Everybody loves to get extra for nothing. This is the reason free digital currency giveaways or simply crypto airdrop are among the most common targets for the digital currency enthusiasts. This is a very interesting concept in the digital currency space. So let us understand more about these cryptocurrency airdrops.
What Is A Cryptocurrency Airdrop?
An airdrop in the digital currency business is a marketing strategy that revolves around sending tokens or coins to various wallet addresses for promoting awareness of the latest digital currency. Small portions of the new crypto are sent to the active member’s wallets of the blockchain community for completely free or for the return of some small services like retweeting a post or sharing any particular post.
This is mainly a promotional activity that is performed mainly by the startups that are based on blockchains to help in boosting a new crypto project. The aim of these initiatives is to promote awareness about the digital currency project and to involve more users trading in it when it gets listed on any exchange as an ICO (Initial Coin Offering).
These airdrops are mainly promoted on the website of the company along with various digital currency forums and the tokens or the coins are sent only to the present holders of crypto wallets, mainly those of Ethereum or Bitcoin. There you will find many upcoming airdrops.
To qualify for receiving the free gift, a recipient may be required to hold a minimum portion of the crypto coins in their digital wallet. Simultaneously, they may be required to perform some task, like posting about the crypto or retweeting any tweet made by the creators.
An authentic crypto airdrop 2021 will never ask for any type of capital investment in the crypto. Its focus is completely promotional. Alongside there are some of the crypto scams that revolve around sending micro portions of BTC or other digital currencies to unsuspecting users in what is called dusting scams. The users should always be watchful about unexpected deposits that are coming into their digital wallets.
Crypto Airdrops: Advantages And Disadvantages
Provided extreme competition among the various digital currency startups, an airdrop is considered as a try to stand out from the crowd. Some businesses that are completely devoted to crypto airdrops offer alerts to the customers and listing services for startups along with a range of the marketing services to fine tune their cryptocurrency airdrops. As always, there are both bad and good businesses in this industry.
However, there are enough warnings issued against crypto airdrops from experts in space. For instance, Pierre Rochard, who is the founder of Bitcoin Advisory, tweeted a cautious note that digital currency airdrops can also be a pump-and-dump scheme. That is, creators of the digital currency could be inflating their value artificially for making a quick profit. He tweeted,
“Watch out for give away scams like this: 1. Instantly pre-mine tokens for yourself and your friends 2. Trade the pre-mined tokens with each other to pump price 3. Bait retail investors with a ‘giveaway’ of the tokens 4. Retail evangelizes the token for you, dump.”
How To Claim A Crypto Airdrop?
Here are some steps that will help you to claim the best airdrops 2021.
- First, you will have to sign up for airdrops. For that, you will require to create an account or fill in a special form on the page of the project. Usually, during the registration, you are required to provide your social account or name, crypto wallet address, and email.
- Follow the mentioned steps to claim free crypto airdrops. The issuers of Airdrops always offer a list of the activities you have to fulfill. Mainly these are requests to follow their social media handles and share or retweet their posts.
- Then link your crypto wallet address of yours. This is important as it is the only way to receive coins if you earn them. Always keep in mind that the giveaway cryptos are created on varied blockchains. So it is important for your wallet to support a similar coin standard.
- After you are done with these steps, just wait. Do not forget that crypto airdrops are similar to a lottery. They are divided randomly, and fulfilling the tasks does not assure that your wallet will be successfully credited.
Dangers Associated With Crypto Airdrop
Digital currency airdrops are legit implies to raise awareness of a specific project. But as an effective and legit tool, it is also highly exploited by scammers. It is no secret that there are some airdrops that are simply a scam, designed to steal your private information or crypto. You should always stay cautious and consider every crypto airdrop with a grain of salt.
As scammers have varied aims, fake crypto airdrops can be ranked as per these goals. Here are the most common categories of crypto airdrop scams:
- Data gathering: Fake digital currency airdrops mimic authentic projects to attract users to their scam websites. They assemble your personal data here, like email, passwords, name, or wallet addresses. Later these scammers sell your data or use it for social engineering attacks.
- Private key gathering: This is a less ordinary, but no less hazardous type of airdrop scam. In this type of scam, the malicious attackers ask you to download their application to register for the cryptocurrency airdrop and then to import all your private keys. Even though they assert that private keys are not stored on their applications, even the concept of asking for a private key should raise a doubt. Private keys are alleged to be private, and no user should never ever disclose them to others.
- Pump and dump purposes: Another common form of scam dumps, and pump form hype around several coins before they come to the crypto exchanges. As soon as coins get listed on the crypto exchanges and the price increases, the issuers of the token sell their assets with no intention to generate the project further.
The Bottom Line
Despite the scams that we have stated above, crypto airdrops are not losing any popularity. It is still an authentic marketing tool and a route for young crypto startups to raise awareness and create a base of followers. But as airdrops are hugely abused by scammers, it is equally crucial to understand how to identify airdrop scams and how to keep all your funds safe. There are many best crypto airdrops that you can consider.
Frequently Asked Questions On Crypto Airdrops
1. Where do I find crypto airdrops?
Airdrops are mainly promoted on the website of the company along with various digital currency forums and the tokens or the coins are sent only to the present holders of crypto wallets, mainly those of Ethereum or Bitcoin.
2. Are crypto airdrops safe?
Despite the scams that we have stated above, crypto airdrops are not losing any popularity. It is still an authentic marketing tool and a route for young crypto startups to raise awareness and create a base of followers.
3. How do airdrops work crypto?
Airdrops are mainly promoted on the website of the company along with various digital currency forums and the tokens or the coins are sent only to the present holders of crypto wallets, mainly those of Ethereum or Bitcoin. To qualify for receiving the free gift, a recipient may be required to hold a minimum portion of the crypto coins in their digital wallet. Simultaneously, they may be required to perform some task, like posting about the crypto or retweeting any tweet made by the creators.