In this article we will explain cryptocurrency airdrops, bounty programs and giveaways with some basic questions and what you have to take into account not everything is free gold.
We will refer to bounty program and giveaways as airdrop as they are more or less the same, only minor differences between them.
What is a cryptocurrency airdrop ?
An airdrop, in cryptocurrency is a marketing stunt that involves sending free coins or tokens to wallet addresses in order to promote awareness of a new coin or token.
An airdrop is a distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses. Airdrops are primarily implemented as a way of gaining attention and new followers, resulting in a larger user-base and a wider disbursement of coins.
Note: A legitimate cryptocurrency airdrop never seeks capital investment in the currency. Its aim is purely promotional.
Why do new coin or token businesses a cryptocurrency airdrop ?
- Generating Awareness of the new coin or token
- Gathering interested users data for future marketing purposes
- Rewarding or inspiring loyalty of coin/tokens holders
- Wider distribution of coins/tokens
- Hard Forks (see our article about hard and soft forks)
What are the requirements to join a cryptocurrency airdrop ?
These are some basic requirements for most airdrops, some require more others require less.
- A Cryptocurrency Wallet of the corresponding coin/token
- Holding already some of that coin/token (Not always a requirement but at token platforms minimums are imposed)
- Your willingness of sharing some basic information (e-mail, twitter handle, telegram handle, etc… )
- For exchange based cryptocurrency airdrops often KYC is required to be eligible.
Are all cryptocurrency airdrops legit or is there a risk for scams ?
As with everything surrounding money you have to do proper due diligence / research. Malicious people are always inventing new methods to scam people.
Known ‘scam’ airdrop methods are
- Fake Airdrops (Do due diligence, see our basic due diligence article how to)
- Private Key Scams (The number 1 rule in cryptocurrency, never give anyone your private key)
- Information Trolling (If to much personal information is asked then that’s a serious security risk, often used to gain access to other sites with the info they demand)
- Coin/Token Switch (Always check the official coin/token pages if a hard fork has been done or if a token switched the main net, do research)
- Bait drops (Unreal promises, often with the intention that you would buy more so the founders can initiate pump & dump scenarios)
What airdrops will Hosting For BTC post about ?
At Hosting for BTC we will be very selective in what airdrops, bounty programs, giveaways we write about and will offer our readers. Only after doing decent research of the coin/token offered we will post about the offer.
Most if not all will only be airdrop announcements that are executed directly through exchanges or through your wallet without the need to do anything or a minimum.
You might miss out on some airdrops due to certain requirements of the platforms we deem legit. (example, country restriction or KYC required)
Known legit airdrop providers we will post about and follow up are
Next to those we will also announce upcoming hard forks and how you can get the free coins from the fork, in a certain way those are also airdrops. A recent example the Zcash / Ycash hard fork.
And finally token platform ones, example of token platforms are ETH, EOS, TRON, WAVES to name a few. These are often the most easy ones as you have nothing to do besides holding some main chain tokens. An example is the monthly BitTorrent - BTT airdrop for everyone that holds minimum 100 TRX.
You can actually make a pretty decent amount of money every single month from airdrops but as always do your homework, educate yourself, do research and due diligence.
Do you like airdrops ? What is the best airdrop you ever participated in ? Let us know in the comments below.