As cryptocurrencies are becoming increasingly popular, there have been several people who are wondering what an airdrop is. Today, we will discover what are Airdrops - the CryptoCurrency Airdrop Meaning. In our guide, you can find detailed information about what are Airdrops. We will explain the benefits of participating in airdrops.
The CryptoCurrency Airdrop Meaning
The term Airdrop was used before cryptocurrencies. But in the cryptocurrency space, it means free money. There is an actual method of earning free money. And because there are too many airdrops, we should choose the right ones. How to choose the right airdrops is, of course, a different thing.
Airdrops are cryptocurrency companies' rewards for those who perform certain tasks. The rewards are given in companies' own cryptocurrencies. So you must have the necessary wallet before participating in airdrops. These events are usually carried out by ICO's or other blockchain based companies. The events are a typical win-win situation for all the parties involved.
For companies' perspective, this will give them a chance to boost their cryptocurrency or blockchain related projects. For users, it would mean that they can receive a free money by performing very simple tasks.
How Does Airdrops Works
We can divide companies that make airdrops into two. The first type would be established companies, who would like to give rewards to the community. We saw that happening with the likes of Blockchain.com. Their partnership with Stellar Lumens (XLM) resulted in a $25 airdrop for all the participants.
The second type would be the new cryptocurrency companies. They want to create a buzz around their new project and that is the reason why they are conducting airdrops. For these companies, carrying out an airdrop is a very important thing.
Because first, they have a chance to reward their loyal customers. By doing that, they will also be able to create the hype around their new cryptocurrency. Users can participate in those airdrops and earn free money. The other important factor for the new companies would be the database collection.
They can save the information provided by the customers who are attending the airdrop. After the airdrop, they can have lots of different information. Telegram accounts, social media profiles, and wallet addresses to name a few.
Wider distribution of the tokens is another important factor to consider for the companies. Per many figures in this industry, centralization is a huge problem. We do not want one or two accounts controlling the majority of the supply.
That might cause a significant price decline if one of the whales decides to dump the coin. If a company carries out an airdrop, that will give them a chance to more equal token distribution. Which will be good for the coin's future price.
How Can You Take Part in Airdrops?
There are a lot of airdrops happening in the cryptocurrency industry. Back in 2018, when ICO's were getting records of several investments, participating in airdrops would be a simple choice.
But now, given the current market situation, you have to choose wisely which airdrops you are going to participate in. Because nowadays, there are lots of 'scam' airdrops who just want to collect your personal data. You should not fall into that trap.
You have to make some research about the company that will distribute the tokens. One of the first things you should be looking for is the company profile.
In which country are they operating? Do they have the necessary legal allowances to run a company in this sector? Who are behind the project? Where they have worked before and what they are looking to bring to the table with the project?
These are the essential questions that you need to ask yourselves before making a decision. Of course, airdrops are simple tasks to receive money, but still, you have to act carefully to not to get exploited by the scam projects.
These are the things that you must consider in reading about the CryptoCurrency Airdrop. Meaning that not all airdrops can do you good.
With that, you choose the safest option. You can then start performing the tasks. In general, the tasks in airdrops are quite simple. But expect more rewards for the more complicated tasks. So if you have enough time, you can also do this to get more money.
Generally, you need to register to participate in the airdrop. For the most part, you can only have four or five very simple tasks. These tasks may include e-mail address, Telegram account, and Twitter account.
You need to give the company your email address, you have to join their Telegram group and you have to follow them on Twitter. These are the most frequent tasks for an airdrop hunter. And you can do these very easily.
Getting Paid-Receiving Your Earnings
After the tasks are completed, now it is time for you to receive your earnings. To do that, you need to have a valid Ethereum address. Some projects are launching on other platforms such as TRON and EOS. But generally, Ethereum is the go-to platform for many airdrops.
If you do not have an ETH address, please sign up for a reliable exchange and get the wallet address for Ethereum. Your address should be starting with 0x, so be careful about that.
Finding your next airdrop to participate could be a very hard task to follow. Luckily, some platforms are created for this. Back in the time, people need to go through the forums like BitcoinTalk to find a good airdrop. But now, things have changed. There are many platforms you can track the airdrops.
In addition to that, you can find dedicated accounts on Twitter to follow the latest developments. But we would like to recommend you that you should keep an eye on MyCoinTainer.
On our website, we can give you the best airdrops to participate week in week out. But keep in mind that you need to make your research before participating in airdrops.
After you got your money from the airdrop, you can choose to hold or sell it. Many projects would like their customers to keep their crypto but it is not possible all the time. So, the final decision is all yours.
If you think the projects are trustworthy and have potential you can decide to keep it. But if you do not think like that, you can immediately turn your crypto into cash.
Thanks for reading our article about What are Airdrops - The CryptoCurrency Airdrop Meaning. We hope that you will find 'gem' airdrops in this emerging space. We wish you all the best luck in your future adventures!