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19) 1 way of making free money in Crypto.
🕑 Added 2023-02-13 20:48:14 +0000 UTCNothing in this LIFE is for free. Yes, that's correct.
But in crypto, it's a little DIFFERENT.
Some companies give out FREE tokens.
These are called AIRDROPS.
People think finding airdrops are complicated, but with the right information and a little bit of effort, ANYONE can participate.
A crypto airdrop is a promotional activity where a cryptocurrency project gives out free tokens or coins to a large number of individuals.
Unlike 'token sales' as we discussed in lesson 17, airdrops should be COMPLETELY FREE and you should NOT have to PAY in order to get an airdrop token.
You can do WHATEVER you want with these tokens, trade them, use them as a means of payment, or HOLD them as an investment.
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The reason why AIRDROPS exists is because it creates a BUZZ and generates INTEREST for the project. Also helps the project:
- Increase Awareness: By giving out tokens the project can increase the visibility of its platform. Leading to more people learning about the project and potentially becoming users in the future.
- Community Building: Airdrops can be a way for projects to build and engage with their communities.
- Token Distribution: Airdrops can be a way for projects to distribute their tokens to a wider audience to ensure that the tokens are held by a diverse group of people. Leading to a more stable network as well as reducing the risk of centralisation.
- Increased Liquidity: When participants receive free tokens, they may be more likely to trade or use them, which increases the liquidity of the token and makes it easier for others to buy and sell.
- Attracting Developers: By giving away free tokens, projects can incentivize developers to build on their platform and create new applications. Leading to a more innovative ecosystem for the project.
So giving out free tokens through an airdrop can be a valuable MARKETING and community-building tool for a project,
This is done to increase AWARENESS and ADOPTION of the company's project.
Simply put, they are paying YOU for engagement.
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I FIND which projects are doing these airdrops by using Airdrop tracking websites.
Some POPULAR airdrop tracking websites are:
- Airdrops.io
- AirdropBob
- Airdrop Alert
These websites keep TRACK of all the latest airdrops and provide all the information you need to claim your share of free tokens.
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Now understand carefully.
You will see MANY projects giving away their tokens for free.
Most of these tokens are of LITTLE worth.
60% are going to be USELESS coins and are UNLIKELY to have any significant value.
Also, SCAMS are very LIKELY to take place with Airdrops, do not fall for these.
HOWEVER, the BEST airdrops are those that are distributed by POPULAR and successful projects WITHIN established ecosystems.
These airdrops are more likely to be WORTH MORE than just a few thousand dollars.
Many of these high-profile airdrops are happening in the DeFi (Decentralised Finance) space, where you have to interact with a protocol or DApp (Decentralized Application) to participate.
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There are a number of things to LOOK out for when CONSIDERING an airdrop.
Check if the project even has a TOKEN, as some of the BEST airdrops have been for projects that have introduced a NEW token.
A new and exciting token that is in LIMITED supply can be attractive.
However, it is important to keep in mind that NOT all new tokens are valuable.
To INCREASE your chances of finding a valuable airdrop, it is wise to focus on projects that are POPULAR and have a large user base and a STRONG community.
The more PASSIONATE the community is, the more likely the airdrop will be VALUABLE.
It is also helpful to consider the COMPETITION and see what other projects are doing.
For example, if a project does not have a token and a competing protocol does, there may be PRESSURE to introduce a token.
It is also important to check if the project has been backed by large VC funds.
So the SAME WAY you look at projects for investments or TOKEN SALES, you want to LOOK at to participate in an airdrop.
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Now one thing to notice is that these airdrops rewards are RANDOM.
An airdrop is a STRAIGHTFORWARD process, but it's important to follow the instructions carefully for your best chance of receiving the airdrop.
Each project has its OWN process.
So in order for you to try and claim your share of free tokens you must follow the project's steps CORRECTLY.
