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Cryptocurrency airdrops are a very popular marketing strategy — but can you make a profit off of them as well?
What Is a Cryptocurrency Airdrop?
An airdrop for crypto is a method of delivering additional tokens/coins to current owners of a specific blockchain cryptocurrency, such as Bitcoin or Ethereum, by rewarding them in a certain ratio to those who already possess the cryptocurrency.
If you HODL one type of cryptocurrency, then you are immediately eligible to collect other coins or tokens simply because you were keeping the parent coins or tokens on which an airdrop is being conducted.
That is why this type of token distribution is referred to as airdrops, which is an abbreviation for ‘free droppings.’
These airdrops can be motivated by a variety of factors and these include splits in the blockchain, marketing, decentralization & distribution, and so on. There are a number of other factors to consider, which we shall discuss later in this post.
How it Works
- This is a relatively new practice in the cryptocurrency market. As a result, specific rules for the operation have yet to be established in detail. Because the idea has garnered a great deal of attention, it’s possible that they’re about to be created. A few cryptocurrency websites do post the regulations, but for the most part, one must contact the website’s creator for further information.
- The team in charge of a specific event discloses a date on which it will conduct the airdrop operation. The team in charge of the airdrop takes a “snapshot” of the blockchain when the preset date arrives, culminating in owners of the corresponding cryptocurrency receiving free e-tokens in exchange for their cryptocurrency. Most crypto blockchains, particularly those in the early stages of development, prefer to announce airdrops in advance rather than offering them as surprises, all in an effort to raise funds for their projects.
How to Get Free Airdrops from Binance
Step 1: Watch for Upcoming Airdrops News
The Binance Airdrop is a unique token airdrop of cryptos that will be added to Binance in the near future. For current info on future airdrops, follow Binance releases and our social media channels (Telegram, Twitter, Facebook, Instagram, YouTube).
Step 2: Quickly deposit the Featured Crypto on Binance.
Because they will let you know when they’re about to offer a new cryptocurrency, Binance Airdrop will enable you to deposit your tokens before the market opens. Act quickly, because your incentive will be larger the sooner you deposit.
Step 3: Get Free Binance Coins
Binance Airdrop gives away free BNB once the countdown runs out or when the progress meter fills up.
Rules and guidelines for Binance Airdrop participation
- Making early deposits gets you better rewards
Binance is using a progress indicator for its Airdrop, which has levels. In the first layer, you get the largest airdrop percentage, which grows progressively reduced for each tier thereafter. Whenever the interest rate on the loan changes, you should always visit their website to stay informed.
- It’s a first-come, first-served basis.
Binance will award the first deposits with the highest airdrop percentage. The details depend on when you put money into the airdrop distribution. Keep your eyes open, and you increase your chances of receiving a more lucrative airdrop.
You can claim rewards over two months.
One-third of the rewards will be doled out to participants over the course of two months. Binance will only give out a third of your prizes prior to trade begins.
The Different Types of Airdrops
There are numerous distinct methods in which an airdrop might occur. Free tokens that are given in return for only registering an email address are commonly referred to as “duds.” However, this is not the only form of airdrop in crypto.
Standard Airdrop
Airdrops of this kind usually involve free tokens to those who join up for newsletters or newsletters with similar offers.
Bounty Airdrop
To acquire airdropped tokens, users must complete a simple job. Project management is commonly accomplished using a combination of social media sharing, publishing an Instagram post, and adding a few people to a Telegram group.
Exclusive Airdrops
Only those who have had a long relationship with a particular initiative, website, or community are eligible for airdrops of this sort. For example, in September of 2020, Uniswap rewarded its loyal customers with 2500 UNI tokens each. At the time, it was equal to around $1,200, and there were no conditions attached.
Hard Fork Airdrop
This is a distinct variation. When a cryptocurrency hard forks from its parent blockchain, a cryptocurrency is generated, and individuals who had the original coin in their wallets will get an equal quantity of the new tokens. This can be seen with the most well-known illustration of the hard fork, the Bitcoin Cash fork, which happened in 2017. Bitcoin users who owned BTC got an equivalent amount of BCH, since they held both BTC and BCH at the time of the fork.
Holder Airdrop
Like hard forks, airdrops give tokens to users who already have them, as well as users who recently obtained the tokens. When a new program is launched on an EOS or Ethereum blockchain, new tokens are given away for free. EOS and Ethereum were NOT forked and then built upon. These are not hard forks, but brand new projects that are implemented on the upper end of the EOS or Ethereum convention.
Similar to an airdrop, all of these coin distributions have one commonality: distributing new coins.
Why are There Crypto Airdrops?
For a company in the blockchain and crypto sector, there are several reasons to start airdropping tokens. Listed below are the most obvious explanations:
- An equitable allocation of all crypto coins
Blockchain and cryptocurrencies believe in decentralization, a core tenet of the cryptocurrency movement. Decentralization is the mechanism through which decision-making power is dispersed across numerous individuals or delegates instead of being concentrated within a few people. Decentralization, not centralization, has taken control of power.
An attractive motivation for a business to continue with an airdrop is to spread the decentralization process by means of a greater distribution of cryptocurrencies so that there is less influence on cryptocurrency prices by a few influential holders of crypto coins.
- Committed and early investors can get crypto airdrops
To increase the appeal of an ICO, investors that got in early frequently receive new coins or tokens for free. It’s a method to earn free cryptocurrency and have fun at the same time. Free crypto money in the form of an airdrop might be given to loyal long-term investors as well. Loyalty is frequently repaid.
- Encourage the adoption of a new cryptocurrency through brand awareness
It is difficult for startups to gain visibility in the crypto sector. Actually, given that there are currently hundreds of different cryptocurrencies, what is the point of having another one? During the start-up period of a firm, with an airdrop, you’ll receive a lot of early exposure from a token that is of small value at the moment.
- Promoting sales and increasing public awareness
One of the key reasons why a cryptocurrency startup should do an airdrop is to acquire prospects, and the company’s growth is the main aim. Almost invariably, airdrops contain a mutually beneficial deal. Following a firm on Twitter and engaging in Telegram are all examples of this.
Final Thoughts
Many people believe that in the realm of product promotion, awareness is the starting point of a customer’s journey. Psychology specialists claim that when you’ve seen or heard about something previously, you’re more inclined to buy it. It may be safely stated that airdrops have done a lot with this notion.
