What Are Airdrops?
Airdrops are cryptocurrency coins that are given away for free by new cryptocurrency projects based on completing a few tasks provided by them.
Almost anyone can participate in airdrops, he/she doesn’t need to have deeper knowledge about cryptocurrency.
New cryptocurrency projects usually do airdrop events to raise awareness and gain attraction for their new project.
Once the project has a successful launch and gets listed on a cryptocurrency exchange, then the airdrop holders can sell the coins they own for real money depending on the value of the coins selling on the exchange.
What is Cryptocurrency?
Some of the people who want to participate in these airdrops might be new to the cryptocurrency space, so to explain what is cryptocurrency in short.
Cryptocurrencies are digital assets that are on the blockchain network.
Each cryptocurrency holds value, similar to stocks in stock markets.
The value of each cryptocurrency depends on how well the project is performing.
Coinmarketcap.com shows the data of most of the cryptocurrencies.
The first cryptocurrency ever created was BITCOIN, and it holds the rank of the No.1 cryptocurrency in the world.
Cryptocurrencies are actively trading on various cryptocurrency exchanges, similar to stock market exchanges.
What is an ERC20 Token?
ERC20 tokens are cryptocurrencies that are built on the Ethereum network.
Ethereum is a platform that allows anyone to build their own blockchain projects and also their own coin.
So most of the Airdrop tokens are the ERC20 tokens, but not all.
ERC20 token airdrops benefit the airdrop hunters because the reward address remains the same, that is the Ethereum wallet address.
So that means a person can participate in multiple ERC20 token airdrops by sharing the same reward/payment address.
Note: Not all airdrops are rewarded in ERC20 tokens.
Learn to create your ERC20 token/Ethereum wallet HERE