- An airdrop is a way of distributing digital assets, most specifically crypto, to the wallets of existing or potential users, usually for free or in exchange for some simple tasks.
- There are a number of websites that provide a list of airdrops for you to choose from, including CoinMarketCap, CoinGecko, AirdropBob, Airdrop King, Airdrops.io, and Airdrop Alert.
- Of course, it is recommended that you do your own research and thoroughly evaluate the project’s background, team members, and overall credibility before joining an airdrop.
In our recent discussion about the 10 available ways to earn free crypto in 2023, our first on the list is through joining projects’ airdrops.
And for today’s article, learn how to earn free crypto through airdrops in 2023. Our comprehensive guide will walk you through the process, risks, and best practices to boost your crypto portfolio.
Introduction to Airdrops and Earning Free Crypto
An airdrop is a way of distributing digital assets, most specifically crypto, to the wallets of existing or potential users, usually for free or in exchange for some simple tasks.
These tasks include sharing their social media accounts, making a review of the project’s website and services, signing up for a newsletter, or holding for a specific crypto.
Understanding Airdrop Mechanisms
Usually, airdrops are used by new projects and startups to introduce their token, promote their platform, gain attention, and attract new users. And aside from free cryptocurrencies, airdrop participants could also receive NFTs, such as artwork, musical pieces, or other collectibles.
I remember when I was walking along SM Fairview, there was a newly open store that gives away free ₱100-worth of their brand vouchers when you sign-up to their system to receive advertisements via email. The same promotional style is applied to airdrops, as projects give away free crypto and other assets to expand their ecosystem.
History of Famous Airdrops
The first known airdrop was recorded in 2014, when Auroracoin, a crypto project that aimed to be Iceland’s national cryptocurrency, planned to distribute 50% of the $AUR tokens to Icelandic citizens that hold a national ID.
However, the airdrop faced many challenges, such as legal issues, technical difficulties, and a low adoption rate. The value of $AUR also plummeted soon after the airdrop, and the project was eventually abandoned.
Meanwhile, one of the most famous airdrops was in 2017, which reached over half a million addresses, when OmiseGo announced that it would give away 5% of the total supply of $OMG tokens to users that held at least 0.1 ETH in their wallets.
In 2020, Uniswarp airdropped 400 $UNI tokens to those who used the exchange before September. Months later, 1 UNI was valued at $44.92, the token’s all-time high.
On the other hand, a unique airdrop was made by Ethereum Name Service in November 2021, which gave away $ENS tokens to anyone who had registered an “.eth” domain. The twist is that the amount of $ENS that a user will receive depends on the length and duration of the domain name.
How to Participate in Airdrops
If you are interested in earning free crypto by joining airdrops, there are a number of websites that provide a list of airdrops for you to choose from, including CoinMarketCap, CoinGecko, AirdropBob, Airdrop King, Airdrops.io, and Airdrop Alert.
Once you find an airdrop that you think you can complete, it is time for you to follow the instructions to be able to join. The process may require you to create an account, follow their social media accounts, or hold certain tokens in your wallet. You may also need to provide your email address, wallet address, or other personal information to receive the reward.
After you have completed the tasks, you should receive the tokens or coins automatically in your wallet. There are also airdrops that just give limited rewards, so what they do is draw who will receive them.
Lastly, some projects may take days to distribute the rewards, so be patient and check your wallet regularly.
Risks, Scams, and How to Avoid Them
Unfortunately, while airdrops are good opportunities to earn free crypto, we cannot deny the fact that bad actors always exist and that there are risks associated with joining them, which some platforms like Binance and CoinMarketCap call an “Airdrop Scam.”
Basically, through an airdrop scam, antagonists steal the personal information, whether provided or through phishing attempts, of the participant to be able to steal the assets in the wallet or be a future asset. There are also projects that promise large amounts of reward but then do not follow through.
In addition, some bad actors also use airdrops to manipulate the market and create artificial demand for their tokens, including price fluctuations.
Final Thoughts: Earn Free Crypto Through Airdrops
Thus, to be able to avoid these risks associated with joining airdrops, it is crucial to approach airdrops with the utmost care and consideration.
Of course, it is recommended that you do your own research and thoroughly evaluate the project’s background, team members, and overall credibility before joining an airdrop. Give also time to understand the terms and conditions of the airdrop, including any requirements or restrictions.
By carefully evaluating each opportunity and exercising due diligence, you can maximize your chances of benefiting from legitimate airdrops and earn more free crypto that will expand your portfolio.
We hope this guide helps you in understanding what airdrops are, as well as possible risks. Have you tried airdrops before? What was your experience? Let us know in the comments!
This article is published on BitPinas: Boost Your Crypto Portfolio: How to Earn Free Crypto Through Airdrops in 2023
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.