Passive income ： Return to the original and safe two ways to earn

Crypto investors are trying to pledge 、NFT、DeFi Get passive benefits from digital assets . Other technologies that are becoming more and more popular in the cryptocurrency market are bifurcation and airdrop .

Airdrops and forks are free tokens distributed in the wallets of selected users , Because these users actively participate in specific blockchain ecosystems . Rewards will also be based on their holdings or contributions to specific blockchain projects .

In encryption business , Airdrop and forking is a marketing strategy , For popularizing blockchain projects , Promote native tokens , Get more traffic for these virtual projects .

What is encrypted airdrop ?

Encrypted airdrop , Also known as token giveaways , It is a publicity stunt for blockchain companies to guide new projects or launch virtual currency projects . Airdrop by the founder of the project 、 Co founders and developers funded , They will disclose the total number of tokens dropped , To maintain fair distribution among users .

Airdrop is a good way to raise people's awareness and interest in new projects , When they list their projects as ICO( Initial token issue ) To raise funds on crypto exchanges , It can promote more people to trade .

Airdrop is the easiest way to get passive income 、 One of the relatively risk-free ways . All you need is some basic knowledge of cryptocurrency market .

Early users and existing token holders will be rewarded , The premise is to complete a specific task , for example :

• Forward or share their posts on social media platforms .
• Use topic tags , In this way, the post will spread , Or spread to a wider audience .
• Complete transactions through exchanges or wallets .
• Follow their accounts on social media .
• Create an account to receive feedback and updates .

Two types of encrypted airdrops

• Retrospective airdrop

The existing blockchain agreement announced a retrospective airdrop , To launch native tokens , And reward early users 、 The contribution and support of supporters and investors to the project in the first few days . These free earned tokens are distributed according to their contributions to the project .

Retrospective airdrop involves projects that have existed for some time . These airdrops provide liquidity , And improve people's participation in the project . as time goes on , With the popularity of the project , The price of the new token will increase significantly .

• Take over airdrop

Taking over airdrop is DeFi Marketing tools used in the agreement , By providing users with greater rewards to keep them away from competitors .

Compared with retrospective airdrop , These airdrops are more aggressive , Because their goal is to attract competitors DeFi The liquidity provider of the agreement , And keep them , So that they can provide liquidity for the project .

What is the purpose of cryptocurrency airdrop ?

Cryptocurrency airdrop is a promotional activity . Its main purpose is to promote the start of blockchain agreement , Or promote new native tokens . Airdrop projects reward the participation of users and liquidity providers through fair distribution from the first day .

Encryption companies promote new products on their social media pages , And provide incentives such as coupons and discount codes to existing users , To encourage them to re share or forward their posts , And introduce more people into the project .

As tokens become more and more popular on social media platforms , The price of tokens will also rise . Token holders can hold tokens for a long time , And sell when the price rises . Early participation in token issuance may be one of the best ways to obtain passive income with low investment .

pros and cons

The cryptocurrency market is extremely competitive , The core of airdrop is marketing gimmick . They hyped the launch of the project , Attract more users to invest in projects .

Distribute free tokens in exchange for existing users' early contributions to the project , This is one of the simplest and most effective strategies to publicize encryption projects and win the loyalty of existing users . It also aroused the interest of users , This popularity can ultimately bring good results to the business , And raise the price of new tokens in the market .

Many encryption experts believe , Tokens are artificially exaggerated , To attract more customers . Besides , Distributing free tokens will dilute the market value of tokens , And affect its future price . Many users resell tokens immediately after receiving them , Instead of waiting for its price to rise in the future .

What is encryption hard fork ?

Bitcoin and Ethereum are open source , Its blockchain is contributed by community members 、 Maintain and develop the underlying code . Anyone can change the code or update the software in the blockchain .

When community members change the blockchain agreement or change the basic rule set , Bifurcation will occur . If the community is not satisfied with the existing agreement , That could happen .

Forking is usually used to introduce or create new tokens , There are two types of bifurcation ：

• Soft branch —— These forks are software upgrades of blockchain protocols . Soft forking adds new features or functions to existing tokens . If it is adopted unanimously by all community members , Then it is compatible with the block before bifurcation , And there is no need to split in the blockchain . therefore , There is only one blockchain .
• Hard branch —— These forks occur when the code changes completely , And is no longer compatible with pre forked blocks . therefore , Blockchain is divided into two versions with new rules . Hard forking will create a new token , It has new features based on source tokens .

Advantages and disadvantages of hard bifurcation

Hard forking without changing the original blockchain , Added new functions to blockchain protocol , It's very beneficial .

Hard bifurcation can speed up the network speed and transaction process , Improve the overall security of the network . Hard forked tokens are distributed among token holders , They can sell tokens immediately , Or maximize their earnings by holding tokens for a long time and selling them when prices rise in the future .

Because hard forks are created through the split blockchain Protocol , Therefore, it may endanger network security , And vulnerable to malicious attacks . The distribution of free tokens will also bring fluctuations to the price of new tokens . These attacks may damage the blockchain Protocol 、 The reputation of new and source tokens . therefore , It is always important for developers to take adequate precautions and make plans to make credible improvements to the network .

summary

Airdrops and hard forks are some of the safest ways to earn passive income 、 The coolest way . Write down the transactions and wallets that support these airdrops and hard forks . Keep an eye on the latest developments and news , Stay away from fraud and false promises , To survive the current downturn .

Source：https://medium.com/the-capital/make-passive-income-with-crypto-forks-and-airdrops-19d0aac76aa2

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