What’s not to love about free money?
With an increasing number of cryptocurrencies created each and every day, the competition is getting tough. In an attempt to recruit users of a particular currency, free giveaways, also known as airdrops, have been a popular trend. The goal of an airdrop is to increase awareness of the currency and ensure a wide distribution of their coins by rewarding participants and supporters. These airdrops are part of a PR strategy aimed at increasing the value of the coins, as those who own a particular coin will value it higher than those who do not.
In theory, individuals who have been air dropped free coins will be more likely to invest more heavily into that particular currency as opposed to learning new coins and continuing to diversify their investments. Similar to a sample at the grocery store, given a tase, the hope is that you’ll buy. In general, consumers are more willing to buy products they are familiar with, and the same logic can be applied to cryptocurrency.
So, how can you increase your chances of receiving an airdrop?
Well, like many of the best gifts, they are surprises. Usually airdrops occur on the Bitcoin or Ethereum blockchain and all you need is an account on an exchange, while others require users to have a non-exchange wallet. In most cases, in order to receive an airdrop you must have coins from the related blockchain already stored in your wallet. Pretty simple, right?
Always remember that where there is good, there is evil. Be sure to follow the official (marked with the blue check) social media pages to keep updated on cryptocurrencies and possible airdrop related information. Also, no reputable site will need any information other than your wallet’s public address. Sharing any other information puts you at risk for identity theft.