Updated: Mar 10, 2021
It doesn't take much reading on here to learn the many ways to make money with cryptocurrencies. One of the least known ways among newbies is through airdrops. Why? Well airdrops can sometimes be a worthless. However, when they hit, they can hit big. Uniswap is now one of the most valuable coins in decentralized finance ranked at 17th in marketcap, though it was initially distributed into accounts for free. And that is the best point about airdrops. They are free, requiring no upfront investment. Keep reading to learn more about this genuine way to earn some extra dough.
What are Airdrops?
An airdrop, within the crypto industry, is a marketing strategy that involves sending their crypto coins for free to wallet addresses in order to promote awareness of their brand. Often these small amounts of the new cryptocurrency are sent to the online wallets built on common blockchains like Ethereum. In this case, free tokens are given to coin holders in proportion to the number of Ethereum tokens they own in their wallet.
In some cases, these airdrops are given in return for a small service, such as retweeting a tweet or creating a blog post to promote the company issuing the airdrop. Other times, it's not even about marketing. Sometimes the purpose was to simply increase the value of its token.
I personally know someone who had collected about $100 worth of crypto through airdrops and converted it all into less risky coins like Ethereum and Cardano. Today he has a portfolio of over $2500 WITHOUT INVESTING A SINGLE PENNY.
How Do You Get Airdrops?
To qualify for the free reward, you often will need to hold a minimum quantity of certain crypto coins in your wallet (sometimes nothing at all). Usually the coins you need to hold are the ones native to the blockchain the project was built on. Ethereum is a frequent candidate. Alternatively, you may only need to perform a certain task, such as posting about the project on a social media forum.
To find these opportunities, you can start by 'airdrop hunting.' This is when you start spending time looking for airdrops that are being offered within the communities on Reddit, Discord, Telegram, Twitter and Facebook. However these are not the only sites you should be locating airdrop crypto communities (also called "teams"). Airdrop teams usually notify people who participate in their campaigns with subject lines like "2 weeks left". So it's important to read these subject lines for additional information about how long they will last for, when the ICO will take place and what percentage of the supply of each individual token/coin will be given away as free gifts once the initial coin offering is complete. If you do not read the actual announcements, then you will miss out on the free gifts and end up walking away empty-handed.
Either way, you'll need access to the internet and an online wallet. If you're new to all this, I highly recommend just starting a wallet on the easy-to-use, secure exchange Binance. While on Binance, pay attention at all times to upcoming airdrops alerts on the platform. If you see an announcement about an 'upcoming' or 'new' airdrop with no details as yet, then ask in their community chat rooms if they have more information.
Knowledge Is Power With Airdrop Alerts
You may be asking, "What about knowledge? Does it matter if you know a lot about the crypto world?" Well, yes and no. Sometimes all you need to do is get airdrops into your wallets so that you can keep them there until you are ready to sell. If you want to trade for quick profits, then gather as many different freebies as you can and trade up your hoard of altcoins for popular coins like Bitcoin or Ethereum. Binance can help convert those assets into whatever form of cryptocurrency you desire. This is one of the best ways to maximize your airdrop earnings. Also, you need to keep in mind that sometimes it takes time for the airdropped token to complete its transaction. This is especially true for coins and tokens that are in development stages prior to their ICO's (Initial Coin Offering). So be careful about stacking up too many tokens on an exchange before their ICO is complete.
Uniswap - Airdrop Success Story
Uniswap, an enormously popular decentralized exchange used in DeFi, famously released its native ERC-20 token, UNI as an airdrop. Its unique brand of distribution gave 400 UNI tokens to liquidity providers on its platform regardless of how much liquidity they had provided. Most recently, the UNI token hit a peak of about $10. This means recipients were given $4,000 worth of free crypto just for participating on Uniswap!
While the Uniswap airdrop turned out to be stellar, many airdrops aren’t. In fact, a lot of airdrops are just scams. A simple rule is that a true airdrop is free. If any of these airdrop teams ask for money upfront to be a part of their new "big thing," run in the other direction. It's 99% certain it is a scam. As I've noted many times before, do your due diligence for any investment you may participate in. This is especially true in such a nascent market as crypto. Legitimate projects are definitely out there but research their teams and track record.
Free Tokens? Yes Please.
Airdrops can be an excellent way to get your hands on some new tokens in exchange for no money. But you have to play the game by using a desktop wallet, app wallet or hardware wallet and then maybe by joining a telegram group or two. Then just keep searching Reddit, Discord, Telegram, Twitter and Facebook for upcoming airdrop campaigns. Keep your eyes peeled every time you log onto an exchange like Binance. There will always be information being posted about upcoming ICOs that are being offered for free as part of airdrops campaigns. Once these information drops are made official with dates and times included in email notifications and announcements from each team's website, then it is time to jump into action!