Steemit Crypto Academy Contest / S12W01 - Understanding Cryptocurrency Airdrop

Hello everyone hope you are doing good
I am also good. Today i am going to participate another contest and i will try to explore my knowledge upto my best about the given topic Steemit Crypto Academy Contest / S12W01 - Understanding Cryptocurrency Airdrop.

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Define what is crypto airdrop?

The crypto currency airdrop can be defined as its a strategy of marketing in which token or coins are sent to certain wallet addresses. Perhaps in this case free coins are sent to the active member of blockchain mostly for free or sometimes retweet or promotion of company may be associated in reward.

If we see its goals the main aim is to give promotion or awareness of new coins or token to the public. The raised awareness enabled for boostrap of specific virtual currency.

The vast advantage is that letting more people to trade of coin as it is listed as initial coin offering.

Give the different types of crypto airdrops.

There are many types of crypto airdrops few are as follows.

Standard Airdrop

Incase of standard airdrops the receiver indicate his interest in receiving the airdrops. There is not much information is needed except the valid wallet address. In this time limit is often there and it is set how many token can be received in given time.

It may called time sensitive standard airdrops. Moreover, a single user is allowed to make many account so that he can receive token in time limit quickly.

Bounty Airdrop

The bounty crypto airdrops happened occur when certain tasks are performed by the users. The tasks may the awareness of the project either on social media or sometimes tagging of the company or retweet. In rewards they may get free token or on the basis of referral token.

Holder crypto airdrops

The holder crypto token may occured on the basis of existence of who is holding token and its automatically done. In this case both wallet and blockchain are considered part of public shared ledger and there is complete transparency in giving token.

Exclusive Airdrop

The exclusive airdrop is quite exclusive and it occured when specific people are being selected individually for giving airdrops the selection criteria is little bot differs as it based on the the time spent in company, money shared, non,- token actions, or the number of posts in any project. It may called a certralized form of giving token as it give reward who were more closer to the project.

Raffle Airdrop

In some cases air drops are given on the basis of motivate user and he gave a chance to get raffle tickets. The winning of ticket may be connected with hold the token, or earning numbers or their individual interest.

When the number of interested individual may cross the limit for this reason the raffle is used when worknon randomly and given air drops.

Have STEEM token ever been claim as a crypto airdrop?

I guess no,steem token never been claimed as a crypto airdrop, i tried to search alot but didn't find any data regarding the steem airdrop. It mean its not been claimed as airdop. Moreover the steem is given reward on the basis of quality of post and thats why people work hard for creating quality publications.

How to identify if a crypto airdrop is legit or scam. How can we also fine free crypto airdrops.

The Crypto airdrops is considered one of the best marketing strategy as given token to the users and increase the promotion of their projects in the public.

Despite of all this it can not say there are no scam or fraudulent, it may happened, so avoid from these we knew few things which are as follows.

Search the projec before joining any free airdrops we should do proper research about it either its legitimate or scam. Proper investigation through website, social links and inquiry of the project must be done.

Verification of the airdrop in case of legitimate project and cimpany they announced it on social media and official channel about the free airdrops, if such announcement are not there it means these are fake and scam.

Check out the requirements for airdrop if a project or company is real they have few requirements like they may asked to join twitter or any social telegram groups. Moreover if they demand sensitive information or money it means they are fraud.

Be wary of too-good-to-be-true offers some project or company might offered large amount of free token in rewards obviously these are fake and scam.

Third-party websites third party websites are sometimes designed in a way that they give information anour the free airdrop, but in fact they worked to stealing of personal information, so scam may happened.

How can we also find free crypto airdrops

There are different methods which can ve adopted for free airdrops.

• Connection with crypto news.
• Join differnt crypto forums about free airdrops
• Follow different projects social media links

How are crypto airdrop taxed?

The airdrops are considered taxable as tge IRs reported it. Either the free airdrops are not being free rather than it is taxed it might be very low or normal income.

Moreover when we wanted to sold the free airdrops these are taxed according to capital gain tax. The tax ratio is about 30 % for sold fre airdrop.

The taxable income it can be calculated as follows. Subtract the cost of free airdrop token- from the selling price receive.

Have you ever claim a crypto airdrop before? Which coin was that?. If you haven't claim an airdrop before then explain how one can claim a crypto airdrop.

Honestly speaking i have claimed few airdrop long time ago but sad to know they were scam. I didn't remember it as its long time ago. I would explain the steps used to claim any airdrop.

• Download the meta mask app from the play store.

• Use the airdrop link given by the company

• Paste the link on trust wallet browser

• connection of airdrop wallet, as it woukd be

• connected the claim of airdrop will be started. It can be confirmed by claiming done.

Advantages and disadvantages of crypto airdrop

There are many advantages and disadvantages few are as follows.

Advantages

Building brand value

As its knowns marketing may increase the awareness of certain project and more people attracted. Of course it may increase the investment or more insights to the desired projects. It leads to growth of project or company more.

Reduced marketing costs
As the more number of prople are atrracted and become part of crypto airdrop further marketing cost is much reduced if it is legitimate definitely more people started to connect it by social media awareness.

Easiar way to profit

As the crypto investor wanted to earn more profit, in the way of volatility of market would definitely helpful for getting it. Investment in cryto airdrop is profitable in short time span.

Disadvantages

Highly Unreliable

As airdrops is marketing strategy and innocent people may got scammed, as fraud people ask them for money or sensitive information.

The Government Regulations or Taxes

As the crypto is becoming popular in people governments sets rules and also heavy taxation implementation. So, the tax ratio would be paid and law will be set.

Unpreficatable

The crpto market is highly unpredictable so proper knowledge is must needed before any investment.

Its all about my todays post i would like to invite @ashkhan, @m-fdo and @ruthjoe to take paet in the contest here