Some Basics on crypto Airdrop

Traditionally, airdrops are methods used by crypto projects to call up huge traffic to their platforms and promote the brand. It's by dropping crypto into users' wallets as part of an initial offering. Most of this is a strategy to promote the project brand. In another word, airdrops are a means of acquiring crypto without paying for it.

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What is a crypto Airdrop?

The transfer of free crypto into a user wallet from the project initiator is known as an airdrop. The initiator decided to offer investors some amount of coins for free, which will execute the same task as buying the coin.

Users can get airdrops by signing for a newsletter, following social media accounts, creating an account on the project platforms, etc. Some airdrop is opportunities given to users to have voting rights in making a decision.

Take back On Crypto Airdrop

• Crypto airdrop can be a startup for a crypto portfolio for new users
• Crypto airdrop can be the ground floor of a new platform
• Crypto airdrops can be worth nothing after claiming when you want to sell.

Types of Airdrops?

They are different types of airdrops with the same motive, which is incentivized to its users. I will mention some common airdrops :

• Standard airdrop:

Here cryptocurrency is transferred into an existing wallet as a marketing strategy to promote the project brand. It is a means to encourage users to adopt the cryptocurrency, this is usually during the initial coin offering. Usually, you need to sign up for an account and provide your wallet address on the new project platform.

• Bounty airdrop:

Here cryptocurrency is transferred into an existing wallet after the user has carried out some promotional activities. For example: sharing the new project post on Twitter, newsletter signup, joining a forum (telegram channels) to participate in the project
The difference here to standard is that you have to do some activities, but it is not too demanding.

• Exclusive airdrop:

Here cryptocurrency is being sent to a group of people who follow the airdrop aggregator.

• Holder airdrop:

Here cryptocurrency is being sent to an existing wallet holding a particular or another cryptocurrency. So the user will claim the airdrop based on the time and date a snapshot of the user wallet was taken.

Example: Lumen in 2016 announced airdrop to existing holders of bitcoin.

Conclude

To conclude, As I mentioned, an airdrop is a great way to add to your crypto portfolio without spending a penny. You can personally track down airdrops by doing your research online, following airdrop aggregators, monitoring upcoming new projects, and waiting for bounty airdrops. Airdrop is out to boost the adoption of a new project, and so also the possibility of an airdrop scam. So as you get happy owning a good amount of a crypto coin, make sure you put in protective measures. Don't give out your private key, Rule number one, try to put in some time to go through the project white paper and views of other investors.