Crypto Beginners Guide: Part 1 — What is an Airdrop?
If you’re brand new to cryptocurrencies & airdrops… you have yet to invest in your first bitcoin… and you don’t know where to start.. you’re in the right place.
If you’re a long time investor and enthusiast, take a journey back with us and recall your first moments getting into the blockchain space. Let’s compile a few of our beginners tips and tricks that makes it as easy as possible for literally anyone.. even your grandmother to participate.
To begin, if this is your very first article reading about cryptocurrencies, I recommend learning some crypto basics from these sources:
If video is your thing: https://www.youtube.com/watch?v=l1si5ZWLgy0
If a book is your thing: https://www.amazon.com/Digital-Gold-Bitcoin-Millionaires-Reinvent/dp/006236250X
If podcasts are your thing: http://futurethinkers.org/blockchain-possibilities/
That being said, you don’t need to be an expert on crypto or blockchain tech to understand this article!
Remember — always do your own research before investing and only invest what you’re prepared to lose. We’re not here to give professional investing advice.
Here is the good news: to participate in an airdrop, you don’t have to invest a single fiat dollar. You get money for free. Yes, in fact it is free.
Now I’m sure you’ve heard the saying, “when you’re not paying for the product, you are the product,” and that stands semi true for airdrops.
So, what is an airdrop?
An airdrop is a way for blockchain companies to distribute coins or tokens (currencies that hold some value) to people they want to engage, use, talk about, and review their product.
So let’s think about this in everyday terms.
I want to start a lemonade business around my town. My lemonade stand has some certain benefits that older lemonade stands cannot provide, such as:
- tracking all the ingredients from origin so health conscience consumers know exactly what their drinking
- measuring exactly to the recipe so every batch turns out perfectly
- a security feature that makes sure no one can steal my customer’s lemonade once the customer pays for it.
Now you might not think that someone is going to steal a measly glass of lemonade out of a customers hand at my lemonade store, but I would like to think that I can protect that from happening. Especially when people are trusting my business to hold hundreds of thousands of dollars. If I can do this better than other businesses, most people are going to like my business more than others.
Now to make sure all of these benefits can happen, the customer needs to use LEMON Coins.
Let’s say 2 LEMON Coins can buy you a glass of lemonade. The average glass of lemonade in USD currently costs around $1.50, so 1 LEMON Coin equates to $.75 as of now.
Okay, so how do I get everyone to try my lemonade when customers currently don’t have LEMON Coins and no one can buy LEMON Coins yet? (You can’t buy these LEMON Coins because the exchange bank doesn’t carry my currency yet because not enough people have asked for LEMON Coins.)
In order to get customers to try my lemonade business, go to the bank for LEMON Coins, and inflate the value of my coins via demand, I am going togive everyone 2 LEMON Coins for free.
So.. I go to Target, Walmart, Sam’s Club, venues with lots of people and I hand out three LEMON Coins to EVERYONE I possibly can.
(Wait, is this an airdrop? Yes! This is a physical airdrop of LEMON Coins to people. Crypto airdrops are done mostly via the internet. Instead of handing coins out to people at Walmart, the blockchain companies send their coins or tokens to people’s cryptocurrency wallets that have signed up for the airdrop.)
“Why are you giving all your these lemonade coins away for free?” Well, Lemonade is fairly cheap to make so I’m not really losing that much money + I had some funds that investors gave me to start the business. All the paying customers that I will get when people try my lemonade and come back for more will cover the cost of my airdrop.
Finally! 10,000 people have three LEMON Coins each!
Of those 10,000 people, a lot are going to want to use their free LEMON Coins.. so they try my lemonade, LOVE IT, want to use my lemonade stand again, tell all their friends about my lemonade, and ask the exchange banks for more LEMON Coins or try to buy their peer’s LEMON Coins.
I now have a customer base and you have a new favorite lemonade stand!
Having a large user base leads to banks and exchanges picking up my currency and allows customers to exchange their fiat currency for LEMON Coin. Eventually you’ll be able to easily go online, purchase hundreds of LEMON Coins and use my lemonade stands for your favorite benefits.
What is the difference between LEMON Coin and a crypto airdrop? Well to be honest, not much. Generally the projects doing airdrops are reorganizing society, changing the world, and all on a global scale. Other than that, they are the exact same!
To join in on our airdrops, head on over to the AirdropX page to login or create an account and join your first airdrop. Joining AirdropX also gives you access to multiple other token airdrops and allows you to multiply the tokens you’re receiving by referring your friends. AirdropX helps crypto projects create massive network effects with distributed and engaged communities while providing a streamlined, one-stop shop for all things airdrops for the crypto enthusiast community.
