With cryptocurrency being the talk of the town, people are trying to explore the space as easily and seamlessly as possible. Any amount of volatility scares the average investor, which is why fixed-income assets like bonds have so much capital allocation towards them.
Some new crypto projects have caught on and employed new marketing tactics to target people who don’t want to risk their hard-earned capital. One of the main means is through airdropping: acquiring crypto without buying it.
Sounds too good to be true, right? This article examines how crypto users are getting thousands of dollars for free.
Cryptocurrency Airdrops Explained
A cryptocurrency airdrop is a free transaction from a cryptocurrency project to a consumer’s wallet.
Developers find a variety of reasons for launching an airdrop, but an airdrop follows one basic principle: the investor receives a certain amount of coins or cryptocurrency tokens, generally for free or in exchange for completing a simple task. It requires you to connect a wallet to receive your rewards, and while you’re at it, you will probably want to find an awesome crypto wallet to use.
The answer as to why a crypto project would airdrop its crypto lies in the fact that it is arguably the most powerful marketing tool at this stage. Free money is what every consumer wants, which is why this tactic is so enticing to novices, experts and everyone in between. Alternatives in coin launching like initial coin offerings (ICOs) exist, but these methods generally don’t garner as much attention for projects.
The process for an airdrop is streamlined and basic whether it is following social media accounts or subscribing to a newsletter. Most people can participate in the majority of airdrops; however, many projects have begun to increase exclusivity.
You can take part in four main types of airdrops: standard, holder, exclusive and bounty.
Standard Airdrops
The standard airdrop functions as the most basic of airdrops. Generally, a small quantity of the token is awarded, and supplying your wallet address as well as following very basic steps will reward you. Marketing-wise, if everyone can get a piece of the pie, more people will flock to the airdrop, which is a great technique to attract new members.
Holder Airdrops
Holder Airdrops are also basic. Holder airdrops are awarded to wallets that contain particular tokens or non-fungible tokens (NFTs). Bitcoin Cash was awarded in a 1:1 ratio to Bitcoin holders before its launch.
Exclusive Airdrops
Exclusive airdrops go only to loyal or verifiable members of a community. People who have consistently followed up with news about the project or first followers on a social media account are rewarded with the project’s currency.
This common type of airdrop rewards early adopters of certain applications. Projects like Uniswap and Ethereum Name Service (ENS) Domains have airdropped thousands of dollars to early users for free.
Bounty Airdrops
Bounty airdrops are generally promotion-based, often using a paid promotion through Instagram, Meta Platforms Inc. (NASDAQ: FB) or Twitter. Sometimes projects will incentivize users who interact with larger audiences.
Popular Cryptocurrency Airdrops
Many highly impactful airdrops have occurred within the crypto space over the past year. Most large airdrops are exclusive airdrops that reward early users of certain Ethereum applications.
Telos Airdrop
Telos offered airdropped tokens for completing particular tasks. You can keep an eye on their site for another airdrop which could occur at any time.
BAT Airdrop
BAT offered a lucrative airdrop in 2023, offering tokens based on the user’s online activity. Check out their site to see if you qualify and did not receive tokens.
ENS Airdrop
The massive ENS airdrop occurred at the end of 2021. Depending on a user’s involvement with using ENS Domains, $13,000 to $84,000 was given to each person who qualified. To qualify, you needed to register an ENS domain name before Oct. 31, 2021.
LooksRare Airdrop
The LooksRare coin LOOKS was dropped to people for having traded over three Ethereum on OpenSea during the latter half of 2021. Depending on the amount of Ether spent on OpenSea, those who received the airdrop got anywhere from $500 to over $50,000.
Bitcoin Cash Airdrop
Bitcoin Cash’s BCH airdrop on Aug. 1, 2017, matched Bitcoin holdings with BCH. The price of Bitcoin was around $3,000 at the time, and each Bitcoin Cash was trading for a few hundred dollars.
Uniswap Airdrop
The Uniswap airdrop for its token UNI is valued at well over $5,000 today. The basic qualification for 400 UNI is to have interacted with the Uniswap network before Sept. 1, 2020. If you missed out on this drop, being involved in growing communities could help pave the way for participation in the next big airdrop.
