What is Airdrop in Cryptocurrencies and how does it work?

The advent of the internet and social media has changed the landscape of marketing. Now business doesn’t need to spend a large amount of money on advertise the products and services. Using the internet and social media effectively a business can reach their target audience easily. In the arena of cryptocurrency, new and novel marketing becoming popular and people appreciating this new trend, known as “Airdrops”. In this article, we will discuss Airdrop and its working in detail.

What is Airdrop?

Airdrop is the marketing of cryptocurrency, where native coin or token is distributed to a large amount of crypto wallet address at no cost. Airdrop proves helpful to promote the cryptocurrency project and enhance brand awareness. People who receive Airdrop, they are further encouraged to join the Telegram group of the company, promote the brand through social media marketing and in return they receive incentives. Sometimes, no effort needed at all; participant automatically receives Airdrop if they own a certain amount of Bitcoin or Ethereum.

How airdrop works in the world of cryptocurrency: Guide to get free coins

Though, Airdrop is free but to understand- how it works in the world of cryptocurrency, for this, you have to participate in the airdrop. You need the following things to participate in airdrop:

Cryptocurrency Wallet:

Make sure that you have privately owned cryptocurrency wallet where you can store your coin safely. Don’t use the wallet of your exchange because you don’t have to own your private keys. Meta Mask or My Ether wallet is highly recommended, using these two applications you can store your coin safely. Apart from that, if you are still not sure about the safety of your coins, use a cryptocurrency hardware wallet. The most common hardware wallets are Trezor, Nano Ledger and Keepkey.

Valid email address:

Make sure you have valid email address thereby you can register at an exchange, and having an email address dedicated to airdrop can be convenient if you are looking to focus big time on getting airdrop tokens.

Social Media Accounts:

You should have a social media account to become eligible for the airdrop. Because some companies may assign you some task like promoting and sharing the project on the different social media platform like Facebook and Twitter. The range of action can include sending out a Tweet and sharing posts on Facebook pertaining to the project. In exchange, you will get free airdrop tokens.

Comply with the deadline:

Generally, there is a deadline while registering for the whitelist of the airdrop. Make sure that you have accomplished all the necessary criteria and registration before the deadline.

Above are the four steps, which you have to follow to get an airdrop. However, airdrops are supposed to be free, but some projects likely to be highly scammed if they ask for native coin in exchange for new coins. Well, you have an option to check the legitimacy of the project, for this, you have to remain active on a social media platform and keep monitoring their activities. Generally, start-up companies announce of airdrop on the social media platform, so it is highly advisable to use your common sense before participating in airdrop.

How airdrop works:

Initially, airdrop cryptocurrency might not have any value, but retain it in your cryptocurrency wallet and wait for the listing in the exchange. Once the coin gets listed in the exchange, the coins have some value in the market. So it all depends on you. Either you can trade it or retain for the long term to get the best value of it. In this way, airdrop works in the arena of cryptocurrency.