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What is an Airdrop?

 

What is an Airdrop? The concept is old, the application is new. How does an airdrop affect your cryptocurrency investment? Where do they come from and where do they go? This information is vital in order to maximize your potential for success when you receive one.

  • What are the benefits of participating in an Airdrop?

  • How do you receive an Airdrop?

  • Are all Airdrops Safe?

A cryptocurrency airdrop is free money. Without all the big words and innuendos, this concept is simple. When you receive an airdrop of cryptocurrency It’s literally the same as receiving free money. An airdrop can also equate to receiving coupons to purchase new products issued by your favorite brand at a discount. An airdrop is a marketing tool that allows holders of a cryptocurrency to receive crypto tokens that can be traded or redeemed for another item of value. The purpose of an airdrop is to promote dialogue and interest about an upcoming or existing crypto product.

Airdrops are usually delivered in one of two ways. They are delivered with a great fanfare of promotion. Or they are delivered to your crypto wallet the same way the tooth fairy, leaves you a gift for your baby tooth. There are so many cryptos issued now, almost 4,000, most airdrops are announced so they don’t go unnoticed.

Issuers usually require the receivers to be a holder of a particular crypto along with information from the individual to facilitate lead generations. Participating in an airdrop is like receiving stock rights or stock warrants.

Besides being used as a marketing tool for the issuer, occasional airdrops can promote loyalty to the brand. Everyone loves surprises, especially when that surprise can be used to buy goods and services you’re interested in.

One of the best ways to get involved in airdrops is to sign up to online services that provide timely information concerning them. 21st Money, Telegram groups and airdrop forums are great places to start. Most tokens are created within the ERC20 protocol. You will need a cryptocurrency wallet to receive an airdrop of cryptocurrency tokens. An ERC20 compatible multicurrency wallet is highly recommended to accomplish this need.

Some airdrops are  not as innocent as they may appear to be. Airdrop campaigns have been used to hack wallets and steal private keys. Make sure you are dealing with a legitimate and safe campaign by confirming the authenticity of a cryptocurrency airdrop before you actually get involved in it.

An airdrop is so similar to the ancient tradition of cutting out coupons from the Sunday newspaper. The only difference now is that whole process has been digitized. The tokens issued through airdrops lead you to all types of investment opportunities revolving around blockchain technology. Instant access to medical records as well as gambling and games are just the tip of the iceberg. As this technology advances, airdrops will enhance marketing strategies enabling an easier road to globalized sales of goods and services.

As you begin to become more intimate with blockchain technology, airdrops can be used as a vehicle to help you explore the limitless applications and opportunities within digital ledger technology – the blockchain.

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