Airdrops
Always do your own research (DYOR). Not financial advice (NFA)
Strategies are only strategies, every play won't be profitable and there may be extraneous factors that can lead to unexpected outcomes. Learn from them and move on.
Farming airdrops can be a relatively safe strategy compared to trading, but can still quickly rake in thousands. Airdrops exist to grow the protocol, incentivize utilization of the protocol, and to gain loyal users. Successful airdrops can be lucrative and boost a protocol's attention but a failed airdrop can cause a project's reputation to fall.
Biggest risks of farming airdrops:
Smart contract security of the protocols being used
Connecting wallets to malicious look-a-like websites and links
Avoid risks by:
Researching security/audit measures of the protocol
Checking URLs of websites to see if it's legit
Perils of farming airdrops:
Time consuming (ex: researching projects, creating wallets, farming volume)
Protocols may launch underwhelming airdrops
More people farming means less rewards
Strategy 1: Research good projects with potential for airdrops
Look for signs of possible future airdrops:
Incentivizing growth of protocol
Points or rewards system
No token launched yet
Create multiple wallets to farm possible airdrop
Having a range of sizes across wallets can have the best chance of farming the most tokens
A few wallets with more volume/size
Many wallets with smaller volume/size
Strategy 2: Farm existing airdropping protocols
Create many wallets to meet future airdrop thresholds
Resources:
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