of them may include pre-mine tokens, trading at pump prices, giveaways, and more. One needs to stay alert and research prior to choosing the right method of the crypto airdrop, as discussed earlier.