The first method is crypto airdrops. The process typically refers to newly launched projects that distribute free crypto tokens as a means to increase their exposure in the market that they are looking to target.

To take part in a crypto airdrop, users often need to complete a basic task, such as following the project on social media or whitelisting their wallet address.

How do Airdrops & Giveaways Work?

Another similar way is through crypto giveaways. These are kind of like airdrops because you’ll have to do some tasks to get free tokens. You can earn a chance to win by doing things like following the project on Twitter or joining their Telegram group. If you want the best chance to win, try to do all the tasks for the most entries.

Another option to consider for those wondering how to make money with cryptocurrency without risking any capital is to sign up with a faucet website. Once again, the main concept is that by completing basic tasks, users can earn free crypto tokens. In the case of crypto faucets, this could be anything from completing captcha forms or playing newly launched games.

Do note, however, that the size of the rewards offered by crypto faucets is usually minute. In fact, this is often just a few cents worth of Bitcoin, so the process isn’t really worthwhile. On the flip side, there is no requirement to deposit funds into the faucet website, so it’s a risk-free way of earning crypto nonetheless.

Top 3 Reasons why Airdrops & Giveaways are Effective

Let’s break this down even further and examine 3 reasons why these airdrops really work:

  • Advertising: Many startup companies will announce airdrops in order to deliberately bring more attention to their main coin. In summary, it’s used as another form of advertising.
  • Value: Airdrops are also a great way to temporarily inflate the value of the initial base cryptocurrency. As you can imagine, setting up criteria to hold one coin in order to receive another free coin typically works out for both parties in the end. Who doesn’t like free stuff, right?
  • Time sensitive: In most cases there is a certain time period in which you must hold the base cryptocurrency. Once the airdrop is complete, you’ll no longer have to worry about holding onto the base currency. As you can imagine, this causes an “ebb and flow” type of situation, where the base cryptocurrency value dramatically dips just as soon as the airdrop is complete. This is why I highly recommend you sell as soon as this time period expires.
  • PRO TIP: This would also be a great time to short if you margin trade.

Crypto airdrops can be a great way to distribute new tokens to a wide audience and generate interest in a project. However, success can vary greatly, and it’s essential to approach airdrops strategically. Here are five successful crypto airdrops, along with ten tips for managing them effectively.

Now, let’s take a look at important tips you should consider to manage crypto airdrops.

Top 10 Tips for Managing Crypto Airdrops

As a user, managing crypto airdrops can be both exciting and challenging. Here are ten tips to help you manage them effectively:

  1. Stay Informed: Keep an eye on reputable crypto news sources and social media channels to stay informed about upcoming airdrops.
  2. Use Secure Wallets: Make sure your crypto holdings are in a secure wallet. Hardware wallets are the safest option.
  3. Don’t Share Private Keys: Never share your private keys or personal information in an airdrop process. Legitimate airdrops won’t ask for this.
  4. Verify Legitimacy: Be cautious of phishing scams and verify the legitimacy of the airdrop and the project behind it.
  5. Double-Check Addresses: Ensure you’re sending tokens to the correct wallet address. Mistakes can be irreversible.
  6. Participate Early: Some airdrops have participation deadlines. Get in early to make sure you’re eligible.
  7. Understand the Project: Research the project conducting the airdrop. Airdrops from reputable projects are more likely to have valuable tokens.
  8. Keep Records: Maintain a record of your participation in airdrops, including dates, wallets, and tokens received.
  9. Tax Implications: Be aware of tax implications for airdrops. In some regions, they may be taxable events.
  10. Hodl or Sell Strategically: Decide whether to hold or sell the airdropped tokens based on your investment strategy and market conditions.


There is a large interest in airdrops from those looking to make easy money, scammers have found it an ideal way to dupe people. Late last year, Metamask noted an airdrop scam wherein threat actors sent malicious tokens to random crypto wallet holders. With the account holders curious as to what the token is, they would often search for it online. The search would eventually land them on to the threat actor’s malicious website, where unsuspecting users are phished off their crucial online information.

Users are thus, advised to be aware of such scams and only indulge in airdrops of genuine platforms which may already be listed on authentic websites. Another rule for detecting such scams is if the users are asked to send some cryptocurrencies in exchange for enrollment in the airdrop. Or if the promised amount in the airdrop is way too high. In such cases, it is best to stay away from potentially malicious activity or do thorough research into what the project is all about.

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


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