What is a Crypto Airdrop?
Cryptocurrency airdrop is a marketing plan; It comes in the form of a promotional strategy mostly carried out by blockchain-based startups to increase their project’s visibility and bootstrap their supply chain. They are dedicated to build a larger user-base that will make the new token to be quickly listed on the cryptocurrency exchanges. These free distributions are commonly known as airdrops.
These airdrops may become valuable as the cryptocurrency project soars. Airdrops are mostly unknown tokens for early adopters and hardly be distributed in BTC or ETH.
What are crypto bounties?
Cryptocurrency Bounties are incentives in the form of tokens given to users who successfully complete tasks aimed towards promoting a crypto/blockchain project. In most cases, the tasks may be simple, varying from social media tasks (such as joining their Telegram group, reposting on Twitter, etc.) to signature campaigns. It’s a win-win scenario being played out as the cryptocurrency project gets free marketing leap, while the bounty recipients get free tokens. Most of the airdrops that we present are “bounty” drops, which will reward you with tokens for completing simple tasks.
There’s a slight difference between bounties and airdrops and the difference is mainly based on tasks and requirements needed to accomplish tasks. Bounty related-tasks require a repetitive process and some form of authentications while airdrops tasks are one time activity and simpler. In airdrops, tokens are simply distributed by companies without any requirement.
Are these free tokens having value?
This is one question that could be in the mind of every participant, considering the fact that, the token is free. The answer is definitely “yes’.
For some tockens, we’ve had some unimaginable bull markets where the prices of cryptocurrency tokens reached the roof-top which also meant the same for the free tokens. A good illustration was seen between 2017 and 2018 where the best of airdrops hit the height of over $400,000.
Most of these freebies are pre-sale events just to promote the project and a minimum of 1% of all tokens are made available for an airdrop. One could imagine the impact it could make if the project becomes successful.
The following cryptocurrencies were initially distributed for free and they turned out to be a BOOM to the holders.
• Stellar Lumens
Why are crypto projects and ICOs giving away coins for free?
Cryptocurrencies become valuable when people believe in them and they get wider acceptability. The more people own a cryptocurrency, the more likely the value increases.
Given the insane competition among the cryptocurrency startups, giving freebies is a swift strategy to swim out of the murky water. Airdrops and other freebies create a vast network of users who are motivated to push the project’s success via community voting for exchange listings.
By rewarding token holders with airdrops, this can encourage them to hold their coins for a long-term. This could effectively lower the selling pressure of the coin.
What do I need to participate?
To get started with crypto airdrops and bounties, you have to do small tasks such as joining a Telegram chat groups or following them via their Twitter account.
There’s a waiting period prior to the distribution of the airdrops, after the completion of the task. This takes several weeks pending when it will be listed in exchange and all expectations meet. Don’t worry if it has to take long, just make sure you did everything right; otherwise you might end up not getting anything.
The coins are sent only to crypto wallets. Therefore, it is necessary that you have at least one cryptocurrency wallet address and it is recommended to have wallets on several crypto platforms(ETH, TRON, EOS, NEO…)
Listed here are four tools you need, to be eligible to participate in about 90% of all airdrops we post here on Prices.org:
- E-Mail address: We recommend to create a special one for airdrops
- Telegram account: https://telegram.org/
- Twitter account: https://twitter.com/
- Ethereum Wallet Address: We recommend https://www.myetherwallet.com/, apps like Enjin or Jaxx. You can also use hardware wallets like the Ledger Nano S. But DO NOT use a wallet address of an exchange for security reason.
- Facebook account: http://fb.com
Safety rules for participating in airdrops
We are participating in airdrops ourselves. We can tell you now that majority of the airdrops are scams or completely worthless.We list on Prices.org/Airdrops Only the best of the best Airdrops, which have the highest chance to be valid and profitable!
Websites that hurt your eyes — or the same WordPress template for the dozens of the projects — are a red flag. Missing white papers, or displaying the same faces on the team’s section — another red flag.
But there are some great projects, with real value and it is a shame not to participate in those airdrops. Previously, we’ve had great airdrops, like Stellar. They were giving you 1,000 coins if you registered on their website. In January 2018 that was worth around $850. That is a pretty good amount, don’t you think?
