The Ins and Outs About Cryptocurrency Airdrops You Should Know

Compared to stocks, crypto investments have higher chances of yielding higher returns in a shorter span. The main reason for this is the volatility of the crypto market. Despite this, investors will find it difficult to maintain their returns. In such cases, crypto airdrops are the best ways to improve returns in an investor’s portfolio. Well, airdrops come without any cost, so why waste the free opportunity? 

A crypto wallet should have all the mandatory features of blockchain wallet development to ensure safety from shady airdrops. 

If you are an active Twitter user, you might have seen tweets about various crypto and NFT airdrops daily. However, some of them may come from unreliable sources. Initially, a crypto airdrop will look lucrative but may develop some issues later over time. 

Let us explore the various information about cryptocurrency airdrops. 

What are cryptocurrency airdrops?

A cryptocurrency airdrop is a way to introduce and publicize new crypto into the market. As crypto airdrops are free of cost, users will rush to collect the tokens issued by the company. However, they need to perform some simple tasks to receive free tokens. 

The tasks will be like retweeting, sharing about the airdrop on different social media platforms, answering a survey, filling out a form, etc. How does an airdrop work?– a crypto token company will initially perform different stages of planning and execution. Then, they will determine whether an airdrop is required or not and how many crypto tokens have to be distributed. After the airdrop launch, eligible users who successfully finished the given task will be selected and rewarded with free tokens. Finally, the crypto tokens will be sent directly to a user’s wallet. 

During this process, the company may collect the participant's details such as email address, wallet address, etc. 

Examples of cryptocurrency airdrops

Stellar is a decentralized payment network that provides crypto airdrops to users who hold a specific token. Users can receive free crypto tokens by holding XLM coins in their wallets. 

Another example is NEO, a blockchain platform that gives crypto airdrops to users who hold NEO coins in their wallets. Thirdly, OmiseGo is an Ethereum-based platform that offers free tokens to users who holds ETH in their wallets. 

Now, you might think, “Who gives crypto tokens for free? Is this even reliable and safe for users?”

Are crypto airdrops safe? 

Crypto airdrops are considered safe but not all the time. As airdrops have a central attraction, scammers may use them as an opportunity to scam people. Thus, a user has to be alert and pay attention to the promising airdrops from the market. Without it, you cannot simply integrate your wallet into an unreliable party, ending up losing all your assets. 

If a skilled cryptocurrency wallet development company developed your wallet, your assets are safe. So, have a secure wallet and choose a trustworthy airdrop to avoid becoming a victim of airdrop scams. 

Do crypto airdrops have a future?

Similar to crypto faucets, crypto airdrops play their role in increasing a coin’s market volume perfectly. Also, these are the proofs that blockchain is potentially sculpting our traditional business model. As the crypto space grows bigger every day, the odds are that more advanced yet innovative solutions will arise in the near future.