What Do Airdrops Exactly Mean in the Crypto World?

What Do Airdrops Exactly Mean in the Crypto World?

In the world of cryptocurrencies, there are multiple ways of making money. But, not all are legitimate and secure ways. However, there is one bona fide way of earning through cryptocurrencies, which is known as airdrops.

If you are new to the crypto world, you might be wondering what airdropis. Well, it is nothing like what you are probably imagining after hearing the term of an airplane in the sky dropping coins. Read on to know what it means.

Definition of an Airdrop in Cryptocurrency

A cryptocurrency airdrop is a process of distributing new coins or tokens by awarding them in a particular proportion to users of a specific blockchain currency like, Ethereum or Bitcoin and so on. Crypto airdrops are generally executed by blockchain-based startups to bootstrap their crypto projects. Even established enterprises, such as wallet services and cryptocurrency exchange platforms can carry out airdrops. Generally, there are two types of crypto airdrops - ones that are announced beforehand and ones that come as a surprise.

What are the Reasons for an Airdrop?

The motivations for an airdrop are varied and it ranges from rewarding loyal customers to creating a buzz and hype around a new blockchain-based enterprise. Some of the popular reasons are explained below.

  • Rewarding loyal early investors: Blockchain-based services want to reward their subscribers and customers from time to time and they use airdrops to give them cryptocurrency tokens for free. This acts as an incentive, assuring continued patronage. It also mirrors the discount giveaways and vouchers of non-blockchain companies in the commercial world.
  • Creating awareness of a new cryptocurrency: Owing to the massive size of the market of the cryptocurrencies, it is possible for a new cryptocurrency to be completed overlooked. An airdrop is a wonderful way to get cryptocurrency enthusiasts interested in a new cryptocurrency.
  • Generating lead database: As you must be aware, marketing is almost entirely about leads. Enterprises pay a lot of emphasis in generating appropriate leads that will boost their marketing campaigns and enhance patronage. In the same way, crypto airdrops help blockchain-based organizations to generate lead databases of great value. Users are generally asked to submit online forms with their information in exchange for free tokens.
  • Distributing token supply evenly: A viable reasons for an airdrop it to distribute evenly the total supply of tokens or coins so that the possibility of centralization can be reduced.

How Can You Get Involved in Crypto Airdrops?

In order to get involved in crypto airdrops and receive free coins, you need access to information, as well as, the ownership of a crypto wallet. For this, you have to sign up for online services that offer timely information regarding airdrops, which includes Twitter accounts, websites, Telegram groups and also online cryptocurrency airdrop forums. CryptoAirdrops.io will keep you up to date on all current airdrops. We will also give you information regarding the qualifying criteria in order to participate in the crypto airdrops.

The popularity of cryptocurrencies has given rise to scams. Before entering the world of crypto, make sure that you do your thorough research and do not fall for fraudulent projects. Also, in the interest of your own safety, you must do the due diligence by examining airdrops. One way to know if you are being scammed is if any project with an airdrop plan requests you to enter your private key. Stay clear of such fraudulent attempts.

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