Airdrop farming is when a cryptocurrency project delivers tokens to holders’ wallets. Airdrops are a form of marketing strategy that incentivizes holders to perform an action or hold on to their tokens.
In return, the project delivers these tokens to the holders.
Airdrop farming is a sound strategy with a clear goal and objective. That being to raise awareness for the project. Airdrop farming has several benefits in a highly competitive market where projects fight for market share.
Let’s find out what airdrop farming is and how you can earn passive crypto income. So with all that said, let’s start.
- Airdrop farming is a form of marketing strategy often used by crypto startups.
- The goal of this crypto strategy is to raise awareness for the project and increase token ownership.
- Crypto airdrops are delivered free of charge or in exchange for a promotional service.
- Crypto airdrops are an excellent form of accumulating tokens in your wallet.
- Not all airdrops are profitable, and many are ultimately worthless.
- You can farm airdrops by actively looking at projects that offer airdrops to token holders
What Are Crypto Airdrops?
Blockchain startups rely on multiple marketing strategies to raise awareness for their projects. One of these strategies is airdrop farming. Airdrop farming is a popular strategy when the project is in the Initial Coin Offering stage – meaning the cryptocurrency has just been listed on exchanges.
Cryptocurrency projects will share the airdrop on their social media profiles and website to promote the marketing activity. A successful airdrop campaign is when the project manages to increase the number of token holders. In return, holders get rewarded with free tokens.
How To Qualify For a Crypto Airdrop?
We mentioned that holders must perform certain actions to be eligible for airdropped tokens. This could mean participating in an event, signing up for a newsletter, posting about the cryptocurrency project on your social media, and more. In most cases, airdrop campaigns require holders to hold a minimum quantity of cryptocurrency. In return, they are given free tokens.
What Types of Airdrop Farming Projects Exist?
Several types of airdrops exist in the cryptocurrency space. These are but are not limited to:
- Standard Airdrops
A standard cryptocurrency airdrop is when holders receive the tokens by simply expressing interest in the project. Many standard airdrop campaigns require the holder to provide their token address only. A standard airdrop campaign has limited amounts of tokens available, and there’s a limit to how many tokens holders can receive.
- Bounty Airdrops
A bounty airdrop campaign requires the user to perform a specific task. This could be raising awareness for the project, sharing the project on social media, or recruiting others.
If the campaign asks holders to recruit others with a referral link, the holder receives a finder’s fee for every new user that signs up through their referral link.
- Holder Airdrops
Holder airdrops are the most common form of airdrops. These airdrops occur when the cryptocurrency project rewards users for holding the cryptocurrency in their wallets.
This form of crypto airdropping works based on how many tokens the user holds. Even if token holders don’t want the airdropped tokens, they can do nothing about it, as the cryptocurrency project will send the tokens to every holder’s address.
- Exclusive Airdrops
An exclusive airdrop is a specific type of cryptocurrency airdrop. This form of airdrop rewards holders not necessarily for holding large amounts of the cryptocurrency’s token but for other activities. Exclusive airdrops reward users who invest time into the project, such as raising awareness, posting on forums, referring others users to the projects, etc.
In some cases, users with zero tokens in their addresses might receive the airdrop.
How to Farm Airdrops?
Now that we’ve explained the basics of cryptocurrency airdrop farming, let’s see what it takes to farm airdrops. Moreover, is it possible to earn passive crypto income with airdrop farming? The short answer to this question is yes, as all it takes to be eligible for airdrops is to do what the crypto project asks.
You can farm airdrops by simply owning the cryptocurrency. But in most cases, you need to own a blockchain-based cryptocurrency – Bitcoin, Ethereum, Cardano, Polkafot, EOS, etc.
Since other cryptocurrency projects operate on these blockchains, you will be rewarded by simply owning the base cryptocurrencies. But by far, the best way to farm airdrops is to look for airdrops actively.
You don’t need to look far as you have all the information you need by visiting Airdrops.io. This website gives you information on the latest and hottest airdrops. In addition, you can see the requirements for each airdrop.
Another popular way to find information on upcoming airdrops is to join cryptocurrency Discord servers. In addition, Twitter is an excellent space for airdrop farming rumors as it has a well-developed cryptocurrency community. Finally, you can look for airdrop rumors on this Google Spreadsheet.
By applying these methods, you are one step closer to successfully farming cryptocurrency airdrops.
Airdrop farming is a clever way to increase your token holdings for specific cryptocurrencies. The goal of airdrop farming is for projects to raise awareness for their coin and for holders to receive something for free. Therefore, it’s a win-win situation for both parties.
But is airdrop farming a viable method to earn passive crypto income? The answer is yes. However, not every airdrop is worth participating in. Some airdrops are worthless because the base cryptocurrency is worthless. So it makes no sense to invest your money into a worthless project. We will always mention doing your own research before investing in anything, especially cryptocurrencies. It’s not uncommon for crypto scammers to use airdrops to acquire your email and potentially your private keys.