What Is a Cryptocurrency Airdrop?

What is an airdrop?

Airdrops, in the crypto context, are used to distribute crypto assets such as coins and tokens to people as widely as possible to encourage them to start using them. These assets can become valuable and therefore, many people are getting interested in receiving these airdrops and trading them. This may sound like people are getting free valuable coins but all of them are valuable. You may think that the easiest thing to do therefore is to get all of the airdrops and hope that some of them become valuable. If this thought comes to mind then you may wish to consider an old marketing proverb. If you are not paying for a product then you are the product. This means that you end up giving your contact details to people giving airdrops. That may be something you are happy with; however, not all projects are legitimate. You will not have to search widely to hear of examples of people who have been hacked and had their crypto assets stolen. This means that you should protect yourself.

Who can take part in an airdrop?

Whoever distributes an airdrop gets to decide who can take part in the airdrop. Earlier approaches were based on who already had some crypto assets such as bitcoin, ethereum, and so on. As these assets have become more expensive and interest in crypto assets has increased, people have been using a number of alternative methods. One method is where contact details are requested such as email addresses. Another method is to require the participants join a social media channel, typically telegram, of the distributor. The most common method now is to reward airdrop applicants for posting about the distributor on a social media platform. The fourth method that people use for airdrops is that they request those that want the airdrop to download a machine wallet. This method is often used by proof of stake coins to build stronger networks.

How does an airdrop reach me?

An airdrop reaches an individual applying for the airdrop when it is sent to the individual’s address. It is possible for an individual to have many addresses. If you’ve downloaded a machine wallet then the airdrop can be sent there. Alternatively, the coins can be sent to a cryptocurrency exchange.