What is a cryptocurrency airdrop?

May 28, 2025 | 2 min read

What is an airdrop?

A crypto airdrop is a promotion where you receive free crypto, often to promote a new project. Usually, all you need to do is have a wallet or sign up for something. Sometimes you have to do something, such as use certain apps, share tweets, or use a testnet.

Example: In 2020, Uniswap gave everyone who had used their platform 400 free UNI tokens. At the time, these were worth around $1,200. As you can see, the amounts involved can be significant. Some airdrops are worth a few dollars, while other lucky individuals have received amounts exceeding $10,000 in the past.

Airdrops are an easy way to get acquainted with new projects, and sometimes they even yield a profit.

Key Takeaways

Airdrops are free crypto that you receive as a promotion or reward.
There are different types of airdrops, such as standard, bounty, and retroactive.
They often take place during new launches or updates.
The value can vary from a few dollars to thousands of dollars.
Participating is usually easy, but beware of scams.

What are the different types of crypto airdrops?

Crypto airdrops are free cryptos that you can receive, often as a promotion or reward. But not every airdrop works the same way. Below, we explain the most common types of airdrops:

1. Standard airdrop

All you have to do is sign up with your wallet address. Sometimes you also have to enter your email address or follow a Telegram channel.

2. Holder airdrop

You receive tokens if you already have a certain other coin in your wallet. For example, if you have ETH, you can receive an airdrop from a new Ethereum project.

3. Bounty airdrop

You have to do something to earn tokens: follow social media, retweet, or create content about the project.

4. Exclusive airdrop

Only available to a specific group, such as early adopters or active community members.

5. Retroactive airdrop

Tokens are distributed retrospectively to people who previously used the platform without their knowledge.

When do crypto airdrops take place?

At the start of a new project – to quickly gain users
After a major update – for example, a new version of an app or protocol
Before or after a token launch (ICO/IDO) – as a promotional stunt
As a reward for loyal users – for example, DeFi platforms
During a marketing campaign – to increase followers or awareness Airdrops are usually announced on social media, Discord, or websites. Sometimes they are unexpected.

What is the value of a crypto airdrop?

The value varies greatly: from a few dollars to thousands of dollars. It depends on how many tokens you receive and their market value.

For example: 100 tokens × $0.50 = $50 100 tokens × $50 = $5,000

But beware: many tokens lose value quickly. That's why many people sell them immediately. Do you believe in the project? Then you can keep the tokens.

How can I participate in a crypto airdrop?

Have a wallet – For example, MetaMask, Trust Wallet, or Phantom
Follow the project – Keep an eye on Twitter, Discord, or their website
Meet the conditions – Register, fill out a form, retweet, etc.
Check eligibility – Some airdrops are for specific users
Wait for the tokens – They are often sent automatically after the airdrop

Important: Never share your private key. A legitimate airdrop will never ask for it.

What are the advantages and disadvantages of airdrops?

Advantages

Free crypto – No investment required
Low threshold – Often simple actions
Discover new projects – You get to know new coins
Potentially valuable – Some airdrops yield thousands of dollars

Disadvantages & risks

Tokens can be worthless
Scams – Beware of fake airdrops
Risk of spam or phishing
Obligations – Sometimes many steps or personal information required

Conclusion

Airdrops are a smart way to earn free crypto and get to know new projects at the same time. The value can vary enormously: sometimes a few dollars, sometimes hundreds, and sometimes even thousands of dollars. Want to join in? Then you need your own wallet. Be careful, though, because not all airdrops are worth anything and there are many scammers out there. So always make sure you trust the party organizing the airdrop!