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What is the Purpose of Airdrop in the BTC users’ Wallet?

What is the Purpose of Airdrop in the BTC users’ Wallet
(Last Updated On: April 5, 2021)

The Initial Coin Offerings, popularly known as ICO’s are something that every crypto users expect in their BTC wallets. One of the reasons behind it is, they’re completely free and the second is, the ICO organizations use one such marketing tactics to promote their crypto coins amongst the bitcoin users.

As a crypto user if you’re thinking the importance of airdrop in your crypto wallet, then it’s better for you to know what does the word airdrop means in a crypto trade.

What’s an airdrop and what’s the purpose of distributing free BTC tokens?

An airdrop is one of the popular marketing techniques adopted in blockchain technology for rewarding the crypto users. It’s a free token offered to you for being a part of the crypto community. These bitcoin tokens can be exchanged in various other crypto currencies too.

However these airdrops are provided in your crypto wallet after analysing the ratio of the crypto coins you already have in your wallet and how much you’ve spent from it. One such scheme is actually meant for the users who’re registering on a crypto website for the first time. As a first timer, if you’re registering with one such website, you might have to use your crypto address, share the referrals. On filling those forms one after the other you’re entitled to win your first airdrop. If you’re a newbie crypto account holder the airdrop will be credited in your newly registered crypto wallet.

However the reasons behind

Creating awareness amongst the bitcoin users

The Initial Coin Offerings in a marketplace has turned highly saturated by now. It’s quite challenging for the new projects to get the right value they deserve. An activity like providing free tokens can trigger the awareness of winning free crypto coins amongst the users. That way, they might take interest in those projects with a desire to win free BTC’s.

A smart way to raise the value of BTC crypto coins

As a bitcoin owner, it’s important for you to raise the value of your coins. Such airdrops help plenty of BTC wallet owners like you to get free tokens. With increase in the investment of free tokens you can expect an increase in the value of the bitcoins in a crypto market. When you’re buying, paying or might be exchanging those free tokens, there’s a significant spike in the number of the coins bought from the free token receivers like you. However, if youlre new to this crypto trade, before spending a single amount in buying and selling of cryptos, you better take a look into bitcoin x for knowing how to use those free tokens.

A reward for being loyal to Bitcoin

There are plenty of crypto currencies available in the market. They include Litecoin, Ethereum, etc. When you choose bitcoin over them and stay loyal to one such digital currency for a long time, you earn a gift/reward for your loyalty to Bitcoin.

It’s another marketing trick used by the ICO firm to instigate the buying interest of the Bitcoin users. Be it a long timer BTC user or someone who frequently uses the BTC’s in day trade or uses the currency for e-shopping, one such reward helps the ICO organization to earn its bran popularity. If the BTC users are happy with the reward, the ICO organization can expect maximum usage of their crypto currencies in maximum online transactions.

One such leverage might however expand the chances to spike up the value of the BTC price in a crypto exchange market. One such option can boost up arbitrage trade in multiple crypto exchange market. That will eventually raise the market price of Bitcoins in respective to the other available digital currencies.

Maximum token distribution

In a cut throat crypto trade each and every ICO offering companies expect their coins to be accessible amongst maximum token users. As the owner of one such token offering firm, your priority is to reach out those crypto users in the market who haven’t heard your crypto name by now. By distributing free tokens at a certain ratio within a targeted sphere of a market, you can easily reach out maximum people by giving them the taste of using bitcoins.

To implement one such strategy, you can share or post a link in social media sites, or any relevant promotional sites conveying the news of issuing a new type of coins in a crypto market.

Whoever shares it or retweets/reposts it, gets a free token airdropped in their crypto wallet. That will eventually help you distribute large chunks of coin within a targeted market base.

About the author

    Whale Sumo

    Hwang is a self-proclaimed nerd who loves helping people understand complex concepts. He has a passion for crypto and online privacy and enjoys teaching others about the benefits of both. Hwang is an advocate for individual freedom and believes that knowledge is power. When he's not busy sharing his knowledge with the world, Hwang can be found running full marathons or playing video games.