What is Airdrop? 5 Steps Guide To Receive Free Tokens

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In the world of cryptocurrencies, things can get a little bit complicated right from a hardfork, ICO and then DAICO. Airdrop is another event that seems to have taken many people by surprise, especially novice trying to make their way into the murky world of virtual currencies.

So What Is an Airdrop?

Simply put, an Airdrop is an event whereby a blockchain project rewards people with free tokens. Tokens are usually issued for free to a crypto community for helping share the word about a new cryptocurrency or project in the industry.  The free coins issued can be exchanged to BTC, ETH, and LTC among other cryptocurrencies.

Instead of spending huge chunks of money advertising and marketing a new project, a team behind an ICO project may look at the blockchain of an established token to gather up every person who has coins in their wallet.  They will then distribute their own coins free, in proportion to the amount of coins in the digital wallet.

One can be a beneficiary of an Airdrop on registering on the website of an emerging blockchain project and filling some information such as email, cryptocurrency address and sharing referrals to other people.

How to Find Airdrops

To be a beneficiary of an Airdrop, there are some tools that one must have in their arsenal.

1. Ethereum Wallet

An Ethereum Wallet with a personal address that is ERC20 compatible is a must, for one to participate in almost all Airdrops. Most of the tokens that are usually offered are ERC20 tokens that can only be deposited in an Ethereum Wallet. Some of the best wallets to use in this case are MetaMaska and MyEtherWallet.

2. Ensure Your Ethereum Wallet Is Active

By simply opening an Ethereum Wallet and merely holding on to login keys won’t cut it, if you are to receive some free tokens on Airdrops. An Ethereum Wallet must be active In terms of human use. In this case, a wallet should have been used to carry out a number of transactions.

Some blockchain projects carrying out Airdrops may be explicit in the amount of coins that a wallet might have handled or the balance in the account.

3. A Telegram Account

Telegram has emerged as a preferred means of communication for most blockchain projects. That said a project might require people to have Telegram accounts and follow their accounts if they are to receive any free tokens in an Airdrop.

4. Twitter Account

Similar to a Telegram Account, some projects may require people to follow their Twitter account to be eligible to receive free tokens

5. How to Know About an Upcoming Airdrop

There are sites and online groups that specialize in informing people about upcoming and active Airdrops. Icodrops and Airdropalert provide a list of all forthcoming airdrop events going as far as giving the number of days left before they take place. The sites also provide information on the type of currency that one must have in their wallet and the amount one must have, to receive free coins.
Another easy way to be in the know, about upcoming Airdrops is to be active on social media by following the accounts of the forthcoming projects.

Why Airdrops?

The fact that the ICO marketplace is highly saturated presents a big dilemma for new projects to gain much-needed exposure. However, by giving out free tokens that can become valuable in the long run, a developer’s team always stands a better chance of getting the much-needed exposure.
It is common for people to try and look into a project and what it entails after receiving free tokens.

Conclusion

In an era where scams are everywhere, it may be essential to visit the official site of a project before sharing crucial details in a bid to participate in an Airdrop. By visiting the official website and social media pages, you should be able to filter scam sites that ask for private wallet information.

Are you familiar with Bounties? If not you should check this article about what is a Bounty.


About Author

Swati Goyal has an extensive work experience of more than 6 years, in the field of Finance in diverse roles ranging from accounts, financial research to and Cryptocurreny. She follows the Finance market and enjoys writing on it, Swati's hobby is reading, watching movies and television shows.

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