How to Profit from Crypto Airdrops?
Ever wonder how you can make a profit from crypto airdrops?
Crypto airdrops are designed to help promote new cryptocurrencies, allowing them to instantly acquire a large community, which is expected to entice investors.
Basically, the idea is that IOTA, for example, is offering wallet users free tokens of their own cryptocurrency in exchange for downloading and signing up with their wallet.
Well, it actually depends on what you are trying to achieve by taking part in crypto airdrops. For example, if you just want to accumulate as many cryptocurrencies as possible, it might not be a great idea unless you actually believe in the cryptocurrency and its capabilities.
What are Airdrops?
Airdrops are basically free cryptocurrency tokens that are distributed to the crypto community or, in some cases, directly to Bitcoin or Ethereum holders.
However, you need to note that not all crypto coins offered as part of an Airdrop will increase in value - but there are ways in which you can make money from them.
Basically, some of the most successful cryptocurrencies, such as NXT and BitShares, were basically launched via crypto airdrops, and they both did great.
Here is how to profit from Crypto airdrops.
Join the Community:
First and foremost, find out everything that you can about the cryptocurrency in question. Find out what their plans are for their tokens and how they plan to spend them after the airdrop.
Join their Announcements Channel:
Most cryptocurrency communities have a Telegram announcement channel; this is where you will find out about the latest news regarding the project. This could include when to expect airdrops and how to be eligible for them.
Make yourself eligible:
In order to be relevant in any form of the airdrop, you need to make yourself eligible. This means checking the airdrop rules and notifying them of your public wallet address. Make sure that you do this well before the end date for eligibility in order to avoid any unnecessary problems or missed opportunities.
Take Your Bounty:
Typically you will be required to hold a certain amount of the token in order to receive your airdrop. This means that you will only be able to take part if you actually own, or can acquire, some of this particular cryptocurrency.
Spread the word:
Once you receive your tokens, spread the word regarding everything that you have just experienced. If it is relevant, try to create a case study with the help of other community members.
Keep up with the Community:
You should keep up with all updates and news related to this project since you are now part of their community. This could include keeping an eye on their social media accounts (such as Facebook, Twitter, Reddit) for any new announcements or potential airdrops.
Go in early:
Many people will join an Airdrop when it is announced, but to get in on the action, try signing up early and/or catch their slack channel. You will be able to talk with other members and get a first-hand idea of what the project is all about.
Another great strategy that you should consider using is getting involved directly in two different projects. In this way, if both projects do well after their Airdrops, it means that you stand a very good chance of doubling your profits.
Be the First:
Suppose you jump on an Airdrop quick enough and get in early (e.g. when it is announced). In that case, you will be able to make a lot of money due to the fact that most tokens follow an exponential growth curve after they hit exchanges for trading, resulting in a lot of price volatility.
Use Your Friends:
When an Airdrop is announced, notify everyone and get your friends to join in the fun. This will automatically make you eligible for receiving double (or more) tokens, and it means that you will still end up with the same amount of coins even if they spend their tokens somewhere else.
Be Aware of the Exchanges:
Once crypto airdrops are complete, most tokens get listed on exchanges-where they typically see their prices surge to sometimes dizzying heights just after being listed. Try to be aware of new projects that are getting ready for an Airdrop and monitor which exchanges they are going to get listed on.
How to Avoid Airdrop Scams?
Well, it's very easy to avoid scam ones. There are lots of blacklisted bot accounts on Twitter, so you can simply search for social media clues related to the cryptocurrency in question.
For example, if I want to find out more about an AirDrop that IOTA is offering, I have to search Twitter for IOTA AirDrop, which will display all the clues that I need.
Another way to avoid scams is to make sure that you only take part in airdrops that are actually offering some money and not just free tokens. The ones where they ask you to pay some money in order to receive the airdrops are scams, or at least; you should stay away from them.
The most reliable ones will have a telegram channel with rules and guidelines to follow if you wish to take part.
Why Would You Need an Airdrop?
One of the most important reasons why cryptocurrency projects will drop their own tokens is to help them raise awareness of their product.
If an airdrop is successful, it can easily be spread amongst thousands of people in just a matter of hours, resulting in increased exposure and the raising of crypto capital.
Another reason why projects prefer Airdrops instead of traditional ICOs, at least at the present time, is because it's illegal in some countries.
Airdrops are also a great way to gain new followers on social media since most of them will be forced to follow the project's Twitter account if they want to receive their free tokens. This allows the project more exposure which hopefully results in increased revenue and cryptocurrency capital.
Coinscope organizes crypto airdrops. We provide quality airdrops from the most recent crypto projects. Users can navigate to our list of current, upcoming, and closed airdrops. It's a great opportunity for the users to earn coins out of nothing.
Cryptocurrency airdrops are an opportunity for you to start investing in certain cryptocurrencies before they hit the exchanges. This way, you will get to earn while they are still priced low, and their prices rise in value over time.