What the F**k is an Airdrop? What You Should Know About Getting Free Cryptocurrency.
Back in December 2017, John signed up for a class, he wanted to learn more about a coin called Polymath. The more he learned about this coin, the more his interest grew. So, he started wondering how he could get some of the coins.
Unfortunately for John, the coins were not available then. In fact, the team behind the project did not bother with any Initial Coin Offering event. They simply conducted an airdrop.
So, John signed up for it, even though he had no idea what it was all about. Of course, he was required to fill some identifying information, it was necessary to meet the KYC regulation. That was all, he wasn’t asked to pay a penny.
However, his Ethereum wallet was funded with 250 POLY after a month. That fund is now worth a little above $300.
This begs an important question. Before I continue, let me give you a moment to bookmark this page. You are about to learn how to get free cryptocurrency. But, we have to answer one question first;
What the F**K is an Airdrop?
Here is the simple answer to the question; it means free coins waiting to be collected. That’s right, it sounds crazy, doesn’t it?
Usually, the team behind a new coin perform Airdrops as a marketing strategy. It is a way of creating awareness to a target group of potential investors and enthusiasts.
To gain a better understanding of how Airdrops work, let’s briefly explore the history, shall we?
A Short History of Airdrops
This is not really something new, it has been happening pretty much since the first Ethereum ICO. A quick check of your wallet using Etherscan will reveal a row at the top named “Token Tracker”.
If you do not see it, it implies that you don’t have any tokens or airdrops yet. However, if you do, that means you have tokens in your account. It’s quite easy to miss, isn’t it?
Your ETH wallet could have held these obscure tokens for a while and now it’s looking like someone magically deposited them into your wallet. No, it’s not magic, neither is it an accident.
The tea, behind the platform, decided to send a small number of their tokens to a population of Ethereum wallet to “spread the word”. What happens when you get the token, you ask?
Well, there are three possible scenarios here;
- Google what the coin is
- Ask your friend about it
- Completely ignore it
If you take the first two scenarios, the Airdrop would have achieved its aim. However, the last scenario means that this market strategy failed.
After a while Airdrops became more than a marketing strategy. Developers started using it as a means of pumping coin value. How exactly does this work, You ask?
It begins with the announcement of an Airdrop which involves coin holders receiving bonus coins that are proportional to the total coins they have. That means coin investors that do not have the coin will have to purchase it. They could even buy more to get a larger portion of the Airdrop.
That said, since the title of the article says “getting coins for free”, we won’t be discussing this strategy of getting coins for coins any further. So, back to the subject matter.
While ICOs are focused on consumers, Airdrops are more focused on viral growth. The team behind the coin are trying to take advantage of the network effect it offers.
Basically, Airdrops became a referral system. They spread the word to you by giving you free coins, now you have to tell other people about how you received free coins. It is that simple.
How to Participated in Free Airdrops
There are certain tools you need before you can participate in free Airdrops. These tools include;
An Active Ethereum Wallet
The wallet you are using has to be ERC20 compatible. This is because most of the tokens that are airdropped are Ethereum based. Furthermore, the wallet must show signs of human use.
Airdrops have checks in place to prevent people from generating multiple wallet addresses to get many free coins. This means, if your wallet is not active, you won’t receive the airdrop.
Sometimes, the only sign of activity required is a specified balance in the account.
A Telegram Account
Most of these coins will ask you to join their group on the Telegram platform. This is to boost their audience count. Be smart, do not leave the group till you have received the Airdrop. Do not risk disqualification.
A Twitter Account
The reason is the same as that of Telegram. They’ll ask you to follow them on Twitter. You may even be required to retweet some tweets.
An email address
Finally, Airdrops will ask you to provide an email. Now, if you don’t want to drop your real email, no problem. Simply create a new one and input the address. Make sure you remember the password because you may be asked to confirm it.
How to Obtain and Withdraw Tokens
Normally, you’ll receive your tokens within 1-2 months of the airdrop ending. This is due to the many numbers of airdrops that occur before and during token sales.
Please note that these tokens are not distributable until after the token sales end. Check your wallet to make sure you got the airdrop. If you did, all you have to do is withdraw it.
You can withdraw these tokens through a service like My Ether Wallet. Just access your wallet and select the token you want to withdraw.
How to Avoid Getting Scammed
The idea of getting free coins is so enticing that it could get into your head and lead you into a clicking frenzy. This is a sure way of getting scammed. So, relax, keep a cool head, and follow the precautions outlined below;
- Do not send any private keys
- Do not send money to any addresses
- Verify by checking official sources
- Look for reasons why an airdrop could be a scammers
On a Final Note
John participated in other airdrops after his first experience with Polymath. Now he has thousands of dollars worth of cryptocurrency that he got through airdrops.
Follow the procedures outlined above and keep your eyes open for scams. You can easily be on your way towards financial freedom by collecting free cryptocurrencies. Be like John, John is smart.