What is a A Digital Currency Airdrop?
If you wander around the world of crypto long enough, you’ll probably stumble on quite a few terms you’ve never heard before.
I’m talking random techie terms like “hard fork,” “decentralized,” and even “multi signature wallet.”
All of these terms are important in their own way, but perhaps no term is as important as the one we want to take a look at today: airdrop.
For digital currency investors, understanding what an airdrop is can be quite lucrative, because airdrops literally make money fall from the sky. All you have to do is sign up and you can be showered with free and potentially valuable tokens.
This may sound weird, but it’s kind of just part of the blockchain space.
And today, we’re going to teach you all about it.
Put simply, an airdrop is when an individual shares information with another individual over a Bluetooth connection.
In the world of digital currency, airdrops provide a different value, with blockchain companies showering their followers with free tokens.
Airdrops have become increasingly popular in the blockchain space because of the cryptocurrency ad ban from major social media sites Twitter, Facebook, and Google. In a way, airdrops are the perfect marketing vessel, allowing individuals to learn about a new token and allowing the company to reach new network supporters.
For investors, airdrops also can come with quite a bit of value. Essentially, you’re getting a handful of coins for free. And these coins could have more value down the road.
That considered, it’s no surprise that many investors want to learn how to participate in an airdrop.
And you can.
In an airdrop, tokens are distributed to investors in one of two ways.
In the first way, wallets are randomly selected and users can receive tokens without signing up or opting to participate.
In the second way, investors can sign up with the company distributing the tokens to assure that they receive tokens when the airdrop starts.
So how do you participate? Usually if you see an airdrop being advertised, you can go to that company’s website and fill out the requested information.
Usually the company will ask users to supply an email address, and the address of a wallet.
Companies may also ask individuals to retweet a tweet or follow a Facebook page. Some companies even ask individuals to follow them in their Slack and Telegram channel.
All of these are marketing strategies that will help the blockchain company promote its coin and reach new potential users.
Once you’ve completed all of the steps, you should receive tokens to the wallet that you selected.
It’s just that easy.
At this point though, we would like to remind investors that there are still dangers lurking in certain parts of the web and that some airdrops can also be a scam. See below for our list of airdrop redflags.