What is a Crypto Airdrop? How Can You Make a Fortune From It?

July 13, 2022

Reading Time: 4 minutes

If you’ve followed cryptocurrency for the past years, you would have heard about crypto airdrops or even participated in one airdrop activity or the other. It will be surprising if you have never heard of crypto airdrops. It is also possible that you have heard about a crypto airdrop but do not know what it means. In addition, you might have participated in various crypto airdrops through telegram signals but have never gained from any airdrop. This article offers information that can help change that story.

In this article, we will explain what crypto airdrops mean, their purpose and their intention. Afterwards, we will discuss how you can make a fortune from crypto airdrops. So, let us begin by defining crypto airdrop.

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What is a Crypto Airdrop?

Crypto airdrop is a strategy used by crypto projects to create awareness about a project or increase the number of members of their community. It is a promotional strategy used by projects where a certain amount of tokens or coins are distributed to multiple crypto wallets from a single account after fulfilling certain requirements.

Crypto airdrops are means by which crypto projects differentiate themselves from other projects in the ecosystem. This is because new crypto projects are constantly rising, making it very difficult for users to keep track of all new projects. And because humans love free things, these projects offer free airdrops of their native tokens to current or potential users to create a buzz around their project. But to get these airdrops, users often have to complete simple tasks such as joining their telegram channel, following them on Twitter, reposting a post by the project or sometimes referral. After completing these tasks, then the user is eligible to receive the crypto airdrop at a date announced by the project.

So, crypto airdrops are simply a marketing strategy used to create awareness around their upcoming projects and increase the number of members of their community.

Why Do Crypto Projects Offer Airdrops?

As explained earlier, crypto airdrops are used to increase the adoption of a crypto project and grow its community. This is because most tasks involve joining the project’s Telegram channel, where information about the project would be communicated to users. It also helps to increase the decentralisation of the project when there are multiple holders of a token and can help motivate holders to invest in the project and promote it to others.

Note that are different types of crypto airdrops. There is the country bounty airdrop which requires users to perform certain tasks before they can claim the airdrop. The exclusive airdrop is reserved for only users who have interacted with the project before and have a transaction history. An example was when Uniswap Exchange airdropped the UNI token to its existing users in 2020. In addition, there are holdersʼ airdrops where the airdrop is only given to those who hold a certain amount of the token.

It is also vital to note that there are a lot of crypto airdrop scams today. Lots of the crypto signals on telegram which provide crypto airdrops are scams. Mostly, after completing the tasks, participants don’t get the token and other times, airdrops are used as a strategy to steal crypto from users’ wallets. This is why you shouldn’t use your main crypto wallet for airdrops; rather, create a separate wallet for airdrops for safety purposes.

How to Make A Fortune From Crypto Airdrops

Despite the presence of crypto airdrop scams, there are still legit airdrops from which you can make a fortune for free.

Some of the ways you can make a fortune from crypto airdrops are discussed below:

Referral Airdrops

Verified referral airdrops are a great way to earn money from crypto airdrops. Unlike other airdrops, once you have verified that the airdrop is legit, you can go ahead to refer your families and friends and earn crypto, which you can exchange for cash. With referral airdrops, the more people you refer, the more airdrop you get.

Play Games and Earn

 With the development of dApps and other Blockchain apps, you can play games and earn native tokens within the game for reaching certain milestones or winning a challenge. In the era of NFTs, it is also possible to earn free NFTs in crypto games by playing.

Wallet Airdrops

Some crypto wallets offer users airdrops for creating new wallets. So, just by creating a crypto wallet, you get access to airdrops. And since creating a wallet is not restricted, you can create as many wallets as possible and earn more tokens.

Crypto Exchange Hunts and Giveaways

There are numerous crypto exchanges today, all competing for millions of crypto users. So, to retain their users, crypto exchanges offer rewards and hunt bonuses with airdrops and other tokens.

For instance, Coinbase offers new users rewards for creating an account. Binance also offers various airdrops and cashback rewards to its users.

Holding Coins

LUNA this year airdropped its new token to holders of the previous token. So, one way to earn from crypto airdrops is to hold some major coins in your wallet.

Conclusion

Crypto airdrops are now often associated with scams and fraud, but that does not mean that people do not earn money from crypto airdrops. Thus, using the information above, you would be about to earn from crypto airdrops. But always do your research and verify a project before connecting your wallet.

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