Best Crypto Airdrops – What Are They and How Do They Work?

While airdrops initially gained traction around 2010, they have recently surged in popularity in the crypto space. Crypto airdrops are frequently used by different companies as a strategic tool for promoting their crypto offerings and building awareness, participation, and community ownership by engaging individuals usually through social media.

Crypto Airdrops have the potential of being mutually beneficial to you and the company advertising their airdrop. In this article, we will take a comprehensive analytical look at crypto airdrops, how they work, and everything you need to make insightful decisions on which airdrops you should participate in. 

Crypto Airdrops

Without delay, let’s immerse ourselves in the world of crypto airdrops and identify the most advantageous ones to capitalize on.

A List of Crypto Airdrops

New crypto airdrops are frequently announced by different companies and below are some of the top airdrops to expect. 

StarkNet

StarkNet is a layer 2 decentralized scaling solution for Ethereum that uses STARK, a secure and scalable system. With StarkNet, Ethereum has the potential to increase its computational power and maintain compatibility and layer 1 levels of security at the same time. 

This solution condenses numerous transactions into one, which will decrease gas costs, reduce the amount of data that needs to be stored, and increase throughput, making it easier and faster to verify blocks of data. 

Since its launch in November 2022, there has been great anticipation of the release of its token $STRK, designed for staking, voting, and transactional fees. StarkNet is set to release approximately 10 billion $STRK and mint more if the need arises. 

Though there is no distinct date when the airdrop will happen, many believe it will happen this year. For example, Argent X, one of StarkNet’s partners has tweeted about the airdrop.

If you are interested in the StarkNet airdrop, there are several measures you can take to position yourself for the airdrop. 

• Create a StarkNet ID, which you can create on the StarkNet ID page. 
• Get a wallet. You will need an Argent X wallet or a Braavos one, as those are the only ones compatible with the platform. 
• Bridge in or out of the platform. To bridge in, you need to connect your wallet to StarkGate, StarkNet’s official bridge. If you choose to bridge out, you can use a platform like Orbiter Finance. 
• Engage with a money market like StarkNet’s zkLend, which enables you to both deposit and lend funds on StarkNet. 
• Mint StarkNet NFTs on Aspect or Mint Square, and you can start with your StarkNet identity.
• Trade on a StarkNet DEX like JediSwap, 10kSwap, or MySwap. 

Once you take these measures, you can wait to receive the tokens once they are up for sale.

zkSync

zkSync operates as a Zero Knowledge rollup, harnessing cryptographic validity proofs to provide Ethereum users with transactions that are both cost-effective and secure. Through zkSync, data is computed and stored externally to the blockchain.

zkSync has successfully secured a total funding of $458 million from prominent investors, including Dragonfly Capital. With the imminent introduction of impressive projects, the platform is gearing up to unveil its own token as part of its strategic plans.

To prepare, you can interact with the platform’s mainnet and testnet by:

• Visit the zkSync Era mainnet bridge page.
• Establish a connection between your Ethereum wallet and the platform.
• Purchase ETH from a cryptocurrency exchange such as Binance. 
• Bridge your funds from the Ethereum mainnet to the zkSync one.
• Engage with Participate in various zkSync-based decentralized applications (dApps) such as zkSync Name Service, zkSync id, and ZigZag.
• Regularly transact on the platform. 
• Take part in tasks or quests organized by the zkSync team.

Layer Zero

Layer Zero is a user application designed to enhance communication between the different blockchain networks. Using Oracle technology, the application sends messages between two endpoints. 

Layer Zero has managed to raise over $173 million in funds from investors like Alameda Research and Andreessen Horowitz, and while the team is yet to give official information on a token release, there are rumors of a $ZRO release in the future. To prepare:

• Check out the LayerZero X Aptos Bridge and connect your wallet. 
• Use the dApps built on the platform. You can try the Metis Bridge or Bitcoin Bridge.
• Stake the Stargate STG token, which you can buy on any exchange like Coinbase.
• Transfer funds to and from Aptos.

As already mentioned, there is no official communication yet but if the rumors are true, doing the above can position you to receive an airdrop if the token launches.

MetaMask

MetaMask is a community of developers who aim to enable people to access the decentralized web through its browser extension and mobile app. Both equip users with everything needed to manage their digital assets, including a token wallet.

MetaMask is owned by ConsenSys, the company behind Infura, Linea, and several other blockchain projects. In March, MetaMask confirmed it is launching its native token $MASK, and there are several ways you can prepare for it.

