Introduction To Cryptocurrency Airdrop

WHAT IS AN AIRDROP

Airdrop can be defined as a situation where a company gives out cryptocurrency directly into your wallet for doing simple task or for free. This method is mostly used by upcoming cryptocurrencies, this proves positively as it create awareness of that token and increase its total supply and value.

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So you might be wondering why they are giving out such coins, well there are numerous reasons why they do such, here are some of it:

1: Creating Awareness
This is the most important reasons why companies performs airdrop, study shows that free things always attract huge number of people, so giving out free Airdrops is a method that will create more awareness about their project or cryptocurrency. Most Airdrops can be found on twitter due to the high number of users in the app.

2. To study the users
Most times, when participating in Airdrops, you'll be ask some minor questions like, "drop your twitter account link", this is because the company wants to know you better in order to create more targeted marketing techniques for more users.

3. To raise funds
Airdrops can be used to raise funds, going by this simple explanation, I'll show you how Airdrops can be used to do such. Let's say we create a cryptocurrency on the Ethereum Blockchain and the Dapp uses BAT tokens. We supplied 100 million BAT tokens and right after the launch of the project, each BAT token will be valued at $0.1.

Right now, the total market cap of our token is 100milion " $0.1 X 100 million= $10 million.

Right after the launch, we decided to give out 15 million of your tokens for ETH drops. If this is done, that means 15 million " 0.1 X 15 million = $1.5million" you are reserving for Airdrops. So now your capital goes down from $10 million to $8.5 million (10-1.5).

But as time goes on, your Airdrop campaign begin to grow and social media gets news about your token and project. This will then increase the value of your tokens.

HOW TO TAKE PART IN AIRDROPS

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Anyone can take part in Airdrops, but also you must have these requirements to start:

• Wallet
• Tokens
• Information

1. Having a Wallet
Wallet are used to store, receive and send cryptocurrencies. There are various platforms out there that gives access to these wallets, some may include:

• Metamask
• Trustwallet
• Trezor

Virtually, all Airdrops requires an crypto wallet not an exchange wallet, exchange platforms like Binance, Luno cannot be used to receive Airdrops.

2. Getting the tokens

Literally, most Airdrops are made from base tokens, base tokens are Bitcoin, Ethereum. The reason why we call them base tokens is that other tokens are made out from them. To get these Airdrops, you can visit Coinmarketcap.com and under the airdrop section, you'll find any ongoing Airdrops.

3. Information

The last step is to know where and when these Airdrops are taking place, instead of visiting every upcoming projects accounts on twitter, you can just go into coinmarketcap.com and find them there or find some Airdrop based social accounts where they only talk about Airdrops, you can just Google about that and it'll pop up.

CONCLUSION

That about sums up everything I know about Airdrops, you can find more info about them on various sites but I hope you learned something from mine. Thanks for reading...

Note: 10% to community account