What are airdrops?

What Are Airdrops?

What Are Airdrops?

While going through various cryptocurrency forums or groups, you have probably come across the term cryptocurrency airdrops. So, what is an airdrop and why is there so much buzz around them? A simplified answer to what an airdrop is would be: airdrop coins are free coins. Yes, coins and tokens for your wallet free of any charge. Airdrop coins are released to users’ wallets so that they can then continue to investigate the market and invest. Sounds interesting, right? Stay tuned to learn more details.

Aidrops – a new marketing strategy

Free airdrop coins are not sent to a wallet for no reason. In most cases, coins and tokens are delivered to users who are willing to learn, promote and be a part of a project. A company may also want to reward customers for their loyalty and continuous use of the service they provide, or simply show appreciation to people who are interested in a certain project. In November 2017, for example, Binance made a popular move when it decided to give away 500 TRX to users with a minimum of 0.003BTC in their wallet and some activity in the account. This marketing decision secured Binance a strong public approval worldwide.

There is no better way to catch users’ and potential customers’ attention than giving out freebies. In this case, coins and tokens. Airdrop marketing strategy is very handy at a time when companies such as Facebook have a decision in place not to promote financial products and services such as ICOs, airdrops or cryptocurrency in general. Airdrop marketing strategy is trying to get people to talk about a specific token, coin or a startup, or about a company in general. This way, the company is not only getting people’s attention in the form of click-through conversions or follows, but it also gets active users. People who sign up for an airdrop will most likely continue to follow the project, write some content on a topic related to that and share posts about it on forums and social media and eventually invest.

How airdrops work?

Cryptocurrency airdrop is a process that happens when crypto companies decide to give away certain amount of their coins or tokens. Companies conducting an airdrop can be already established cryptocurrency companies, startups or those getting ready for an ICO and looking to popularize a new or an existing project. For example, some companies that have already established themselves on the market can announce airdrop coins with the goal to increase their sales. There are cases when a company airdrops an equal amount of coins to people who are already doing business with them and have an active wallet. Holders of the coins will then invest more or might buy more before the airdrop to secure a double amount.

Airdrop events come in two main forms: surprise airdrops and announced airdrops. Surprise airdrop is, as its name says, a surprise. In other words, a company will not advertise or promote the event. Coins or tokens are simply released to random wallet addresses. It is essential that your wallet is active, i.e. that you have done some transactions or checked the balance. The sole purpose of this is to send coins to active users who will follow the company with interest or share the news about a surprise airdrop. Again, the company creates a positive reaction among users. Announced airdrops will have an exact date. The event will be published on social media, forums and official website.

Both methods have a set of rules if you want to participate. You will be asked to follow the company on social media or to register your email and sign up. It is essential to remember that coins will not be visible immediately in your wallet. The number of distributed coins is limited, and usually goes by first come first serve basis until all available coins have been handed out. Also, it might take up to 2 months after airdrop is finished for the coins to become visible in your wallet. This brings us to the topic of receiving airdrops. Keep reading and see how that works.

How can you receive airdrops?

The very first step before signing up for an airdrop is to create a wallet. It is highly recommended to create a multi-currency ERC20 wallet and an Ethereum wallet. The next step is to create a Telegram account if you don’t have one, as well as a Twitter account. Some cryptocurrency airdrop events will ask you to join bitcointalk.org. In general, most of the news and questions related to airdrop crypto will be published on some of the aforementioned sites.

Bitcointalk Home Page

Bitcointalk Home Page

It is also recommended to create an email address just for this kind of promotions, as you will get newsletters there and it will therefore much be easier to keep track of everything that way. Once you find an active airdrop, check out all the details, make sure it is not scam (research the company or community pages) and register for an airdrop. You will be asked to do some of the actions such as joining the company’s Telegram group, follow them on Twitter, download their app, enter your wallet address etc. After you finish the required steps, a confirmation email will be sent to you, and the coins or tokens will come in a month or two.

Upcoming airdrops

Just like for ICOs, there are public lists for upcoming airdrops, too. There are also multiple ways to stay on top of the news and learn about these events. The best way is to subscribe and follow some of the websites special dedicated to this particular subject or to follow telegram group Airdropalerts and join forums. When it comes to upcoming airdrops, it is crucial to always keep your safety in mind and to investigate whether the airdrop is a scam or not. If you ever come across airdrops where you’re asked to reveal your sensitive data or make any transfer, most likely you’re dealing with a scam. It is essential not to interact with that kind of site and to protect yourself by omitting your contact details, keys and by not making any transactions with those accounts.

Upcoming Airdrops

Upcoming Airdrops

Conclusion

Cryptocurrency airdrops are a great way to enter the cryptocurrency world, and for those who are already part of it they are a business opportunity to receive new and exciting coins or tokens. Airdrops are free coins for the public, but what is more important, they are a great marketing strategy. An airdrop event is beneficial both for users, as they will be rewarded for showing interest and engaging with the coin or tokens, and the company because they are creating new clients and making a buzz this way. To be in the loop about airdrop crypto, follow Twitter, Telegram or Reddit groups, read Medium posts or simply sing up for a newsletter. Companies like to airdrop coins to active users, so Twitter activity and an active wallet are good signs the targeted user is a real person, not a bot. But this is just a small fraction of what the cryptocurrency world has to offer. Read our other articles to discover other fascinating features.

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Author: Ben Prescott
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