Airdrops: better than IDO? And how to get them
Table of Contents
First, let's understand what Airdrop and IDO are.
Airdrop event form of token distribution. Often it is a marketing move by young or large projects that release a new product! This way you will attract new, interested users.
IDO (Initial DEX Offering) is a model for the initial offer of cryptocurrency tokens, in fact, it is a cryptocurrency crowdfunding. That is, the developers sell tokens of the project, which was previously announced, where the intermediary is a decentralized exchange. Investors receive the coins of this project before they are traded on the exchange.
Both of these methods can be used to make money. Often, newcomers to the world of cryptocurrencies start with this one and find themselves facing the choice - Airdrop or IDO?
Let's compare these two methods!
The most important and obvious advantage of Airdrops is, of course, that this method requires no material investment! That is, you get free cryptocurrency, you usually need only to perform a few simple tasks, such as signing up for social networks of the project, reposting, liking, writing a comment, etc. But sometimes participation in Airdrop requires some additional fees, for example, if it is a DeFi project, that uses ERC-20 tokens (based on the Ethereum blockchain), then you will have to pay a 10-60$ fee (it depends on what situation in the Ethereum network and how many operations are needed) to make transactions via smart contracts.
Regarding IDO, as it was written before, this is a kind of investment in the project, in IDO you take part, you buy a token with N amount, wait for coin listing and after that, you see the result of your investment!
Some points can't be ignored!
For obvious reasons, a huge number of people take part in Airdrops, especially if the project is promising! Therefore, winning in such giveaways will not be as easy as it may seem at first glance! Also often there are Airdrops, in which the winnings can be for example $ 2.
As for IDO, at the moment this way of earning is at its peak of popularity and earnings can be big enough in a minimum time, and therefore this method attracts the attention of a large number of scammers and unpromising projects, and therefore to participate in presales, you need to understand this process in detail and carefully select projects that you are going to invest in!
How and where do I find airdrops and IDOs to participate in them?
Regardless of the type of giveaway, its participant must have the appropriate address in the network of the coin or token he wants to receive - a non-custodial wallet is required, the keys to which are always kept by the user (e.g., MetaMask or Trust Wallet). An exchange account for airdrop does not work in most cases.
Airdrops.io is a site for finding and participating in airdrops.
Here you can find current airdrops as well as airdrops that are over and scheduled for the near future. Here you can see airdrops of popular coins and projects as well as airdrops of new crypto projects! You can track the popularity of projects among the community and users of the site. Popularity is displayed in degrees, the higher the degree, the "hotter" the project.
A very handy tool for selecting and finding airdrops.
Airdrops - On this page, you can see a list of all airdrops. You need to complete a few simple tasks. These can be subscriptions to social networks, likes or retweets of entries. The tasks are quite simple, and it's not very difficult to complete them. It is also possible to track the relevance of the event.
One of the most popular platforms offers the opportunity to invest in tokens at the IDO stage. It features good analytics and favourable conditions for all participants.
A community-driven platform that stands out because it provides new projects with comprehensive support for effective development.
A platform from Binance, is different in that all participants will receive matching shares of the coins they invest in. There are no lotteries or random numbers.
Having understood all the main points of the IDO model, we can conclude that this way of investing in cryptocurrency can be profitable, but also quite risky.
Therefore, you should always remember that not all investments will be successful, which means you should not invest all available money in one project or work with only one platform. Proper risk diversification will reduce the overall risk of your investment portfolio and even in the worst case do not lose your investment!
As for Airdrop, you can and should participate in them, because they require small time investments and over time can bring financial profit. In addition, this method does not require a material investment! But you should not expect to earn quick money. After all, the airdrop is not a job and not a way to make a steady income. It is more like a lottery, which you can win if you take part. And if you pass by, you're sure to get nothing.
You should always evaluate the situation and the risks and make an informed decision about which way is right for you!
A conscious approach to any project in which you plan to invest your money will save you from financial losses, as well as save your time!