Airdrop

An airdrop is free crypto distributed by a project. Projects often use airdrops as promotions or rewards for users.

What is an airdrop?

With an airdrop, you usually receive tokens in your crypto wallet. A crypto wallet is a place where you can store crypto. Sometimes all you need to do is provide your wallet address. Other times, you may need to use an app or follow a project first.

Projects use airdrops to get more attention or reward users. For example, an airdrop may happen when a project launches, releases a major update, or launches a token.

An example of an airdrop

Suppose you’ve already used a new crypto platform. Later, the project might send free tokens to people who have used the platform.

You may not have known in advance that you’d receive tokens. This is called a retroactive reward, and it shows that an airdrop can also reward loyal users.

Why are airdrops important in crypto?

News about an airdrop often covers a new project, an update, or a token launch. It may also explain the requirements: who receives tokens and what steps they need to take.

Free doesn’t mean the tokens are worth a lot. Their value can vary widely, and tokens can quickly lose value. So an airdrop is no guarantee of profit.

Also watch out for fake airdrops, spam, and phishing. Never share your private key: a legitimate airdrop won’t ask for it.