We all know or heard about ways to make money in crypto. We can just trade, buy and sell long or short, even HODL, but how much do we really know about airdrops?
There are many of you who hear the term ‘airdrop’ for the first time, so today’s blog post will tell you the basics you need to know about airdrops.
When talking about cryptos, an airdrop is a procedure of distributing new tokens or coins. This procedure is based on certain rules.
First, tokens or coins are awarded in a certain amount. Second, only existing holders of a certain cryptocurrency can get them.
To put it very simply, if you are a holder of, say, Bitcoin or Ethereum, and if there are any parent tokens or coins to be released, you have the right to claim them.
It’s free, so why anyone would air-drop tokens or coins just like that?
There’s always a reason behind everything. One of them is even distribution of total supply to avoid centralization and ensure even decentralization.
Another one, which is quite logical, is honoring early investors. It is always a nice gesture to reward early investors and supporters who believed in the success of a startup from the very beginning.
Marketing purposes are also part of the equation. The more people get to know about a new token or coin, the better.
Finally, there are hard forks. Still remember the postponed Ethereum hard fork earlier this month?
Now, you’re wondering how to know about airdrops. There are special communities and services that let you know about the upcoming airdrops. Feel free to follow Crypto Airdrops for the latest airdrops. You can certainly do your homework and find more resources.
Don’t fall for it just because it’s free.
There are many popular cryptos, and scammers know that. You should know better. There’s always something fishy about scammy airdrops. They will very obviously ask you for your private information, especially, your private key. Keep your eyes and ears open!
By the way, communities and services do their best to warn you about possible scams, so it’s a good idea to not only educate yourself on the subject of airdrops and cryptocurrencies, but also to stay up-to-date with the news.
The CoinMetro Team