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Bittime - For many cryptocurrency investors, achieving a return on their investment is paramount. Given market volatility, this could be a quick accomplishment or a difficult endeavor. Hence, crypto airdrops present themselves as a cost-effective method of accumulating additional profits on one's portfolio. After all, airdrop tokens are obtained for free, and pose no financial risk, right?
Crypto airdrops appear almost every day with varying accessibility. However, not all airdrops are created equal when it comes to reliability. While crypto airdrops may seem profitable at first, they can also pose certain risks. To navigate the world of crypto airdrops successfully, it is important to thoroughly understand how they work and their potential pitfalls. Let's dive into the world of crypto airdrops and uncover the ins and outs!
What is a crypto airdrop?
Crypto airdrops serve as a means for individuals to earn free cryptocurrency from crypto projects. There are various methods to obtain these tokens, although receiving them for free is not always guaranteed. Often, individuals must invest time, effort, or even bear transaction costs. However, participation in certain airdrops may be free of charge.
You might be wondering: how do crypto airdrops work?
Crypto projects allocate a predetermined number of tokens to individuals who meet certain eligibility criteria. By fulfilling the specified tasks, participants are entitled to receive these tokens. Participation in crypto airdrops usually requires registration or completing various actions. After task completion or token allocation, participants can claim their tokens or deposit them into their wallet.
Crypto airdrop illustration
The cryptocurrency world has witnessed many airdrops over the years, initiated by leading crypto projects. As a result, examples of crypto airdrops abound. Airdrops have been a staple in the crypto world for years, with the first airdrop taking place in 2014. During this inaugural event, a crypto project distributed 50% of its tokens via airdrop.
This project, called Auroracoin, introduced its cryptocurrency token, AUR, with aspirations to make AUR Iceland's national cryptocurrency. As a result, the entire AUR airdrop is intended for Icelandic citizens, who can receive up to 31.8 AUR per individual.
After Auroracoin's jump, many other things happened, including those hosted by more established cryptocurrencies. For example, Stellar Lumens (XLM) and Bitcoin Cash (BCH) conducted cryptocurrency airdrops in 2016 and 2017 respectively, distributing airdrop coins to Bitcoin holders. Bitcoin Cash allocates one Bitcoin Cash token per Bitcoin, which translates into thousands of dollars at peak.
Another notable crypto airdrop was UniSwap's issuance of UNI governance tokens to decentralized exchange ( DEX ) users in 2020. Over 250,000 accounts received 400 UNI per account, generating huge value per recipient! This airdrop proved to be very profitable for those who were able to take advantage of the right moment to sell their UNI tokens.
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Various types of crypto airdrops
Crypto airdrops include various types, each characterized by unique attributes. Crypto projects often view airdrops as a marketing strategy to increase project growth. Goals can range from increasing brand awareness and acquiring new users to rewarding early adopters.
The nature of a crypto project's motives usually aligns with the type of airdrop implemented. Common types of crypto airdrops include:
Standard Airdrop
In a standard airdrop, tokens are distributed for free, requiring no special actions from participants. Simply creating an account and providing a wallet address is enough. However, as tokens allocated for the airdrop may be limited, it is recommended to participate early.
This airdrop is very popular due to its ease of participation and cost-free nature. To ensure fair token distribution, some airdrops are conducted through a lottery system. As a result, participants have the opportunity to win free cryptocurrency, although without the guarantee of receiving an airdrop.
Airdrop Bounties
Bounty airdrops require rewards for completing tasks, which may require a lot of effort. Participants invest energy and effort to complete tasks deemed valuable by the crypto project. This method is increasingly favored by new projects seeking to leverage airdrops as a means of driving user engagement.
Airdrop Holder
With a holder airdrop, participants receive cryptocurrency tokens based on their holdings of other cryptocurrencies. Airdrop token allocation is determined via snapshot. Typically, a snapshot of a participant's crypto wallet is taken on a specific date or during a specified period. Based on the token holdings captured in the snapshot, participants expect to receive the appropriate amount of cryptocurrency.
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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What is Abnormal Return in Crypto?
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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