Crypto airdrops are a good way to test the waters and start with crypto. On the one hand, you don’t lose anything by participating in an airdrop, as you get tokens for free. On the other hand, a good crypto airdrop can help you earn money and sometimes even make you a fortune.
If you are looking for an easy way to multiply your airdrop efforts, you’re in the right place. Read on to learn how you can increase the chance of achieving success with crypto airdrops.
What Is Crypto Airdrop?
A crypto airdrop is a marketing strategy that involves sending free coins or tokens to users’ wallet addresses. Cryptocurrency projects use airdrops with the goal of raising awareness about their new currencies, promoting their adoption, and rewarding loyal customers.
The process of how crypto airdrops work varies depending on its type and the crypto project. In general, there are three steps:
- Announcement. Cryptocurrency projects typically announce upcoming airdrops on their social media or via email newsletters.
- User action. Some crypto projects distribute their tokens without requiring anything, while others want users to perform particular activities first. These activities may include following the company on social media, holding a minimum amount of digital assets in the wallet, or posting on your social media.
- Token distribution. The company creates a list of wallet addresses that have been qualified for the airdrop, and smart contracts automatically distribute tokens to the recipients.
What Types Of Crypto Airdrops Are There?
There are several types of crypto airdrops, each with a different purpose and unique characteristics.
1. Standard Airdrop
If you’re interested in receiving a standard airdrop, you just need to provide your wallet address to receive the tokens. Some crypto projects don’t require additional information from you.
In a standard airdrop, a crypto project typically distributes tokens with a limit on how many digital assets a user can receive. Some users can create multiple crypto wallets in order to quickly drain the airdrop amount, making these airdrops more difficult to receive.
2. Bounty Airdrop
To participate in a bounty airdrop, users need to perform certain tasks, such as promoting the crypto project on social media, inviting friends, writing reviews, and tagging the company.
There may also be bonuses for users who join the project’s Discord channel, subscribe to their newsletter, or help attract new participants.
Users typically receive points equal to the amount of tokens they earn for completing tasks. In addition, users may need to receive a certain amount of points to become eligible for the airdrop.
3. Holder Airdrop
As the name implies, holder airdrops reward long-term participants who hold a particular digital asset. In other words, users don’t have to perform additional actions to qualify for the airdrop.
Holder airdrops ensure that only the largest investors receive the benefit. Sometimes, such airdrops reward users who hold a certain amount of tokens. Otherwise, the company may divide the reward amount proportionally.
4. Exclusive Airdrop
An exclusive airdrop occurs when users are selected or invited by the project team or partners to receive the rewards.
They may be qualified for the airdrop for being early supporters of the crypto project or active community members, posting the most messages on social media, and spending the most money on non-token activities, among others.
In other words, exclusive airdrops may benefit wallets that don’t have any tokens.
5. Raffle Airdrop
Sometimes, different airdrops combine with a raffle airdrop. In such cases, a crypto project will state the number of rewards they will give out and motivate users to earn a raffle ticket. To receive these tickets, users can hold tokens, earn points, or just express their interest to receive raffle tickets.
As the name implies, the project then holds a lottery, randomly selecting wallet addresses from ticket holders to determine who will be receiving the tokens.
Where To Find Crypto Airdrops?
To stay updated about upcoming airdrops, follow cryptocurrency projects on social media, subscribe to their newsletters, and join their communities. Make sure you keep an eye on official resources to minimize the risk of getting scammed.
Another option, especially if you’re new to the industry, is to join reputable crypto platforms, such as CoinMarketCap, Airdrops.io, and Airdrop Alert. Many companies promote their crypto airdrops on these platforms, so it’s a good place to start.
Lastly, you can find subreddits and Telegram channels dedicated to following airdrop trends. However, these sources are often filled with scams, so you should double-check the information you get from there.
Crypto Airdrop Risks
Although crypto airdrops can be an excellent way to earn passive income, they come with risks and potential scams. This section will cover the most common risks associated with crypto airdrops and ways to avoid them.
Scams
Unfortunately, not all airdrops are genuine. Scammers create fake airdrop websites or social media accounts and ask users to pay cryptocurrency to get the airdropped tokens or participate in a crypto airdrop.
Once you send your money, scammers get away with the funds, and you never receive any tokens. Bad actors may also ask you to share your private keys to drain your wallet.
The only advice here is to never share your private keys with anyone and always do your due diligence.
Taxes
Crypto regulations vary from country to country, with some jurisdictions viewing airdrops as a financial instrument while others consider airdrops as a marketing strategy.
Thus, you should check if your jurisdiction requires you to declare crypto airdrops on your tax return to avoid long-term issues.
Restrictions
Make sure you understand the terms and conditions of the crypto airdrop before taking part in it. Otherwise, you risk not receiving the tokens and getting blocklisted.
For example, top crypto and blockchain based platforms don’t allow investors to create multiple accounts and use multiple wallets. Therefore, you can’t multiply your airdrop efforts and receive more tokens.
Crypto platforms typically have strict requirements for account authenticity and powerful fingerprint trackers, so VPNs or proxies will likely get you blocked. However, privacy browsers with antidetect features like GoLogin may help you overcome account restrictions.
Note: A digital fingerprint is your unique digital user ID. It contains information about your IP address, location, installed plugins, time zone, operating system, and many other parameters. In other words, websites can track your exact device and follow it around the internet, even in incognito mode.
How To Avoid Restrictions And Increase The Odds Of Succeeding With Airdrops
GoLogin allows you to create multiple browser profiles with unique digital fingerprints, making each profile look like a separate user. Thanks to this feature, you can participate in crypto airdrops with multiple accounts and wallets. GoLogin profiles avoid being banned even on the most advanced crypto platforms.
Another advantage is GoLogin’s stability. Users name this factor one of the main reasons for choosing this browser. After all, the app won’t crash during token sales and other heavy loads.
In addition, GoLogin has a user-friendly interface, making it a perfect solution for new and pro users. There is an Android app and a Web app with a Cloud profile launch, which means you can participate in crypto airdrops no matter your device.
Wrapping Up On What Is Crypto Airdrop
Crypto airdrops can be a lucrative opportunity for you to earn passively. However, you should be careful and double-check all the details to protect yourself from fraud. In addition, you have to follow the rules of the airdrop, which may be stringent sometimes. The good news is that now you have a tool for protecting your efforts and increasing your chances of earning passive income.
Frequently Asked Questions On What Is Crypto Airdrop
Here are answers to some of the most frequent questions about crypto airdrops.
Are Crypto Airdrops Profitable?
Yes, crypto airdrops can be extremely profitable. You get tokens for free and then can hold them, trade them, or sell them for a profit.
How Do I Access Crypto Airdrops?
To participate in a crypto airdrop, you must fulfill specific criteria:
- Set up a crypto wallet.
- Research the crypto project behind the airdrop and meet its requirements.
- Claim airdropped tokens according to the airdrop schedule.
- Make use of your tokens.
What Is Crypto Airdrop Best Withdrawal Method?
Once you have received your airdropped tokens, you need to find an exchange that supports the token type. For example, if you have an ERC-20 token, you can withdraw it from any Ethereum-based crypto exchange.
What Happens After A Crypto Airdrop?
After receiving the tokens, you should check the company’s requirements, as some of them may want you to hold the asset for a certain time. In general, you can keep the tokens and hope their value increases over time, sell them, or invest more in the token after conducting thorough research about it.
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