Crypto Airdrops 101
Have you ever heard of “Polymath”? Polymath is a cryptocurrency, and at the very beginning of 2018 they decided to host an airdrop instead of an ICO. They gave all participants 250 POLY tokens, which at the time of the airdrop, was worth a whopping $250 USD.
How about PiedPiper? While technically a “meme coin” (kind of like Dogecoin), they airdropped 750 PPI tokens earlier this year as well. At the time of the airdrop, those 750 PPI tokens were worth roughly $75 USD. Pretty good considering they were given away for free.
Now, those are just two of the more well-known airdrops that have occurred already in 2018. There are hundreds, if not thousands of airdrops happening all over the internet right now. And they are a fantastic opportunity for the average crypto investor to make a bit of money with very little effort or risk.
But before we talk about how to participate in an airdrop, let’s cover exactly what an airdrop is.
What is an airdrop?
In its simplest form, an airdrop is a way for a cryptocurrency project to distribute some of their tokens to the general population whilst simultaneously increasing their brand awareness.
Think of it this way: You’ve just created a brand new crypto project and you want to get the word out. However, you’ve got no money to spend on traditional advertisements, so instead, you decide to give away 10% of your project’s tokens for free.
After a few thousand people have signed up for your airdrop, you close registrations and start the token distribution process. Now there are thousands of people holding, trading, and telling others about your tokens, and the people who signed up for the airdrop can sell their tokens for a little bit of money. It’s a win-win.
How do I enter an airdrop?
As stated earlier, there are thousands of airdrops out there, and each airdrop can have different entry requirements. However, the vast majority of airdrops have very similar entry requirements:
- Follow a link to the specific airdrop.
- Enter your email address, first & last name, and create a password.
- Perform some social media tasks (sharing a post on Facebook, following them on Twitter, joining their Telegram channel, etc, are common airdrop requirements).
- Provide your Ethereum address (most airdrops use the Ethereum blockchain).
- Wait for the tokens to be airdropped to your Ethereum address!
Some airdrops will only require an Ethereum address, while others might require a scanned copy of your Passport. It’s always a good idea to pay close attention to what each airdrop is asking you to do, as they all differ slightly.
Aren’t there a lot of scam airdrops?
Absolutely! The crypto world as a whole is infested with con-artists, scammers, thieves, fraudsters, and worse, which means you need to be incredibly careful when scouting out new airdrops to participate in.
There are a few guidelines that you should follow when participating in airdrops:
- Never give your private key to an airdrop.
- If an airdrop sounds too good to be true, it probably is.
- Don’t trust an airdrop that asks you to send them ETH.
- Make sure the airdrop has a whitepaper, a legitimate website, and a reason to exist.
Where can I find airdrops?
Airdrops can be found all over the Internet. Some of the best places to look are Facebook groups, Twitter, Reddit, and the Bitcointalk forum. There are also some great Telegram channels dedicated to drawing attention to new and profitable airdrops.
Perhaps the best place to find legitimate airdrops is an airdrop aggregator. These websites search the internet and list all of the new crypto airdrops in one place! All you have to do is check back every few days and participate in as many airdrops as you like.
For a place to start, we recommend checking out Airdrop Scouter.