Cryptocurrencies have transformed the way we adapt financial transactions. There are many things every crypto investor or enthusiast should know. One such buzzword is “crypto airdrops” which is an important part of the crypto world. In this blog, we will explain what are crypto airdrops, their types and overall brief information.
What Is A Crypto Airdrop?
A crypto airdrop is a marketing strategy which is used by blockchain projects to distribute tokens to community members. It’s a technique that is used to create engagement, and awareness and increase the adoption of the tokens by new investors. The tokens are also given as rewards to early community members. Airdrops can be very interesting opportunities for crypto investors to receive free tokens that may land them profits in future.
What Are The Types Of Crypto Airdrops?
If you want to learn about crypto airdrops then take a look at their types:
1️⃣Standard Airdrops
This is the most common type of airdrop. In this airdrop, the tokens are distributed to the users who hold a specific cryptocurrency in their wallets. Like, a new token made on an Ethereum blockchain might airdrop to all Ethereum holders only.
How it Works:
- The project announces the airdrop on their website or social media
- Then the users need to hold the required token in their wallet
- Tokens are then automatically distributed to eligible wallets
This airdrops is easy to particiapte in and there are no additional tasks required.
2️⃣Holders Airdrops
Holder airdrops given tokens to users for holding a specific cryptocurrency for a specific period of time as rewards. This type of airdrop encourages holders to make long-term investments and it gains loyalty towards a project.
How it Works:
- Projects announce a snapshot date to their users
- Then the users need to hold the required amount of tokens in their wallets
- Tokens are then distributed automatically based on the amount held by the users
The advantage of this airdrop is that it rewards loyal community owners and users can receive large amounts of tokens.
3️⃣Exclusive Airdrops
These airdrops are for some selected groups of users only. These groups include early adopters or the community members who meet specific criteria.
How it Works:
- The projects set eligibility criteria
- Eligible users are notified or they need to check their status
- Then the tokens are given to the exclusive group members only
There is a higher chance of receiving tokens in this airdrop and users can get larger token amounts too.
4️⃣Bounty Airdrops
In bounty airdrops the users have to complete some specific tasks given to them to get the tokens. The tasks are often related to project promotion or contributing to the overall development.
How it Works:
- The project announces the tasks for the users
- Users have to complete specific tasks and submit proof for completion
- Then the tokens are distributed based on the task completion
The advantages of this airdrop is it allows active participation and users can earn more tokens through multiple tasks.
5️⃣Hardfork Airdrops
Hardfork airdrops occur when blockchains split. After splitting it creates a new cryptocurrency. Then he holders of the original cryptocurrency automatically get an equal amount of the new tokens.
How this Works:
- A blockchain splits
- Then the users holding the original cryptocurrency get new tokens
- There is no action required from users if the tokens are in a supported wallet
6️⃣Raffle Airdrops
Raffle airdrop distributes tokens randomly among its participants who meet certain certain.
How it Works:
- Users need to register for the airdrop
- A random selection process happens and the winners are chosen
- Selected participants receive tokens they have won
In this airdrops users have equal chance for all participants.
Tips for Beginners Participating In Airdrops:
Here are the tips for beginners participating in airdrops:
- Research thoroughly, and verify the legitimacy of the project before participating
- Create a separate crypto wallet for airdrops to keep all your tokens of your main holdings
- Never share your private keys or passwords with other
- Follow cryptocurrency news and learn about new updates
- Be very cautious of airdrops that need large deposits or personal information
Overall
Crypto airdrops offer very unique opportunities for beginners to enter cryptocurrencies without any investment. By understanding different types of crypto airdrops and how they work you can potentially benefit from it. However, you should take airdrop participation with caution and do detailed research before you come up to any decision.
