What Are Crypto Airdrops? And How to Make Money From Them
Since the inception of the cryptocurrency industry, airdrops have become synonymous with ‘easy money’ for many cryptocurrency users. Let’s dive into what are crypto airdrops and how to make money using them.
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Unfortunately, despite their popularity in the industry, many crypto users and enthusiasts still have no idea what they are and how they operate.
The impact is that only a select few within the cryptocurrency community benefit when there is an airdrop of any project.
Luckily, the concept behind crypto airdrops is simple, and everyone can learn how to anticipate and use them.
A crypto airdrop, in its simplest form, involves sending small amounts of new virtual currency to the wallets of active members of a given cryptocurrency community or a blockchain project mostly for free.
Or, in return for doing mundane tasks such as promoting the cryptocurrency or the blockchain project using social media platforms or to your friends and relatives using any means of convenience.
See related: Celestia Crypto Price Prediction for 2025-2030
What is the Purpose of Crypto Airdrops
Crypto airdrops generally have two purposes, depending on the perspective from which they are being looked at.
The first one is they are used for promotional activities, in most cases, by crypto startups, new blockchain projects, or during the initial coin offering to get more people to trade the project.
Crypto airdrops help these companies drive adoption and engagement to their project, allowing them to build a loyal user base while creating awareness and visibility of the project.
They also increase the liquidity of the new projects by getting users who receive the airdrops to start trading with the cryptos immediately.
From the perspective of the users receiving the airdrops, crypto airdrops are not only free, but they also offer them exposure to new cryptocurrencies.
Therefore, they profit while still enjoying the benefits of the cryptocurrency project.
Even when a crypto airdrop requires users to perform tasks such as following the project on social media, sharing the project’s posts, or signing up for their newsletters, the benefits always outweigh these tasks.
See related: What are the top 5 cryptos for 2024?
How do I participate in Crypto Airdrops?
Although every crypto airdrop campaign is unique, most have a few similarities that participants must meet to qualify.
One of the first major requirements is that users seeking a crypto airdrop must hold a minimum quantity of crypto coins in their wallet.
The requirement ensures that users receiving the airdrops are registered on the platform, have been using the project, know how the project operates, and can trade immediately after receiving the airdrop.
The other requirement is that they follow the project on social media or they have shared content of the new project on social media.
For instance, a project can ask users to share on Facebook or repost on X in order to qualify for the airdrop.
These actions aim to popularize and market the project to create ‘hype’ around it, which helps it gain traction in the crypto community.
What are the different kinds of crypto airdrops?
For users looking to get crypto airdrops, it is important to stay informed about the different types of airdrops that they will encounter and the requirements for each. Below is a breakdown of each type of airdrop:
- Standard Airdrops: These are the most straightforward. They typically require users to hold a certain amount of cryptocurrency in their wallet. The wallet balance snapshot is taken at a predetermined time, and those meeting the criteria receive the airdrop. In most cases, the Standard airdrops are time-sensitive, as they have a set amount of tokens to distribute. However, these types of airdrops are very popular with crypto platforms and users due to their simplicity in executing and distributing the coins. In most cases, Standard airdrops also do not limit the number of wallets a user can have to receive the airdrops, which is advantageous to early receivers but can inconvenience other users because the airdrops run out fast.
- Bounty Airdrops: In these airdrops, participants are required to complete certain tasks. These might include social media promotion, content creation, or other forms of community engagement. Upon completion of the tasks, participants receive the airdrop as a reward.
- Exclusive Airdrops: These are reserved for the most loyal supporters of a project. Criteria for exclusive airdrops might include long-term holding of a particular token or active participation in the project’s development. These airdrops aim to reward and retain the most dedicated members of a community.
- Holder Airdrops: Holder airdrops are similar to standard airdrops but are specifically targeted at existing holders of a certain cryptocurrency or token. The idea is to reward loyalty and encourage continued holding of the asset.
- Raffle Airdrops: These types of airdrops are mostly combined with any of the above-mentioned types of airdrops. Users have to play a raffle ticket in order to receive an airdrop. The Raffle airdrop is very convenient to crypto platforms because, in most cases, the number of users interested in airdrops far outweighs the tokens these companies are willing to give out. Therefore, it acts as an elimination method while still marketing the projects.
How do You Make Money with Crypto Airdrops?
We have already looked at what are crypto airdrops, how users can get them, and the different types available. However, after getting these crypto airdrops, one question still lingers: how do users make money using the airdropped tokens they have received?
Fortunately, making money off of airdrops is almost straightforward. If you are familiar with cryptocurrencies and how they work, then you know that you can make money using the free tokens received by:
- Staking and Governance: some of the types of airdropped tokens have utility within the project’s ecosystem that allows them to be staked. Therefore, users with such tokens are able to earn rewards for their stakes in the project, and in some cases where the tokens have governance privileges, they can take part in decisions in the ecosystems, further allowing them to earn more tokens.
- Selling and Trading: One of the most straightforward ways of making money from the tokens received in an airdrop is to sell them directly on crypto exchanges. Users can opt to hold the coins for a given period of time to allow them to gain in the markets before selling them, thereby profiting more.
Summary
As we have seen throughout this article, airdrops are a great way to make money off of the cryptocurrency industry without investing a lot of money.
To participate in airdrops, you will need to pay close attention to upcoming projects, follow social media accounts that update users on different projects, and also visit websites that are solely dedicated to updating users about upcoming airdrops.
By keeping a keen eye on the markets, you, too, can benefit from airdrops, receive tokens, and be able to make money.
The process might seem daunting, but it is usually worth the wait, and the reward-to-risk ratio will always favor you.
