4 Ways to Profit From AirDrops

In this guide we’re going to look at 4 unique strategies you can use to profit from AirDrops.

You can pick the strategy that works best for you.

These are all individually tailored to suit different risk/reward profiles. You can also mix and match them according to how much time you want to put in.

Only want to set aside 30 minutes for this as a ‘one off’? No problem.

Want to treat this as a full time activity? You can do that too.

But before we get to the strategies there is a another option which is this:

You don’t have to get involved. Chasing AirDrops won’t be for everyone and that’s fine.

The classic ‘buy and hold’ approach where you don’t tinker with your investment, you keep things simple and you ride the market cycles is extremely effective. In fact, if you have a smaller investment pot for this market cycle you may not want to risk diluting your pot through gas fees.

Remember, there will always be opportunities in the future.

Knowing your trading personality, technical skill and how much you’ve got to play with is key.

However, if you DO have some time and you do have a portion of your pot you’re happy to move around in search of AirDrops, this is definitely worth considering.

Here are the 4 AirDrop strategies we’ve devised to suit different trading personalities and starting banks:

Strategy 1: Beginner – MetaMask and Phantom

This approach is easy, quick, there’s very little in the way of gas fees. You also get some essential learning along the way.

Many of you will already have a MetaMask wallet setup, if not don’t worry, we’ll include a tutorial on this later in this series.

Why MetaMask?

You need a MetaMask wallet to hold certain coins built on the Ethereum network that don’t appear on the major exchanges.

You also need it to use certain apps, like Uniswap, to trade those coins.

We’d go so far as to say that if you are serious about your crypto journey then having a MetaMask wallet is an essential.

The good news is it is free and easy to setup.

The even better news is that MetaMask don’t have a token, yet.

Now, there’s no guarantee they will launch one or that they will issue an AirDrop if they do BUT the value of a MetaMask token would be potentially enormous.

At the time of writing MetaMask have over 10 million monthly users.

Phantom is another wallet, just like MetaMask, only Phantom operates on the Solana network. Solana is an alternative layer 1 solution to Ethereum.

Don’t worry if that last sentence completely flew over your head. The next part of this series will explain what Layer 1 and Layer 2 is and means and why it’s changing the face of crypto right now.

All you need to know at this stage is that Solana is another great project and Phantom is the wallet used to holds coins on that network.

Like MetaMask they don’t have a token either…

So get setup on MetaMask and/or Phantom and use both for a transaction or two and this is a great way of familiarising yourself with ground-breaking crypto tech which is genuinely useful and positioning yourself for a potential AirDrop in the future.

We’ll take you through the process of setting up a MetaMask and a Phantom Wallet in an upcoming tutorial.

Strategy 2: Intermediate – Arbitrum and Optimism

This gets you a foothold on the cutting edge of crypto, using the projects of tomorrow while at the same time greatly increasing your chances of a potential AirDrop.

These options are starting to sound a bit teams names from the Apprentice but this strategy is a great middle ground for most people. It also really gets you learning about and using cutting edge protocols.

It’s at the cutting edge where some of the most exciting new developments are taking place (and also where some huge profits are being made) so it is worth putting some time in and familiarising yourself with this.

What are Arbitrum and Optimism?

They are what is know as Layer Two bridges. We’ll cover this in detail and in plain English in the next part of this series, but for now all you need to know is that these are HUGE protocols.

By using some of these apps and diving into Layer 2 you massively increase your exposure to AirDrops while getting in the crypto trenches.

You’ll have access to apps which could dramatically slash your trading and gas fees and give you access to exciting new projects.

We’ll take you through the process of getting set up on Arbitrum and Optimism in an upcoming tutorial. It’s much easier than you might think.

And just to give you an idea of the potential here…

There is another major Layer Two bridge called Polygon, similar to Arbitrum and Optimism.

Polygon already has a token called MATIC and this token’s full valuation is worth over $10 BILLION dollars (at the time of writing).

Arbitrum and Optimism are right up there with Polygon so you can see this could be a very large potential payout if they decide to do a decent AirDrop.

Strategy 3: Pro Level – Top Picks By TVL (for Ethereum and Solana Only)

This dramatically widens your exposure to potential AirDrops… but at this point you will be putting in more time and spending more on gas fees. This can be mitigated by picking a small number to apps and platforms to focus on

As you can probably gather by now our AirDrop hunting strategy is a tiered approach.

You can start off with option 1 and if you found that easy enough, option 2 won’t be too much of a stretch.

At this point, with strategy 3, we’re really just looking to increase our exposure to potential AirDrops and targeting projects by TVL and our own estimates of projects likely to airdrop tokens.

TVL means Total Locked Value.

So for this strategy we’re focusing on projects where the amount of assets being staked in that protocol are as high as possible.

A high TVL means a higher likelihood of success for the project and in turn a higher value for our AirDrop if it comes.

Crucially we’re just focusing on projects within the Ethereum and Solana networks so you’re not wading off in strange, unchartered territory or having to set up hundreds of random accounts.

We’ll point out the best candidates on these two networks and any suggested actions you could take to position yourself for potential AirDrops.

Strategy 4: Expert Level – Top Picks for the Wider Crypto Space

Experts only! Maximum exposure for maximum risk/reward potential overall… but you do need to have a great deal of time, patience and resources for this approach.

This is for the hardcore only.

If you are technically minded, have a large stash of crypto and prepared to wade deeply into the AirDrop hunting game then it’s a case of widening the net even further.

So as well as Ethereum and Solana you target ALL the other networks and protocols.

Now there are more risks associated with this…

Some of these projects could evaporate and some could be worthless.

Also by this stage you are accumulating a lot more expenditure in gas fees.

But it’s the most comprehensive approach.

There will likely be some incredible opportunities if you have the wherewithal and patience.

Again in this case we will point you towards some of the strongest looking contenders weighted towards TVL.

For most people strategies 1 – 3 will offer the best risk/reward ratio and that’s where we recommend starting but if you get a real feel for this there really are no limits as to how deep you can go.

In Summary

This really is an incredible opportunity right now.

And as you’ve seen there are a number of different approaches you can take.

We recommend starting out small and trying your hand at Strategy 1 to begin with.

It’s definitely a step worth taking, regardless of your approach, because it gives you quick and easy exposure to two major projects which could AirDrop.

Then if you find you were comfortable with that you could try your hand at Strategy 2 to widen the net a little further… and so on.

See how you are with the level of effort involved.

You can do as little or as much as you like, that’s the beauty of AirDrops.

You could literally just set aside a few hours, do the basics and leave it at that, or you could turn it into a full time job if you wanted to.

There are approaches to suit everyone.

And remember if AirDrop hunting is not for you that’s ok! Simply stick to the mainstay portfolio and trading. There’s also crypto staking which is a fantastic (and very profitable) set and forget approach which is a fantastic way to compound your long term profits.