AirDrop: what's the reason and how to make money on it?
Description
Earning in cryptocurrency is available in many ways: spot trading, future, and margin trading, Yield farming, liquidity supply, participating as an Influencer, NFT, and many, many other ways. But the truth is, making money without an initial deposit is not easy. And one of the most popular is AirDrop. What is it, and how do you make money from it?
AirDrop definition
AirDrop is a free distribution of tokens from a crypto project. The user performs some actions that do not require a lot of time and investment, and for this, directly into the wallet are accrued tokens in a predetermined amount of conditions.
Why do AirDrop?
Most often, the distribution of free tokens is carried out in the first stages of the project. But there are cases when an already well-known brand prepares to please its users. Let's look at the different reasons for AirDrop.
- The marketing strategy stage.
As we wrote above, airdrop is often resorted to at the first stages of the project. In this case, this is one of the stages of a marketing strategy, a comprehensive brand promotion. In this case, AirDrop aims to expand the audience, increase the project's recognition, and get the loyal community.
- Increase of decentralization.
Decentralized DAO projects sometimes use AirDrops to expand the interested community. The owners of tokens have the right to vote on the key issues of the project management. This can be a proposal to distribute profits to participants, raise or lowering interest rates on deposits and loans, make changes to the protocol, and so on. The owners of tokens have the right to vote on the key issues of the project management.
- AirDrop as a logical stage of project growth.
AirDrop is used not only by newcomers to the market. Some already quite well-known crypto projects decide to release their token, and free distribution to active users is a mandatory step to stimulate demand. This can be compared to a classic company entering the stock market and offering shares to investors.
Perhaps the most famous example of such a drop in recent years is MetaMask. It is one of the largest wallets in the world, with several tens of millions of users. The developer company decided to take this difficult step and create its token. In part, wallet users will be rewarded with MetaMask tokens and receive an AirDrop automatically.
- AirDrop for token holders.
Another type of AirDrop is an additional incentive for token holders. To illustrate, let's offer an example of one major free giveaway promotion. So, all Ripple (XRP) token holders on December 12, 2020, automatically received a Flare (FLR) token at a ratio of 1.0073 FLR per XRP. A total of 4.279 billion Flare tokens (FLR) were distributed in the first distribution round.
- Tokens for participation in Testnet.
Even before the crypto startup premieres, users can participate in testing the product and finding bugs. Such initial activist users are rewarded for active participation. And very often quite generously. Projects send AirDrop tokens as a thank-you for their contribution to development.
How do I get free tokens?
What do I need to do to get an AirDrop? Most often, free distribution is awarded to active product users. That is, you will need to perform several not difficult technical tasks. For example, to deposit and withdraw your balance, to make a deposit, to make a transaction, and so on. As a rule, these actions do not oblige investors to anything and do not incur any costs financially.
Drops can also be given for support on social networks, subscribing, or sending information about the project.
Sometimes AirDrop is also given for nothing just because you are there and have some project token in your wallet at a moment's notice. Similar to the FLR and XRP schemes. Or during a blockchain fork, for example. Then, the holders of the primary cryptocurrency at the time of the fork get the tokens of the branching network as well. Such examples are Bitcoin and Bitcoin Cash, Ethereum, and Ethereum Classic.
There are a huge number of ways to get AirDrop. In any case, it depends on the companies doing the token distribution. And on the goals that this developer company has in mind.
Where to look for actual AirDrop cryptocurrencies?
Free tokens attract many cryptocurrency investors. It's a good chance to make a profit without investing. Moreover, very often, AirDrop tokens show just a phenomenal growth of value after the project's launch. It can be x10 and even x100 growth. Such tokens are a winning crypto investor's ticket and have largely made the reputation of the whole free incentive process.
But how do you find information about such token giveaways?
Many investors are interested in this question, and major crypto market information providers have already made numerous AirDrop Calendar rankings.
For example, dappradar.com and coinmarketcap.com have such calendars.
It's also helpful to stay up-to-date on the latest market events. All the media will write about major promotions, and there will be a big wave of pre-publicity promotion, so stay tuned to the news.
One of the sources of information will also be social networks. Crypto projects planning to make a giveaway will be sure to tell about it on their personal pages. If you are a really active user, then this information will be available to you.
AirDrop and security in India
Cryptocurrency attracts a large number of fraudsters from Delhi, Mumbai, Hyderabad, Calcutta, and other Indian states. After all, it is easy to get lost and believe the fraudster in this huge variety of projects, ideas, and developments. AirDrop actions are also often used by unscrupulous users. First, community members can receive a phishing email imitating an official notification. You may be prompted to drop a small amount of funds or provide "additional" confidential data. Always check the mailing sources and pay close attention to all conditions. AirDrop rules for Indian residents will definitely be published in the official social networks, and there will be no other additions.
Conclusion
AirDrop is a great way to make money without investing. Great, if you know how to use it, don't miss those chances. But AirDrop is also a mechanism for popularizing cryptocurrencies. The more people use digital assets, the more they believe in the prospects of the market, and the better for everyone. Be careful with free giveaways, and everything will work out!