Understand Airdrops in just 3 minutes

In traditional marketing, it is common to get free samples when a new product is launched (perfume, creams, new sweets, etc.). In this case, it is cryptocurrency. The startup, development team or community behind the project will offer free cryptocurrency to some users.

What is tangible?

The term ‘Airdrop’ which means ‘drop’ in English refers to a promotional process. This is exemplified by the distribution of digital assets to investors. In most cases, simple holding of the altcoin or having an active wallet address on a particular blockchain is sufficient to take advantage of this offer.. It is also possible that this airdrop is done in exchange for a small favor (retweet a message sent by the issuing company, post a comment in a forum, etc.).

The best examples in this matter, Referral platforms such as Binance, Kraken or FTX reward their users from time to time for their loyalty and use of their services. So these exchanges regularly regulate cryptocurrency distributions.

How do you benefit from Airdrops?

Knowing how to find the right projects to qualify for is a time-consuming exercise, but some niche sites dedicated to crypto airdrops offer user alerts and referral services for start-ups and new projects.

  • Queen Market Cap Provides a list of current or upcoming airdrops.
  • On social media like Average (by searching in #testnet), in Twitter (By searching for #airdrop).
  • Referral sites like airdropAnd the airdropAnd the coinairdrops or air addict.

Airdrops.io homepage shown with various airdrops

What do you use?

These Cryptocurrency Promotions Provide liquidity for the project. This adds attractiveness to the protocol and initiates further development and results.

like that, It is an incentive to come and test a protocol on the blockchain in the testnet. That is, when it is still in the testing phase and is not available to the public. It is a way for developers to apply patches to the code so that it is fully functional when opened to the public (mainnet).

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Airdrop also finds its usefulness in anchoring NFT collection projects. In this case, the creators of these projects want their NFTs to continue in value over time, and they will offer the NFT holder to receive airdrops from other NFTs. Good way to increase community size and bring more value to the ecosystem.

What are the advantages and disadvantages of airdrops?

Airdrop is generally considered a “win/win” process for both investors and initiators of a crypto venture.

  • This is a good way to ensure the supply is well distributed And do not focus on the portfolios of developers and a few investors.
  • Unlike an ICO, It is the project team that maintains control of the decentralization by estimating the total number of eligible wallets and the flow of tokens to be distributed. On the contrary, during ICOs, large investors can concentrate a large number of cryptocurrencies, which poses governance issues.

Like any cryptocurrency mechanism, there are also risks

  • victims of their success, Airdrops can attract quite a few scams. Including pseudo projects In order to empty the investor’s portfolios.
  • It is generally necessary to pre-register to take advantage of airdrops. must therefore Be vigilant about what personal information is sent and what documents are signed.

Conclusion: Should we be tempted?

This is the An alternative to trading to grow your portfolio without spending a penny. But, besides the free accumulation of cryptocurrencies, airdrops have many advantages. who – which Above all, it allows you to discover new projects and protocols and learn how to use them.

However, as always in the crypto ecosystem, security is the key. Initial file analysis is mandatory. You should refer to specialized websites that list and identify projects with the airdrop.

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