How To Stop Missing Out on Crypto Airdrops

Crypto Airdrops Explained

  • Users have no pressure in selling free items. It might take months before reaching a decent exit price, so they are likely to forget and never sell. This helps creators because it solidifies the floor price, market cap, and the number of owners.
  • People tend to talk well about their investments. They want others to buy, either because they want to sell high, or they believe there’s long-term price potential.
  • Once there are enough holders or NFT owners, others are more likely to buy (for the same reason people prefer crowded restaurants).
  • It’s easier to attract users with free crypto, even if it’s worthless. The best example of this (although not exactly an airdrop) is Pi Network. A whopping 33M people have this app where they click a Mine button every 24 h to earn Pi tokens (currently without value).
  • If the project goes well, early users will talk a lot about it. For example, hundreds of users joined HEX in its first year, won big, and became long-term followers. Now, it’s a large, enthusiastic community that promotes the token for free.

How to Participate in Crypto Airdrops?

  • Standard airdrops are social media giveaways. You respond to the post with your wallet address and follow the steps (e.g., like, share, tag friends…)
  • Bounty airdrops work like weighted lotteries. You can post your address and do the bare minimum, or you can increase your odds by doing quick tasks. Typically, it’s sharing on other platforms, joining all their channels, or bringing referrals.
  • Holder airdrops limit the giveaway only to those who own a certain token. For example, an NFT creator may have an ERC-20 token, and only those who hold those tokens can get a free NFT. Different rewards may apply for holding different amounts, and they can occur without you signing up anywhere.

Crypto Airdrop Taxes

  • Income tax for the token amount at the market price it had when you received them.
  • Capital gains tax for the profits you earn after selling above your cost basis.
  • What’s your cost basis on a token that’s not public yet? If it launches the airdrop, that means you received them for $0.
  • What about unsolicited holder airdrops? Or tokens received on inactive or lost wallets? How do you account for something you don’t know you have?
  • Do you include spreads and network costs as your cost basis?

PulseChain Crypto Airdrop

  • PRC-20s use a naming system starting with “p.” For example, pBTC for Pulsechain’s Bitcoin, pETH for ETH, pXRP for XRP…
  • PulseChain markets are about price discovery. While p-named tokens have real equivalents, they start at $0 and move up based on trading. While it may seem risky, people are more likely to buy an undervalued coin (e.g., if pETH is $500 and ETH is $1500, pETH should go up once selling pressure declines).

How to Make Money From Crypto Airdrops

--

--

A truly decentralized borrowing protocol that allows you to draw 0% interest-free loans against your Pulse coins. Non-custodial, immutable and no admin keys.

Love podcasts or audiobooks? Learn on the go with our new app.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Liquid Loans

A truly decentralized borrowing protocol that allows you to draw 0% interest-free loans against your Pulse coins. Non-custodial, immutable and no admin keys.