Airdrop: How to make money with crypto giveaways
Cryptocurrency airdrop is the distribution of tokens or crypto-coins for free. It would seem that there should be a cover here. However, it is profitable for some companies to give them away. So it is worth understanding how it works and whether it is possible to make a profit from it.
What is a cryptocurrency airdrop?
A cryptocurrency airdrop is a marketing strategy where a company or community sends coins or tokens to your wallet. A small amount goes to the wallets of active members of the blockchain community for free or for performing a simple action (for example, sharing a post from the company’s blog on your twitter).
The main goal of the company is to increase its visibility among the target audience, as well as to improve the circulation of new tokens/coins. Plus, this way the organization not only draws attention to itself and the coin, but also encourages community members who supported the project.
This principle is somewhat similar to promotional codes for discounts, coupons and other promotions. It’s simple, fast and cheap.
To take part in the promotion, as a rule, you need to subscribe to the company’s profile in social networks, become a participant in the draw, make a repost or create your own post with a specific hashtag.
How the giveaways happen and how to become a participant
Cryptocurrency is automatically deposited into the participant’s wallet. It is distributed among all accounts that participated in the giveaway.
To become a member, you usually need:
- Register on the company’s site. This usually requires entering an email address or scanning a QR code. Or it is enough to already have a profile in the game or another project that conducts the promotion.
- Fulfill additional conditions. They may not be. However, sometimes companies are asked to repost a publication in social networks or to personally publish an entry with a campaign/project hashtag. When the user fulfills all the conditions, the coins are sent to the wallet automatically or arrive after the end of the promotion.
Usually, the project itself publishes detailed instructions on how to get funds. Usually, airdrops are heavily promoted, as it is profitable for companies and developers to get users to participate. After all, the main goal is to increase recognition and hype.
Most often, instructions are published on social networks. This is usually Twitter, Discord, or Reddit. The last two sites are the most active. Less often, companies do e-mails, sending you an offer by mail.
So, in order to find out about the promotion and not miss anything, you should subscribe to the social networks of projects that interest you.
Sometimes airdrops are also advertised on cryptocurrency forums.
Why do companies need airdrops?
How much a coin of this or that cryptocurrency will cost largely depends on the audience’s interest in it. The greater the interest, the greater the cost. Usually.
If the new coin arrived at various wallets and users published information about it on their social media accounts, the project could become mega-popular in a fairly short period of time. And considering that all this is free, the probability of collecting many users increases significantly.
Thus, airdrop solve several tasks at once:
- Increase the visibility of the company or project.
- They make cryptocurrency more popular, improve its circulation and value.
- They help attract new users to the project.
- They help win the loyalty and trust of already existing users (old residents of the project).
And all this – with very little investment on the part of the company.
Types of airdrops
There are many types of airdrops, but the main three are:
- Standard. In this case, the user simply needs to express his interest in receiving the coin/token to his wallet. Anyone can participate. A person just needs to provide a valid crypto wallet address. However, more often than not, one more additional action will be needed in the form of a repost or something similar. Standard airdrops often have a limited number of tokens to distribute. Therefore, such promotions usually do not last long.
- Exclusive. Airdrops for a certain circle of people who have somehow distinguished themselves in the project. For example, they supported its initial formation. Or took an active part in its development. Or are the first followers. It can also be company employees.
- For owners. Funds go to users who already have a certain amount of specific tokens/coins in their wallets. Sometimes the amount must be specific. Funds are usually credited automatically. Because wallets and blockchain information are part of a publicly distributed ledger, all blockchain users are completely transparent. So, the system itself determines to whom to credit coins.
As a rule, in the last two cases, a person does not even need to do anything. Free crypto coins will simply arrive in the wallet on their own.
Where to look for such projects
There are special aggregator sites that publish future airdrop promotions. The most famous and popular – Airdrops.io, ICOmarks.com, AirdropKing.io та AlertAirdop.There are also several Twitter profiles on the topic: Airdrop – Free Crypto (For All), Airdrop Inspector, DeFi Airdrops, AirdropDetective.
Is it possible to make money from it?
You can. However, given that it does not require much effort. For example, when you just need to repost, post an entry with a hashtag, etc. You can say that you get tokens for almost nothing.
After receiving the funds, it will be possible to earn additional money on them later. Example:
- Sell to someone else. However, this is possible only after the project is listed on the stock exchange.
- Wait until assets increase in value. And sell a higher price.
- Use to purchase other assets. For example, objects in the game, if it is a game project. Or you can buy NFTs on them.
Regardless of the situation, you will be in the plus. However, it is not a fact that the profit will be large. A lot depends on whether the project or the currency will take off.
Beware of scams: How to avoid scammers
As in all popular financial niches, fraudsters often operate here. Therefore, the project and handouts must be selected carefully. Here’s when you should be vigilant:
- Suspicious activity from a fake project. A fake project or company may offer crypto in exchange for information. Yes, fraudsters can collect usernames or cryptowallet access codes. After that, user profiles are hacked and all funds are taken. If you are asked for personal data, if the reward is too big or the offer is too good to be true, it is most likely a scam.
- False promises. In this case, you may be asked to invest in a new super currency that will definitely shoot up. Or promise mandatory payments. Usually only scammers do this. In principle, the mention of guaranteed payments is almost always a suspicious signal.
- Requirement to transfer funds first. If you are told that the coins will arrive in your wallet only after you transfer real money, this is a scam. Airdrops are made for free. Always.
- False checks. Crypto wallets have additional protection in the form of a password and passphrase. Scammers may call themselves tech support staff and ask you for a secret passphrase. This cannot be done. The password and passphrase from the wallet must be known only to you and no one else. If you find suspicious requests and activities from third parties, contact the company representatives directly.
Since crypto is not actually regulated by the state or any central large organization, the funds in the wallets are in particular danger. If you lost them, it will not be possible to return the money and punish the fraudsters. However, this does not mean at all that you should refuse to participate in airdrops. The main thing is to turn on your brain in time and not trust the first project that catches your eye.