The Idea Behind Cryptocurrency Airdrops
Every type of business applies certain kinds of promotional advertisements to get noticed in the market. The cryptocurrency industry also employs marketing tactics, and one of them is the airdrop. An airdrop is a process of sending of free tokens or coins to different wallet addresses of active members of the blockchain community to make it known that there is a new digital currency being introduced in the market. Small amounts of the new cryptocurrency are freely received by the wallets and sometimes small promotional acts are asked from wallet owners such as simply retweeting the posts sent by the issuing company. The free tokens are worth a bitcoin percentage. Legit crypto airdrop only seeks to promote the new cryptocurrency and never opts to hunt for venture capital.
Qualifying for an Airdrop
Active Bitcoin and Ethereum wallets are usually the recipients of an airdrop, sometimes without doing anything, or sometimes tasked to post something about the new cryptocurrency on social media, write a blog, or connect with other members of the blockchain project. The airdrop is employed then to generate awareness and attract more users and investors to trade it upon being listed as an initial coin offering or, ICO, on an exchange.
Good and Bad Airdrops
The basic purpose of an airdrop, aside from being a promotional instrument to make the new cryptocurrency popular. But there are airdrops being used for pump-and-dump schemes. That is, there is an attempt to inflate its value for quick gains. They will flood the wallets with the new cryptocurrency then encourage owners to trade it with other members to pump up the price. Give-away tokens are used to bait retail investors, who, after entering, the crypto owners will dump.
But airdrops are the most legit to market novel crypto to generate wide use. Serious startups sure have to spend a lot on airdrops if they hope to encourage popular usage.
To Profit from Airdrop
From nothing in value to worth more than a hundred dollars for a few minutes of commitment, airdrop tokens can really be a great source of extra income considering that they are free.It can earn you a sound $1000 a year or a lucky $500 a month.
1. Scouting for the right airdrop.
A good research can find you a valuable airdrop since some cannot be sold for the right price or have not been listed on the exchange after the campaign, which can waste you your precious time. Utilize airdrop directories and tools for this purpose to monitor the project development and the signal to sell your tokens. It will also pre-vet the projects, help you avoid phishing scams, and drop airdrops with less worth.
2. Getting good airdrops faster.
Time is of the essence when engaging in a profitable airdrop hunting. The more your profit will increase if you maximize your tools to get valuable airdrops in the least amount of time.
1. A Wallet.
You need ERC-20 compatible wallets for Ethereum airdrops, such as MyEtherWallet, MetaTask, Mist, or Parity.
2. An Airdrop’s Tasker.
Examples include Cocoricos and AirdropAlert, among others.
To Receive Airdrop Tokens
Different crypto projects have different time frames, and airdrop distribution time varies also. You may receive your tokens within three months for a particular project, or sometimes another one may take a year after the public sale. That is why research is key to get the best tokens there is by identifying companies that have the potential to grow exponentially. Another key you may need is patience as you have to wait before the token is finally tradeable after reaching an exchange.
Fresh startups give away free tokens on airdrops to promote their project on social media to generate exposure and, consequently, a loyalty of followers. As their tokens spread and adopted, its popularity can surge and promote wide usage.
You may need to fill up a KYC form before receiving your tokens. You may stop and think for a time before giving away your personal information given that identity theft and data sales are rampant these days. But you can rest in the knowledge that these crypto startups do not have the capacity of a tech giant to cumulatively sell information as their business models do not cater to such. Their focus is on user base, social media followers, and public platform activities.
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