The “crypto Airdrops” is a marketing event in which cryptocurrency wallets are given free tokens or coins. Teams use this event to raise awareness of their project among cryptocurrency aficionados. Projects also earn publicity, new social media followers, and a potential user base in exchange for their assets.
On Thursday, the Ukrainian government announced an airdrop via a tweet. Thousands of people donated as a result of the tweet. However, Ukraine’s Vice Prime Minister Mykhailo Fedorov tweeted shortly after that the airdrop had been canceled and that the government would instead be releasing NFTs to bolster Ukrainian military forces against Russian invasion.
How Crypto Airdrops Work?
Cryptocurrency airdrops function similarly to the discount vouchers that you may usually see in your inbox from various e-commerce companies. The discount voucher’s intention is to persuade you to visit the platform’s online store. New blockchain startups take a similar tactic, attracting people to their network by offering free tokens.
What are the requirements to participate in Crypto Airdop?
While airdrops provide free crypto tokens, Here’s what you’ll require:
You should own a private digital wallet if you don’t want a third party to manage or handle your cryptocurrency. Because you don’t know the private key to your exchange wallet, it doesn’t count. The safest bet is to keep your wallet under your control.
Since the majority of new currencies are on Ethereum (ERC-20 specifications), a wallet that supports Ethereum would be perfect. MetaMask is also one of the better alternatives in this area.
You can also use a cold wallet (external drives), which is the safest way to store cryptocurrency because it is not in the network 24 hours a day, seven days a week. Trezor, Nano Ledger, and Keepkey are among the alternatives in this category.
E-mail Address and Social Media Accounts
To register an account with the network and apply for a whitelist, most airdrops require an e-mail address. To create an account with the exchange, you’ll also need an e-mail address. As a result, having a second e-mail address only for the purpose of applying for airdrops is a smart idea.
Participants must have legitimate handles on the most common platforms, such as Twitter, Instagram, and Facebook because many airdrops demand users to re-share project posts on their individual social media profiles.
Keep track of deadlines.
After you’ve checked the above two, go to the official blockchain website to learn more about the airdrop’s qualifying requirements. Depending on the developers’ goal, each airdrop has its own set of requirements. You must first go over the information before beginning to carry out the actions.
There is normally a deadline for registering for an airdrop’s whitelist. As a result, you must ensure that you complete the required duties and the application procedure in a timely manner.
Crypto Airdrops Types and Function
- Standard Airdrops: All you have to do to be eligible for these airdrops is sign up for the project’s newsletter with your name and e-mail address.
- Holder Airdrops: The way these airdrops work is a little different. You must also have a minimum amount of a specific cryptocurrency in your wallet, in addition to maybe signing up for the newsletter. Coins will be airdropped to you based on the quantity in your wallet and the creators’ chosen distribution ratio.
- Bounty Airdrops: You must execute certain social media acts, such as post sharing, tagging, referring, and so on, in order to qualify for these airdrops. Each completed activity will earn you a certain quantity of tokens.
- Exclusive Airdrops: These airdrops are having a significant by notable social media accounts or websites. You are eligible to participate in the airdrop if you are a site member or follower. Airdrop.io is one example of such a website.
What Should You Do With Coins That Have Been Airdropped?
You’re ecstatic because you got some free cryptocurrency. But what’s next? Are you already a millionaire? Not at all… And there’s not much to do after a coin airdrop. Because no one knows what the new crypto-currency is… It’s also not yet available on any exchange.
While you can trade currencies with other early adopters, your options are severely limited, particularly if the asset isn’t listed on any decentralized exchange (DEX). And, despite the project’s declared value, it’s actually worth next to nothing.
But don’t give up just yet. Because it’s exciting when a new cryptocurrency hits the exchanges. That’s when you’ll know the true cost of what you got. Most backers, on the other hand, prefer to sell their coins for fiat money (USD, EUR) or other cryptos (BTC, ETH). As a result, the price may not meet your expectations…
In any case, you don’t have to sell your free cryptocurrency; instead, you can keep it and hope that it appreciates over time.