The art of making cryptocurrencies recognizable and sought after is a major struggle in this new world. Rarely are new projects easy to attract users and to populate especially when aiming at forming a large community.
Marketing in the decentralized environment of the crypto world, in general, is costly and might not yield a significant result with conventional marketing techniques. Furthermore, to support ordinary projects early in their development, tokens have to be distributed among as many potential users as possible to increase the network’s functionality and belie preserving while making it affordable remains a challenge.
This traditional way of distributing tokens presents a new challenge, and the crypto airdrops are an effective solution. Crypto airdrop is a process where a new project directly distributes coins to users’ addresses as a promotion. These airdrops can be targeted in such a way that it is similar to a niche where people who already have a specific type of token are targeted, or general where token is distributed to as many people as possible so as to create its use.
The process is usually straightforward: refraining from buying tokens, and instead getting them for free as long as the participants are eligible, or getting them in return for performant tasks, such as becoming a follower of certain media channels, become a member of the project’s community.
Crypto airdrops therefore offer a great resource for projects to grab a bigger bucket and jump over the barriers of user adoption and token circulation. Projects can use crowdsale to award free tokens in a short amount of time to attract a large number of token holders. This is beneficial not only in creating awareness of the project, but also in the overall utility and added security for the network.
People engaged in airdrops stand to benefit since they gain more information concerning the project’s agenda and can become useful stakeholders as far as the project is concerned. For instance, such prominent projects as Uniswap or 1inch, at some stage, distributed their tokens via airdrops that contributed greatly to their user throughput.
Besides, airdrops can also promote the inclusiveness of token demand since tokens will be distributed to the common populace rather than accumulated in the hands of an early investor. This is beneficial in creating a broad and fully developed network, which renders the network much healthier. On the whole, the phenomenon of the crypto airdrop can be described as a great way for novelties to get fame and recognition, attract as many like-minded people as possible to their project, and distribute tokens among the population, which leads to the development of the cryptocurrency market.
What Are Crypto Airdrops?
Airdrops, which are one of the key promotional practices today, allow crypto projects to attract new users. The primary remedy to spur individuals into utilizing your blockchain, a decentralized application (dApp), or your game is through tokens. Airdrops build the initial interest and stir up the community around the project. This creates the initial interest which the project team can then fine tune with the technology in order to incorporate changes that they require for the project.
For individuals, ‘airdrop farming,’ which takes place during airdrops, are very effective for the accumulation of capital, especially if one has been trading in the market for a short time. One way of obtaining free tokens is through holding tokens issued by various projects which means the holder does not have to invest a lot of money initially in order to have a portfolio of different tokens.
Thirdly, airdrop farming is not just the way to get tokens; it also is kind of knowledge practicing. As you develop your knowledge about crypto and DeFi you get to know how a certain project operates and how it is differentiated from the others.
How To Farm Airdrop?
Its implementation allows those with very modest investments to grow their token portfolios in the form of airdrops.
They are free distributions of a cryptocurrency token and usually refer to airdrops that distribute a new token, when it is launched, to numerous wallet addresses. Below, please, find a step-by-step guide on how to farm airdrops.
1. Stay Informed:
One of the initial processes of treating airdrops is participating knowledge on the upcoming events of an airdrop. Go to several social platforms like the Reddit, Skype, Telegram, and the Discord, where crypto airdrops are often posted. Other techniques include using specialized websites for airdrop listing, such as Airdrop Alert or the airdrop section of Coin Market Cap. This will be well complemented by subscribing to newsletters from these sites that act as a source of the latest opportunities.
2. Secure Your Wallets:
To participate in an airdrop, you may be asked to store tokens in a suitable wallet or have sufficient balances in the contract. These are some of the commonly adopted wallets: Metamask, Trust wallet, and Ledger. Make sure that your wallet is well protected and ensure that you private keys are well preserved. If your pockets are deep for storing appreciable amount of cryptocourrency then it is always preferred to use the hardware wallets.
3. Participate in Required Actions:
Airdrops usually comprise some kind of term and condition which the participants need to fulfill such as possessing a certain crypto currency, signing up on particular social media platforms, or following specific activities. Some of these tasks include following the project on Twitter, retweeting particular posts, subscribing to their Telegram channel or group, or even helping them test their decentralised application or dApp. Ensure that you perform these tasks as required to be part of the airdrop and become a beneficiary.
4. Engage with Testnets:
Some of them launch airdrops and distribute them to the users who interact with the testnet of the project. If you have participated in any of the testnet activities like using tokens in the testnet version or contributing to finding bugs or submitting feedbacks, then you get the right to have the airdrops once the mainnet is out. Apart from raising the probabilities of being awarded tokens, it also offers a practical application of applying the project’s technology expertise.
5. Use DeFi Platforms:
Today, many DeFi applications are launched, and their administrators often distribute tokens through airdrops to their protocol’s users. In the case of providing liquidity, staking, or borrowing and lending, using these platforms, you can get such tokens. Another way is to hold a portfolio of activities across multiple DeFi platforms which will boost your chances of being selected for the airdrops.
6. Monitor Your Portfolio:
If you attained a certain level of trading, chances are, you will start to receive airdrops, and for you to be effective you need to manage them properly. Some of the best trackers to use for tracking the tokens’ value include; Portfolio trackers such as CoinGecko or Delta. This will help to determine whether or not it is time to HODL or sell your received tokens through airdrop.
7. Beware of Scams:
Finally, the last threat is scams, which most people pose as someone or something they are not with the aim of defrauding others. Naturally, check the credibility of the airdrop; do not disclose personal key or seed phrases. Cyber criminals can take advantage of the fact that many people are willing to participate in honest airdrops and use fake ones to get users’ login data, or money.
Airdrops are quite profitable and farming these can be quite a learning experience in the crypto arena. Simply put, by paying attention to some of the projects, interacting with some of them, and even securing some of your assets behind it, then you increase your chances of being in possession of these valuable tokens as well as gain a better understanding and reach for the world of cryptocurrency.