What are Crypto Airdrops and How Do They Work?

Crypto Airdrops are used by crypto startups as a part of their marketing strategy. These include giving small amounts of newly launched crypto tokens to already existing crypto traders on specific crypto platforms. These tokens are either given for free or in exchange for some promotional work.

Since the crypto market is highly volatile, crypto investors are always looking for the best ways to maximize the return on their investment as soon as possible. However, the volatility factor can either help speed up the return process or make it even more complicated.

That’s the main reason why crypto Airdrops are seen by crypto investors as a good way of making some extra returns. After all, airdrop tokens are free for everyone.

Due to the rapidly expanding cryptocurrency market, new airdrops are introduced almost every other day. At first, these airdrops might look lucrative, but they can cause a few problems in some cases. In order to avoid any pitfalls while looking for free crypto airdrops, you should learn everything about them first.

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What is a Cryptocurrency Airdrop?

Crypto airdrops are a marketing tactic used by crypto startups to give away free cryptocurrency to a selected community of crypto traders. Traders can use several ways to receive these free tokens in their wallets.

Airdrops are usually related to cryptocurrencies, but this isn’t necessarily always the case. I’m some cases, you might be charged a small transaction, but there are ways to participate in these airdrops for free.

But how do cryptocurrency airdrops work? Well, these airdrops have a specified amount of cryptocurrency tokens that are given away for free to a selected community of crypto traders. Some airdrops might require you to complete certain tasks in order to receive the tokens.

In any case, participants are required to register with their email before receiving the tasks, of any. After winning the tokens, participants can claim them.

Types of Crypto Airdrops

Let’s take a look at the different types of cryptocurrency airdrops.

Holder Airdrop

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As the name suggests, a holder airdrop is limited to the current holders of a cryptocurrency. If the existing holders of a cryptocurrency have the specified minimum amount of cryptocurrency in their wallet and meet the eligibility criteria, these wallets are credited with free tokens.

Standard Airdrops

Standard Airdrops only require you to sign up for the airdrop and provide your crypto wallet address to receive the free tokens. When the airdrop arrives, every registered participant receives a small number of free crypto tokens in their wallet.

Exclusive Airdrops

Exclusive Airdrops are only sent to a selected group of crypto traders. Exclusive Airdrops are usually focused on early participants and supporters of a crypto project. Active individuals in the community usually get these airdrops as a reward for their efforts.

Bounty Airdrops

Just like bounties, bounty airdrops require their participants to win the tokens by completing certain tasks. These tasks are usually associated with the project’s promotion.

Pros and Cons of Crypto Airdrops

Let’s take a brief look at the advantages and disadvantages of crypto airdrops.


  • Crypto airdrop builds brand value.
  • They reduce marketing costs.
  • They’re easy money for crypto investors.


  • Payment scams, phishing, and identity theft make crypto airdrops unreliable.
  • Crypto airdrops are taxable in many countries.
  • Crypto airdrops aren’t always a success, so users can lose money on transaction fees if a project fails.

How to Avoid Airdrop Scams?

Determining the legitimacy of an airdrop might be a very difficult task, but you should still try your best to only sign up for well-known airdrops associated with trustable projects. That’s because airdrops often require you to link your cryptocurrency wallets to a website.

You might actually receive a small number of crypto tokens in your wallet, but trying to transfer them to another wallet might cause your own wallet to get hacked and drained.

To avoid airdrop scams, remember to always check the project’s official website and visit their social media accounts to check their reviews and community engagement.

Bookmark the official crypto wallet link, and always use that link to access your account. If an airdrop looks fishy, conduct additional research before signing up for it.

Still, if you want to sign up for an unverified airdrop, create a separate email and crypto wallet to receive the tokens. This’ll help keep your main account safe.

Author: Isacco Genovesi

Isacco writes news articles, reviews and guides about cryptocurrencies including technical analysis, blockchain events, coin prices marketcap and detailed reviews on crypto exchanges and trading platforms.

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