What exactly is an Airdrop?

If you’re interested in cryptocurrencies, you’ve probably already heard of the term “Airdrop”. In fact, you may know what it is. But you might not know exactly why companies might do Airdrop or even how to be wary of some Airdrop that is actually scams. So, through this article, we will see all the subtleties related to this component of the crypto world.

Definition

An AirDrop consists of a company offering tokens or coins of their cryptocurrency to people. Quite often there is a consideration to be made to obtain these tokens

Some examples:

  • Join for telegram chanels.
  • Like/Share their pages on various social networks.
  • Sometimes have your identity verified with the company (KYC).
  • Etc.

Interest for the company to perform an Airdrop

The question you have to ask yourself is what is the interest for a company to offer free units, when it could just as easily sell them?

Again, there are several reasons:

  • Get the word out about your company at a lower cost, by asking people to perform an action in exchange.
  • Reward people who have supported the project since the beginning.
  • To give some tokens as compensation when sales were faster than expected.
  • In a fork, the new crypto created will be offered to the holders of the previous one that will operate the fork.

Can you make a lot of money with AirDrop?

The question is not actually whether you will make money or not, but rather how much you will be able to make. All AirDrops earn money, but sometimes it ranges from a few cents to much more. There are no hard and fast rules for how much you can earn with each AirDrop, just like there is no way to know how much you can earn by investing in a promising project.

All you can know is how many tokens/coins the company will offer you at a certain time. Then, all this will change according to the supply and demand. Sometimes the project may be a total failure and you will earn almost nothing. Sometimes you can earn hundreds or thousands of dollars. The only thing that can be said is that the more promising the project looks, the more money you will earn. In any case, getting an AirDrop is totally free. So you have nothing to lose but your time.

How to receive your free tokens?

To receive your tokens, there are generally few methods here are a few of them

  • You receive them on your Ethereum public key.
  • You receive them on your Binance smart chain.
  • You receive them automatically during a fork where your cryptos are located.

What are the scams to avoid?

When there is money at stake, there will always be some clever people who will try to take advantage of the most naive people to get money from them. Here are a few rules of caution that you must follow in order to avoid any problems

  • Do not give out your ethereum private key under any circumstances.
  • Don’t use the same password as the one used on your e-mail box with the e-mail you are going to register with.
  • Do not download any files.
  • Never pay money(it suppose to be free).

If at any time you are asked to do any of these 4 things, stop the process immediately, it is most likely a scam.

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