Crypto airdrop has become a common term nowadays that attracts users to get coins from the respective project. Many people are rushing to get airdrops and take part in these campaigns. Everyone wants returns on cryptocurrency investments. Airdrop is a great way to get returns on your crypto without investing any money. Below are the main things you should know to understand "what is an airdrop"?
What Is Airdrop in Cryptocurrency?
Crypto airdrop is basically the transfer of crypto tokens in numerous wallets for free and is often related to the launch of a new cryptocurrency coin or decentralized finance project. Attracting the crypto community to the project is basically the idea intended behind the airdrops.
Till now, we are aware of many cryptocurrencies around us in the crypto world. The number of people taking part in crypto is increasing and attracting this specific community towards a specific project requires some initial perks to be provided to the user base for the success of the project. Airdrop is one of these marketing strategies employed to make promotions of the project.
So what is an airdrop? You may have seen in online games that you get virtual tokens as a reward for playing games. The same is the case with airdrop. You get the respective tokens after taking part in the project giveaways. They usually ask the participants of the airdrop to market the project in order to get an airdrop.
As crypto is growing fast, projects are being built on blockchain and airdrops are one of the main marketing tools. So a lot of crypto airdrops happen every day.
How to Get Airdrop in Your Wallet?
The project transfer cryptocurrency to your wallet. So you require a wallet based on the same blockchain on which the crypto project is based. After you do the tasks or submit the wallet address, the project will disburse the crypto on the specified date. Some crypto airdrops require you to fill out a complete form along with promoting them on social pages while some just require you to put your wallet address.
What Is Airdrop Classification?
You must have an idea that what is airdrop type in which you are participating is. On basis of the way of working, airdrops are classified into 3 major types. Some Crypto Brands are looking for awareness among the public while some just want to benefit the pioneer holders of their crypto. The motive of the project is related to the airdrop type, so it's important to have knowledge about kinds of the airdrop.
Standard Airdrop:
You don't need to do any promotional tasks. Just make the account and give your wallet address on the website. It is a very popular type because it’s just like free crypto. Time limitations need to be kept in mind in these types of airdrops because a specified amount of crypto tokens are there to be distributed and you need to get there early. The distribution takes place via a draw, so it is not promised that you will get the airdrop but still there are chances.
"Bounty programs" Airdrop
What is airdrop effectiveness in bounty programs? These airdrops require doing some tasks that are easy to do and also valuable for the project. They may ask to subscribe to their newsletter, follow them on social media platforms, refer people, and so on. So it will require your energy and effort to get crypto in your wallet. This type
Of campaign is popular among crypto startups for active marketing.
"Holder Airdrop"
It is more specific and only targets the holders of that coin. The project team takes note of the holder wallets and the specific number of coins they are holding at a given time. So it is basically to give credit to the coin holders and to create a sense of trust among newbies. In 2020, in a Decentralized exchange, UNISWAP distributed 400 UNI tokens among its holder wallets that had interacted with their wallet before a specific date. Similarly, in 2016, XLM also distributed tokens among the bitcoin network wallets.
What Is Airdrop in NFT World and How Do They Work?
You must have this question in your mind what is airdrop in NFT space? You can also receive NFT in your wallet as an airdrop. Just like cryptocurrency, NFT airdrop is also a great way to advertise NFT projects. Sometimes, you need to put your wallet address for it. On the other hand, some NFT airdrop also requires having another particular NFT in your wallet in order to get an airdrop. Make sure to participate in only reliable projects because NFT phishing is also common nowadays.
Is Airdrop Safe? What Is an Airdrop-Related Scam?
If you are going to take part in airdrops, you need to be safe from airdrop scams. The fraudsters try to get your wallet private keys and they get control of your money under the pretense of giving you a huge number of tokens as an airdrop Remember that never give your wallet details to anyone and also never connect your wallet with unauthorized websites for airdrops. Sometimes, hackers send some crypto to your wallet and upon inquiring, you open their website from a search engine and this will cause phishing and hackers can get access to your credentials.
What Are Airdrop and ICO's Main Differentiating Elements?
Airdrops, as explained previously are a smart way to market the project. Suppose Person "X" wants to introduce project A in the market on a specific blockchain. He will hire people for marketing including influencers and run paid ads to attract niche-based users. The new way is to distribute/ airdrop free tokens which are essentially free and attract more people to the project. So it is more like a free giveaway.
ICO on other hand crowdfunds program where people buy a part of a coin and keep it in their wallets. People all over the world can buy the tokens of the project by participating in the initial coin offering (ICO). So ICOs require investment because the token sale is conducted by person X to get funds from investors.
There is no second thought that airdrops are a great way to market crypto projects but one must double-check before participating because there are more scam airdrops than legitimate ones. We always encourage you to do your own research before participating in any airdrop and also join their community to get what is the airdrop project feature the project is offering.
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