Cryptocurrency Airdrops Review
Cryptocurrency Airdrops are becoming quite common and popular but the issue is that some of them are fake and most people don’t know how to identify the fake ones. I will be telling you more about airdrops and how to get relevant information about upcoming airdrops.
What is Cryptocurrency Airdrop?
Cryptocurrency airdrop is when a blockchain willingly gives out free tokens or coins to the crypto community. Most times this is done using a sharing formula.
Airdrops are being distributed following some rules and pattern; some are distributed during a fork. Bitcoin cash came into existence through the fork mechanism. It was distributed to owners of Bitcoin at a defined ratio. As of the time of distributing Bitcoin cash; people with Bitcoin in supported wallets got an equivalent of their fund in Bitcoin cash. I.e. if you had 1 BTC you will retain your 1 BTC and additional 1 Bitcoin cash. Outside the fork, airdrops could also occur via Initial Coin offering (ICO) purchases (e.g Raiden network, Token pay etc.). We also have freebies, Binance made an example of freebies by giving away 500 free TRX to customers.
Principle of Crypto airdrops
Crypto give away also known as free bitcoin, works this way. Considering the forking mechanism, At a pre-annouced time frame, the project behind the event takes a “snapshot” of the blockchain noting every transaction details and balances. People with Bitcoin, Ethereum or other supported crypto (supported by the fork) will receive a fixed amount of free tokens. This type of airdrop is more common to Bitcoin and ethereum.
You can also get free crypto through the faucet means. This is getting compensated for using something over a longer time. This is mostly done by crypto wallets, they could drop Bitcoin, NEO, Litecoin or any other crypto on daily basis. You can check this out here.
What are the Reasons behind Airdrops?
I must tell you that airdrops don’t necessary occur so that you can enrich yourself with new coin. This is simply a marketing strategy being adopted by major stakeholders in the blockchain industry.
Let’s say you have a new product and wants to introduce it into the market, the first step is to create samples. These samples are meant to be distributed freely, the best people to give are people patronizing your other products. When they taste and see how good the sample is, they will advertise it and might end up buying it. This is exactly what happens in the crypto industry. Most people tend to value what they have than what they don’t have; hence giving them the new coin automatically increases the value of these new coin.
How do I know When airdrops are about to occur?
This is simple; all you need do is link yourself up with communities that are associated with airdrops such as Airdropalert. Airdropalert will always bring you up to speed as regards to upcoming airdrops. Below are some that are coming up soon and some ongoing airdrops. See the figures below.
What wallet should I use?
From previous experience airdrops have always occurred on the Ethereum and Bitcoin Blockchain. All you need is an account with a Blockchain wallet or an exchange. There are cases where those in charge of an airdrop would specify a specific wallet needed for it.
Where can I sell my airdrop?
Most Big exchanges barely trade new cryptos (after it has just been introduced into the market either by a fork or by ICO). Sometimes after a fork it takes time for one to receive the new crypto introduced by the fork. There are some sites that are specifically designed for trading airdrops, you can check them out here .
This is quite an interesting way to earn cryptocurrency and its relatively cheap. though some time it takes time for the new coin to appreciate but i believe its worth it. You could give it a try.
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