Earnings from property ownership

• Why does crypto rely on consumers to grow acceptance organically？

• The advantages of interacting with new crypto communities

• What is an airdrop and why are they used？

• How do airdrops work and how can you become involved？

Congratulations for purchasing your first cryptocurrency and storing it in your wallet: you're now a crypto user and a member of the community. You've already gotten ahead of the game by embracing an invention that the majority of the world has yet to see.

Of course, holding comes with its own set of hazards, since the cryptocurrency you've purchased may lose value, and you'll need to know how to properly secure it. However, there are benefits to owning a home, in addition to the potential for price appreciation.

The fact that you hold cryptocurrencies and understand how the ecosystem works is a valuable asset in and of itself. Bitcoin only got to where it is now because people formed communities around it to talk about it, improve it, and spread the word about it.

You are under no need to inform others that you are a bitcoin user. Many people, in fact, prefer to keep this information secret for security concerns. It's entirely up to you. Of course, you can talk to individuals about Bitcoin and the benefits it provides without revealing that you are a hodler.

“Money makes money,” you've probably heard. One of the most fascinating aspects of cryptocurrency is that it can be used to generate more bitcoin.

Participating in airdrops and claiming fork currency is one such method.

What exactly is an airdrop？

Since 2012, the number of cryptocurrencies has increased dramatically, with thousands of digital currencies currently available. Tokens, for example, are a sort of cryptocurrency that anyone may design and issue using a specific blockchain.

After Bitcoin, Ethereum is the second most popular cryptocurrency. It uses the same blockchain network as Bitcoin, but instead of BTC, it uses Ether as its native cryptocurrency (ETH). The Ethereum blockchain, unlike Bitcoin, can accommodate alternative cryptocurrencies known as tokens.

Many cryptocurrency projects create their own token on Ethereum and sell it to cryptocurrency users who pay in ETH.

Such projects confront the age-old chicken-and-egg problem: they need to attract attention, but there is no motivation for users to do so until the project has built a community and its token has been widely circulated.

To address this issue, some projects conduct a 'airdrop,' in which they give away a percentage of their tokens for free. This entails transferring a tiny quantity of cryptocurrency to existing cryptocurrency users' wallets.

You may need to have an existing cryptocurrency in your wallet (e.g. ETH) or have done certain requirements, such as following the project's social media channels and registering on their website, to be eligible for an airdrop.

Airdrops are a terrific method to get free cryptocurrency while learning more about how it works.

Some cryptocurrency exchanges reward its users with airdropped tokens. Coinbase, for example, was one of many exchanges that enabled an airdrop for Spark tokens, a new currency that was airdropped to XRP holders, in December 2020. Airdrops are frequently announced on popular crypto Telegram channels and Twitter accounts.

Users of Defi have reaped significant benefits as protocols compete for users with the promise of token rewards, as seen with Uniswap and 1Inch, to mention a few.

Blockchain.com is a fantastic illustration of how Airdrops may be used to reward loyalty and patience. They are a well-known name in the crypto space, serving as both an exchange and a popular wallet provider, ensuring that the schemes they advertise are reputable.

They have so far sponsored two Stellar (XLM) airdrops.

They distributed $125,000,000 worth of XLM, and Blockstack more recently.

As part of an anti-spam effort, Blockchain.com requires Gold Level verification in order to qualify for Airdrops. This will require you to provide KYC (there is no such thing as a free meal), but once validated, you will be eligible for Airdrops.

The Blockstack campaign included a one-year lock-up period, but the value of the STX token has surged about twenty-fold in that time, turning the $10 gift into a $200. That's a pretty good return on your patience.

Airdrops may appear to be free money, but as we have often stated, this is not the case.

There is no assurance that an airdropped token will be valuable, and you may have to engage in several airdrops until you strike gold and locate one that is.

Furthermore, because it takes time to build a community, you may need to wait to see if the airdropped tokens you receive will appreciate in value.

If you qualify for an airdrop, the tokens will be sent to your personal crypto wallet or credited to your account (if you use a centralized exchange), however the process of claiming can be lengthy in some situations.

Scammers keep an eye on Airdrops and try to dupe users into providing their private keys.

They'll set up bogus websites that promise free tokens in exchange for your wallet's private key. This should not be done.

Your private key should only be seen by you, and any site or crypto user who demands it is attempting to defraud you. You wouldn't hand over your bank card and PIN to a complete stranger. It's the same with your private key, which is your wallet's password.

To learn about valid airdrops and the conditions for entrance, follow cryptocurrency exchanges and initiatives on social media.

You will receive tokens for free if you are eligible, either because you possess bitcoin or because you have done the micro-tasks required (for example, joining the project's Telegram group).

