What are airdrops and how can we make money with them?
In the world of cryptocurrencies, there are many ways to generate income with little or no capital, through airdrops promoted by the projects or exchanges themselves. And in this article we are going to explore them so that you know how to get the most out of them.
What are they?
Essentially, they are tokens that we receive after completing a specific task. They are not "payment" for work, but rather a reward for effort and support.
There are several types, whether they are decentralized, such as the #Telegram bots that are so famous lately, or in the form of questionnaires, tasks or holding, and also in the form of "farming".
Telegram bots are currently the most popular. We get tokens for registering in a project or playing in an application. Eventually, when the token is released on the market, we can sell our reward.
Quizzes are a favorite on platforms like Coinmarketcap, in their "were" tab. By correctly answering a quiz about a specific project we receive a gift 🎁 in project tokens.
Through social networks, tasks usually include: sharing a post, using a specific hashtag or creating a publication explaining something about our project.
Other, much more specific tasks are the "test" stages.
When a project launches a platform or test network, they usually invite the community to test it, to find bugs and do stress tests to ensure the quality of a product. Once the testing phase is over, those who participated receive great rewards.
Holding some tokens in a decentralized wallet such as Binance web3, metamask or trust wallets can guarantee us a passive income without doing anything.
Some tokens have "taxes" for buying and selling set up in their contract. In some cases the tax is shared among holders to ensure stability and discourage sales.
Finally we have farming:
Farming is freezing our capital for a short period of time, to receive a gift proportional to our capital and the available pool.
For example, in Binance we have the "earn" and "Launchpool" tabs where the Farming option is located for new projects about to be listed.
In this tab we have two options:
Freeze Fusd for a few days to receive part of the reward pool. This option has the advantage that our capital does not vary due to market fluctuations, but the rewards are lower.
Freeze BNB, the native currency of the Binance smart chain. With this option we will receive many more rewards, however we run the risk that the price will drop and our initial capital will decrease. In short, it is a little more risky but the benefit is much greater.
Why do they give away money?
Did they find a way to create infinite money or is there something hidden?
The reality is that it is an advertising strategy, allocating a portion of the total tokens to give them away and build a community around them.
Likewise, in line with advertising a project, airdrops through tasks on social networks serve to increase reach and generate greater trust.
The strategy of giving away part of the tokens in the form of advertising may create the impression that this is counterproductive, because it creates selling pressure. However, it is quite the opposite.
Projects that allocate part of their total to airdrops usually use a minimal portion, usually around 5%, spread across thousands or millions.
In cases where tokens are obtained using the platform, such as in Telegram, this encourages the adoption of the product and becomes part of the ecosystem, creating a stable economy.
Those who receive airdrops tend to accumulate more instead of selling. This is because they know that the project is having great adoption and they prefer to increase their position, taking advantage of the current wave.
Final considerations:
Airdrops are a crucial tool in the growth and adoption of projects, as well as a great way to make money with minimal risk.
It is true that many have become rich overnight after receiving a huge airdrop for having tested a blockchain in the "testnet" phase, but these are rare cases. In most cases, the profits are not so exorbitant, but they are still free money with little effort.
A great tip is to always keep up with the 🗞️ news so you don't miss out on any opportunities. Whether it's Binance's official announcements or following some content creators who do the research for us.
We currently have an active farm on Binance, to obtain#Catitokens in the "Launchpool" section.
It offers us the possibility of obtaining a small percentage of tokens that are already confirmed to be traded on Binance or the Exchange that we use as the main one.
Crypto Citizen says goodbye! Have a great week full of profits.
