What are Airdrops? Are Airdrops a Scam? In this article, we will see how, and what, are the methods to get free cryptocurrencies without being scammed..
In fact, so called, it seems one of the usual scams that hover on the web, ready to attract those who want easy earnings by fiddling with their smartphone or pc. Without particular worries or need to inquire about the object of your investment.
Therefore, the purpose of this complete guide on Airdrops is precisely to provide all the useful explanations, to dispel any right doubts when it comes to cryptocurrencies.
The guide will be divided as follows:
- Airdrop: what it is
- Airdrop: how it works
- Airdrop: frequently asked questions
- How much do you earn from airdrops?
- Why are airdrops thrown?
- Are Airdrops Scams?
- Risks of an Airdrop
- How to participate in an airdrop
- Kind of airdrops
- Is it worth taking part in the airdrops?
- Conclusions
Airdrop: what it is
What is an airdrop? It all starts with their translation from English, which literally means: "launch with a parachute".
In fact, airdrops are an opportunity "rained down from above". In this case, it is not daredevil hobbyists or heroic soldiers to be launched, but they are tokens (or coins) received for free.
Airdrop: how it works
How does an airdrop work? First of all, in almost all cases, an erc20 compatible address (Ethereum Blockchain) is needed.
When an Airdrop ends, the tokens (or coins) are sent to the indicated wallet address. Generally, for a total value that fluctuates in a range between 1 and 5 dollars.
Those who launch an airdrop use a part of the project's tokens, usually 2/3% of the expected total. Then sent to those who decide to actively join the campaign.
The latter will have to perform specific actions, nothing transcendental, usually they are all "social" actions.
These actions vary by campaign.
It may be required, for example:
- To register on the site that launched the airdrop
- Follow one or more official social channels
- Subscribe to his channel
- Invite other people to join the project
Airdrops: FAQ
What is the airdrop in cryptocurrencies?
This is an initiative used a lot during ICOs (Initial Coin Offering) and which aims to distribute free tokens
Are airdrops affordable?
They can be convenient for earning small amounts. To try your luck, however, it is better to move on to real cryptocurrency trading which can generate profits if you use serious and authorized platforms, and if you make the right movements.
Why are airdrops used?
As a matter of visibility, they consist of initiatives that have the aim of launching cryptocurrencies or to push an ICO, for example.
How much do you earn from airdrops?
The earnings seem a pittance, but if you manage to raise your antennas well on the various airdrops that take place every day and maintain a certain consistency, you could even get to earn figures ranging between 10 and 50 dollars.
Furthermore, another element needs to be added: sometimes, when the project is successful, the tokens received also see their value increase significantly.
Taking a concrete example, think of OmiseGO, which donated 9.7 OMG via airdrop for each ETH held in its wallet. As well as 0.3 OMG for each OMG.
Those who joined the initiative found themselves with Omisego tokens which, after a few months, reached $ 24.00.
Not to mention the UNI tokens: in this case the sum donated reached almost $ 5000.
Why are airdrops thrown?
This question is also legitimate. You may actually be wondering what airdrops doers get out of it. Obviously, nobody does anything for nothing. Especially when it comes to money.
In fact, the Airdrop campaigns aim to reach a very large slice of users, therefore to get good publicity, avoiding "traditional" advertising channels.
Generally, airdrops are a widely used tool when you are about to launch an ICO (Initial Coin Offering). Tool used to raise funds.
In this way, users are attracted closer to the project and perhaps attract potential investors.
It is a bit like when a perfume brand distributes free samples to let people discover the new fragrance.
Furthermore, all this generates a great word of mouth, the classic friend who tells a friend that there is an airdrop, who then calls a friend and the friend of the friend who heard from his friend ... in short, here we are understood
Are Airdrops Scams?
Are airdrops a scam? As we often respond when it comes to cryptocurrencies, we respond with a depends. Yes, it depends on the channels you use.
Scams are always around the corner and participation in airdrops can also be a scam. In the next paragraph we see what are the related risks and how to pay a minimum of attention to distinguish lawful things from scams.
Risks of an Airdrop
What are the risks of participating in aidrops? The fact, for example, that they may request certain personal data. Above all, the private key of your wallet.
This is a fact that should NEVER be given. It is as if you give the Pin code of your ATM or the keys of your car or your home. In short, do not, EVER.
A legal and transparent airdrop, aka HONEST, will ask you only and exclusively for your PUBLIC address to receive the tokens. Otherwise, you seriously risk that they will empty your entire wallet.
Then pay attention to those who offer themselves as intermediaries between you and an airdrop. By offering you assistance to be able to participate, for example, by asking you for the private key of your wallet. Or other sensitive data.
On communities, especially those frequented by nerds, there are many bad guys who disguise themselves as good Samaritans.
Limit yourself to only receiving advice if you are a beginner, but do not give any private data.
I would like to elaborate a little more on this aspect: never give your private data to anyone, limit yourself to the public address, and nothing more. If you do not trust, do nothing, do not be duped by those who promise you $ 1000 by sending $ 10 to a certain address. In short, always use your head and common sense. Your money is at stake.
How to participate in an airdrop
What do you need to be able to participate in an airdrop? I point out from the outset that this is a "generic" list, often needed less, sometimes more.
In any case, a few simple but essential things are needed:
- Have a social profile. Possibly one or more between Facebook, Twitter and Instagram
- Install, if you do not have it yet, the Telegram messaging app on your smartphone (in this regard, I point out my telegram channel where I share the platforms that I consider safe to get free crypto: LINK HERE)
- Provide an email address to be able to register on the official website of the company that created the advertising campaign
- Have a Wallet where the tokens will be sent. This is a digital wallet. The most used is the Ethereum blockchain (ERC20).
I recommend using MetaMask, ERC20 wallet. Wallets will give you a private key, which you must jealously guard and never give to anyone, NEVER, really. Never to anyone. Furthermore, I recommend that you exclude enrollment in exchanges, which provide a wallet but not a private key
Kind of airdrops
What and how many types of aidrops are there? The following:
- Standard: they only require registration, in order to stay updated on the project through newsletters
- Bounty: some action needs to be done on social media. For example, sharing a link or involving other people to join projects
- Holder Airdrops: you must already own a cryptocurrency in order to get a free one. We did the Omisego example first, but Tron also did something like this
- Exclusive airdrops: this type is usually managed and hosted by websites and social profiles with a large following. You will be able to participate in the airdrops by being part of that Community
Is it worth taking part in the airdrops?
All in all, we can answer yes. After all, it is a free activity and requires a few simple actions to perform. Furthermore, once you understand how it works and participate in the first airdrops, it will be very simple and you will always go hunting for new opportunities.
Obviously, always be careful about who promotes them and the sensitive data they ask for.
An example of an airdrop is Coinbase earn which, among others, offers around $ 50 in Comp (Link here), and $ 40 in Band (Link here)
Conclusions
So, in conclusion, I can tell you that airdrops can be suitable for those who are new to cryptocurrencies and want to earn a monthly nest egg with little effort.
Obviously, another matter is to invest seriously in cryptocurrencies. In that case, you need to use serious sites, among others, I recommend Binance, Okex, and Coinbase.
With this article I hope to have provided you with useful information on what an airdrop is and how to avoid scams, I wish you a good day (or good evening, it depends on when you read) and as always: thanks for reading this far, and see you next time!
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