So make sure you Meet the Eligibility Requirements
These requirements may include things like FOLLOWING the project on social media, or holding a certain AMOUNT of their tokens beforehand in your wallet.
You should not have to send the tokens anywhere.
Make sure you read the instructions carefully and FULFIL all the requirements before proceeding.
In MOST cases you will have to Create a Wallet
You will need to do this to RECEIVE and store your airdropped tokens.
The best wallet I use is METAMASK.
This is a decentralised wallet which means that you do not have to VERIFY your identity and anyone can make an account as they give you 12 random phrases as your login.
Once you have a wallet, you'll need to provide your wallet address to the project conducting the airdrop.
Your wallet address is a UNIQUE string of numbers and letters that are used to identify your wallet.
Make sure you provide the CORRECT wallet address, as tokens cannot be retrieved once they've been sent to the wrong address.
Once you've completed the steps, WAIT for the airdrop to be distributed.
This process can take a few DAYS or even a few WEEKS, so it's important to be patient.
Once the airdrop has been distributed, you should be able to see the tokens in your wallet.
In the above example, OPTIMISM had an airdrop, this is a coin that is doing very well now due to the ZK hype.
And you can see the DIFFERENT requirements you had to do to receive an airdrop.
You only had to do one to meet the requirement, but if you like the project you can do MORE to INCREASE your chances.
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If you've received your airdropped tokens, it's important to monitor their value.
To Maximize Your Gains, Do Not Sell Anything During The Bear Market
Whatever you have earned, even if it is just $1 worth of tokens you got from an airdrop or a giveaway, do not sell it.
Yes, chances suggest most projects will tank and reach zero.
But, those that will survive will present a RARE opportunity that will cover up all the losses and also provide vast profit, making hunting worthwhile.
Back in 2019, I made some horrible mistakes like this one:
<figure>
</figure>This was a reward from a Decentraland contest, where my design won one of the prizes.
Yet, I sold these tokens for $151, while during the PEAK of 2021, they were more than $15,000.
I sold for $0.05, and the price reached $5 two years later. A missed 100x opportunity.
The wrong mindset prevailed, but i KNOW there are other ones.
You want to SELL as the bull run turns parabolic.
Below is the Axie Infinity (AXS) chart, which airdropped tokens in 2019.
<figure>
</figure>Some of the low-valued tokens you receive could be projects with a working product, a decent community, and a constant presence in the crypto news.
We will accumulate anything and only look again at our wallets in 2025.
This is the mindset to have, as some of the coins you will get from all these activities will grow during the bull run to heights you never expected.
Some airdrops I am waiting to get more details from to participate in are:
- Celestia
- Metamask - potentially the biggest airdrop (going to do a step by step guide)
- Fuel
- Quai
- Aztec
Any time you are going for an airdrop, you want to enter the projects DISCORD which is more civilized than the telegram and check for ANNOUNCEMENTS regarding the airdrop.
Also, ASK the community moderators anything, it is their JOB.
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Airdrops to avoid:
- Avoid DeFi airdrops that ask for trades and volumes.
You will end up paying excessively more than the airdrop you will receive. Many tried to exploit these airdrops but ended up with a net negative. - Avoid airdrops asking for deposits or initial purchases of their token. That’s never going to end well.
- Avoid KYC-related airdrops at all costs.
Better to avoid all KYC anywhere online since your data is never safe. Scammers have operated KYC airdrops and abused private documents to facilitate scams and money laundering in the name of the airdrop hunter. You will get in trouble if you send your ID to scammers, so handle your private documents and data with respect. - Airdrop telegram groups
Crypto airdrops are a fantastic way for individuals to earn free cryptocurrency without any investment.
Just remember to stay informed, follow the instructions carefully, and always use a secure wallet.
@ionicxbt
Comments
Make sure to use a hot wallet too - Don't keep big funds on a metamask wallet you are using to farm airdrops!
Great overview on this topic.