NFT Airdrops
Cryptocurrency airdrops are common in the crypto space. Almost just as common but lesser-known are NFT airdrops. Done just as perfunctorily as crypto airdrops, NFT airdrops generally are given to holders of previous collections. These airdrops are known as holder airdrops.
Some of the most touted NFTs include the Bored Ape Yacht Club (BAYC) and the highly sought-after CryptoPunks. These collectible items have airdrops for owners to generate and maintain hype, such as Mutant Ape Yacht Club and Meebits.
Where To Buy Cryptocurrency
You can access a number of good trading platforms to buy crypto. Benzinga recommends choosing a safe exchange that you can easily move money in and out for peace of mind. Here are a few.
eToro
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
eToro is easy to exchange various cryptos through as well as a variety of other traditional financial assets. On eToro, without paying commissions, you are granted all of the safeguards that come with being a qualified and licensed platform. This brokerage allows you to communicate with a large number of other investors who have accounts on the site, as well as imitate other traders' actions automatically.
Coinbase
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
Coinbase Global Inc. (NASDAQ: COIN) is an online solution that integrates wallet, trading and commerce features into a single user experience. The founders' primary objective is to establish Coinbase as an outstanding international brand for converting cryptocurrency to fiat currency.
In the United States, where the operations are situated, Coinbase is a regulated corporation. The platform supports well over 50 coins and tokens.
Webull
Investors of various levels of expertise can establish a crypto strategy with Webull. Webull has designed an excellent trading platform that is suitable for both amateur and advanced traders. Webull distinguishes itself as a top exchange for seasoned clients thanks to its comprehensive charting and research tools.
How To Be Eligible For Crypto Airdrops
To be eligible for crypto airdrops, you need an Ethereum wallet that can connect to decentralized applications on Ethereum’s blockchain. MetaMask is a wallet that connects seamlessly to websites that require it.
MetaMask is a renowned Ethereum and Binance smart chain (BSC) digital wallet that is available immediately to use. Chrome, Firefox and Microsoft Edge browsers offer it as an extension. MetaMask makes sending and receiving Ethereum tokens a delight. To execute a transfer, go to the application or browser extension's send tab, input the recipient's Ethereum address, select your gas cost threshold and send.
As mentioned previously, many crypto airdrops have some level of exclusivity that can include promoting the project or having held onto particular cryptos or NFTs before the drop. You’ll want to diversify your wallet while you support projects that you are passionate about.
How To Store Crypto and NFTs Safely
Although most blue-chip digital wallets and brokerage accounts are generally extremely safe, the safest place to store crypto is in a physical hardware wallet.
Ledger is one of the most popular hardware wallets on the market with its best-selling wallet the Ledger Nano X. The portable gadget is handy and trustworthy, with an LED display for transaction verification and a password for confirmation. The hardware wallet works with most cryptocurrencies, by connecting to your laptop through a USB. The device's only limitation is that all programs require your computer to be connected to the internet and run on Google Chrome.
How Much Can You Get From Crypto Airdrops?
As mentioned throughout the article, crypto airdrops come in all shapes and sizes. They are a great way for the project to get community engagement and for the consumer to make a quick buck. Often, airdrops give as much as $1,000 to users who partake in active communities. You could make even more from high-profile airdrops. For the average crypto trader who follows projects casually, free money from airdrops is attainable.
Frequently Asked Questions
Are airdrops and dividends the same?
Airdrops are not the same as dividends, but they operate on a similar concept—you get rewarded for buying in.
Can you count on airdrops every year?
Airdrops will happen every year, but there’s no way to know when they will occur as crypto projects have total control when airdrops are released.
Are crypto projects required to complete airdrops?
No, airdrops are not required.
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About Jack Fineman
Jack Fineman is an undergraduate student studying economics at UCSB, President of the Blockchain at UCSB club and starting player for UCSB in the Collegiate Chess League. Jack primarily works on project creation and managerial work for his club and produces Web3 content for Benzinga. Jack is highly passionate about DeFi and blockchain technology, one of his favorite projects is The Helium Network.