PrivacySwap’s How To: Avoiding airdrop scams

Crypto airdrops are a type of marketing approach used by cryptocurrency businesses to promote their project and new token. It entails giving away free native coins to current and potential consumers. Before they may claim, individuals may be required to conduct simple promotional actions such as following the project’s social media account and sharing their postings.

Different sorts of airdrops exist, and each cryptocurrency project has its unique set of requirements. However, most airdrops have the same goal: to raise project awareness and interest. Some are deposited automatically into users’ wallets, while others require a claim to be submitted manually.

Anyone with a cryptocurrency wallet is eligible to receive or claim an airdrop, but be wary of scammers. When you claim or transfer free tokens, there are several fake airdrops that can steal your wallet funds. Before claiming an airdrop, double-check that the project is legitimate. When connecting your wallet to an airdrop service, you need to be extra cautious.

It’s challenging for crypto investors and traders to keep the pace of all the new projects with the ever-increasing number of new coins. As a result, some cryptocurrency projects use airdrops to differentiate themselves and raise awareness. While everyone loves free cryptocurrency, airdrops aren’t always trustworthy.

What are crypto airdrops, and how do they work?

There are numerous sorts of crypto airdrops, but they all involve distributing a tiny quantity of cryptocurrency to multiple wallets (usually on Ethereum or Binance Smart Chain). Some projects give away NFTs instead of the usual crypto. However, they are less frequent.

Some projects may distribute without asking for anything in return, while others will require you to do particular activities before you can claim. Following social media profiles, subscribing to a newsletter, and keeping a certain number of coins in your wallet are all examples of these chores. However, receiving the airdropped tokens is not always guaranteed.

Airdrops are often limited to wallets interacting with the project’s platform before a specified date. 1INCH and Uniswap are two well-known companies that have used this strategy to help early adopters. However, unlike most airdrops, these were worth tens of thousands of dollars.

Also Read: Bitcoin technical analysis for beginners

What is the procedure for claiming an airdrop?

The procedure will differ from project to project. However, the most significant need for claiming an airdrop is the possession of a cryptocurrency wallet. MetaMask is a well-known and simple-to-use cryptocurrency wallet. After that, you can see if you have any free tokens in your wallet. If not, you’ll almost certainly have to interact with a website in order to receive the airdrop.

How to avoid being a victim of an airdrop scam?

It can be difficult to tell whether an airdrop is legitimate or not. Before joining up for an airdrop, always DYOR, especially if you need to connect your wallet to a website. Scammers can sometimes airdrop tokens into many wallets, but your wallet will be drained if you try to transfer them to a crypto exchange or another wallet.

Scammers may also announce a phony airdrop that leads to a phishing website. They’ll dupe you into connecting your wallet to a webpage that seems almost identical to the authentic. Other tokens will be taken out of your wallet as soon as you connect your wallet and sign a transaction.

This is common with bogus Twitter and Telegram accounts that appear to be identical to the official accounts. Some airdrop scams require you to transmit cryptocurrency to an unknown wallet address in order to receive your free tokens. Airdrops that are legitimate will never ask for your money or seed phrase. Use caution when sending out airdrop emails or direct messages.

Make sure to check out the project’s official website and social media platforms to avoid getting duped. Make a note of the official links and double-check that an airdrop is taking place. If you’re unfamiliar with the project, you should conduct an additional study to learn what the crypto community has to say. It’s usually best to disregard the airdrop if you can’t locate adequate information.

For added security, create a second wallet and email account devoted just to receiving airdrops. This can protect the funds in your personal wallet from phishing efforts related to airdrops. Last but not least, never give out your private keys to anyone.

Final thoughts

Crypto airdrops help cryptocurrency startups stand out and acquire traction in the market. It can also be a fantastic opportunity for crypto enthusiasts to diversify their holdings by investing in new tokens. However, there are likely to be more scam airdrops than legal ones out there, so be cautious and conduct your own research before signing up.

Also Read: How to: Calculate your crypto taxes

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