Now that cryptocurrencies have been defined, we can now move on to finally talking about what airdrops are and dissecting them.Īirdrops are a procedure centered around administrating new coins/tokens by presenting them with a particular proportion to existing holders of specific blockchain currency, including the likes of Bitcoin and Ethereum among others.īefore we move forward, the concept of ‘HODL’ should be looked into, as it plays an important role in what is going to be explained in relation to airdrops. “Crypto” refers to the fact that various encryption algorithms and cryptographic techniques, such as elliptical curve encryption, public-private key pairs, and hashing functions, are employed.” “ Cryptocurrencies are systems that allow for the secure payments of online transactions that are denominated in terms of a virtual “token,” representing ledger entries internal to the system itself. Investopedia editor, Jake Frankenfield, explains the core purpose of cryptocurrency as the following: The defining feature of a cryptocurrency is that it is not supplied by any central authority, which makes it essentially immune to any kind of government interference. A majority of cryptocurrencies are decentralized systems based on blockchain technology, which is a distributed ledger that is run by a diverse network of computers. What exactly is Cryptocurrency?īecause cryptocurrency has a big part in the airdrops framework, it only makes sense that we first establish what cryptocurrency is for contextual purposes.Ĭryptocurrency is typically defined as being a digital (or virtual) form of currency that utilizes cryptography for security reasons, and it is because of this that the overall system is difficult to counterfeit. This article will serve as a guide to airdrops by explaining what they are and the reasons as to why so many people use them. However, there exists a way in which you can genuinely make money, and it is a little thing called ‘Airdrops. Making money using cryptocurrencies can be a risky move it’s not wholly secure and you never know what exactly you’re getting into.
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