• Create a MetaMask Wallet and put in funds. 
• Interact with the different features, including the Swap, bridge, and staking features. 
• Use Ethereum dApps
• Donate to MetaMask via Gitcoin

Wall Street Memes

Wall Street Memes is a movement born out of GameStop’s 2021 saga that aims at empowering the ordinary investor. With one of the largest crypto communities, the platform will be launching its $WSM token, and loyal supporters are likely to benefit from its $50,000 WSM giveaway.  

In this giveaway, 5 lucky users who sign up, complete simple social tasks, and buy the $WSM token will be eligible to win $10,000 worth of WSM. WSM offers users different ways they can qualify to win. 

• Visit their website and sign up.
• Join their Telegram group.
• Follow them on Twitter. 
• Visit their Instagram page. 
• Purchase at least 100 WSM tokens and submit proof of purchase.
• Join their Discord server. 
• Complete all the tasks mentioned on the gleam page. Visit the Gleam competition page and check how you can set up and run giveaways, contests & sweepstakes yourself.

What are Crypto Airdrops?

Crypto airdrops are used by blockchain projects to advertise their upcoming coins or NFTs by depositing them in crypto users’ wallets. This helps to target early adopters and sometimes to reward loyal community members. 

Companies promote their airdrop events through various channels, such as their social media profiles, official websites, or community platforms like Discord. Crypto airdrops differ in many ways.

• Limited Airdrops. These are airdrops that limit the number of participants and the amount of tokens that will be issued. 
• Free airdrops. Though fewer, some airdrops offer users tokens at no cost. 
• Conditional airdrops. These types of airdrops require participants to complete certain tasks, be part of the community or own some tokens before  

When the blockchain startup chooses to use an airdrop, it will launch a campaign to promote awareness, commonly done through social media platforms like Twitter, Discord, or Reddit.  

As the campaign spreads, the project can then decide who will receive the token either by collecting wallet addresses, asking people to sign up on the platform, or using referrals. 

When the airdrop launches, the project will use a self-executing program or a smart contract to transfer the tokens to the participants. Sometimes, the project will publish its transactions to further boost its campaign. 

What are the different types of airdrops?

Airdrops are defined by the project but they generally fall into any of the following categories.

Standard Airdrops: 

A standard airdrop is an airdrop that only requires users to sign up for an account and provide a valid wallet. As you sign up, the project will drop tokens into your wallet. Because this is a simple airdrop, it attracts many users, and tokens are given on a first come first serve basis. Also, the tokens are typically less and you will need to sign up as quickly as possible. A good example would be RabbitX, which rewards new users. 

Community Airdrops: 

As the name suggests, a community airdrop is offered to community members who are loyal to the project. This year BGTrade distributed the first round of airdrops to its early and active community users, offering each individual a minimum of 20 BGT and a maximum of 240 BGT.

Hard Fork Airdrops: 

A hard fork happens whenever a blockchain splits and the new protocol is incompatible with the old one. This is called a hard fork. Since the code has changed, the project then offers token holders the new coins as an airdrop. When Bitcoin Cash forked off from Bitcoin, it airdropped BCH on a 1:1 ratio to anyone who had Bitcoin. 

Referral Airdrops: 

A referral airdrop rewards users who refer their friends to the project. Normally, the project will send a referral link users can use to spread the word, and for every referral that joins the community, the one referring receives an airdrop. KrytoKris had a recently concluded referral Airdrop where the more valid referrals one made, the higher the rewards. 

Bounty Airdrops: 

Bounty Airdrops are service-based and popular with NFTs, and users receive tokens when they complete certain tasks like following and promoting them on social media, signing up for newsletters, fixing bugs, or joining their live events. 

On other occasions, bounty airdrops use referral bonuses or finder’s fees for users who recruit other members. The tasks completed earn users points, and you may need specific points to be eligible for the airdrop. In 2018, Ontology offered $2,800 worth of free ONT tokens to users who signed up for their newsletter. 

Exclusive Airdrops: 

Exclusive airdrops are VIP types of airdrops given to unique individuals who spend a lot of time engaging with other users, several posts on the project platforms, or money spent on a blockchain project. Exclusive airdrops reward those closest to the project, even if they do not have any tokens. A well-known example would be Uniswap’s airdrop of 400 UNI tokens given to its long-standing users. 

Holder Airdrops: 

Holder airdrops are extended to users who possess a specific quantity of tokens in their wallets. The project captures a comprehensive snapshot of the community, and since blockchain data is stored on a public ledger, all participants within the blockchain can access information regarding wallets and token distribution. The 2022 ApeCoin airdrop involved the distribution of tokens to individuals who owned Bored Ape Yacht Club (BAYC) memberships, a well-known NFT collection on the Ethereum blockchain.

