If you didn't hear the words "money dosen't grow on trees" while growing up, then count yourself one of the lucky ones. That age-old adage that grandma would shout at you after catching you being wasteful has always stuck with me (and many others I presume), but is it really true? Yes... yes it is damnit! There are almost no times where money just materializes from nowhere, but this notion only took "fiat" money into consideration. If we look at the creation of "value" that can certainly, and does, come out of nowhere.
In cryptocurrency however, money may not grow on trees but tokens seem to just drop from the sky... Of course I am talking about cryptocurrency airdrops!
Follow The 'Stache as I break down exactly what a cryptocurrency airdrop is and some of the best airdrop resources for finding out how to get your free coins.
The Legend Of The Free Token
When it comes to free money, or free tokens in this case, you still really can't get something for nothing, BUT you can get something for VERY little and this is where crypto airdrops come in. An "Airdrop" is the term given when a project gives away free tokens for people that meet certain conditions. It's that simple.
Of course the who, what, why, when, where and how still needs to be answered so lets look a bit deeper.
Why Do Crypto Airdrops?
Airdrops are done for a variety of purposes, but mostly they are done to try and promote a new project. Think of crypto airdrops as a form of advertising. A newer project gives away a small amount of tokens to enthusiasts in exchange for as little as joining their Telegram group or email list. Many times you just have to hold another major crypto like Bitcoin or Ethereum and projects will take a "snapshot" of all holders on a certain date and issue tokens to those people in an airdrop.
With the cryptocurrency space exploding with projects it is becoming harder and harder to get recognized and raise money. There has been a lot of pressure on the ICO scene recently and many companies are opting to forego them altogether, replacing them with airdrops instead. If done right, an airdrop can be a very effective marketing tool for an emerging cryptocurrency project. It is easy to see how hype of a project and good news can really make a coin skyrocket in price, so this is just one more rocket booster helping to make that happen.
How Can I Get Airdrops?
There are a few good ways to get your free tokens through airdrops. The first is to hold major coins like Bitcoin or Ethereum and keep notice of when new coins fork or tokens are going to holders of major coins. Keeping track of hard forks of coins can be just as daunting as airdrops, but essentially they are the same thing. I use CoinMarketCal.com to keep abreast of upcoming forks (and also general crypto events).
The other way to check cryptocurrency airdrops is to use a popular airdrop listing site. There are a few sites out there that do a pretty decent job of listing all the upcoming airdrops and what you have to do to get them. Some are simple and straight forward, while other coins make you download a special wallet or the like. No matter what site you use, always remember to never give away your private key and never "send money to get money". You will almost always need an ERC-20 wallet (I use MetaMask), to store your tokens though. Each airdrop is a little different and there is no real "standard" way of doing it. Here are 5 sites where you can keep track of upcoming cryptocurrency airdrops.
- AirdropAlertThis was the first site I started using and it is still one of the best in my opinion. Super clean interface and lots of information on upcoming airdrops and associated information.
- Airdrops.ioAnother great interface with a good amount of information. I like how they break the airdrops down into different categories like "Twitter Airdrops".
- ICODrops.comThey have a great interface as well that is clean and clearly shows which airdrops are sponsored ones.
- Airdrops.liveA simple listing that has fewer airdrops on it, but a unique feature where users can upvote or downvote the listings.
- CoinAirdropsThis is by far my least favorite, but they still have a good sized listing of coins. I am not a fan of the interface as much.
All of these sites should be taken with a grain of salt, and once again, abide by the rules and don't give away the farm trying to get these free tokens. In the end, you may get lucky, but many of these airdropped tokens end up going nowhere and are useless. Airdrops ARE a legit way for companies to promote their product and I think we will see more and more projects doing this. Most airdrops take very little effort, so why not get the free coins? Hopefully with some of these resources I provided it will be a lot easier to keep track of when you need to jump on the opportunity!