Written by Richard G. Oct. 18.2021
So you are in the NFT space and have been learning about making money with your NFT. You come across a project that promises an airdrop for purchase or maybe as an incentive and are wondering what exactly that entails. Today on Solanews we are going to explain to you what airdrops are and how they work exactly.
What Is An Airdrop
An airdrop is like a free gift of money in today’s NFT market and it should not be ignored. Airdrops are done in the crypto token space as well. The way it works is by having the tokens distributed to a wallet address. The wallets are known from previous purchases or are given by the buyers and saved on a database to send to.
As stated before Airdrops are an excellent tool for the project managers as they reward the buyers for their loyalty and their continued support of the project. The buyers receive the benefit of having more of the product they believe to be successful and continue to stay loyal to the cause as the increase in value only benefits them for having more. The airdrops are given and buyers are simply asked to show appreciation by sharing on social media — a form of free advertisement. This aids in the take-off and increasing of awareness of a project. Free publicity for the developers and future profit for the buyers. All in all, it’s a fair situation and one that benefits both parties perfectly.
Passive Income Opportunity
A few buyers see the smart play as immediately selling off the airdrops as the token or NFT would already be of some value. The buyer gets to keep the asset that is worth more or has the potential to be worth more and offload the asset they really don’t value for liquidity. There are thousands of people who seek airdrop opportunities daily, as this habit is good for creating passive income.
Tools Of The Trade
Every profession needs great tools to be successful and here are the things you need to succeed in the Airdrop model:
- A smartphone and internet- every airdrop is online,you phone is a great tool and should definitely be internet-ready to find airdrops and take part in them.
- A crypto wallet is a next thing you need as all airdrops will need a wallet to drop into. You can use a hardware or software wallet but make sure they are reputable wallets and not clones.
- You will definitely need social media accounts (mostly Twitter) as most of these airdrop opportunities involve you passing on their projects and retweeting their events.
- A secure email address is needed for contacting you if you won.
- Make sure you can offer the time needed for these airdrop opportunities. It will take time to scour the internet and find them, then it will take time to wait for results, and then in all that time, you must be very patient.
There are many tasks that are asked of the would-be winners of some of these airdrop opportunities. Some of these tasks are truly mundane such as holding the previous token or NFT. You can be rewarded for staking your token and receive a newer token. Simple tasks on Twitter involve liking a post, retweeting, and then tagging a few of your friends. Another way to get the airdrops is to subscribe to a newsletter or report. Finally, you can learn to earn, This is something that Coinbase excels at.
There are many different ways to get an airdrop and you should be able to use all of these aspects in order to get as many airdrops as you can. Once you get those airdrops then what you do with them is up to you.
A free meal.
There is a saying that goes “There is no such thing as a free lunch” or “If it’s to good to be true then….” Though for the most part airdrops are pretty legit there are a few red flags you should look out for to defend yourself from fraud.
- No legit airdrop will ask you to pay a fee to get it,if you receive a message saying you won some crypto or an NFT but you need to pay a fee ( no matter how small) you can be sure that is a scam.
- If you receive a message stating you can get double your crypto or 2 times your NFT and all you have to do is send one to them, that is also a scam.
- Any message that asks for your private key or recovery phase is definitely up to something. REMEMBER those are for you and you alone.
- This one is a bit of a sneaky one. Most websites that are secure start with https:// but those that are not secure start with http://, most people tend to not pay too much attention to that and assume everything is secure in crypto. Make sure the beginning of your website is https: to know that things will be secure.
So Many Options
There are so many things you can do with your free crypto or NFT and it really is up to you. Everyone has their own strategy when it comes to trading, some are good while others are not so amazing.
- Selling off the product is what most people do. Immediate gratification and sales produce easy money and zero cost to you.
- Holding the project is a good idea, especially if there is indeed a clear-cut path for growth and development. If it has good prospects then waiting for the value to increase is also an intelligent pathway.
- Staking is also an excellent idea, if you have more than enough to hold onto you can use some of the extra to stake and potentially make even more profit.
Airdrops vs Bounties
There are many ways to get free crypto or NFTs and as long as you know one small fact about the different ways then you will be ok. There are airdrops and there are bounties. Airdrops require very little effort, all you need to do is follow a small task and you will be given a chance to gain the airdrop, a bounty requires a special task or skill, for example, you may need to write an article about the project and pass it around or you may need to create a video about the project and post it on youtube. Airdrops are easier to obtain free crypto whereas bounties require a lot more effort.
Airdrops are in the best interests of both parties when it comes to a new crypto or NFT project, the added benefit of free media exposure and word-of-mouth is definitely something any developer could benefit from.