There are several ways to make money from cryptocurrencies, yet not all of them are secure or legitimate. But there is one way that stands out from the others, and that is airdrops.
At our site, our goal is to discover safe ways for our readers to learn about cryptocurrencies, which we have done numerous times. We’ve always helped people find airdrops more than once.
But some of our readers are still new to cryptocurrencies and would benefit from knowing what airdrops are and how they can help you.
So in this post, we’re going to cover all of the main points for what an airdrop is and how you can start earning money from them.
What Is Initial Coin Offering Airdrops?
In other words, if you hold a particular kind of coin, then you can claim other coins because you kept the parent or original coins of the airdrop.
This is why this method is named airdrops, as they’re literally free droppings of coins directly into a wallet that you can set up.
There are often different reasons and intentions for running these airdrops, such as the case in forks, marketing or distribution. There are other reasons too that we will explore later in this guide.
There’s more than one motivation for deploying a crypto airdrop, like the creation of hype and buzz through to using airdrops as an exclusive distribution channel.
Some of the reasons for running an airdrop include the following.
Distribution Of Token Supply
One legit reason for air drops is that they can distribute the number of tokens and coin supply, so there is less centralization held from individual investors, with most carrying a large sum of coins just for themselves.
For example, Omise gifted 5% of their cryptocurrency to Ethereum holders back in September 2017.
This lets OmiseGO take advantage of the Ethereum economy to distribute their tokens as well.
Rewarding Early Adopters
The majority of cryptocurrency startups want to reward their users and investors who bought into ICOs in the first place. After all, what better way is there to pay people aside from giving people free tokens or money?
This also helps early investors to hold onto their tokens for a more extended period of time.
For the majority of times, air drops are used just to spread increased recognition in the market, with the airdrops delivered for the HODLers of a particular cryptocurrency like Ethereum.
The most common reason for airdrops today is that airdropping tokens can help expand the business opportunity to new users.
This new marketing can help the adoption and use of the coins or tokens, primarily when they are incentivized through things like signups or referrals, and join telegram or twitter groups that advertise them.
Another popular method of air drops comes from the hard forks of popular coins like Bitcoin, Ethereum, Monero or Litecoin. These hard forks get distributed to holders of these parent coins.
Some examples of coins that came from these hard forks include:
- Bitcoin Cash
- Bitcoin Gold
- Bitcoin Diamond
- Litecoin Cash
Now here’s an important question – how do you find out about these air drops? This is important as it’s one of the fastest ways that you can make money.
How To Find Out About Cryptocurrency Airdrops
There’s more than one way that you stay afloat of what’s happening in the crypto market, especially when it comes to air drops. One of the best and fastest ways is to join a cryptocurrency community that operates in that area. There numerous Facebook and Telegram groups set up explicitly for this purpose and help to make each of their members make full use of the opportunities.
There are other services and websites that you can get regular updates about airdrops. However, understand that not all of these sites are worth joining, and some may even be fraudulent; you could end up losing your money.
However, here are two sites that could be worth your time checking out:
- Crypto Airdrops
You can also discover airdrop announcements on a Twitter page or Bitcoin forum page for a particular project.
For the airdropped forked coins, it’s important to remember that you need ownership of your private keys or should know how to sign your public address with that private key.
This is why we suggest that you keep your cryptocurrencies stored in types of wallets where you control those keys:
- Ledger Nano S
How To Sign A Message Using Your Address
Sometimes, you just need to go through the following steps to claim your air dropped coins or tokens:
- Sign up for the airdrop announcement
- Retweet the message on Twitter
- Refer a friend to the program
- Join the Telegram group
- Or go through other social media promotion tasks
Initial Coin Offering Airdrops Conclusion
As cryptocurrencies become increasingly more popular, the number of scams are also increasing at a growing rate. This is why you should pay careful attention to the legitimacy of cryptocurrency airdrops, and don’t be completely surprised if you fall victim to scams along the way.
The only method to eliminate the possibility of scam is to educate yourself on the legitimacy of airdrops and to not take the company’s claims entirely at face value.
For your knowledge, let’s explain how airdrop scams happen:
A scam project will ask for our private keys to be entered at various locations and may fool by entering your seed words into some scam software that will end up stealing your money.
You can usually see these tactics used in dodgy Slack channels, Telegram channels, or fraudulent Twitter accounts that will all try to deceive you and steal your money.
The point is to stay vigilant and don’t fall prey to these kinds of scams. Prevention is the best cure, as you won’t have a lot of chances to get your money back!