Crypto Airdrops: Everything A Beginner Needs To Know

There are several ways of making money from cryptocurrencies but not all are secure and legit ways. However, one genuine way of earning through cryptocurrencies is AIRDROPS.

At CoinSutra, our endeavour is always to find out such safe ways for our audience, which we have done a number of times. We have also helped the community in claiming such Airdrops on more occasions than one.

Some of you reading this concept of ‘Airdrops’ for the first time might ask what Airdrop is.

And this is exactly our agenda today – to discuss everything about Airdrops. So in this analysis, we are broadly going to touch upon the following points:

  • What Is A Crypto Airdrop?
  • Why Free Crypto Airdrops?
  • How To Stay Updated About Such Crypto Airdrops?
  • How To Get Your Free Airdropped Crypto?
  • Conclusion: Stay Updated & Stay Safe While Airdrops

What Is Airdrop in the Cryptocurrency?

What Is Airdrop

Crypto Airdrop is mechanism of dropping crypto tokens in a certain proportion to existing holders of a particular token, or network/protocol participant. The purpose is to kickstart activity on a protocol or a blockchain by inviting users and in return rewarding them with free airdrops of crypto token.

Different protocols uses different method to distribute the tokens to these participants. The good thing is, there is no to little entry barrier, and anyone can participate to earn these crypto airdrops.

An airdrop for a cryptocurrency is a procedure of distributing new tokens/coins by awarding them in a certain proportion to existing holders of a particular blockchain currency, such as Bitcoin or Ethereum etc.

In simple terms, if you complete the specific criteria such as holding or staking particular crypto, you are automatically eligible to claim other coins/tokens just because you were holding the parent coins/tokens on which airdrop is being done.

That is why this method of coin/token distribution is called airdrops signifying ‘free droppings’.

Sometimes, there are different reasons and motivations for these airdrops such as forks, marketing, decentralization & distribution etc. There are other reasons too of which we will talk about later in the article.

In 2024, a lot of protocol are moving to a new model called points, where you will be earning points for actively engaging with the protocol and based on accumulated points, you will be able to claim the free airdrops.

At the time of updating CoinSutra’s guide on crypto airdrop, here are a few protocol offering point based crypto airdrop system. Some of these could be considered as future crypto airdrops.

Future Crypto Airdrops 2024:

Use Lootbot for Automated Crypto Airdrop:

Lootbot is an automation bot which will help you achieve crypto automated airdrop farming. This tool which is available as a telegram bot will automatically engage with protocols on a particulate blockchain, thus enabling you a chance to become eligible for airdrop.

This tool is very handy and should not be ignored by the serious crypto airdrop farmers. The above video will help you learn everything about Lootbot, and you can start using it.

2. Orbiter finance Airdrop:

Orbiter Finance enables cross-rollup transactions of Ethereum-native assets in a trustless and seamless manner. We support various networks, including Ethereum, zkSync Era, zkSync Lite, Linea, Mantle, Base, StarkNet, opBNB, Scroll, Arbitrum, Arbitrum Nova, Loopring, Optimism, Polygon, Polygon zkevm, BNB Chain, Zora, Taiko, ImmutableX.

By using this protocol, you earn points which might be later use to claim the Orbiter finance airdrop.

Also, if you think of this, is int it fair to award those users who are genuinely participating in the platform, and earning a portion from the present of future revenue. Well, that’s the ethos of Web3.

Rainbow Wallet:

Rainbow is one of the popular Ethereum wallet, which launched a point-system sometime back. You can earn these points by doing a lot of activities such as importing your existing Metamask wallet to Rainbow, using certain features of Rainbow wallet and so on.

Again, the platform is incentivising the users to use their platform, and in return offering points which will be later redeemed in form of platform token.

Why Do Free Crypto Airdrops Occur?

There are several motivations for carrying out cryptocurrency airdrops, right from creating the hype and buzz to actually distributing the whole supply of coins/tokens.

Some of the reasons for carrying out crypto airdrops are:

  • Even Distribution Of Total Token Supply

One proper reason for airdrops is to evenly distribute the total token/coin supply so that there is less centralization in terms of bag HODLer holding a large sum with themselves.

