What is an Airdrop in Cryptocurrency? What is an Airdrop Cryptocoin Explained
What the heck is an airdrop in cryptocurrency? So I don’t know about you but there are a lot of freaking terms to learn in the cryptocurrency universe to say the least. One of the most popular ones going around is airdrop? The more I read about cryptocoins in my research the more I kept running into this term especially in regards to ICOs (initial coin offerings). So I finally decided to sit down and look it up once and for all. Here we will break down what this is and why it can be super beneficial to you and your wallet$$$
So What is an Airdrop Crypto or Coin?
This is basically a digital asset handed out for free to all of those meeting a certain requirement from the development team of a particular coin. So for instance if you are holding a certain coin like say bitcoin at a certain time, then you could be eligible to receive other related coins like bitcoin diamond, bitcoin, gold, or bitcoin cash. This has been happening quite a bit lately.
Airdrops are FREE COINS for Holders of certian cryptocurrencies
Why would any company or group of developers give away essentially FREE MONEY to holders of a particular coin?
Well there are actually quite a few GOOD reasons for this. One, it shows goodwill and gets people talking about the new coin. The truth is if someone suddenly decided to promote a brand new coin without a reputation already built up then it will be pretty hard for others to want to seek it out or purchase it. When a company or group gives out FREE coins to those already using a certain cryptocurrency this leads to A LOT of attention for the new coin.
People who receive it or are in line to receive it will talk about it and drum up even more interest. This talk will spill over to new potential cryptocurrency buyers, and they will give said coin a try just because of the good hype surrounding it.
This in turn increases said coin’s value and the price for it goes up benefiting those who invest and the creators of the coin. This has proven very lucrative for all parties involved. For instance, bitcoin diamond was released and it’s value instantly went form zero to a very high amount even beating out other bitcoin cryptocoins that had been around longer.
While airdrops may not always prove profitable short or long term they definitely draw lots of attention. When people receive these they can either keep them to see if there is an increase in value or sell them off immediately for quick profit before a potential downturn in price.
How Does One Claim Their Airdrop or Free Coins?
There are many more airdrops going on these days and in a lot of cases if you simply hold the coin that the new coin is an offshoot or fork of then you automatically are paid these if you hold the main coin on an exchange or on a wallet.
In other cases you may need to go through some additional steps to claim them. It is recommended that you look up specific information for upcoming, recent or pass airdrops to know exactly what to do. This information can be found on the main coin’s website. You can also checkout reputable places like the website, Airdrop Alert, which gives good information on future and ongoing airdrops around the clock. They also have a facebook, twitter and telegram accounts.
Remember never give out your private key to your wallet because there have been cases of people having their cryptocurrency stolen trying to collect free or airdrop coins. The same goes for wallet files. Beware of suspicious links as well! If a company , group or website asks for an email in regards to you claiming your airdrop coins. It is good to give a secondary email.
So what are airdrop coins in cryptocurrency? They are free coins given to holders of a specific coin based on certain requirements. You can claim these automatically or manually again if you are eligible to receive them. Free money is good but make sure to do your own research and use websites like airdrop alert to confirm and obtain more specific info on these.