General information, not financial advice. Crypto is high risk. You could lose all the money you put in.
What is an airdrop?
Some crypto projects give out tokens when you meet a set goal. Usually the goal is holding the project's main coin for a set time, and the reward is paid in a second token. Airdrops can be one-off or regular.
Airdrops among the larger cryptocurrencies are less common now. Projects tend to use them early on to attract users and stop once they're established.
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Airdrops to avoid
Search online for "crypto airdrops" and you'll find directory sites listing them. Be very careful:
- many airdrops are for tiny, unknown tokens with little or no value
- some are scams that ask you to connect your wallet, sign a transaction or share your recovery phrase. Never do any of these for a "free" token
- check how established a coin is (for example on CoinMarketCap) before you engage with it
Some crypto you receive can count as income for tax. See Crypto tax in the UK, and the scam warning signs.
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