rop straight into this article to find out what crypto airdrops are, how they work and how you can get yourself free cryptocurrencies!
Crypto Airdrops are currently the talk of the town. Protocols will generally use airdrops as a marketing ploy for using their product before they release and airdrop their token.
Key Points we will cover in this article:
- What is a Crypto Airdrop?
- How Does a Crypto Airdrop Work?
- How To Qualify for Crypto Airdrops?
- Examples of Crypto Airdrops
- Final Thoughts on Crypto Airdrops
What is a Crypto Airdrop?
A crypto airdrop is simply a marketing method used by new or existing protocols that involves distributing its tokens to their users. The whole purpose of a crypto airdrop is for protocols such as decentralised applications (dApps), Layer 1/2 networks and newly made tokens to spread awareness and promote their product/service.
Crypto Airdrops can be confusing to newcomers, but the process is very simple for both protocol and user. So, let’s briefly explain how airdrops work!
How Does a Crypto Airdrop Work?
So what makes someone eligible for an airdrop and how does the protocol determine whether or not to give it to you?
Well, there are various methods to participate and qualify for crypto airdrops. As mentioned, airdrops are a marketing strategy to attract new users to their protocol and create a solid community of token holders from the moment they launch. Generally, this means you will need to perform some sort of task or action on the blockchain to qualify for the airdrop.
The protocol which is conducting the airdrop will delegate a certain amount of its tokens to its community. If the protocol is delegating 1% of the token supply for an airdrop, then this will be split and distributed accordingly. Before the airdrop of tokens are sent out, the protocol will check the eligibility of each wallet address involved and then will allocate a certain amount of tokens to airdrop each user.
Now the question is, how do you qualify for crypto airdrops?
How To Qualify for Crypto Airdrops?
Here are the most popular methods to participate and qualify for crypto airdrops:
Decentralised Application (dApp) Interactions
Using dApps across different blockchains is probably the most popular method to qualify for airdrops. Decentralised Applications without a token are known for airdropping tokens to users who interact with their dApp. This can be as simple as swapping a token on a decentralised exchange (DEX), staking or lending a token and so much more!
For those looking to participate in mostly free airdrops, you can participate in simple social tasks where all you have to do is join a Discord server, Telegram Group or even Retweet a post on X (Twitter).
Today, there are popular Web3 social platforms dedicated to new and existing protocols where they can launch and host quests and activities for their communities. Web3 social platforms are notorious for discovering new crypto airdrop opportunities as most of the protocols on there are brand new and without a token…
Here are a few Web3 Social Platforms:
Sometimes the easiest way to get airdrops is to interact and hold tokens on different networks. In the past, users have received airdrops for using and holding cryptocurrencies on different networks, including both Layer 1s and Layer 2s.
Even new blockchains that are in Testnet are known for airdropping the native token to its users when the Mainnet goes live. Using networks in their Testnet stage is a common practice that is generally free to do.
The most complex and expensive option is setting up a Node and becoming an operator of a network. New blockchain networks require users to set up nodes to secure and decentralise the network. Blockchains without a token or even sometimes with are usually rewarded by the protocol with their native tokens, just by setting up and running a node.
Examples of Crypto Airdrops
Historically, there have been some incredible airdrops. People have made hundreds, thousands and even millions of dollars from participating in airdrops. Here are some of the most popular airdrops that have taken place in the past:
Arbitrum, the most used Ethereum Layer 2 network was famous for airdropping 1.162 Billion ARB tokens (11.62% of the supply) to its loyal users. At the time of writing, ARB is sitting at a price of $1.11.
Celestia is the latest airdrop to hit the wallets of many lucky users. Famous for being the first-of-its-kind blockchain, Celestia airdropped 74M TIA tokens (7.4% of the Total Supply) to its users who used the Testnet. At the time of writing, TIA is priced at $13.04.
Crypto airdrops can be a great way to take your crypto portfolio from 1 to 100. There are always new protocols launching and using airdrops as a form of marketing. Although airdrops can be highly rewarding, it’s important to understand that there can be many risks involved when trying to discover and qualify for airdrops. A common practice is to use a separate device and wallet when interacting with new decentralised applications, blockchains or social platforms.
The content provided in this article is strictly intended for informational purposes. Nothing said in this article is financial advice. It is important to proceed with caution and diligence when using cryptocurrencies. Always invest what you are prepared to lose and remember that you are entirely responsible for your assets and investments. The author and the publication do not endorse or recommend any of the cryptocurrencies, protocols or strategies in this article.