What is an Airdrop in crypto?

A crypto airdrop is a process of distributing new tokens to people either as a method of promoting the token or rewarding loyal customers. In general, it is the process of distributing digital currency tokens to specific users’ wallets free of charge. In most cases, airdrops are done by startups in an attempt to boost their projects.

Airdrops are done because of the following reasons:

  • To reward loyal customers – This happens when trading platforms or exchanges decide to give back to their best customers.
  • As a marketing tool – Airdrops are used by many startups as a marketing tool to attract many people to their projects.
  • Creating awareness about an upcoming digital currency

Note that anyone can participate in airdrops. The only requirement is an active wallet and access to information about upcoming cryptocurrencies.