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.
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 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 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 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.
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.
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.
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.
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 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 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.
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.
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
- Active traders
- Intermediate traders
- No charges to open and maintain an account
- No account maintenance fees or software platform fees
- Intuitive trading platform with technical and fundamental analysis tools
Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.
Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.
- New cryptocurrency traders
- Cryptocurrency traders interested in major pairs
- Cryptocurrency traders interested in a simple platform