What Does Airdrop Mean in Crypto | How to Earn Airdrops
What Does Airdrop Mean: If you’re very active in the crypto space, you would have heard of ‘airdrops’ at least once. So, what does airdrop mean in crypto? Don’t worry, we’re not about to leave you high and dry.
In this article, we will explain in details what airdrop means in crypto, and eventually how you can earn airdrops, especially if you’re a crypto enthusiast.
If this looks like what you’re interested in, then keep reading!
What are Airdrops?
‘Airdrop’ is a common term in the Apple community; and if you’re an iPhone user, you must have tried to airdop a picture or a video to a fellow iPhone user.
For the non-Apple users however, the airdrop is used to wirelessly send photos, videos, documents, etc, to another Apple device that is nearby.
The way the airdrop works with the iPhone is also similar to the way it works in crypto as well, with some minor differences, and we’ll get to that in a minute.
What does Airdrops Mean in Crypto?
Crypto airdrops are methods used by cryptocurrency projects to market, build awareness and attract users by giving them free tokens. Now, these free tokens are deposited directly into their wallets after completing a task or meeting a particular requirement.
Most crypto projects give out free tokens to members of their communities, maybe X formerly known as Twitter, or Discord in order to increase the project’s exposure, boost the circulating supply, and also drive an increase in trading.
This whole method or process of giving out free tokens is what airdrop means in crypto.
But how does it even work? Is it enjoyed only by a specific set of people, or everyone has access to it? You’ll find out in a minute.
But before we talk about this, let’s discuss why crypto projects even give them out in the first place.
Why are Airdrops important in Crypto?
Now that we’ve discussed what airdrop means in crypto, it is only right that we talk about why they are important and why crypto projects give them out in the first place. Especially since it’s “free”.
As mentioned earlier, most cryptocurrency projects that are maybe new give out free tokens as a marketing strategy to increase awareness about the project, promote the project, and encourage adoption of the token.
It is a way of making new projects stand out, and fast.
While some of these projects may require you meet a particular requirement to be a targeted beneficiary of the airdrops, some may not. For example, you might need to be an early adopter of a project, maybe be among the first people to get involved, to receive airdrops.
So basically, these projects either send members of the blockchain community coins and tokens for free or in exchange for a small favour or service. This could also be liking an X post, or dropping comments on the project page or company.
Types of Crypto Airdrop
There are different types of airdrops namely standard, holder, bounty, and exclusive. Now, let’s take some time to talk about each of them briefly.
- Standard Airdrop
This type of crypto airdrop doesn’t require interested recipients to do much. More often than not, all they need to do is show their interest in receiving the particular airdrop, and that’s it. A standard crypto airdrop would only require you to provide your wallet address, and the token will be sent to your wallet.
Because they are simple and mostly do not require additional information, standard airdrops are quite popular and they get exhausted quickly.
- Holder Airdrop
This is just as it sounds. This type of crypto airdrop only appeals to existing token holders. People who hold a token and how many tokens they hold automatically get airdropped.
Now you might be wondering, “How do they automatically get airdropped?”
The blockchain is a digitally distributed public ledger which everyone has access to due to the transparency characteristic of the blockchain, everyone (users of the blockchain) can see the tokens being distributed into the wallets.
- Bounty Airdrop
When a bounty is placed on someone or something, you know what it means. You have to work for it. So basically, to receive a bounty airdrop, you have to earn it by performing certain tasks which has to do with promoting the crypto project.
These tasks may be as simple as just posting the project on your social media, and it may go as far as even recruiting other users.
Whatever the task may be, whether simple or not; the only constant thing is you have to earn a bounty airdrop.
- Exclusive Airdrop
Well, this type of airdrop only applies to selected individuals. These individuals are said to be exclusive. The rule of selection will differ from project to project, but point is, this type of airdrop is not available to the general public.
Other types of airdrop includes Raffle Airdrop in which interested participants are encouraged to indicate interest or maybe buy a ticket to participate in the raffle draw
Conclusion
Now that the question, “What does airdrop mean in crypto” has been answered, you don’t have to miss out on any airdrops happening with your favourite crypto projects anymore.
