Ever since the entry of cryptocurrencies into the finance world, the system has been completely revolutionized. There are numerous benefits to using cryptocurrencies, one of which is crypto airdrops.
A crypto airdrop is a promotional exercise practiced by a cryptocurrency project under which new crypto projects distribute free tokens and coins to their existing user base or common crypto enthusiasts. The concept of airdrop virtual currency projects is becoming highly popular, and there are various reasons behind this phenomenon.
The list of best crypto airdrops provides users with a reliable and harmless opportunity to harvest new crypto tokens without spending a single dime. By getting involved with the airdrop project, crypto enthusiasts can also find the best crypto airdrop, which has great potential to be the next Bitcoin in the crypto industry.
The free crypto airdrops also allow users to have fun and remain invested in the world of cryptocurrencies. In this article, we will provide answers to some of the questions related to crypto airdrops such as what are airdrops in crypto, how do crypto airdrops work, and how are crypto airdrops taxed.
Best Upcoming Crypto Airdrops 2024
Crypto enthusiasts must know that remaining updated about the airdropped tokens is a beneficial move in the long term. The airdropped coins often come with hidden opportunities that the users can tap into and acquire before they go viral in the financial industry.
By keeping themselves informed about the latest crypto airdrops, and upcoming airdrops, the participants can build a robust crypto portfolio and reap rewards from the new crypto airdrops. Detailed information about what is a crypto airdrop is provided up ahead.
| Project | Category | Blockchain | Status |
|---|---|---|---|
Kinetix Finance
|
Perps exchange | Kava | Confirmed |
Init Capital
|
DeFi | Mantle | Confirmed |
Kamino
|
DeFi | Solana | Unconfirmed |
deBridge
|
DeFi | Solana | Confirmed |
Mode
|
Layer 2 | Ethereum | Confirmed |
Sealana
|
Meme coin | Solana | Confirmed |
Atlendis
|
Crypto loans | Polygon | Unconfirmed |
Telos
|
Layer 1 | EVM | Unconfirmed |
Shardeum
|
Layer 2 | Ethereum | Confirmed |
Bluefin
|
DEX | Sui | Confirmed |
What are Crypto Airdrops?
Free airdrops crypto is a promotional exercise under which a blockchain project transfers a certain amount of coins to the user’s account without any cost or in exchange for doing certain tasks. Certain tasks sometimes entail raising awareness about cryptocurrency via multiple methods, including writing an article, sharing on social media platforms, or sharing information among crypto peer groups.
Some of the key purposes of dropping the free crypto airdrops 2024 are raising awareness about the crypto project, creating a community around the specific currency, increasing the circulation of existing tokens, and giving exclusive rewards to early adopters.
Some of the biggest crypto airdrops of the industry are Uniswap and Stellar. In 2019, Stellar cryptocurrency launched a mega airdrop where XLM tokens worth $120 million were distributed among the users of the blockchain network.
The same experiment was conducted by Uniswap in 2020, where 400 UNI were distributed amongst the crypto enthusiasts who were involved with the platform before September 1, 2020. Both these airdrops exercises were fruitful and the concerned tokens’ price skyrocketed afterwards.
Types of Crypto Airdrops
Standard Airdrops (Giveaways)
Standard airdrop also known as giveaways is a kind of crypto marketing exercise under which a specific amount of tokens are transferred to the existing wallets of the specific individuals, who are chosen based on their involvement in the project.
Basically, these kinds of airdrops are distributed among users to increase brand visibility and attract new users to invest in new cryptocurrencies in their initial stage. In this type of airdrop, anyone can participate regardless of their previous engagement with the project.
Holder Airdrops
As suggested by its name, the holder airdrop is given to regular users who have early access to the token and hold a certain portion of that token or NFT. Only the user who is participating with the crypto token is allowed to reap the reward of this airdrop.
Exclusive Airdrops
These are specially designed airdrops that target specific communities, members, or participants of a particular platform. Exclusive airdrop is given via an aggregator module and is one of the common ways to reward the token holders’ loyalty. It is also one of the best ways to create strong connections within the community.
Bounty Airdrops (Task-based)
Unlike other airdrop projects, in the bounty airdrop the users perform certain promotional tasks such as sharing about the token on social media, writing a blog article, joining the newsletter, or joining a community group on Telegram.
Hard Fork Airdrops
Referral-based Airdrops
How Crypto Airdrops Work?
As already mentioned above, there are multiple kinds of crypto airdrops. Token airdrops most commonly include some steps such as the announcement of an airdrop, snapshot process, actual distribution, and claims.