Another great example of a successful bounty airdrop is the Ontology (ONT) token which is built on NEO. To participate in this airdrop you only needed to subscribe to the Ontology newsletter and you were dropped with 1000 ONT. The airdrop was held during January 2018, and when writing these lines the price for one ONT has recently crossed $4!
Also, meet the airdrop of Polymath, an ERC-20 token built on Ethereum. They had an airdrop in December 2017. For signing up on the website, users were dropped with 250 POLY. In February 2018 that was worth $400. Yes, only for signing up.
So here are the 7 tips I have collected from participating in airdrops over the past couple of months:
Never pay for an airdrop
If the “blockchain project” is asking you to pay in order to participate in the airdrop, get away very quickly.
Never share your private key
This rule applies for the everything in the crypto world, but it is good to mention it again. This is the most important rule. Never give your actual, real wallet to just anybody, right?
Create a new dedicated email address
I’d advise you to create a new email address that you only use for airdrops. It’s even better if you use different emails for each airdrop registration. This is possible if you have your own domain name, and you can create an email alias for every account. For example “email@example.com”. You won’t actually create an email, you will just forward all email coming into your one domain to an actual email address. But just creating a new email that you only use for the airdrops is the best and easiest option.
Never give your private email
Never give your primary email address. There are simply too many scams out there, and I’m not comfortable sharing my name with projects that aren’t yet known and established.
Never use the same passwords for the different websites
This rule applies for all your accounts, and especially for airdrops that require registration for their websites. Good practice is to use one of the password manager applications or an online password generator.
Try to Avoid KYC airdrops if you are suspicious
Create a new Ethereum address
Since most of the projects are built on Ethereum good practice is to create a new Ethereum address that you only use for airdrops. Even if there is no massive danger in sharing your public address, I feel safer when all those projects do not know how much Ethereum I have. More than that, data collectors like to sell this high-valued info.
What to do with dropped tokens ?
OK, so you have applied for some airdrops and what now? Well, in most cases you need to wait for the ICO to end for the token distribution. Then, if you do not want to HODL the tokens, wait for them to be listed on some crypto exchange.
Even if there are a lot of scams in airdrops, and many are worthless, there are still some that are great and legit projects with worth airdrops. In the bearish market that we are currently experiencing it may not be worth too much (airdrops are usually worth around $5). However, if and when we get the next bull run they could turn into a respectable amount. And you never know what coin is the next Stellar.
I didn't receive the free tokens after completing the airdrop?
Understandably one should be eager to receive his/her free tokens the moment, the task is completed but it doesn’t happen that way. Yes, the airdrops usually take place during the pre-sale but the distribution of the free tokens is done after the post-sale when some success has been recorded. The waiting period can last up to several weeks depending on some underlying factors.
In few cases, one might not be able to receive free token if the cryptocurrency project fails to live-up to expectation.
Another factor, as always, is that, there are both good and bad businesses in this cryptocurrency space; that’s why one needs to be very careful and subscribe to ALL airdrops, to not miss success of some companies. Which even can change your life!! For free!!
How can I withdraw my airdrops?
It’s super simple! The company may send it directly to your cryptocurrency wallet or sometimes, a participant needs to login into the company’s website using the account created to initiate the withdrawal process.
The duration of the withdrawal process may vary from one project to another.
Where can I sell my airdropped crypto?
Your airdropped token is a sought-after digital currency so you can sell them on any exchange they are listed on. Since the cryptocurrencies mainly come from new start-ups and they are not yet listed on the big exchanges like Binance, you can sell them on minor exchanges like Kucoin or others.
As long as you have decided to sell, scan through the list of the exchanges, to see the one that offer the best deal. Then, you only have to create an account at the exchange and sell your digital currency for BTC, ETH, USD or EUR.
However, I strongly advice that, one shouldn’t be fast in selling them, because you never know how valuable they may get. A good illustration was the Bitcoin cash (the biggest Bitcoin hard fork) which later hit $4300 in value per coin after some folks sold off their airdrops for 300-400USD.