Airdrops - what is airdrop and how it works?

2 min reading

In theory, airdrops are free cryptocurrencies from projects that want to promote themselves to the crypo community. But nowadays, can you really get some digital coins completely free?

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Free cryptocurrencies? Do we really get them for free?

The answer is yes, although we will probably spend a lot of time finding such projects. In the early days of the crypto industry, a popular procedure was to send small amounts of crypto/tokens to the wallets created on the chain of this digital coin. Portfolio owners who support the ERC20 token format may occasionally see small amounts of different digital coins appear on their wallets.

This process has changed, however marketers have noticed that many people are ready to perform simple tasks in exchange for "free cryptocurrencies". So we can safely say that current airdrops (sometimes called smartdrops) are a form of exchanging digital assets for time and effort devoted to performing simple tasks such as sharing, liking or commenting on social media. An additional advantage is that airdrops do not require us to invest digital assets or fiat currencies - the only risk we take when doing airdrops is our own time, which has a chance to pay us back.

Read also: Bitcoin whales - who are they and how can they manipulate BTC price?

How to collect airdrops safely?

First of all, you should remember the basic safety rules when hunting for free cryptocurrencies. It's not worth to bet that the digital coins we collect immediately will be worth a fortune. If, while making airdrops, at some point we come across a message that the project for some reason needs our private key or other sensitive data to verify, we can be 100% sure that it is scam.

The same goes for projects that want us to send them some amount of BTC/ETH - after all, we're the ones doing the tasks for them, for which we're supposed to get free cryptos, aren't we? It is also worth remembering not to mention the stock exchange address as the portfolio address for which we want to receive digital assets - then our digital coins will be taken over by the stock exchange. You should give the address to which you have a private key. For example, if the project is based on ETH, a good and simple solution will be the myEtherWallet wallet

Is it worth collecting airdrops?

So, is it worth taking your time to do things that will only bring us the expected results? If we are just beginning our adventure with cryptocurrencies, it may be an interesting alternative instead of investing our own capital. It may also be an interesting diversification, especially during the bear market. Don't get excited that we will make a fortune this way - probably most of the projects organizing airdrops will turn out to be unfair and we will never see our digital coins. However, there is also a possibility that digital assets obtained from airdrops will be worth something in some time.

Read also: How to recognize shitcoin?

airdrop fintech

Alternatives to airdrops

Another way to make money by investing your time is to participate in affiliate programs. Crypto exchanges such as BitBay, Binance and BitMEX offer their users permanent affiliate programs, where we can earn part of the commissions from referrals.

Many fintech companies will pay us for the registration and verification on their platform. The ideal example is Monese, a new payment card provider which will pay us around 14 EUR for registration and account verification. Another example is the Bitwala project, which pays us a bonus of EUR 30 for going through a similar process.