What are Airdrops?
If you are anything like me, then you must have been seeing the word ‘Airdrop’ attached to several ICOs but have absolutely no idea what it means. Well, I have gone past that stage and now know a thing or two about airdrops.
Let’s dive in…
An airdrop is a community based distribution of pre-mined cryptocurrencies, typically to early adopters and supporters. Put differently, airdrops are free coins waiting for you to pick up. While this may seem crazy and illogical, airdrops are marketing strategies – a way to spread awareness to a relevant audience. Think of it like a “buy 2, get one free” promo. After all, we all like free things.
Still on the subject above, there are a number of reasons why blockchain-based businesses perform airdrops. Some common reasons include as a reward to loyal customers, to generate leads, and to create awareness about a new project.
Blockchain-based startups or already established blockchain enterprises can decide to perform airdrops. While the latter often comes as a surprise, startups typically announce their airdrops before-hand, to get the buzz going.
Participating in Airdrops
This post won’t be complete if we don’t get to learn how to participate in airdrops. Here are some of the tools you’ll need:
- Ethereum Wallet: Note that this has to be an ERC20 compatible wallet, not the wallet associated with your online exchange account like Binance or Poloniex.
To quickly get started, create an Ethereum wallet with ‘MyEtherWallet’ or ‘MetaMask’, if you don’t have a hardware wallet.
- Active Wallet: Since airdrops are relatively free, anybody can decide to create multiple wallets just to receive funds. However, creating multiple wallets in an attempt to cheat the system may not work.
Have an active wallet. So, start now my creating a wallet and performing some transactions with it.
- Telegram/Twitter Account: Most ICOs have Telegram groups, and as one of the requirements, you need to be part of the group until after the airdrop (that’s if you choose to exit afterwards).
- Email Address: Some airdrops may also require you to input your email.
Protection Yourself from Scams
Like I always say, the crypto space is a wild west, and there are hundreds of scammers who are out there trying to deceive and steal money from gullible newbies. Here are some safety measures to ensure you don’t lose your funds or tokens.
- Never send your private key to anyone
- Don’t send money to any address, on the promise that you will be rewarded
- Visit the official ICO channels for news
With all of these in place, I believe you are well on your way to get some free coins from airdrops.