What is Airdrop? Airdrop is the name given to a marketing strategy in which reward coins are distributed to their wallets to advertise a new cryptocurrency to cryptocurrency holders. In this strategy, free coins are distributed to better promote cryptocurrency advertising. Airdrop is a free distribution cryptocurrency campaign.
What is Airdrop?
The project has two objectives. Investors participating in Airdrpo are free to gift altcoins that can gain value in the future, as soon as they are first released. Thus, if the altcoins received as a promotion are appreciated, they provide high returns to the investor. Although there is a possibility that the distributed cryptocurrencies may not be appreciated, each crypto may experience a price increase shortly after it is released. Another purpose is to prove the qualities of cryptocurrencies to large investor groups. After the distribution process, as soon as it is listed on the stock market, investors can immediately start trading with that cryptocurrency. If it’s a promising altcoin, it could buy more. Therefore, it is recommended to airdrop investors.
Airdrop acts as a bridge between cryptocurrency exchanges and wallet service providers. The most influential factor is the developers. All cryptocurrencies, which are blockchain-based, want to give reward coins to their investors in a certain range. That’s why the Airdrop system comes into play at this stage. Active traders can earn a new coin even without paying any fees. Users can sign up for pre-announced Airdrops.
Airdrop is not available for any fee. In order to receive newly released altcoins, it is necessary to strictly follow the campaign announcements. Popular and large-volume exchanges such as Binance do it regularly. When the user follows the announcements of the exchange where his account is located, if the Airdrop campaign is to take place, it displays the relevant dates and can join the campaign by logging in when these dates come. If you are an active customer of the exchange or a lottery, you have the opportunity to earn coins. If he wins coins, the coins he earns are reflected in his wallet after the Airdrop process is completed.
Advantages of Airdrop:
Airdrop offers altcoins with potential to be appreciated in the future free of charge to users. Users who win the lottery have this opportunity. The project creates an angel investor audience. Angel investors are the name given to the group of investors who buy altcoins that are likely to be appreciated in the future. Sample; We can show people who bought Bitcoin 8 years ago as an example. Finally, Airdrop is an ongoing process. In short, it is not a one-time process. If the user follows the exchanges closely, they have the opportunity to participate in regular campaigns for new altcoins that are released.
What is Airdrop? Disadvantages of Airdrop:
The only downside of Airdrop is an uncertain transaction. Because for an altcoin that is new in the market, the user must allocate space in the balance. In addition, there is a risk of price decline in parallel with the price increase of the newly released crypto currency. There is a risk of loss in the short term for people who tend to buy extra coins at the slightest rise.
