In this article we are going to talk about cryptocurrency airdrops. We are going to talk about the following topics: What is an airdrop, why are there airdrops and what can you do with a crypto airdrop?
Table of Contents
What is a crypto airdrop?
An airdrop is a way in which you as a cryptocurrency enthusiast can receive free coins or tokens. You can qualify for these free tokens by signing up for an airdrop. An airdrop is often only available for a few days or weeks. It is therefore important that you do not delay registering for this for too long.
By means of an airdrop you can get acquainted with a cryptocurrency project in a non-binding way. You do not have to invest in a project to be eligible for an airdrop. In many cases you can already sign up for an airdrop by leaving only your email address and wallet address. Your wallet address is required, because that is where you will receive the tokens.
The value of an airdrop can vary enormously. In most cases, however, it is between $1 and $20. So earn good money for 5 to 10 minutes of work. However, there are also exceptions that are worth a lot more than 20$. One of the most successful airdrops has been that of Ontology (ONT). If you signed up for the ONT newsletter in January 2018, you received 1,000 ONT tokens. If you sold it in June, you would have earned more than $9,000 from a free airdrop.
What us the reason of airdrops?
It is very difficult for new companies in the blockchain and cryptocurrency industry to gain brand awareness these days. It is extremely difficult to stand out among the hundreds of other companies with their own cryptocurrencies. For this reason, in some cases it is decided to do an airdrop to gain brand awareness. This often happens in the start-up phase of the company, because the tokens are still worth little at that time.
Doing airdrops is therefore a good and relatively cheap way for new companies to increase the reach of their own cryptocurrency coin or token.
What can you do with an airdrop?
As mentioned before, an airdrop is a way to earn free coins. These coins always have a certain value. It is impossible to predict in advance how high this value will be at the moment that the coins are tradable.
Once you have received your coins and they are tradable, you can sell them. In many cases, however, there are a lot more people with you who have received the airdrop who also want to sell at that time. Selling directly is therefore not always the best option. Ontology is perhaps the perfect example of this.