Omise gave away five percent of their OmiseGO cryptocurrency to holders of Ethereum in September 2017.

In this case, OmiseGO took the advantage of already distributed Ethereum economy to distribute their tokens too. Uniswap offered UNI token to anyone who have interacted with Uniswap DEX.

  • Rewarding Faithful Early Participants

Many cryptocurrencies want to reward its early supporters and investors who first bought their ICOs or tokens. What better way to reward them than by offering them some more new tokens – for free.

This also motivates early investors to hold their parent tokens for longer durations and overall I feel it is a good way of rewarding.

  • Awareness About The New Crypto

Many times, just for spreading awareness, the airdrops are carried out for the HODLers of popular cryptocurrencies such as Ethereum, Walton etc.

  • Marketing & Hype

This is the most common trend nowadays. Airdropping coins/tokens for the purpose of marketing and collecting leads for further business opportunity expansion.

  • For the culture:

Often a lot of participants do airdrop for the culture, and such projects often become huge. Example, $Wen meme token on Solana.

Another popular way is to fork popular cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Monero and create a new coin to be distributed to existing holders of these parent coins. CoinSutra has supported a few airdrops that happened in the past through such forks, some of which were:

  1. Bitcoin Cash
  2. Bitcoin Gold

Now the million dollar question – How to know about such airdrops?

Good question, considering it is one of the easiest ways to make money.

How To Stay Updated On Such Crypto Airdrops?

There are several ways to be updated, one of the most effective of which is to join an active crypto community that works in this area. CoinSutra is one such crypto-community. We have already, in the above-mentioned links, explained how we help our community members to make full use of such opportunities.

You can also use popular crypto airdrop finder tools. However, understand the fact that not all airdrops are worth participating in and can sometimes be fraudulent too. Nevertheless, here are few of those services:

This is the latest entrant, which lets you check the available or missed airdrop associated with any wallet address. You can find details of your ENS airdrop, UNI airdrop, and many more.

  • CoinSutra Telegram Channel:

We actively let you know about existing and upcoming crypto airdrops. If you are not part of CoinSutra telegram group, then you should join to learn about these airdrops.

How To Get Your Free Airdropped Crypto?

Claiming your airdropped free crypto coin/tokens can differ from project to project.

For example…

For the airdrop forked coins, you either need to be in control of your private keys or should know how to sign your public address with your private keys.

That is we always suggest you to always store your cryptocurrencies in the following types of wallets where you are in control of your private keys:

For signing your address: How To Sign A message With Your Address

In 2024 there are new ways of Airdrop, and one of them is using Initial exchange offering and wallet holder offering. Another popular way is via exchanges, where you hold certain token to get free airdrop of new tokens.

Conclusion: Crypto Airdrops are real

With Bitcoin ETF became a reality, and popularity index of cryptocurrencies rising every day, the scams surrounding it are growing too. That is why be aware that there are also a lot of scam crypto airdrops out there.

Many of them will share a scam website link where you will be asked to connect with your wallet, and you might end up losing your funds. This is not unreal or unheard of, so be very careful when participating into any airdrop activity.

Do not let the above warning derail you from not participating, but rather use it as a warning from your big brother to help you avoid possible scams.

The only workaround to do away with them is educating yourself on the subject of airdrops, or as a matter of fact, on cryptocurrencies.

But I will tell you how scams around airdrops happen.

A scammy project with airdrop plans will ask you for your private keys to be entered at places and sometimes even fool you so that you enter your seed words in a malicious software.

You will usually see such types of tactics in hacked slack channels, Telegram channels or tweaked Twitter accounts that will try to imposter the original account in some way.

In the interest of your safety, I would suggest you do the due-diligence by going the extra mile while examining such airdrops.

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CoinSutra provides general cryptocurrency and blockchain information for educational purposes only. Content on CoinSutra’s website and social media is not financial, investment, trading, or professional advice. Readers should conduct independent research and consult a licensed advisor before making investment decisions.

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