The other airdrops are announced with different eligibility criteria. However, some common eligibility criteria are the holding strength of a participant, certain task completion, and KYC compliance in some cases. The timeline of a crypto airdrop generally consists of the following stages, announcement, snapshot, distribution, claim duration, and deadline.
How to Participate in Crypto Airdrops?
It is not particularly hard to participate in the best free crypto airdrops. Here is a step-by-step guide to participate in the upcoming airdrops crypto project.
- Always stay updated about the crypto airdrop projects through social media channels, news channels, and the airdrop announcement platforms. One must also increase their participation in different decentralized applications.
- Conduct thorough research to find legitimate projects to avoid crypto airdrop scams.
- After finding the preferred airdrop, check its specific requirements such as holding the required minimum quantity of token and performing the specific tasks. One must hold multiple kinds of cryptocurrencies to be eligible for more airdrops.
- The users must also have specific wallets required for the airdrop.
- One must ensure participation in the airdrop project during the snapshot period.
- Finally, wait for the distribution, and then claim your reward under the timeline.
How to Find Crypto Airdrops?
To find the upcoming and ongoing crypto airdrop list, there are various platforms that one can follow. Some of the top airdrop news platforms are Airdrop Alert, CoinMarketCap, Crypto Twitter, and Airdrop Bounty. Furthermore, it is of utmost importance for crypto enthusiasts to join the main social media forums and platforms as it will provide critical information about the airdrops.
Users must also interact with other crypto holders and create a network where a seamless transfer of the latest updates about the list of crypto airdrops can be shared. The users must also follow the websites of their preference to check for the airdrop announcement regularly. Some social platforms such as Discord, and Telegram can also provide crypto enthusiasts with real-time information.
Airdrop Scams: How to Avoid Them
The most important thing before getting involved with the airdrops is to identify the legitimate projects and avoid the fake ones. To do this, one can research the concerned project thoroughly, wait for the official announcement, and complete the verification of the project in terms of the official notification.
Some of the common scams that occur in the crypto airdrop industry are phishing attacks, wallet draining, and false websites. Users must click on random links, or there is a chance that scammers can drain their wallets after stealing their information. Some critical security steps that one can take are avoiding sharing private keys, using only trusted wallets, enabling 2FA, and keeping the software updated.
Are Airdrops Taxable?
Crypto airdrops tax variation depends on the countries’ jurisdiction. In multiple countries, if the coins or tokens given in an airdrop gain a certain market value after some time, then they will come in the taxable range.
Some of the instances where airdrops come in the tax slab are mentioned ahead. If the given tokens or coins have a fair market price, they will come in the category of taxable income. If the users try to trade the token, then also, it will become taxable.
Furthermore, if someone uses the airdropped currency to purchase something, a tax will be levied accordingly. To report the airdrop income, one must first determine its market value, then keep a record of its transaction, and report in the tax return.
How Much Can You Earn from Crypto Airdrops?
The average earnings from airdrops range from some cents to thousands. Most of the time it is less than $10 but the tokens don’t provide liquidity. Some key factors that influence the average earnings are the size of a specific airdrop, eligibility criteria, and the initial value of a token.
In 2019, Stellar cryptocurrency launched a mega airdrop where XLM tokens worth $120 million were distributed among the users of the blockchain network. In 2020, Uniswap did the same where 400 UNI were distributed amongst the crypto enthusiasts who were involved with the platform before September 1, 2020. Market conditions and virtual currency project awareness can affect the profitability of an airdrop.
Conclusion
Crypto airdrops have a lot of potential to provide crypto enthusiasts with significant earnings. However, there are certain risks also that must not be ignored. Crypto holders looking forward to taking profits from airdrops must remain updated about upcoming projects, keep all the information at hand, and follow the best security practices to keep the funds safe.
One must always remain safe from the dark side of the crypto coins and the industry including phishing attacks and scammers. As the future of cryptocurrencies is full of great innovations, new and more profitable airdrops will also keep coming. As a crypto enthusiast, you must remain sharp and informed to take advantage of the upcoming airdrop projects.
FAQs
Uniswap (UNI) was the biggest airdrop in crypto history.
One can easily hunt lucrative and legitimate upcoming top crypto airdrops by scanning news platforms and airdrop announcement sites.
By joining the crypto platforms, completing certain eligibility criteria, and performing the KYC, one can get crypto airdrops.
By joining the project, and meeting the eligibility criteria, one can easily claim the new token airdrops.
Yes, you can make money from crypto airdrops. While many airdrops may not immediately have value, others can appreciate significantly over time. It’s important to research projects carefully and understand the potential risks and rewards before participating.