Airdrop Cryptos and How to Trade Them Like a Pro

Airdrop cryptocurrencies are an excellent way for a novice investor to make money. You can get coins for subscribing to a channel, group, or page on a social network. It takes no more than 10 minutes to register and fulfill all the conditions – and in the future, a promising project can bring thousands of dollars. After all, bitcoin also once cost $1!

For the creators of crypto, free distribution is a good marketing move. They kill three birds with one stone: expand the network, increase demand for coins and popularize them. All this increases the chances of the project’s success.

Types of Airdrop: Getting Those Sweet Free Coins

Blockchain technology is developing at a cosmic speed. Every day, hundreds of startups create their blockchains. Some are based on really worthwhile ideas, while others remain unrecognized, and often for a good reason. Distinguishing promising projects from duds at the initial stage is hard enough. But it becomes less important when you don’t have to pay for coins.

Airdrop comes in two main types:

• Incentive-based (tokens are credited as a reward for specific actions);
• Automatically distributed (tokens are paid for nothing but only to those who already own a particular cryptocurrency).

The first type is used by teams that create cryptocurrency from scratch, while the second is more common during forks – when developers change part of the code of an already existing digital asset and pitch it as a new coin. A prime example is Bitcoin Cash’s separation from the Bitcoin network.

With automatic airdrop, users entitled to free tokens do not always get them. The reason is not the developers’ greed but the fact that not all exchanges support the giveaway. Therefore, make sure your wallet can be credited with coins before starting airdrop.

How to Make Money With Airdrop Coins

When it comes to automatic coin giveaways, you need to follow just about two steps:

• Find out if the exchange you hold an account with supports airdrop;
• If it doesn’t, create a wallet to which you can credit the coins.

In the case of an incentive-based airdrop, everything is a bit more complicated. The developers are giving away cryptocurrency for a reason. They want to get free advertising in return. Therefore, the one who has a promoted account in a social network or on a thematic forum can get more coins. It is Twitter and Bitcointalk.

It is also essential to have an account in Telegram since, after blocking ICO advertising on Facebook and Google, the leading blockchain project promotion activities take place there. Also, ensure you have a valid e-mail for verification in the system. If you do not want to publish your address, you can create a separate e-mail for participation in the giveaway.

One last thing: having an Ethereum wallet to participate in the Airdrop is mandatory. After all, most coins are based on this blockchain.

To obtain tokens, you can use:

• MyEtherWallet combined with MetaMask to protect against hacking;
• Ledger Nano or Tezos hardware wallets.

Are There Any Disadvantages to Free Coins?

As always – and many, actually. Among them:

1. High risk of getting cheated by scammers. Requests to transfer some amount of Ethereum to participate in the giveaway, as well as a demand to enter a secret key or to download and install a particular program, should put you on the alert.
2. Uneven remuneration. Users with thousands of subscribers will earn more cryptocurrency than those with about 500 online friends.
3. The futility of the project. According to 2017 statistics, 95% of ICOs remained only on paper. Tokens received in the airdrop had no value.
4. Low value of coins. On average, 1 airdrop brings $1-20. You have to participate in many token giveaways to earn a decent amount.

Airdrop and Bounty: Top 3 Differences

Airdrop rewards have much in common with Bounty, but these concepts should not be confused.

The main differences are:

1. Bounty is only suitable for advanced users. It can be programmers, translators, and experienced Internet marketers who know how to promote a brand. Such specialists can earn $2000 and more by participating in the program.
2. Airdrop requires less time (up to 10 minutes) and involves simple tasks: subscribing to a channel, a group, giving likes, etc. Bounty involves more complicated tasks: creating sales posts, reviews, videos, translating project documentation, etc. In general, with a qualified approach, you can earn 10-20 times more on Bounty.

Safety Rules

To protect yourself from scammers, you must follow some simple rules:

1. Do not enter the secret key to check the arrival of tokens on unknown sites. Also, you must not give your key to the ICO organizers.
2. Do not transfer money to other purses. Airdrop is always free!
3. Check the official sources. The project website, pages on social networks, and themes on forums.

If you fulfill these conditions, you will receive your coins immediately after the ICO. Usually, it is 1-2 months after participation in the giveaway.

What to Do With the Coins

So how does one actually make money with airdrop? Let’s be honest, right after the ICO they are practically worth nothing. Getting value to coins is helped by listing on exchanges and collaborating with other projects. But this takes from several months to a year.

Experienced investors recommend not to sell cryptocurrency immediately after receiving it. Instead, it is more reasonable to keep it in your wallet. The best time to sell comes immediately after the announcement of support from one of the well-known exchanges. For example, on Binance, the value of new tokens can grow 4 times or more in a day.

Another way to make money is to exchange a new coin for an already promoted one. You will get Bitcoins, Ethereum, or other cryptocurrencies instead of DLA or DEEP, hardly known to anybody.

To Drop or Not to Drop?

Start your journey in the world of cryptocurrency investing wisely. Airdrop certainly is one of the most attractive methods for the wary and non-believers – you can create a portfolio of assets without investing just by using the rules of earning on this method. However, you shouldn’t set your expectations too high since the chance of a particular free coin getting some good appreciation on the market is minuscule to start with. Another thing airdrop takes is, of course, patience. If earning this way is your goal, be prepared to wait for months (sometimes years) until some of the coins you’ve gathered start showing noticeable growth.