Are you confused about what crypto airdrop meaning? Ok… fine! I am obviously not talking about airdrop in iPhone or iPhone 7. I am talking about cryptocurrency free airdrop coins i. When someone hears about cryptocurrency airdrops for the first time, it will sound like as if cryptocurrencies are falling from the sky, but that is not true in any way at all. Free coin airdrop is whenever a new coin comes up in your cryptocurrency wallet , maybe you already have an existing crypto-coin in the wallet.
Simply put that, airdrop is a kind of compensation for keeping those coins until new tokens are offered by any cryptocurrency start-up to promote their brand new crypto projects, or DApps. In the right definition, airdrops are processes, whereby new tokens or coins are awarded or distributed to investors that has already existing coins like, Bitcoins or Ethereum etc.
Apparently, cryptocurrency airdrops are not coins that fell from the sky — that is to say, Airdrop coins are those new token, or coins you get as reward for HODLing some of the early popular cryptocurrencies of a project.
It is also, those cryptocurrency tokens that is mostly given as reward to completing certain social tasks online. As long as you have the mother coins already in your wallet, before the free droppings starts, you will definitely get some portion of the newly hard forked cryptocurrency token.
Actually, in cryptocurrency world, there are so many ways to create buzz or hype for distributing the supply of new DApps and tokens most known as Crypto Coins , these are the general free use of airdrops. The first reason why there are airdrops in cryptocurrencies, is to evenly distribute the total supply of tokens, and that will lessen the centralization in terms of HODLers holding large amount of coins to themselves.
This is an idea to make parent coin investors to hold their tokens for a longer time. Most companies also use this process to reward their early ICO investors for patronizing their new projects. Most times, to create awareness for latest coins that are emerging into the crypto space, airdrops are offered to the HODLers of early DApps like Bitcoin, Ethereum, Monero etc.
Airdrops recently, is becoming one major form of marketing techniques to attract investors and also collect leads for business opportunities and expansions. These kinds of airdrops are called Crypto Bounties. Bounties are the new tokens given to individuals for completing a task e. Forking is a technique used for bringing out and awarding HODLers some new tokens or coins, for holding most trending and popularly known cryptocurrencies like; Bitcoin, Ethereum, Monero, Litecoin etc.
Sometimes, new coins that are distributed to the early investors of those coins are also created totally on a fresh blockchain node. Most of the times, the distribution process of airdrops differs according to the rules of various cryptocurrencies. For example, some airdrops may require that you follow the company profile on Twitter, while others require joining them on Telegram.
If you are interested in participating in a cryptocurrency airdrop, there are things which you need to do first to bypass some of the risks that comes alongside:. Step 1: Get a free or paid strong VPN to help make your cryptocurrency transaction anonymity, very strong. Ledger and Trezor are mostly supported for airdrops. This will help to maintain high safety for your existing coins. Step 4: Create a new email address for the airdrops and avoid using regular emails for airdrop registrations.
Step 5: To participate in any crypto airdrop, you will have to be informed before taking any step because most airdrops are obvious scams. Step 6: For clarification purposes, you should be aware that some airdrops require a verification with your vital documents like; drivers license, international passport or any other ID especially if the company is working with KYC — Know Your Customer.
Step 7: After the verification process you will mostly receive a mail for confirmation, sometimes the email may go to your spam box or junk folders. Make sure you check those places in case you do not receive it in your email inbox. Step 8: Once it gets to the distribution date, you will receive the airdrop coins mostly known as Tokens. Airdrops are of different types and they all come with set of actions as well as requirements.
The types of airdrops are:. Just your name and email address is mostly needed. This is one of the simplest way to make money with cryptocurrencies airdrops. This is the type of airdrop you get when you HODL a specific coin in your cryptocurrency wallet before the airdrop starts. The airdropped coin or token will be given according to a ratio set out by the project. An airdrop is an unsolicited distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses.
Airdrops are often associated with the launch of a new cryptocurrency or a DeFi protocol, primarily as a way of gaining attention and new followers, resulting in a larger user base and a wider disbursement of coins. Airdrops aim to take advantage of network effect by engaging existing holders of a particular blockchain -based currency, such as Bitcoin or Ethereum in their currency or project.
In the United States the practice has raised policy issues about tax liability and whether they amount to income or capital gains. A Dusting attack is one important risk of crypto Airdrops to take into consideration. This article relating to cryptocurrencies is a stub. You can help Wikipedia by expanding it. From Wikipedia, the free encyclopedia. Retrieved 8 March Retrieved Proof of authority Proof of personhood Proof of space Proof of stake Proof of work.
Ethereum Ethereum Classic.
What Is a Cryptocurrency Airdrop? Airdrops are. huge.crptocurrencyupdates.com › news › free-cryptos-topupcoming Participate in crypto airdrops right on CoinMarketCap, see our full crypto airdrop calendar, including cryptocurrencies, token and other cryptoassets for.