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What is a crypto airdrop?

In the cryptocurrency world, an airdrop stands for free crypto tokens, which you can earn by doing simple tasks on different social media platforms. The provided tokens are given out by new cryptocurrency projects. Airdrops normally take place up 1 to 3 months prior the ICO (Initial Coin Offering) of a project. The reason for an airdrop is that new projects want to increase their userbase. In addition, they also want to attract new potential investors for their upcoming project.

There are also airdrops for established cryptocurrencies, but they are less frequent. Airdrops where you hold a coin are more common. For this kind of airdrop, you hold a specific cryptocurrency at a defined time (called snapshot), you'll get a part of the new created cryptocurrency, based on the amount you were holding and the defined ratio.

We find that Airdrops are a very good way to get an insight into the cryptocurrency realm for free.