Steemit Crypto Academy Contest Season 12 Week 01 - UNDERSTANDING CRYPTOCURRENCY AIRDROPS

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Warmly Welcomed Back in the New Season 12 and 1st Week. Topic of presentation is very interesting and productive to get acknowledgement about it. I will try best to explore inside deep it's all necessary stuff and share with you answers of all each required questions.Hopefully my participation will meet the requirements of this engagement challenge.

Define what is crypto airdrop?

When referring to cryptocurrency distribution, the term Airdrops means the giving away of free tokens or coins to owners of a specific cryptocurrency. These tokens are usually incorporated by blockchain projects to promote their advanced new cryptocurrency, encourage user participation, motivate existing users.

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It's important to note that not all drops will pay off and the value of tokens earned can vary significantly in different scenarios. Users may also be required to meet general requirements or follow specific guidelines in order to claim their tokens when interesting to participate in airdrops. To avoid potential scams, users should exercise caution and confirm the authenticity of airdrop offers with great consideration.

Give the different types of crypto airdrops

Crypto airdrops come in a variety of forms, each with a different sort of significance and distribution strategy in cryptocurrency. Here are some common types are as under below ⬇️ as

• Owner of Airdrops in Crypto :

Depending on how much they own certain cryptocurrencies a accordingly to follow the specific criteria, Some concerning projects facilitate users by giving tokens to holders in some attractive proportion. For this reason, more and more people are holding the original cryptocurrency.

• Staking Airdrops in Crypto :

In this sort of tye of Airdrops in the context of Cryptocurrency, Tokens may be airdropped for those users who want to stake or lock up their tokens in a specific blockchain ecosystem in exchange for their assistance in securing the network.

• Decentralized Airdrops :

This type of Airdrops is very important to understand, Here in tokens are frequently given out by decentralized exchanges and DeFi projects to users who have interacted with their platforms or generated liquidity with sincerity or having some productive goals to lead in future in the field of crypto world.

• Reward Airdrops in Crypto :

Last but not least an other very important type in which rewards system is also generated accordingly to sine fixed process.For fulfilling requirements like signing up for a service, referring people, or finishing KYC (Know Your Customer) processes, projects may airdrop tokens as rewards successfully.

Have STEEM token ever been claim as a crypto airdrop ?

Yes, STEEM tokens have participated in airdrop activities and very common in practice for giving the facilitations to the dedicated users.Addionally, Blockchain Steem, everybody knows which is a social networking and based on quality content sharing platform, is linked to a cryptocurrency known as STEEM. In order to expand its ecosystem and as part of its distribution strategy, Steem has conducted a series of landings in an organized way.

^Pexels

As a result, For more justification of that required question, When the blockchain divided into two different chains, HIVE tokens were handed over as part of the airdrop to STEEM holders who were present at the time of the hard forks. It serves as an illustration of how airdrops can be used in blockchain communities to distribute tokens and address regulatory changes.

How to identify if a crypto airdrop is legit or scam. How can we also fine free crypto airdrops

Since scammers often imitate real based initiatives, Its really difficult to determine whether a cryptocurrency airdrop is real or fake. Here are some guidelines to help you distinguish between legitimate drops and scammers:

• Make sure project team members are real people with visible web profiles. Scammers often use suspecious names or pictures and content as well.

• Aside from your wallet address, legitimate dropshippers usually don't require you to divulge any sensitive or personal information. If they ask for more personal information, proceed with caution.

• Look for evidence from various sources, such as reliable forums or crypto news websites are really helpful to be careful against scammers. It is encouraging that other members of the community have successfully participated in the same airdrop.

That's why we should always keep in mind that there are many scams as well as legitimate drops that give away free tokens. Be careful and do your own in deep research before joining in any airdrop in Crypto World.

How are crypto airdrop taxed ?

It is important to keep in mind that tax laws and regulations regarding cryptocurrencies are still evolving and can be complicated to in practice. Because of airdrops are taxed may vary by jurisdiction. We have to need in deep analysis to justify about the taxation of Airdrops in cryptocurrency.

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• Cryptocurrency airdrops are sometimes considered taxable income at the fair market value of the tokens received on the date of the airdrop. This means that we have to must include the value of the discarded tokens as income on our tax return. Our total income and tax bracket will determine the tax rate.

• In other perspective, We may be required to pay capital gains tax if we keep the discarded tokens as an investment and then sell them. It depends on how long we held the tokens before selling them in different time durations because of the tax rate may change.

• If the value of airdropped tokens increased a certain threshold, several countries interpret cryptocurrency airdrops as donations with possible gift tax implications. However, gift taxes can vary widely from jurisdiction to jurisdiction, and not all are the constant.

Have you ever claim a crypto airdrop before? Which coin was that?. If you haven't claim an airdrop before then explain how one can claim a crypto airdrop

Not , I have not yet any sort of experienced with respect to claim crypto airdrops because I am just using Steemit platform. Anyhow, I have also taken research to answer your further question.

Definitely! Distribution of free cryptocurrency tokens to owners of a particular blockchain or cryptocurrency is known as a crypto airdrop in an easy perspective. The general ways to claim cryptocurrency airdrops are as follows:

• Always stay in touch to acknowledge about up to dates regarding advanced crypto airdrops projects and regulations to lead in this field with more confidence.

• Many airdrops have strict qualifying restrictions, such as holding a certain amount of cryptocurrency, using a certain wallet, or fulfilling project-specific conditions. We have Aldo keep on eye to learn about it.

• Very important point should be considered as never divulge your hints of account or secret keys. To receive airdrop tokens, you must only provide your wallet's public address.

• Verify that we have to get appropriate number of tokens. Be wary of con artists and make sure we are communicating with the legitimate airdrop channels carefully.

Advantages and disadvantages of crypto airdrops

Cryptocurrency airdrops have benefits and drawbacks, and their effects might change based on the situation and the particular airdrop in question. The following are some of the main benefits and drawbacks:

Advantages	Disadvantages
A number of users can easily get tokens from blockchain initiatives thanks to airdrops. This may enhance user interest and token adoption.	We might have to provide our wallet address in order to participate in an airdrop, which can be a privacy risk. Sharing personal information should be done with caution.
Some airdrops provide users with rewards for keeping a certain cryptocurrency in their wallets, which promotes long-term investment and discourages short-term speculating.	To claim their tokens in certain airdrops, participants must take certain steps or pay a petrol price. This may incur additional fees and be confusing to beginners as well.
Users can participate in new blockchain initiatives through airdrops without having to initially deposit their own money.	Since the value of tokens received can be extremely volatile, dropouts may not offer long-term benefits to recipients that's the considering drawback of Airdrops in Crypto.

So , I can concluded that It's very important to keep in mind that not all drops are worth it, and that both distribution requirements and token value can vary significantly. Some discarded chips may be extremely valuable, while others may be marginally valuable.So before joining airdrops in the context of Cryptocurrency we have to expert in this field for become successful investor or trader or stakeholder.

^{I would like to invite my Steemit fellows @eliany @graceleon @irawandedy for taking part in very informative theme of the engagement challenge. Thanks for valuable feedback}

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