Build a cryptocurrency portfolio without investing: airdrops, a real good plan
Start in the midst of cryptocurrencies, tame Bitcoin, understand the blockchain and its meanders, then begin to build up a heritage… If the subject is fascinating, you have to agree that starting from 0, there is a lot of information that you will have to absorb!
So, let’s be lucid: during this learning phase, it will be difficult for you to sort out the wheat from the chaff, and your first investment decisions will probably be more governed by chance, the “feeling” is the affective than the fruit of well-thought-out tactical decisions!
Yes making beginners mistakes is the best learning, out of the question insofar as these errors compromise your financial capacities or worse, make you permanently sick of the subject (leaving you only with bitterness when in 2023 Bitcoin will have reached 250,000 USD!, “Ah well, maybe I should have insisted at the time … darling, is there any pasta left?” “).
First of all, take 10 minutes to immerse yourself in the 13 rules for investing in cryptocurrency, true Tables of the Law for avoid 90% of the traps that crypto investors most often fall into.
In addition, and depending on your budget or your risk appetite, certain reasons could prevent you from diving into the big crypto bath, among which we mainly find:
- fear of being swindled, to pour money on a exchange unreliable, or to the benefit of a ICO (Initial Coin Offering, fundraising for crypto start-ups), which will disappear overnight,
- a lack of budget, pushing you to reason or postpone your first purchases of Bitcoin or Ethereum
In order to avoid these difficulties, I suggest that you discover in detail the probably most effective method that will allow you to recover your first cryptocurrencies, without having to pay for them: airdrops, or the distribution of cryptos by start-ups / exchanges, allowing you to build up your first investor portfolio gradually, for free and (almost) without risk.
You will discover in today’s article the origins, motivations and rules applying to these operations, very fashionable in the world of blockchain. We will also see to what extent you indulge in this activity will prove in any case pedagogic, and potentially very lucrative, supporting examples!
Airdrops operations: why do start-ups distribute their cryptocurrencies for free?
There are several answers to this amazing question!
Blockchain start-ups face two major problems, intrinsically linked to the youth of the sector and its community dimension:
- difficulty in getting known and generate ” hype »Around their project, which is often drowned in the middle of the mass of similar commercial proposals,
- the complexity and slowness of adoption of a given crypto or token, even though its dissemination and use are essential conditions for its liquidity and its appreciation.
A “win-win” solution
In order to best overcome these difficulties, one fine day someone had a genius idea : why not offer the community the distribution of a small amount of tokens or coins as an outright gift, or possibly in exchange for basic social tasks? everyone wins : the generous start-up is making the buzz, making itself known virally on social networks and members of the community are gratified by a small amount in crypto whose value could potentially fly if the project takes!
Better yet, distributing a few tokens to thousands / tens of thousands of members is also an additional guarantee of seeing these cryptocurrencies used, listed and traded on exchanges, this dynamic bringing credibility, value and triggering liquidity and traction effect.
The concept of airdrop was born, fueled by rather traditional business practices (the concept of free sample is not the most innovative idea in the world), elongated with crypto sauce (search for virality and a community echo).
Free, but rarely without consideration
There is nothing selfless about an airdrop. If the company behind will never ask for money in return (and if it does, run away!), It will expect you in most cases to participate in the development of its notoriety through certain actions which you will take note of on a case-by-case basis.
As an illustration, you may be eligible for a certain amount of tokens by performing various actions on social networks: like and share a post Facebook, Twitter or Linkedin, follow the start-up on Reddit or Instagram, post a message on Telegram…
In the specific case of exchanges, airdrops operations may be subject to certain trading actions, these making you eligible for a lottery system (for example, each trade of at least 50 USD offers a chance to benefit from ‘a freshly listed token airdrop).
In the first case, you allow a start-up to make you grow, then vitalize your community. S‘acting as exchanges, airdrops allow you to create liquidity, but also to generate news. Life is movement!