ICO Airdrops: 

During a project’s Initial Coin Offering (ICO), the project may allocate some of its tokens for free distribution and give them away. This is done to increase awareness and entice early adopters. 

Token Generation Event Airdrops: 

A Token Generation Event signifies the instance when a blockchain startup unveils its token to the public for the first time. During this timeframe, the project distributes complimentary tokens to a wide range of participants.

How do Free Crypto Airdrops Work?

Free crypto airdrops work similarly to other airdrops. Blockchain projects reward users with coins or NFTs. More often than not, the user holds a certain amount of the blockchain’s digital assets. 

For you to access the free airdrops, you can do the following.

• Stay informed on potential airdrops by following official websites and social media pages of reliable sources. These sources usually give information on how you can participate to receive the tokens. 
• Do your research. Always do due diligence on the project launching the airdrop to confirm its credibility. Check on its team and read its whitepaper.
• Follow instructions. Each project has specific instructions on how you can make yourself eligible. You may be required to offer personal information like your wallet or joining official channels. Ensure you fulfill all the eligibility requirements.
• Get a wallet. You will need to secure your tokens once you receive them and this is what your wallet is for. Some projects require specific wallets, so you may need to get the recommended one even if you already have a wallet.  
• Be patient. Airdrops can take time before they are launched or processed due to their verification needed. 

How to Get Crypto Airdrops

Preparing for a crypto airdrop is simpler than it sounds. 

• Step 1. Do your research. Follow projects and other authoritative websites or dedicated crypto airdrop websites to discover which airdrops are legitimate.  
• Step 2: Set up a Crypto Wallet. Once you have identified your preferred airdrops, set up a wallet. You will need to create a crypto wallet, and this depends on the project. As already mentioned, some projects require you to set up a specific wallet compatible with its platform. 
• Step 3. Complete tasks. Once you set up your wallet, you will need to complete the tasks set up by the project. 
• Step 3: Buy Tokens. Some projects require you to have base cryptocurrencies which are just the already established token.  
• Step 4: If there is a giveaway, participate. 

How to Find Airdrops?

Crypto airdrops serve as a powerful method for assisting new projects in setting themselves apart and enhancing their visibility. Unfortunately, there are several scams, and you have to plug into the right sources or platforms. 

To learn more about upcoming airdrops, you can subscribe to airdrop-related blogs and sources of information or follow expert social media accounts. Above all, avoid phishing scams that occur when someone creates a fake social media account or website that looks like the official one. 

Scammers use them to trick you into providing key personal information like a private key in exchange for the airdrop tokens. Once they have all the information they need, they can easily clear out your wallet. This is why it is always important to confirm whether the website you are using is an official one. 

Another way you can protect yourself is by using a separate wallet for airdrops and monitoring it. 

Top crypto airdrop websites

While you can choose to directly follow blockchain projects, below are some platforms you can trust. 

Airdrop Alert

Airdrop Alert stands out as one of the most renowned airdrop platforms, with an extensive database of active and concluded airdrop campaigns. It was launched to help crypto enthusiasts avoid scams. Many choose the site because meticulous research is done before featuring any airdrop. 

The platform provides a variety of airdrop types, encompassing new airdrops, DeFi airdrops, exclusive airdrops, and NFT airdrops. You will also find a blog with resources covering everything crypto.

Coinmarketcap

CoinMarketCap stands as one of the most dependable websites used for monitoring cryptocurrency prices, providing traders with comprehensive information concerning specific digital assets. The website also lists airdrop campaigns, categorizing them as ongoing, future, and ended airdrops. You can find this feature on the website’s ‘Product’ tab. 

Airdrops.io

Airdrops.io is a free website with countless airdrops, both confirmed and unconfirmed. The platform gives detailed information on each airdrop, including deadlines and how to prepare for the airdrop. For easy access, the platform divides the airdrops into the latest, hottest, potential, and holder airdrops. 

You can also subscribe to their newsletter, but if you are in doubt, you can also confirm with other platforms. 

AirdropsMob

As one of the pioneers of crypto airdrops, AirdropsMob has positioned itself in this space by offering cryptocurrency airdrops that are consistently updated. Users on the platform can also filter the airdrops according to their preferences, including the token’s value, where else the project is listed, and the level of participation difficulty.

What to Look for in an Airdrop?

There are different measures you can use to check if your airdrop is a legitimate one.

