Learn How Do Cryptocurrency Airdrops Work?

In this post, we're going to focus on explaining the cryptocurrency airdrops that can help a newbie begin to understand how it works. This could provide more detail on the principle that lets the new cryptocurrency distribute free coin airdrop to its participants.

What's a cryptocurrency airdrop?

A cryptocurrency airdrop, crypto airdrops, or coin airdrops is a transfer of a token or coin, usually free of charge, to multiple wallet addresses. Airdrops are largely introduced as a means of attracting interest and potential fans, resulting in a broader user base and a wider distribution of coins. 

You may earn free cryptocurrency by supporting projects that unlock coins via Airdrop. Airdrops would also have requirements such as joining a Telegram channel, retweeting a tweet, liking a Facebook page, or inviting new users to the project. 

Ethereum airdrop was the most widely recognized as creating new tokens connected to the Ethereum blockchain and giving away some free tokens to encourage participants to join the project at the outset.

But the question that gives you in mind is what the intention of these cryptocurrencies to offer free tokens.

Why is cryptocurrency providing free coins?

Some would ask themselves why this new cryptocurrency or token is giving away free airdrop. There are a lot of different explanations behind this. We're going to describe five reasons why these cryptocurrencies give free coins. You will find several other advantages, but we're trying to concentrate on this one that we've checked out for a lot of new projects that launched their own cryptocurrency.

1-Expanding Community

Giving a free gift is one of the best strategies that marketers are making to attract visitors by sending details, such as name, email, phone number … on the landing page. 

So gathering leads is expected to help expand the business opportunity by enlarging the audience that will follow this cryptocurrency.

Expanding Community

2-Spreading Awareness

Members that enter the airdrops will keep following the project of this token. So this should help the new cryptocurrency to spread awareness.

Spreading Awareness

3- Early Reward

Rewarding the community early before even this cryptocurrency will be listed in any exchange can help to attract many investors that will look to get more numbers of this token. Some coins can offer loyalty rewards to their best investors and they can receive more amounts of tokens.

Early Reward

4-Collecting Funds

As the project with the community grow, it should help the crypto to get more investors

So it will help to collect more funds to the project even the value if the token can grow up fast

And it will be listed soon as it reaches the max amount fixed by the owner and starts trading on any cryptocurrency exchange.

Collecting funds

5-Large Distribution

The distribution of tokens does not only help to hold tokens for individuals. It will be distributed to a variety of members who may expand the group and limit ownership. Don't forget that the key aim of cryptocurrency development was decentralized.

Large Distribution

What types of airdrops?

In this paragraph, we shall describe the five most current types of airdrops :

1- Standard Airdrop

The Standard airdrop needs to submit details such as email and name to subscribe to a newsletter. You will be able to get an update on the progress of the project linked to this token.

Standard Airdrop

2- Bounty Airdrop

The bounty airdrop requires a particular task to receive free tokens such as following, liking, commenting, subscribing on social media like Facebook, Youtube, Twitter... You're going to get rewarded with every mission you've done. You can also get more extra coins if you invite more participants to join the airdrop using your unique affiliate link.

Bounty Airdrop

3- Hard Fork Airdrop

You may learn about the bitcoin fork where the new crypto was developed, such as bitcoin gold, bitcoin cash ... In general, a fork would be developed from the parent coin in order to update the blockchain technology. Two types of updates may be used: Hard (hardware) Fork or Soft (software) Fork.

For eg, on October 24, 2017: Bitcoin Gold was a hard fork that modified the Proof of the Work algorithm using the Equihash algorithm created by the coin named Zcash, so miners need to use new hardware to validate the transaction using this new algorithm, which is why we named Hard Fork.

When the Hard Fork takes place, you'll get an equal free amount of the parent coin to the current hard fork coin.

For eg, let's use the Bitcoin Gold Hard Fork, if you have 1BTC in your wallet on October 24, 2017, then you'll get 1BTG (Bitcoin Gold) in your wallet.

Hard Fork Airdrop

4- Holder Airdrop

Some cryptocurrencies will give you free tokens to keep a certain amount of coin on your wallet. Holder airdrop is a popular way to encourage members to purchase more tokens in order to give away free coins.

Holder Airdrop

5- Exclusive Airdrop

Exclusive Airdrop is distributed to the best investors that purchase the most tokens. The cryptocurrency can reward these VIP members with more coins and gifts.

Exclusive Airdrop

Conclusion and tips

In this article, we concentrated on the concept of cryptocurrency airdrops and identified the five most reasons that encourage mainly new cryptocurrency to offer Free Airdrops also we have listed five types of airdrops.

You have to keep in mind that some cryptocurrencies can be a scam so if you want to invest in any new one, you have to be careful and make some research, but you can still just go only to claim free coin and don’t take any risk to invest.

You may see some cryptocurrencies asking for a private key to collect your information, so we strictly suggest that you stay away from these scam coins, which are trying to access your wallet and steal your money, and do not share any private key to anyone, and keep it secure.

You can follow our website and social media as we provide some airdrops list. We're also reviewing the upcoming airdrops.

Thank you for reading this article. We hope this gives you an idea of cryptocurrency airdrops. We appreciate it if you leave your feedback on our website and share it on social media.


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