How To Participate In Crypto Airdrops?

It's the cryptocurrency airdrop season and the prudent investor is scouring the channels for the latest airdrop alert. Airdrops in the cryptocurrency sector can yield thousands of dollars in returns and accelerate a blockchain-related project's adoption.

Airdrops are a creative marketing strategy that developers and teams of project managers employ in crypto token promotional campaigns. Marketing teams for example, send out press announcements, social media and blogs, informing customers who are loyal or their intended public of a forthcoming release of tokens for free.

So, a crypto-airdrop is a great risk-free way to collect free digital currencies that may increase in value in the near future. A marketing strategy that is guerilla airdrops can make a clean break from the traditional marketing approach, forcefully attuding attention with popular social media posts.

They are able to capitalize on the market's FOMO (Fear of Being Missing Out) feeling and its all-encompassing desire for free stuff. They are therefore affordable and budget-friendly strategies that generate a massive effect and buzz that lasts for a long time on the people who experience them for the first time.

A crypto airdrop alert, however, does much more than just promote a project. It will stimulate enthusiasm and discussion around the blockchain platform and draw more investors.

A successful crypto airdrop can help a startup to get started. Additionally airdrops are a fantastic distributed token tool that is decentralized. They support the equal distribution of Governance tokens on projects' launch.

History of crypto airdrops

Airdrops for cryptocurrency are an event which is as old as the field itself. As an illustration, Gavin Andersen's freebitcoins.appspot.com site gave away 5 BTC free in 2010. To be eligible for the bitcoin, all its users had to do was figure out the captcha!

In the past, Gavin was the chief Bitcoin blockchain software developer. He utilized the site to generate awareness of BTC. Gavin offered 19,700 BTC in the airdrop process. That BTC is worth a fortune today.

Since then, thousands of blockchain-related projects have released airdrop alerts. Some of the more exciting early crypto alerts for instance included the Decred airdrop that took place in 2016. The Decred airdrop distributed 258,000 DCR. In April 2021, when it reached its peak one DCR token cost $246, up from a low of $1.2 at the time of its issuance.

At the height of the ICO season, the peculiar airdrop phenomenon became a trend in the year 2017. Many projects offered free tokens to those who purchased them. While some of these tokens had no value, others led to fortunes. Airdrops were not just reserved for projects that were just starting out. Hard forks and established blockchains were also able to leverage them to boost into their aesthetics.

For example, Bitcoin Cash and Stellar blockchains both had amazing airdrops in 2017. In June 2017, Stellar issued $1000 XLM per BTC to each bitcoin holder. The decentralized, open-source low-cost digital currency transfers protocol offered the equivalent of 19% of its inventory in this particular airdrop.

In 2018, Stellar once more issued $125 million XLM tokens to its users as one of the biggest crypto airdrops. However, since February 2019, BitTorrent has been giving 100 billion BTT to TRX owners. The BTT airdrop is scheduled to run until 2025.

Some of the most recent popular airdrops are the Uniswap (UNI) 1 inch, OpenDAO and the Ethereum Name Service (ENS) airdrops. For instance, the Uniswap airdrop offered all decentralized exchange (DEX) users free UNI.

Accounts with a valid credit card that carried at least 1 transaction through the DEX made 400 UNI. The majority of tokens that were free immediately sold their tokens in exchanges , ranging from $2-$4. The long-term UNI holders, however, enjoyed more lucrative returns. In the following months, UNI rose to an record-setting $33 in the month of May 2021.

The 1inch airdrop alert was sent out in the late part of 2020. The DEX distributed 90 million 1INCH prizes to more than 55,000 addresses. All the users had to do to win some 1INCH was make at least four trades or a minimum of $20 deal on the DEX.

Afterwards, the price of 1INCH quickly rose to $2.7 to an all-time high of $7.4 at the end of May in 2021. The enticing ENS airdrop occurred in the month of November 2021. The distributed Domain Name System (DNS) service, which is the provider of Ethereum wallet addresses, also known as .eth Domain names gave away 25% of the $ENS supply to .ETH holders.

On the other hand, the OpenDAO Airdrop for $SOS was a reward for OpenSea customers with tokens that skyrocketed in value by 1000% in only a few trading days.

The token's value rose from lows of $26 at issuance to an all-time high of $77 after two weeks of trading. Do you realize that several countries are also participating in the airdrop trend? El Salvador, for instance has offered every adult citizen who downloaded its BTC wallet app with $30 worth of BTC in June 2021.

Ukraine had also proposed an airdrop of crypto to supporters of its crypto donation campaign but the idea was later scrapped and decided to adopt NFT airdrops instead.

How to benefit from cryptocurrency airdrops

The crypto airdrops help create 'skin-in-the-game' supporters. They cultivate engagement and drive involvement in blockchain projects. Additionally, crypto giveaways can aid in the growth of new projects and can provide massive benefits to the user.

Investors in crypto can profit from crypto airdrops and make lucrative returns from free crypto. However, to profit from crypto airdrops, it is essential to access an airdrop alert from sites that aggregate news about crypto like Algory.

