Crypto Airdrop Explained
What exactly is an airdrop? And what can I do with it?
In this article we explain what airdrops are and their characteristics. However, we advise you to read until the end because, if you end up liking the airdrops, we have an easter egg waiting for you!
Airdrop from Apple is familiar to most of us. A smart functionality to wirelessly send documents, photos, videos, websites and map locations to and from a Mac and/or iPhone. But what is an airdrop in the crypto world? Something totally different we might add. There are several ways to earn cryptocurrency. However, not all ways are safe and legal. In this article we will explain to you what a crypto airdrop is and what you can possibly gain from it.
What is a crypto airdrop?
If you start looking for information about crypto currencies and want to trade in crypto currencies you will quickly come across the term Airdrop. The term Airdrop suggests that something is falling from the sky and it is kind of true in a way. An airdrop in the crypto world is a procedure for distributing free crypto coins or tokens, in a certain ratio, to new or existing holders of certain crypto currencies such as, for example, Bitcoin, Ethereum or Tron.
What can you do with a crypto airdrop?
This question is actually pretty easy to answer. Make money for free! Of course, that sounds too good to be true, but it really is a proven way to accumulate crypto coins for free. I will give example of a very successful airdrop later in this article.
Why are there crypto airdrops?
There are several reasons for companies in the blockchain and cryptocurrency industry to initiate a crypto airdrop. Below I will mention the most obvious reasons:
Fair distribution of the total number of crypto coins
An important and fundamental tennet of blockchain and cryptocurrencies is decentralization. Decentralization is the process by which the decision-making of a company or organization is no longer concentrated across a few individuals but distributed across multiple individuals or delegated. Power no longer lies with a small (central) group but with a decentralized group or community.
A good reason for a company to proceed with an airdrop is to push this decentralization through an even distribution of cryptocoins or tokens so that there is less power with a few individuals with a lot of cryptocoins who could manipulate the prices of certain cryptocurrencies.
Crypto airdrop rewards loyal and early investors
To make an Initial Coin Offering (ICO) even more interesting, early crypto investors are often rewarded with additional free “new” coins or tokens. A fun and functional way to earn free crypto. Loyal long-term investors are also often rewarded with free crypto currency in the form of an airdrop. Loyalty is rewarded!
Create brand awareness for new cryptocurrency
Gaining exposure in the blockchain and cryptocurrency industry is not easy for new companies today. After all, there are already hundreds of companies with their own crypto currency. With an airdrop, you initially generate a lot of exposure in the start-up phase of the company with a token that is worth little to nothing at that time.
Marketing and creating hype
By far the most important reason for a crypto company to do an airdrop is to gather leads, with the growth of the company as the primary goal. Such airdrops almost always ask for a quid pro quo. These include registrations, referrals, participating in Telegram and following a company on Twitter, for example.
When do crypto airdrops take place?
So how do you know when a crypto airdrop takes place? To find out, you will have to closely follow the news about certain cryptocurrencies. This can be a time consuming process that not everyone is in the mood for. That’s why there are more and more websites and tools on the market that warn you when an airdrop is about to take place. This is handy of course!
Websites with airdrop alerts
The announcements of airdrops take place on various crypto channels such as Twitter and Telegram but also through various websites and apps. Below we’ve listed a few websites where you can find airdrop reminders and alerts.
Crypto airdrops on autopilot
There are also tools such as Airdropalert.com, which participate in airdrops for you on the automatic pilot. The free coins or tokens are, without doing much yourself, transferred to, for example, your Ethereum (ETH) wallet. For such services you usually pay a monthly fee.
Are crypto airdrops safe?
Always do thorough research before participating in airdrops. Many scams take place in the crypto world and airdrops are also fodder for scammers. Be warned! Below is a short list of tips that you should consider before participating in an airdrop.
A few crypto airdrop tips:
- Never give anyone access to your private key!
- Ask yourself how reliable the source is, who promoted the airdrop.
- Never pay for an airdrop!
- Investigate the professionalism of the company behind the airdrop.
- Be cautious with KYC (Know Your Customer) procedures.
What can an airdrop bring?
The value of an airdrop typically ranges between €1 and €20! It is relatively little work to participate in an airdrop and therefore very interesting! It usually only takes a few minutes. An example of a very easy and successful airdrop was the Ontology (ONT) airdrop of January 2018.
Everyone who signed up for Ontology’s (ONT) newsletter at the time received 1000 ONT (worth nothing at the time) in return. If you sold your ONT tokens on June 7, 2018 at a price of €8.84, you would have earned €8840. And that amount in exchange for your email address? Easy cryptocurrency earning right?
Crypto airdrops can certainly be interesting, as history has taught us that. The success story of Ontology (ONT) is not an isolated one. There have been many airdrops that could have made you a lot of money. The most important tip I want to give you is that you should be careful. There are airdrops that are only after your personal data or even access to your cryptowallet.
In any case, if you are interested in going beyond airdrops and want to invest in cryptocurrencies, feel free to read our blog posts explaining how to invest in crypto. However, it is our opinion that the crypto world and blockchain will bring more and more interesting investment themes, such as investing in real estate, startups and art. All this is possible through the revolution of tokenisation. Check it out here!
Brickken’s own airdrop
We wanted to leave the best for the end, so if you made it till here, congrats! The Brickken team is working hard to issue the company’s very own token: the BKN. If you want to know more please download our whitepaper (more about whitepapers here) and with it we will officially kick off the process to issue the token. As we have explained above, a good project must distribute its coin across as many users as possible. This is the reason why we are doing our very own airdrop! Register now to earn some BKNs!