Who does not love getting freebies? The marketing teams in the crypto space have identified this characteristic of the market and that is why they have come up with a unique idea of cryptocurrency airdrop. This process includes the distribution of cryptographic information for free to the wallets of active members in order to spread awareness about it. This usually happens during the initial coin offering or ICO of a particular coin in the market.
To become eligible for these airdrops, a member has to hold a minimum quantity set by the company. These events are generally promoted on the website of the coins. The simple and straightforward reason behind it is to promote and market a new cryptocurrency. Read on to know more about the cryptocurrency airdrop and how you can benefit yourself.
Benefits Of Cryptocurrency Airdrop- Points To Note
You must have heard or practiced the policy of trying a product before buying. This process is exactly the same. You are made to try coins for free and analyze them and their future. If you feel they have the right use causes and can have a bright future, you can invest in them later on.
The prices at which you get these coins are pretty low as they are at the time of ICO and their prices are likely to go high. This is a major reason why a lot of investors try to get their hands on it but often fail to. Not only this but you also get to be a part of exciting projects and tasks where you can end up meeting new investors or learn something new.
This market is highly competitive and that is why companies are coming up with unique marketing strategies. Cryptocurrency airdrop is one of those marketing strategies. It is also a very impactful strategy and there is a huge chunk of the market that looks forward to such events and this is how they make it to the news. Some experts oppose this idea, as well as they, have this thought process that it kills the actual use cause of a coin and is promoted inorganically.
After all the advantages, there are some disadvantages too. One of the major disadvantages about which some experts have also raised questions is that sometimes these schemes can be pump and dump programmers. This is why you should play around in the market with your research and not follow freebies.
Types Of Airdrops:
- Standard Airdrop: These are the most common airdrops where the users have to perform a particular task to earn coins. For example, they may be asked to register on a platform or perform a simple task to earn some fractions of a coin in their wallets. The distribution process is fair and can also take place through a draw where any one of the many stands a chance to win.
- Bounty Airdrops: In this type of airdrop a user has to perform a given task in order to earn coins. The taste is pretty simple usually but they get difficult when the demand is high.
- Holder Airdrops: It can be easily understood as a loyalty program where users who already hold a certain quantity of a specific coin get a chance to win free bitcoins. It can also be understood as earning coins for your loyalty to the brand.
You can always sign up for airdrops as there is nothing to lose but you may end up making some money if that coin explodes. Be aware to not fall for scams as there are many ongoing scams in the market in the name of crypto airdrop already. Only trust reliable and trustworthy platforms like Bitcoin Hero.
A big question around them is that are they safe. They are generally safe and secure until you make the mistake of falling for a scam. There are many instances where the crypto traders have reportedly lost their wallet keys due to registering on fake airdrop events. Follow only reliable platforms and work around them to keep your interest secure. Invest smartly and after researching well about the project. Look behind its history and its future prospective. Don’t follow the herd, do your research well in advance and stand a chance to win some free cryptocurrencies.