One of the exciting periods to be a crypto enthusiast is during airdrops; you can access cryptocurrencies without paying a dime.
Airdrops have become a culture for people interested in cryptocurrencies. New projects often dole out massive airdrops to potential investors or users of their product. They work the way of awarding some amount of a new cryptocurrency with the potential of getting a profit.
However, most investors have come to regard airdrops as unsafe, especially as cybercriminals have found ways of defrauding people or hacking into their wallets through airdrops. If you are not careful, you may be tricked into losing money or valuable assets in return for a fake digital currency or nonexistent project.
Here, you will discover the meaning of a crypto airdrop and how to differentiate a good airdrop from a bad one.
What is a Crypto Airdrop?
The most basic thing you should know about airdrops is that they are promotional strategies for crypto projects.
During a crypto-airdrop, those who want to participate in the airdrop must register with the crypto project and input some basic details. Sometimes they may be required to post some information about the project on their social media platforms, such as Twitter.
When all these processes are completed, those behind the crypto project will reward those participating with cryptocurrencies. The cryptocurrencies rewarded are usually used within the blockchain of the crypto project.
Crypto airdrops are not limited to new crypto projects; sometimes, a major activity in the blockchain, such as "forking," may lead to airdrops.
For instance, when Bitcoin (BTC) forked to Bitcoin Cash (BCH), people received some amount of Bitcoin Cash depending on the amount of Bitcoin they had in their wallet.
How To Spot Good Airdrops
There are certain qualities that good airdrops have against bad ones; if you know their qualities, you won't fall for an airdrop scam. If you are wondering how to get airdrops that would offer good value in the long run, the trick would be not chasing just any airdrop and involving in your own research.
Below are characteristics that describe a crypto airdrop as a good airdrop with the potential to succeed.
Legitimate Website
A good airdrop should have a legitimate, secure website and be easily recognized by the public.
If you have an airdrop whose website is easily accessible, has no redirects to another website, and is secured, it has more chances of being a good airdrop.
Since anyone can create a great website and still scam people, legit crypto airdrops websites are announced through their official social media channels.
For instance, it is not legit if Binance has an ongoing airdrop and it wasn't announced through its official social media channels.
Strong Community
In the crypto industry, the community is everything; if there's no one to promote and hype a cryptocurrency, it usually ends up dead.
The importance of community applies to every part of the crypto industry, including airdrops. Good airdrop names usually attract a large community, and they can push the project to a success.
Good airdrops have a strong community backing them since they believe in the project's success.
A complete and High-Quality Whitepaper
Photo credit: Paxful
A crypto whitepaper is a document that shows the plans of a crypto project and how and when they intend to achieve those plans.
To know if a crypto airdrop is good, it should have a complete and concise whitepaper covering every area of its goals.
A good crypto airdrop does not promise what it can't achieve on its whitepaper. Instead, they provide their audience with clear and concise project goals that are achievable. They don't promise to take the price of their cryptocurrencies to $10 within five months of launching the cryptocurrency.
No Donations Required
Most good airdrops don't ask for donations before users can redeem them.
The original idea of airdrops is for the community to promote the airdrop on social media channels and other platforms in exchange for cryptocurrencies. A good airdrop will not ask you to donate some Bitcoin or Ethereum to redeem your reward.
Verified Team Members
For a good airdrop, you can immediately identify and verify the identity of those behind the airdrop; they are not hidden.
Those behind great crypto airdrops have been in the crypto scene for a while, with verified social media pages and identities.
Wrapping Up
Crypto airdrops can be a great way of making extra money within the crypto industry. However, it has risks that can lead to the loss of the entire cryptocurrencies in your wallet.
There are higher chances of you making money if you know how to identify crypto airdrops that are good and with great potential.