The first airdrop in history
Let’s show you what’s probably the first Airdrop in history (and presumably the first phenomenon of “ pump and dump » also!), the distribution ofAurora Coin, an Icelandic cryptocurrency!
In March 2014, the company decided to distribute 50% of its tokens to the Icelandic population. Each of the 330,000 citizens thus receives 32 AUR.
If the value of AUR will reach up to 0.15 BTC per token (then enhancing this airdrop up to 4.5 Bitcoins), unfortunately it will not take more than 6 months before the project does not end up disappearing. Despite this mixed success, the phenomenon was launched!
Since then, thousands of airdrops have been organized and the practice has become so democratized that there are few projects that do not use this technique, which is very popular with the community.
Airdrops, understanding blockchain by practicing it
Beyond the possibility of building a portfolio of cryptocurrencies without having to devote the slightest budget, participating in airdrops is an activity playful, which allows you to discover new projects and fully immerse in a young and bubbling sector of innovations.
This activity will also allow you to gently train yourself in current practices, specific vocabulary and safety rules. The next article will teach you for example how to configure the main online wallets necessary for the recovery of your tokens according to their standards (ERC-20, NEO, Waves…).
Quickly, the concepts of “forks“, Of“token swap”Or“GAS“Will have no more secrets for you! In addition, you will have the opportunity to discover new exchanges (crypto stock exchanges), by often being offered platform tokens: regularly a good deal!
Do you get rich with airdrops?
In the past, (in other words, in 2017), it was not uncommon to participate in airdrops can bring in hundreds, even thousands of euros. Of course, at this period a colossal and unprecedented bull run drove up the prices of all assets exponentially, the slightest token, reaching maddening values! However, quickly exchange your tokens for ETH or BTC then allowed for excellent operations.
It is unlikely that such a pattern will repeat itself, but it still remains possible today to win very good sums.
Some examples :
- DECRED in 2015 distributed nearly 300 tokens to each of the participants. Value of this airdrop in 2018? over 30,000 dollars…
- an airdrop of eBTC reached $ 1,700 in early 2018,
- the airdrop of Polymath early 2018 amounted to around $ 450,
- Hydro : an airdrop of 222,222 tokens whose value quickly rose to almost 4000 dollars!
HYDRO is an interesting illustration of the value that an airdrop, however unspectacular, can reach: anyone could participate, provided they have an account on the platform Github (which took 5 minutes to be created), then to be among the first 25,000 participants.
The particularities and technicality of the project also encouraged them to take a closer look at it, and beyond the strictly financial dimension, to learn a lot.
Here is a capture illustrating the value of these 222 222 HYDRO, a few months after the distribution of the tokens:
However, the vast majority of airdrops will have values ranging from a few tens of euros and ….Nothing at all ! Indeed, there are many projects that will not succeed, will turn out to be scams, or will never see their tokens listed on exchanges.
The good news is that you don’t have – literally – nothing to lose !
In the next episodes…
After this introduction, the next article will introduce you to the tools essential to the practice of airdrops, as well as the best methodology to optimize your participation. We will also discuss the main sources of information to be kept informed of the most interesting distributions.
But because, when it’s free, it’s inevitably you the product, the next section will also allow you to read the basic rules of prudence to be observed in order to avoid any disappointment, particularly with regard to your personal data and to protect you as much as possible against the phenomena of spam.
Finally, to finish this small series, I will show you in detail an Airdrop that will allow you to recover 75 dollars of cryptos, immediately exchangeable for Bitcoin or Ethereum!
Update of October 30, 2019 : This Stellar airdrop (XLM) is suspended until the next operation
Nice to meet you, it’s Hellmouth! Editor-in-chief of Bitcoin, the crypto media you are honoring to survey right now (well done, you have taste).
Crypto-enthusiast of the second hour, nothing is more important to me than supporting the global adoption and democratization of the treasures that the blockchain offers us.
I write articles between two cocktails in Tahiti, my adopted island, and do not hesitate, if the opportunity arises, to feast on a plump scam or a little too enterprising Ponzi pyramid.
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