Recently, I’ve noticed that many newcomers to crypto are interested in a fairly popular earning opportunity — that is, Airdrops. But what exactly are crypto airdrops? And why are they so hot within the community? Today, I will share my experience on this topic.

Actually, what is a crypto airdrop is very simple — it is the activity of distributing free coins or tokens to early users of blockchain projects. Projects use this method to promote, attract community members, and create recognition. This method is costly, but its effectiveness cannot be denied.

There are many different types of crypto airdrops. The simplest type is just registering an account — you don’t have to do anything, just fill in your email and receive tokens. However, since everyone can participate, the amount of tokens each person receives is usually not much, and the value is also not high compared to other types.

There is a bounty airdrop where you need to complete tasks such as finding bugs, creating content, or participating in contests. Those who finish will receive tokens or stablecoins like USDC ($1.00 current value).

And then there’s retroactive airdrop — which I find the most interesting. It’s for those who have used the product early on. For example, Ethereum Name Service (ENS) gave away ENS tokens (currently valued at $6.65) to people who registered .ens domain names, with a total value exceeding $20,000. Or Uniswap, one of the pioneering projects, airdropped 400 UNI (current price $3.47) to early user wallets, with a total value of over $2.5 billion.

There’s also airdrops for holders or stakers of tokens. The project will snapshot your wallet balance during a certain period, then send tokens to eligible wallets. For example, Stellar airdropped 19% of the XLM supply to wallets holding BTC.

Finally, there’s hard fork airdrops — when a blockchain splits, the project creates a new version of tokens for those holding the old tokens. Bitcoin did this when creating Bitcoin Cash (BCH) and Bitcoin Gold (BTG).

Why do projects spend so much to do airdrops? Because community is the soul of any project. Airdrops help build a strong community, increase engagement, and distribute tokens widely instead of being concentrated in a few people. Although the cost can reach hundreds of millions of USD, it’s the most effective way to attract users.

If you want to participate, the process is quite simple. First, you need to find projects that are likely to do airdrops. Then, prepare accounts like Twitter, Discord, Telegram, and a crypto wallet. Next, interact with the platform — use the product or complete the tasks the project requests. Finally, just wait for the results.

But I must admit, what is crypto airdrop isn’t always a golden opportunity. There are benefits, but also risks. The clear benefit is that you have a chance to profit with almost zero cost, especially for newcomers wanting to experience different projects. Token airdrops can also provide access to services, discounts, or project governance participation.

However, the risks are not small. Some airdrops require you to spend a lot of time and effort. Some projects are not transparent about distribution methods. And there are many scams — fraudsters impersonating projects, asking for private keys or personal information, then stealing assets.

I have a few tips when you hunt for airdrops. First, create a secondary wallet just for airdrops, containing a small amount of assets enough to pay gas fees. Never share your private key — that’s the golden rule. Create a separate email to limit spam. Use strong, unique passwords for each website. Carefully check links before clicking, as many fake sites exist. Keep updated with official channels of the project.

Currently, there are some promising airdrop projects you can follow. Pepe Unchained is a Layer-2 on Ethereum with Pepe meme, rewarding staking PEPU. Crypto All-Stars is a meme project rewarding staking STARS. Flockerz (FLOCK) is a DAO “Vote-to-Earn” allowing holders to decide on the project. MemeBet Token (MEMEBET) is a crypto casino for meme coins. Sponge V2 is a meme coin with P2E features and high staking rewards, with over 12,000 participants.

In summary, what is crypto airdrop — it’s an exciting opportunity to potentially earn profits, experience new technology, and participate in project ecosystems without large capital. But you need to be cautious, equip yourself with knowledge, and always be aware of the risks. Choose trustworthy projects, protect your personal information, and you will have a safe and effective airdrop experience.