Airdrops and Retro Drops Explained: A Simple Guide for Beginners 2024

Airdrops and Retro Drops Explained: A Simple Guide for Beginners

Hey crypto enthusiasts! Today we’re diving into airdrops—free distributions of tokens that can make you a cryptocurrency holder at no cost. Sounds magical, right? If you’ve ever dreamed of getting free crypto or want to know how it works, this post is for you.

What precisely is an airdrop, then?

Giving away tokens or cryptocurrency to users at no cost is an airdrop. Airdrops are a tool businesses and projects use to draw attention to their offerings, grow their user bases, and encourage action within their ecosystems. Since the early days of the Bitcoin industry, airdrops have existed. They were first carried out to test and disseminate information about new cryptocurrencies. Early projects distributed tokens to almost anybody who expressed interest to garner interest and establish a user base.

But since then, airdrops have significantly evolved. Now, they are a way of winning people over. Usually, projects launch on the market asking future users to take some actions like,

• registering in their app,
• trading on their exchange,
• or completing other tasks.
  

In return for their activity, depending on its scale (e.g., the number of referrals or actions taken within the app), companies distribute tokens to users. So, users perform tasks and earn tokens without much heavy lifting. Sometimes it can be a bit complicated because you may need to do various transactions or buy NFTs. Many platforms come up with different tasks, and to complete them, companies essentially give away cryptocurrency for free. There’s no need to hold any cryptocurrency beforehand to participate in these airdrops.

Many blockchain projects now rely heavily on airdrops as part of their marketing strategy. They not only attract new users but also encourage existing ones to remain active. Airdrops contribute to the formation and strengthening of project communities, as well as the rise of brand awareness and social media discussions. Finally, they enable projects to rapidly expand their user base and build a dedicated community that will support them for the long term.

What about retro drops?

 

Retro drops, as the name suggests, reward users who have performed certain activities in the past. These projects take “snapshots” or records of the network state. For example, a project might say, “If you made transactions on the Ethereum network from June to August of a specific year, we’ll give you coins.” So, users active in Ethereum during that period would receive tokens. It’s essentially the same as regular airdrops but with the distinction of rewarding past actions.

Participating in airdrops may appear hard, but it is very simple. Companies typically provide instructions via their websites or social media. All you need to do is follow their instructions, which may include joining the platform, completing tasks such as social media reposts, taking surveys, or testing new features. Sometimes simply owning a cryptocurrency wallet and subscribing to project updates is enough to qualify for an airdrop.

In fact, airdrops and retro drops are a great way for beginners to learn about cryptocurrencies. By completing the tasks or activities required for these drops, you can learn a lot about the network and essentially educate yourself. That’s why many students and young people are drawn to airdrops and retro drops. They often participate in dozens, or even hundreds, of projects at once. However, it’s important to follow the instructions carefully, as mistakes can exclude you from the airdrop pool.

While the conversion rate from airdrop recipients to long-term project users is small, it’s still effective for many projects. There’s also a new mechanic we’re using at Blum in particular: a point system. Users are rewarded with points, and at the end of the day, they can claim rewards like NFTs, project tokens, or other prizes—either tangible or intangible.

The system of rewarding users for their actions is evolving and developing, and we’ll keep you updated with any new developments on this channel. Airdrops are not just a way to get free tokens—they’re an excellent method for learning about new technologies, projects, and networks in the crypto world. Through airdrops, you can not only fill your wallet but also expand your knowledge.

How Airdrops Work

 

Modern airdrops reward users for taking specific actions, such as:

• Registering on a platform
• Referring friends to the project
• Completing small tasks like social media reposts or joining a Telegram group

The more tasks you complete, the more tokens you may receive. Companies use this approach to build a loyal community around their projects.

Real-World Examples of Successful Airdrops

To demonstrate the impact of airdrops, consider these two examples:

1. Uniswap (UNI) Airdrop.

Uniswap, a popular decentralized exchange, distributed 400 UNI tokens to early users in 2020. At the time, these tokens were valued at approximately $1,200. Many users who had previously used Uniswap for trading received these free tokens, which later became even more valuable when the price of UNI climbed. This airdrop aided Uniswap’s quick growth and increased user loyalty.

2. Stellar(XLM) Airdrop

Stellar, a blockchain payment system, has distributed millions of XLM tokens to users through a variety of agreements. Stellar boosted its user base and drew attention to its platform by giving away tokens, which helped to raise brand awareness in the competitive crypto industry.

Step-by-Step Guide to Participating in Airdrops

If you’re eager to join the airdrop frenzy, here’s a quick way to get started:

Step 1: Create a crypto wallet.

To claim any airdrop, you must first have a safe cryptocurrency wallet. Wallets like MetaMask, Trust Wallet, and Coinbase Wallet are simple to set up. Make careful to back up and secure your private keys—your wallet is where your free tokens will be sent.

Step 2: Find upcoming airdrops.

To identify real airdrops, visit services such as Airdrop Alert, Airdrops.io, or even blockchain projects’ social media platforms. Be wary of scammers; stick to well-known platforms and initiatives.

Step 3: Complete the tasks.

Once you’ve found an airdrop you wish to participate, simply follow the instructions. Common tasks include:

Registering an account

Follow the project on social media.

To participate in an airdrop, follow the specified conditions, which may include sharing content or joining a community (e.g., a Telegram group).

Step 4: Claim and secure your tokens.

After completing the tasks, the project will usually send the tokens directly to your wallet. Some airdrops may need you to manually claim your tokens; simply follow the instructions on the project’s website. Once you’ve received your tokens, you can keep or exchange them.

Conclusion

Airdrops are an excellent way for beginners to earn free cryptocurrency while also learning about blockchain technology and other projects. Participating in airdrops allows you to fill your cryptocurrency wallet and expand your expertise without spending a single dollar. Whether you’re just starting started or want to delve deeper into the world of cryptocurrency, airdrops are an excellent place to start.

Disclaimer

While airdrops can offer free tokens, always do your research to ensure you’re participating in legitimate projects. Be cautious of scams, and remember that airdropped tokens may have tax implications depending on your country’s laws. Consult with a financial professional if needed.

You can also read: Common Cryptocurrency Scams and How to Avoid Them in 2024