What is a cryptocurrency airdrop?
A crypto airdrop is when a blockchain project distributes free tokens or coins to the crypto community.
To get airdrop often the only requirement is that you have coins from the relevant blockchain stored in your wallet. Examples of this format of airdrops are Byteball, Stellar lumens, and OmiseGo. These airdrops required to prove you were the owner of Bitcoin or Ethereum at a certain time (snapshot) of the blockchain.
Airdrops can be delivered in a variety of ways:
- Forks (e.g. Bitcoin Cash, Bitcoin Diamond),
- ICO purchases (e.g. Raiden Network),
- Freebies (e.g. Binance gifting customers with 500 free TRX).
Sometimes an airdrop will occur if a team behind the blockchain project decides to give away “free” tokens to the cryptocurrency community.
At a pre-announced time the project behind the event will take a ”snapshot” of the blockchain, anyone holding Ethereum or Bitcoin at that point will receive a certain number of free tokens or coins. This can also be done on other blockchains, but Ethereum and Bitcoin are the most used for this airdrop format.
Why do Airdrops Occur?
Why does this happen, and why would anyone decide to give away valuable tokens? First of all, with doing an airdrop the project creates awareness about their ICO or token. It brings people to the project that otherwise would not have owned or heard about it. It could lead to token price appreciation since people value a token they own higher then a token they don't own.
A crypto airdrop is advertising. When you look at coinmarketcap just on page one you will see 100 coins, but if you have or had a coin that name is still in your brain. The seed is planted and whenever you check coinmarketcap and scroll down, the name of the free e-Coin will jump out and people will check how it is doing. Although, a crypto airdrop would create a community of people who own the tokens.
What Wallets Do I Need?
Usually, airdrops occur on the Ethereum or Bitcoin blockchain and all you need is an account on an exchange. However, those in charge of the airdrop will sometimes state a specific wallet that’s needed such as an “ERC20 non-exchange wallet”(a wallet that isn’t located on exchange sites such Binance or Coinbase). One of the reputable non-exchange wallet is Exodus.
An ERC-20 wallet simply means any wallet that supports the Ethereum blockchain system. Some tokens follow Bitcoin protocol, some follow Ethereum, etc. Therefore, it’s important to have a wallet that allows you to store ERC-20 tokens if that’s what the airdrop guidelines call for. MyEtherWallet is a popular ERC-20 wallet.
Where can I find information about new airdrops?
There are many websites and twitters that post about new crypto airdrops. However many of them mostly post referral links from which they get paid if you join. That's why Hype Codes team is constantly updating the list of the most interesting cryptocurrency airdrops on such criteria as relevant date and the difficulty of obtaining.
In this article you can find relevant information about the active cryptocurrency airdrops and how to get them.