If you are new to the field of cryptocurrency, then you have probably already discovered that there seems to be a brand new secret language and a bunch of terms that you are going to need to know. It’s true that there is quite a bit to learn when it comes to the various terminology that is in use. Taking a bit of time to acquaint yourself with some of the different terms and phrases is important, though. One of the words that you are likely going to hear is “airdrop”, which has a unique definition when used in the field of cryptocurrency.
What Does Airdrop Mean?
In cryptocurrency, an airdrop is the term used for a process where cryptocurrency tokens are distributed to users for free. That sounds like a good deal, and it certainly can be. After all, everyone likes the idea of having some free money, and that’s just what the airdrops are.
You might be wondering why anyone would be giving out free cryptocurrency, and that is a valid question. There are a number of reasons that this might happen, but one of the most common is when a cryptocurrency startup wants to increase awareness about their projects. They will put money into peoples’ digital wallets, which can turn out to be a nice surprise. Sometimes, established coins and exchange platforms will also do airdrops. The airdrops are delivered in a range of ways, including forks, ICO purchase, and simply as freebies, as mentioned.
How Do the Airdrops Happen?
In some cases, the airdrops are going to be announced before hand. Other times, they will be secret, and people will not know they’ve happened until after they notice that there are more coins in their digital wallet.
As mentioned, sometimes startup companies in cryptocurrency will want to announce ahead of time that they are going to be offering an airdrop, which is a means to help them to get early adopters of their service. It can be a good and effective marketing tool for the company.
Even though they are giving away some currency, they are getting attention for their company, and they are getting more people who are using their system. To qualify, the early adopters will have registered and likely completed some tasks on the platform, such as posting on social media or offering referrals. At that point, they would be eligible for the airdrop. Other times, with the secret airdrops, you would not have to do anything to get the free tokens.
In addition to using the airdrops to help create awareness about the company, and to help bootstrap a new cryptocurrency, there are other reasons why air drops are offered. For example, they might be used to reward customers for being loyal, and to help increase their lead database.
If you are interested in cryptocurrency, you will want to stay aware of airdrops that might be occurring. You can subscribe to various crypto airdrop monitoring services, which can help to give you a heads up so you can get involved.