How can a crypto newbie earn several thousand dollars without investments and almost no risk? In this article, we will analyze the Crypto Airdrops system. We’ll discuss the types of drops, how much you can earn, how to find profitable drops, how to create a farm for multi-accounting, and what the dark sides of free money in crypto are.
What is an Airdrop?
An airdrop is a money giveaway from cryptocurrency projects. You perform certain actions or provide light advertising for the crypto project, and it rewards you with its tokens. You complete some tasks from the crypto project, the project rewards you with its tokens, and then you sell these tokens on an exchange for a real profit.
Types of Crypto Airdrops
1. Standard Airdrops
The first type of airdrop, one of the most popular and oldest, is giveaways or so-called raffles. You subscribe to Twitter, join Discord, like posts, repost, and perform other actions on social networks, and the project draws its tokens in a lottery you participate in. Services like Galaxy now streamline this process, making it easier to participate in multiple airdrops. Cryptocurrency exchanges also hold similar events. To participate, simply visit exchange websites often, check the news, and complete the tasks they publish
To participate, simply visit cryptocurrency exchange websites more often, check the news, and find the tasks usually posted there. You need to join, subscribe on Telegram, leave a comment, and the exchange will credit tokens to your account during the coin listing.
2. Holder Airdrops
Holders are people who own certain crypto assets. For example, if you bought Bitcoin and you’re holding onto it, you are a Bitcoin holder. Essentially, new airdrops are awarded simply for holding the project’s tokens. You keep the coins in your wallet or on the exchange, and you receive additional coins that you can later sell for profit. This type of drop has been practiced for quite a long time. A famous example is from 2017 when all Bitcoin holders received Bitcoin Cash tokens at a 1:1 ratio
Nowadays, projects regularly conduct such drops, including on centralized exchanges. For example, the OKX exchange organized one of the latest events we covered on our Telegram channel. By holding and staking OKB tokens (the OKX exchange token) or Bitcoin, you could receive ZETA or DMAIL tokens. This type of drop may be slightly more costly, but if you already hold the project’s tokens, you essentially get additional tokens for free.
3. Retrodrops
Retrodrops are distributions of crypto to new users of a project for performing certain actions like testing services or using the project’s network. A notable example is the Arbitrum retrodrop of 2023, where users received up to 1250 ARB tokens, equivalent to $2000, for performing simple transactions within the Arbitrum network. Another example is the Aptos project, where the team gave users 150 APT tokens, roughly equivalent to $1500, for claiming an NFT in the Aptos network before it was listed on an exchange.
How to Find Profitable Crypto Airdrops
Finding profitable airdrops involves looking for projects that are not yet listed on exchanges. Conduct fundamental analysis to check the project’s funding, concept, and tokenomics. Resources like CryptoRank or CryptoFundraising can be helpful in evaluating the investment volume and potential profitability of a project.
In fact, finding airdrops is not that difficult; what is much harder is completing tasks, creating multiple accounts, and so on.
Criteria for Finding Airdrops
- Project Stage: The project should not yet be listed on an exchange. In other words, it should still be in its early stages.
While a user base may exist and the blockchain may be operational, the token should not yet be listed on an exchange. - Fundamental Analysis: Evaluate the project’s concept, funding sources, and tokenomics. Investigate who is backing the project, its core idea, and the specifics of its financial structure. Conduct a thorough fundamental analysis by examining the project’s activities, tokenomics, the funds invested, the timeline for fund release, and the allocation for airdrops. The higher the percentage allocated for airdrops in the project’s tokenomics, the greater your potential earnings from the project.
- Investment Volume: Use services like CryptoRank to check the volume of investments.
Multi-Accounting for Airdrops
Multi-accounting involves creating multiple accounts to receive airdrops from various wallets. Proper multi-accounting requires good preparation, such as creating separate wallets, social media accounts, and using an anti-detect browser to avoid detection.
Important Tips for Multi-Accounting
- Separate Wallets: Do not transfer tokens between your wallets to avoid detection.
- Avoid Identical Activities: Perform activities at different times and with different amounts to avoid suspicion.
- Anti-Detect Browser: Use an anti-detect browser to prevent the systems from detecting multiple accounts. For example, you can use a good anti-detection browser DolphinAnty and there are many services with proxies on the Internet, which will also be useful to you.
Why Crypto Projects Distribute Airdrops
Crypto projects use airdrops as a form of advertising and marketing to attract new users and generate network activity. It also helps them avoid regulatory issues by not selling tokens directly, thus not falling under securities law.
Marketing and Advertising
Crypto projects use airdrops to spread the word and attract a large number of people. By offering tokens for simple actions, projects like Arbitrum and Aptos create publicity and demonstrate that their network is being used and functioning effectively.
Bypassing Regulation
By distributing tokens for free rather than selling them, projects avoid falling under securities law. This helps them bypass regulations and avoid issues with entities like the U.S. Securities and Exchange Commission.
Risks and Scams in Crypto Airdrops
While airdrops can be profitable, there are also risks and scams to be aware of:
Hacked Social Media Announcements
Fake announcements can lead to phishing scams. If there’s a strict time limit like 24 or 48 hours, it might be a hacked account posting fake announcements. Suspicious links can lead to the loss of your money.
Usually, if you are given a strict time limit, such as 24 or 48 hours, it is most likely that your account has been hacked and you are seeing a fake announcement.
Scam NFTs and Tokens
Never interact with unsolicited NFTs or tokens in your wallet as they may lead to loss of funds. Scam tokens might show real value in your wallet, but activating them can unlock full access to your wallet for scammers.
How to Avoid Scams
To avoid scams, use the formula T.Y.M.M. (Think more with your brain). Be skeptical of promises of too much, especially for free. If you see random tokens appearing in your wallet, don’t use them. Always verify the legitimacy of projects and announcements.
Airdrops can be a lucrative opportunity in the crypto world, but they require diligence and caution. Engage with legitimate projects, avoid scams, and continuously improve your skills in the space. If you have any questions, leave them in the comments and stay tuned for updates on the most interesting airdrops.
