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What is Cryptocurrency Airdrop and Is it Possible to Collect Coins For Free?

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In the cryptocurrency world, an airdrop is likely when a company or project distributes free coins or tokens to the wallets of its holders. The main purpose of airdropping is to promote a new coin or token, and they are also commonly used as a marketing tool to generate publicity and interest around a project. While some airdrops are organized through private sales or direct purchases, many are freely given to people who already own another crypto. For example, if you have BTC, you may also be eligible to receive your free altcoins during the airdrop by holding your BTC in a certain wallet. If you are looking for a hassle free trading platform, you can visit the official platform of the most recommended online. 

In this blog, we’ll discuss cryptocurrency airdrops: what they are, how they work, and what you should know before you participate in one.

What is airdrop cryptocurrency?

Talking cryptocurrency airdrop is when a crypto venture distributes its tokens straight to the wallets of a group of users. Its main objective is to leverage the existing crypto community to raise awareness and reward those who are new to it.

Here we are going to list the benefits that start-ups that distribute free coins by airdrop include:

  • Occasionally, airdrops are also rewarded to early users of the platform/crypto.
  • The network effect starts with the excited users telling all their relatives and friends about the free tokens they have received in their wallets, attracting many more.
  • Many AirDrops are designed in a completely different way, such that if you have more tokens, the more tokens you will receive in AirDrops continuously. As a result, the firm may reward you with additional tokens for your loyalty.

Furthermore, adoption numbers and initial hype may appear to be temporary. However, crypto startups are banking on users who have been consistently using their tokens to play a significant role in increasing the trading volume of their new coin once it is listed on an exchange.

How are cryptocurrency airdrops able to work?

Now that you’ve learned about cryptocurrency airdrops, let’s take a look at what your typical crypto airdrop looks like:

  • A date will be set for an airdrop via a new blockchain project that will help raise awareness for a new coin.
  • And on a pre-announced airdrop date by the project, a “snapshot” of the same blockchain will be taken which is based entirely on the new coin. Also, users who sign up on the airdrop list only meeting the minimum requirements will get the opportunity of free tokens.

However, depending on the exact status of the blockchain projects hosting the new airdrops, there are some caveats involved. Sometimes it happens that you do not have to wait for your new coin, and sometimes it also happens that you may have to wait for months. Other times no press exists, and the project may randomly distribute the coins to some users on the relevant blockchain.

Benefits of participating in the airdrop

Speaking and participating in an airdrop, can be a great way to build relationships and increase exposure. If you participate, you get to complete simple tasks like liking, following, or sharing posts on social media in exchange for rewards in tokens and cryptocurrencies. Doing so can help increase awareness among users and build communities around the offering. Beginners may be able to gain access to further resources and exclusive deals, by participating in an airdrop. Airdrop participants can get early access to innovative projects, and potentially help them earn some extra cash as well.