HOW TO EARN USING FORKS AND AIRDROPS ?
When cryptocurrencies such as Bitcoin (BTC) go through bearings like the one we find ourselves in right now, the idea of earning a fortune on personal property becomes more appealing to long-term investors.
Various methods such as staking, lending, cloud mining, and crop farming have become popular over the past few years and include rewarding investors with cash or crypto tokens invested in the machine.
However, with solid forks or airdrops, users working in the crypto ecosystem can consume tokens or projects that offer additional tokens in proportion to their entrusted handling as a reward for a variety of reasons.
As both are aimed at increasing project popularity or as part of a promotional campaign, solid forks and air droplets work differently and come in completely different ways.
Let’s take a look at what separates crypto airdrops from solid forks and how one can benefit from them when invested in the crypto market for a long time.
What is crypto airdrop and how does it work?
Considered a manna from heaven for crypto fans who are willing to try different projects, crypto airdrops require less technical knowledge and lower risk risks.
Crypto airdrop is a free distribution of crypto currency or token to existing token holders, also known as shared tokens. Often associated with the launch of a new project or cryptocurrency, the purpose of airdrop is to gain more user attraction in a market full of thousands of crypto tokens and coins.
In the nature of promotions, users cannot control when airdrop may occur, and it is often done by crypto engineers or entrepreneurs to reward existing token holders with additional tokens or coins for free.
The amount of awarded tokens is based on the amount of investment or donations made to the project and is similar to the way traditional products donate to maximize new product offerings.
There are two types of crypto airdrops: retrofit airdrops and retrieval airdrops, which have a distinct difference between the two in which they are assigned and their specific purpose.
The retroactive airdrop is usually announced when an existing blockchain protocol plans to unveil its native crypto token and reward pre-existing users or those who have contributed to the project before a certain date.
It is a very popular tool for creating hype around the token that will be introduced soon. At the same time, it also serves as a revenue generator and facilitates audience engagement by providing tokens by exchanging retweets, feedback or increasing followers on social media.
Takeover airdrops are used when decentralized finance (DeFi) agreements seek to snatch users from the competition or increase their chances of retaining them by offering grand prizes.
Although it is the most aggressive type of airdrop, take-a-step airlines are targeted at funders and users who have shown high involvement in activities such as focusing to pull them away from competing DeFi protocol.
DeFi aggregator 1INCH has created a number of air droplets for the purpose of attracting rival Uniswap users to its platform, which rewards specific user sets in the series of air droplets and serves as a classic example of how free crypto airdrops are used.
Advantages and disadvantages of crypto airdrops
They have long been considered a rare form of marketing in the crypto world, but crypto airdrops are becoming increasingly popular. Countless projects use this approach to promote the adoption of their new crypto tokens.
Airdrops offers the highest benefits to crypto entrepreneurs and investors alike, making them the preferred marketing tool to create initial hype and promote user attraction - two key factors in the success of a new coin.
For crypto companies that aim to introduce a traditional blockchain token or DeFi protocol, crypto airdrops are probably the easiest and cheapest advertising method in the crypto world today. Although it involves using multiple tokens, and that, for free, this creates a small portion of the tokens that will be delivered to the distribution and is a sure way to generate interest among other crypto token owners as they do. see users earning crypto for free airdrops.