Have you ever heard of this concept cryptocurrency airdrop and thought what it meant? Well, it is nothing like what you probably have in your mind of an airplane dropping coins from the sky.
In the cryptocurrencies arena, airdrops have a different meaning. The crypto world has its unique vocabulary which expands as the market progresses.
Some of you reading this concept for the first time might ask what it is?
Well, airdrops refer to a process whereby cryptocurrency enterprises allocate free cryptocurrency tokens to the wallets of some users. In other words, airdrops are mainly done by blockchain-based startups to bootstrap their cryptocurrency projects.
Also, established blockchain-based enterprises like cryptocurrency wallet services and exchange platforms can also carry out airdrops as well.
How to Get Involved?
Getting involved in airdrops needs access to information and ownership of a cryptocurrency wallet to obtain the free coins.
Firstly you need to sign up for online services that offer timely information about crypto airdrops. To qualify for the tokens, you may need to hold a minimum quantity of the crypto coins in your wallet, or you may need to perform specific tasks that include connecting with a member of the blockchain project, posting on social media forums or writing a blog post.
These include Twitter accounts, Telegram groups, websites as well as online cryptocurrency airdrop forums. For instance, such online services include Airdropaddict and icodrops. Therefore, these services provide essential information on the qualifying criteria for participating in the airdrops.
They also provide information that will help users stay informed about upcoming cryptocurrency airdrops.
NB When participating in airdrops, it is important to keep safe and not fall a victim of fraudulent campaigns. Why?
Some create them to hack wallets and steal private keys. Therefore, always confirm the authenticity of a crypto airdrop campaign before partaking in it.
Why Carrying Out an Airdrop?
You probably think it is crazy for development teams to allocate up to 95% of the equity in their projects for free. However, it actually makes perfect sense. From creating a new blockchain-based plan of rewarding loyal customers, there are many reasons why a crypto airdrop is carried out.
Below are some of the reasons why new blockchain based enterprises carry out this cryptocurrency technique.
Raising Awareness About a New Cryptocurrency
Just like any other feature of the digital world, hype and buzz play a crucial role in the cryptocurrency world. With the increase in the size of the cryptocurrency market, a newbie cryptocurrency can go unnoticed if it does not get an adequate boost concerning solid marketing campaigns. With many crypto enthusiasts looking for new cryptocurrency options, using an airdrop is a great way to lure people in a cryptocurrency.
Therefore, the marketing campaigns on social media can raise popularity to a newbie cryptocurrency. Also, word of mouth advertising and other forms of organic engagements brought about by an impending cryptocurrency airdrop can promote user participation in the cryptocurrency.
A Reward for its Loyal Customers.
Airdrops can work as a means of rewarding loyal customers with free cryptocurrency tokens. From time to time, blockchain-based enterprises like cryptocurrency trading and exchange platforms, wallet service providers wish to give back to their subscribers and customers. Giving back to customers serves as an incentive that can assure continued support on such platforms.
Therefore, this type of airdrop mirrors the discount and voucher giveaways of non-blockchain companies in the mainstream commercial arena.
To Create Lead Database.
Marketing is all about creating new leads from subscriber and customers. Organizations tend to pay attention to generate appropriate leads that will increase patronage and drive their marketing campaigns. In other words, blockchain based enterprises can use airdrops to create a valuable lead database for their organizations.
Therefore, in exchange for free cryptocurrency coins, users will need to complete online forms that contain valuable user information which will contribute to developing targeted marketing strategies.
Where can you find information about new airdrops?
In the crypto arena, many twitters and websites post about new crypto airdrops. But most of them mainly post referral links from which they get paid if you join. However, you need to be careful when clicking on random links that require access to your wallet details.
How to keep your new crypto coins safe?
Firstly, you need a cryptocurrency wallet, to be able to hold, receive and send the new cryptocurrency. Secondly, you have to own the private keys to your tokens and coins.
You can also share your cryptocurrency address, to receive your crypto airdrop.
However, Keep Yourself Safe!
• You should never send or share your private keys to anyone for any reason. This precaution does not apply to airdrops only. It is also applicable to anything else related to crypto.
• Never send any cryptocurrency or money to an address to take part in an airdrop. Remember, airdrops are free coins. Therefore, there is no reason or need to send anyone cryptocurrency or cash to participate in these free coins.
Conclusively, stay safe and updated all the time. As the popularity index of cryptocurrencies increases every day, so does the scammers surrounding it. In other words, if you find scammers around cryptocurrency airdrops, don’t get surprised.
Therefore, the only workaround to avoid these scams is to educate yourself on the subject of them or the matters of cryptocurrencies.