Updated: May 27, 2020
Airdrops is a way to get free crypto currencies. But is there a catch?, some of you may wonder. On the bright side, there's actually no catch. The company that distributes the coins also gets something out of it.
What does Airdrops mean and how do they work? They are kind of a giveaway. The developers of the crypto-currency deliberately distribute their own coin among the people. The developers do this for good reasons. Often these are young brands and start-ups who want to make their crypto currency better known. Just the announcement to get coins through Airdrops alone attracts a lot of attention. And once people have received the crypto currency, they often wonder what you can do with it. So the research begins, the interest in the crypto currency grows. The developers of the crypto currency could also try to make the distribution of the coin more decentralized. However, crypto-currencies do not just fall from the sky. Airdrops are also distributed by the operators of platforms, such as Binance, to reward their own members. In most cases, they must have a certain trading volume or be a member for a certain period of time. Some developers want to distribute the crypto currency after a hard fork, because there is no other way yet. Or circumvent the ban of an ICO. How do you get free Airdrops? First of all you need a wallet. This wallet should be able to hold several different crypto currencies. Wallets, which can store ERC20 tokens, are especially suitable for this purpose, because many Airdrops cryptos contain ERC20 tokens based on the Ethereum Blockchain. It is an advantage if there are already some Ether Coins in the wallet and a certain activity on it can be detected. Some teams will check if the wallet really belongs to a human being and not just create wallets en masse to get as many Airdrops Coins as possible for free. For other crypto currencies it depends entirely on the developers or the company. Often they impose certain conditions or require you to register on their site. It may be that for some Airdrops you have to telegram the developers. Or you may have to write to them with a private message on a forum. Twitter is also a useful way to get free coins. Just follow the social media channel of a crypto currency and wait for their instructions. Airdrops Telegram What is the difference between a manual and automatic airdrop? With a manual Airdrop, you have to take care yourself to get the Airdrops crypto currency. You have to follow the developers on the social media, maybe share or link a tweet, fill out certain forms or polls. Sometimes just ask one of the team members directly in a forum. With an automatic airdrop, all you have to do is have an active wallet. From one day to the next there are a few unknown coins on the wallet. Mostly the address needs a credit to activate the wallet by the deposit. An automatic Airdrop Crypto is often an ERC20 token, based on the Ethereum Blockchain. For this you need an Ethereum Wallet.
Airdrops - Why they might be worthwhile & what you should consider! Airdrops give you the chance to get a crypto currency you probably wouldn't have heard of otherwise. In the very worst case, you get a coin for free, which won't be worth much later on and only puts virtual dust on the wallet because you can't sell it. But it didn't hurt you either. In the best case, the price actually rises after a while and you can make a profit without having invested anything. But be careful: Airdrops can also be misused for scams. Therefore you should never give away the private key of the wallet. Nobody needs the private key to send coins to a wallet, only the address. Also you should never send money for Airdrops. It's about you getting something. That's why it's always important to check the official channels of the development team or to communicate with others in the crypto scene. If the whole thing seems shady, then maybe you should keep your hands off it. Apart from that, Airdrops take quite a while. Sometimes you have to be patient and after signing up, the coins don't come for a month or two. But that's normal.
Airdrops Crypto Airdrop's taxes - You must know that - So far there is no official regulation concerning Airdrop's taxes. In case of doubt, you should simply contact your tax consultant or the tax office. Automatic Airdrops have similarities to winning the lottery. At the same time, the coins are only created in the wallet, so there is no taxable gift. There is also no acquisition process. The situation is different with manual airdrops. The participant has to do something for this, so there will be a tax. Which tools are needed to keep your Airdrops? Cointracking is a very helpful tool. First and foremost it is a trade analysis tool around crypto currencies, it also shows you the latest news related to ICOs and Co. There are several websites that inform you about upcoming Airdrops, such as Icodrops, Airdrop-Alarm and Cointrend. Conclusion These coins are a great opportunity to get hold of unknown crypto currencies without having to invest money yourself. And they are an effective marketing measure for the developers. If you keep your eyes open, you will always find a current Airdrops somewhere.
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