By now, if you have any interest in the cryptocurrency, you have probably heard about the airdrops. And maybe you have participated in one of them. But, for those of you who still doesn’t know what crypto airdrops are, the answer is simple. Airdrops are free tokens. Simple as that. Wait, no way, there is no free lunch, it must be some catch! Why would they give away tokens for free? Well they aren’t giving them for free exactly. Blockchain projects expects some actions from the users in order to drop them free tokens. Those actions are usually to join Telegram groups, follow or retweet on Twitter or like Facebook page. That’s are one time actions and you will get free tokens. Bounties are similar, but they are a bit different and harder. Users have to do some promotional actions on forums or social networks during some period of time. Each action is reported and you will get your tokens depending of how many actions you have done. Now you can see that airdrops and bounties are in fact just promotional tool for blockchain projects, and they are effective one. It is no wonder why they are so popular.
Even if you are not investing your money in order to participate in the airdrops, you are investing your time and you are sharing your personal data, so it is very important to be very careful. Here are some practical tips how to safely participate in the airdrops in order to be sure that your personal information will not be compromised. And, to be sure that you time will not be wasted and that you will be dropped your earned tokens.
1. Never share your private key
This is the common and most important rule in the cryptocurrency world. If you do not control your private key you do not control coins and tokens. That’s why it is not clever to hold your cryptocurrencies on exchanges, because you do now own that private keys.
2. Do you own research
It is very important do to some sort of research. Of course, nobody is saying to do a comprehensive research like that you will do for investing in ICO, but a minimum DYOR is welcomed. Check the website, check members section (if there are no LinkedIn links that is a good sign of a scam), check if there are some ICO reviews of the project.
3. Never pay for an airdrop
If they are asking your funds in order to participate in the airdrop something is wrong. Something is very wrong. Turn around and do not look back, because they are probably trying to scam you. Of course holder or forked airdrops are something completely different, and they are mostly legit.
4. Create a new email address that you will use only for airdrops
Almost all airdrops requires your email. They will send occasional promotional emails, that is why they are collecting them. Also you will minimise the chance that your main/private email address will get compromised. Best practice is to have aliases email addresses, and you are simple forwarding those emails to your main address. But for this tip you will need to own your own domain to set aliases and to forward them.
5. Never use same passwords
This rule is very important not only for participating in the airdrops, but generally for managing your various accounts across the Internet. But it is especially important for the airdrops. When you are signing for the airdrops you have to submit your email and various social network handlers. If you are using weak or same password for all of the accounts you are becoming an easy target. And in combination with your ETH address (you will probably need to submit it also), and if you have some respectful amount of ETH or alts on it, you are becoming a probable target. There are lots of scams in airdrops and that leads us to the next tip.
6. Create a new ETH address for airdrops
Most of these projects are built on Ethereum, and a good idea is to create a new ETH address that is dedicated only for the airdrops. It is not necessary that all of these projects knows how much ETH are you holding with the combination of your email and social network handlers. If it is not for safety, at least you will spare yourself the time of reading numerous email with ICO investing suggestions if they find out that you are holding a large sum of ETH’s.
7. Avoid KYC airdrops if you are a bit suspicious
If you are even a bit suspicious in the legitimacy of the project avoid KYC airdrops. It is very dangerous to gave those kind of people access to your private information.
Now that you have learned how to safely participate in the airdrops you are ready to do some of them. Here you can find a large and daily updated list of airdrops. Follow these rules, do your own research and you never knows if that project will be a new huge airdrop like Stellar or Ontology.