The Algory News Scanner is the most reliable source for current cryptocurrency industry news. Make use of it to track hundreds of news sources as well as airdrop websites. Be the first to know and stake your claim on the best possible use case for tokens for projects at the bottom of the barrel.

You can profit from the airdrop tokens you receive by:

As many airdrops as is possible

You can earn massive profits from free token giveaways by taking advantage of the top tokens in their early stages of value increase. These free tokens will not just add value, but also increase the diversification of your portfolio. This being said, here's an important caveat.

While it is true that you could earn a profit by investing in early airdrops however, you'll come across many fraudulent, scam, and suspicious projects online. Be sure to do your homework with research tools such as the Algory cryptocurrency market scanner's filters and alerts, and identify any fraudulent airdrop alert in time.

If you don't do your homework the details, you could waste hours meeting a token airdrop's eligibility requirements and then win useless tokens at the end of the day. Some crypto airdrops are gateways to hacking, phishing dusting, or pump-and-dump scams.

As an illustration, Oyster Pearl issued 2227 PRL tokens in an airdrop that was exclusive in November of 2017. It was among the most sought-after airdrops of the time. In its prime, the airdrop was worth more than $11,000. Unfortunately, its founder, who went by his pseudonym Bruno Block, drained all worth from PRL tokens, defrauding Oyster's early supporters.

Stay safe, and Do your Own Research (DYOR). Know the project's purpose before giving it your support. Many fraudsters market worthless projects. To spot the pump-and dump schemes at inception, steer away from the airdrops that are tokens which is more about hype than actual value.

Such projects may be rug pull projects and Phishing projects that make you open to the possibility of receiving marketing emails. Furthermore, fraudsters offer private information like email and public addresses to third-party companies.

Then, as a rule of the thumb, all alerts to airdrops provide free gifts. So avoid airdrop alerts which ask for cash, crypto private keys, seed phrases to get free tokens.

You can take your free tokens

A multitude of proof-of-stakes (PoS) blockchain-related projects issue airdrop alerts every other day. As an illustration, Cosmos and Solana ecosystems might launch airdrops. You could then put these tokens on the market and earn yield.

The opportunity to stake free PoS tokens will open doors to rewards for staking as well as decentralized finance methods like liquidity mining as well as yield farming. For example, in March 2021, Anchor Protocol gave away 50 million ANC or 5percent of its supply to Terra (LUNA) stakers. LUNA holders who continue to stake their tokens will earn higher and receive free ANC over two consecutive years.

In addition, you can earn residual airdrop tokens when you stake your first giveaway tokens. Staking unlocks important rewards for stakers and validators. As an illustration, Osmosis (OSMO), one of the Cosmos project, offered ATOM holders 20% of the OSMO supply at the time of the day of launch.

But, those who invested in OSMO as validators received the remaining percent from its tokens. The Osmosis team's game plan was to incentivize any nodes that secured their network.

The stake also grants rewards for governance while also creating decentralized communities. For example, you could earn more airdrop tokens by participating to blockchain governance process. JET Protocol, for instance which is a Solana project, includes a Jet Governance module that airdrops tokens to holders who vote on proposals. The holders also get more money after the lock period for tokens has been completed.

Earning more tokens via referrals

Free token distribution can also function as a reward system that compensates community members who enhance awareness of the project. The incentivization of the chief project awareness champions will ensure that decentralized applications' use cases and tokens are viewed by wide publics before the exchange trading process begins.

A high degree of awareness of the project can cause rapid increases in the value of tokens following the day of launch. To achieve this you can profit from crypto airdrops through participation in airdrop referral systems. Research an airdrop alert, join a referral system, add your buddies to join the project, and then get the referral token for airdrops.

Earning tokens if you meet all requirements for airdrops.

There are many types of airdrops. A typical airdrop helps promote the use of cryptocurrency coins to addresses for wallets. Airdrops are beneficial to beginners as well as experienced traders in the crypto market as they don't have strict qualifications.

Different forms of crypto airdrops pay users that meet specific activity thresholds. As an illustration that bounty airdrops are a reward for project promoters while the exclusive airdrops are targeted at authentic project users. The holder airdrop may target investors or stakeholders who have an amount of tokens in their wallets.

You too can benefit from exclusive airdrops by satisfying certain criteria, like engaging in games to earn cryptocurrency or learning about cryptocurrency. In this case, you could earn free XLM by simply learning about the subject. Other exclusive airdrop token reward tasks include the creation of wallets or trading on an DEX.

Other benefits of crypto airdrops

- They are an investment strategy for crypto that is safe and risk-free.

There is no chance of losing any investment capital should your airdrop token lose its value. Be on the lookout for scams when seeking out free crypto coins.

These are opportunities to get in on the action at project infancy.

- Airdrop tokens could reward long term owners with 100X return.

- Income generation

Professional bounty or airdrop hunters earn money off airdrop tokens and their referral systems.

Opportunities for education in crypto

Airdrop alerts are an excellent opportunity to learn about crypto. Join a group on Telegram or discord server and learn more about the crypto world.

Conclusion

Being aware of an airdrop's alert early is crucial to get the most benefit from the top crypto airdrops. Make use of the Algory crypto news aggregator to check the crypto market for the latest airdrop news and exchanges announce bonuses that can bring the most benefit.