If these become tradable, you can either trade them for another cryptocurrency, such as ETH, or hodl them in the hopes that their value would rise.

Coinmarketcap has a list of some of the most recent airdrops.

Benefits of airdrops include:

• Anyone with a cryptocurrency wallet that is compatible can participate.

• Certain airdrops may be available if you own cryptocurrencies on an exchange.

• Airdrops are held on a regular basis, ensuring a steady supply of free tokens.

• Airdrops have a number of drawbacks.

• There is no assurance of profit because the new tokens may be worthless or illiquid, which means they will be difficult to sell.

• It can take a long time to find and participate in airdrops.

Airdrops are one way to make money in the crypto industry by leveraging the risk you took when buying other coins. They're a fantastic opportunity to learn more about bitcoin and get involved with communities at a young age.

As you do so, you may find yourself forming online connections with others who share your interests and motivations, as well as the gratification of being a part of a community that is working together to achieve common goals.

Even if airdropped tokens do not make you wealthy, they will serve as a stepping stone to more advanced earning options as your expertise and confidence expand.

How may forked coins be used to claim dividends？

The fork is another possible benefit of cryptocurrency ownership. Dividends are a way for traditional firms to disperse a portion of their revenues to its shareholders. Cryptocurrencies are not controlled by a corporation, and instead of shareholders, the money is owned by individuals who support the underlying blockchain.

However, despite the fact that bitcoin networks are not publicly traded firms, you can still receive dividends after a fork.

A blockchain is used to run cryptocurrencies such as Bitcoin (read a full blockchain explainer here). Because blockchains are open source, there's nothing stopping someone from copying them and improving the rules as they see fit.

This is known as 'forking,' and it results in the creation of a second network with the same history as the first.

This can happen when a group of developers in charge of maintaining the cryptocurrency decides to release a new version, usually owing to ideological disputes.

In 2017, for example, Bitcoin split into two chains, one of which was dubbed Bitcoin Cash (BCH). BTC holders were allowed to claim BCH at a 1:1 ratio, resulting in free coins that they could keep or sell for more BTC.

Since then, Bitcoin Cash has gone through many forks, with BCH holders receiving the freshly created coins in a 1:1 ratio each time.

What if I told you that Bitcoin has been forked more than any other cryptocurrency, resulting in new networks including Bitcoin Cash, Bitcoin Gold, and Bitcoin Proof of Stake.

Although blockchain forks offer a chance to claim free bitcoin, it should be noted that there is no assurance that the newly forked cryptocurrency will be valuable.

A fork is like a different take on a common concept. The competition between Thomas Edison and George Westinghouse over who had the greatest method for providing electricity is a suitable comparison. Or the “browser wars,” which track the evolution of web browsers.

Before you get too enthusiastic about enormous rewards, remember that a fork will only be valuable if it offers a significant improvement (which will necessitate committed engineers) and a community of its own hodlers and supporters, both of which will take time. Otherwise, the underlying scarcity that is such a vital characteristic of cryptocurrency would be invalidated.

Early forks were good 'dividends,' while consensus on critical crypto problems had yet to be established (see the Crypto trilemma), but they have diminished over time.

Furthermore, claiming forked coins can sometimes necessitate technical understanding that is beyond the capabilities of most novices.

Scam websites exist that offer to award forked cryptocurrencies but require users to enter their private key (i.e. wallet password) before stealing their existing coins. If you're a rookie, the simplest and safest solution is to store your coins on a cryptocurrency exchange that plans to support the fork, which will take care of everything for you.

It's important to note that you'll only be able to participate in future bitcoin forks.

For example, if you acquired BTC today, you would only be able to claim future forks, not historical forks. Consider it a stock dividend or a perk that comes with ownership.

The following are a list of the advantages of passive ownership:

• Taking advantage of long-term crypto appreciation while avoiding the risks of short-term volatility

• Join an army of hodlers and feel like you're a part of something bigger.

• Rather than trying to time the market, use cost averaging.

• Take advantage of the benefits of forks, such as the potential to receive free cryptocurrency in a 1:1 ratio with your existing holdings.

The following is a summary of the dangers associated with passive ownership:

• You must take a risk with your initial investment; past success does not guarantee future success.

• There's no guarantee that forks will be worth anything.

• To claim coins, you may require some technical knowledge, and some sites will try to defraud you.

We've discussed why cryptocurrency can be volatile, how cost averaging can help mitigate this volatility, and what it means to hodl in this article. We've also looked at how forked currencies can be claimed as dividends - but the time and effort invested in claiming a new cryptocurrency could be squandered if the project fails.