• First, research the airdrop’s team. Though some projects have anonymous founders, find out what you can about the team behind a token. An experienced team can increase the success of a project. 
• Observe how popular the coin is. If the coin is an established one then there is no need for publicity and if it is being marketed, that could be a scam. Airdrops are for new coins seeking awareness and engagement. This doesn’t mean that an old coin may not have an airdrop. 
• Check to see if the distribution process is transparent. A legitimate airdrop will outline the criteria for eligibility and the number of tokens being issued.  
• Check if the airdrop announcement came from an official channel. If not, you may need to take a step back and wait for an official announcement. 
• Check its requirements. Each airdrop is different and will ask for different things. But if the airdrop asks for sensitive personal information (like your private key) as part of the requirements it is not a legit one. 
• Check if the project has an active and engaged community. This will let you know if there is a demand for the tokens. 

Always remember, that if an airdrop looks too good to be true it probably is. 

How to Claim Airdrops?

Claiming a crypto airdrop differs from project to project. Some projects will drop tokens 

Directly to the participants’ wallets, while others require them to meet certain prerequisites before receiving the tokens. 

If the tokens are not automatically dropped, the following general steps should help you claim your tokens. 

Step 1. Visit the project’s main page and click on the Airdrop tab.

Step 2. Register for the airdrop by creating the required wallet or logging into yours.

Step 3. Connect your wallet by following the instructions given.

Step 4. Locate the ‘Claim Airdrop’ button and click on it. 

Step 5. Confirm the transaction and pay any gas fees asked.

Step 6. A page will pop up to inform you that the transaction is complete.  

To increase your chances of receiving the airdrop, start the participation process early. The earlier you get in the game, the better, as some airdrops have limited tokens. Always ensure you complete all the tasks requested. If one of the tasks requires you to refer others, create a unique referral link. Follow all the project’s socials and register if required. 

Potential claiming issues

Sometimes, the claiming process can be challenging, especially if the airdrop has reached the maximum amount of participants. This could also cause technical difficulties. 

Another potential issue could be the project’s marketability. Some tokens end up having little to no market value. This is why you should not chase every airdrop but rather carefully select one. Not every rumor will result in an airdrop. 

Maximizing Your Earnings

Crypto airdrops are a great way to increase your crypto investments. Unfortunately, the competition is usually fierce, and you may need to try all the different tasks to maximize your earnings. You should diversify your portfolio by engaging in activities such as token swapping, utilizing bridges, interacting with the project’s dApps if available, and acquiring coins or NFTs.

An additional strategy to potentially increase your earnings involves holding onto your tokens for a slightly extended period before engaging in trading. Should the project become successful, the token value may rise and increase your investment value. 

Regrettably, some tokens might not yield any significant returns resulting in potential losses if the project fails. Consequently, you will need to be prudent to ensure you don’t buy more tokens than you are willing to lose. 

Tools like DappRadar can help you track your crypto assets, including airdrops. Another tool you can use is CoinStats, which helps manage your DeFi, crypto, and NFT portfolios. It also supports different wallets and exchanges, and you can add your airdrop wallet to monitor your tokens.

How to Secure Your Airdrop Tokens

Crypto wallets used for airdrops can pause certain risks as they are prone to fraud and scams. To prevent this, consider using a different wallet for your airdrops and ensure that this wallet has strong security features to secure any tokens you receive.

When getting a wallet go for one with a great track record, strong encryption, and two-factor authentication. Also, look for a crypto wallet that has been audited by third-party security firms. 

You can also secure your wallet by using strong and unique passwords. Avoid using the same password for different wallets. If you usually forget your passwords, consider using a password manager. 

As already mentioned, keep your private keys private. Do not share the information with anyone and never store it where it can be easily accessed. 

Regulations and Tax Implications

Generally, crypto transactions are taxable, whether you are selling them for cash or receiving free tokens. However, this largely depends on the country where the transaction happens. 

In countries like the US, any proceeds received from crypto activities like mining, staking, or airdrops, should be filed as income tax.  You will need to fill out Form 8949 used for capital gains and digital assets.

The percentage taxed will depend on the asset’s value and whether it is a long-term or short-term asset. Knowing whether airdrops are taxable can be difficult if there are unclear regulations on digital assets. This is why you should always consult a tax professional familiar with digital assets. 

Conclusion

Crypto airdrops are an exciting opportunity for anyone interested in cryptocurrency. They are a great and simple way to earn free coins and NFTs from different projects. By participating in different platforms, this can be a wonderful way to grow your crypto portfolio. Nevertheless, you must exercise caution when going for airdrops. Always ensure they are coming from legitimate sources.

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