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Are Crypto Airdrops A Good Opportunity To Make Money?

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Consider a crypto airdrop to be a free gift in which fresh digital coins or tokens are sent to people who already own cryptocurrency or who complete a few tasks. Blockchain businesses frequently utilize this strategy, similar to a promotion, to spread the news about their new ideas.

Furthermore, digital assets can serve numerous purposes. They can grant users decision-making powers within a network or VIP access to material via NFTs across various time durations. 

What makes these assets unique? They are really easy to swap or sell. This is due to their great liquidity. So, if you receive assets as part of an airdrop, you can exchange them for other cryptocurrencies or cash them out in your local currency.

How Do Crypto Airdrops Work? 

There are numerous airdrops available, but one thing they all have in common is that you must register in some way to receive those free digital items sent to the correct wallet address. 

Some airdrops may require you to complete a job or two. Regardless of the restrictions, the goal is the same: make sure your wallet address is recorded before the deadline.

When a startup decides to launch an airdrop, the first step is usually a public campaign. They frequently use forums and other media platforms such as Discord and Twitter to spread the word. Make a big deal out of a new platform launch or a new feature, as well as the juicy airdrop prize.

As the excitement grows, these companies will develop a list of who will receive the tokens. This isn’t a one-size-fits-all situation; they may collect wallet addresses from individuals who express interest, or they may take a ‘snapshot’ at a given point in time. 

This snapshot allows them to see who is qualified based on specific criteria. For example, if they want to reward users who used their platform prior to September, they’ll take a snapshot of all active wallet addresses from that time period.

Read Also: What is CBDC and How Will It Impact Society in 2023?

Advantages

Absolutely, from the perspective of a user, airdrops can be compared to winning the lottery without purchasing a ticket.

To begin, it’s similar to receiving dividends on stocks. If the crypto project takes off, the value of the airdropped tokens that appeared mysteriously in your wallet may rise. So, simply sitting tight and holding on to them could net you a handsome sum down the road.

Then there’s the additional layer of benefits that some airdropped tokens bring to the table. Consider being handed a membership card to a prestigious club. On some systems, these tokens do more than just lie idle; they grant you voting rights, particularly if they also serve as governance tokens. As a result, you will have a say in platform-related Decentralized Autonomous Organizations (DAO) decisions.

It doesn’t end there. Consider these airdrop tokens to be seed money into which you can invest to generate more digital crops. Advanced crypto farming tactics such as yield farming and lending can assist users in expanding their portfolios by converting “free” tokens into interest-earning assets.

Overall, airdrops are more than just giveaways; they are chances. And who doesn’t appreciate a good opportunity?

Disadvantages

There’s a lot to think about when it comes to crypto airdrops. First and foremost, you must be concerned about the security of your network. When attempting to obtain these airdrops, some shady ones may require you to link your wallet to certain dubious websites. Once you’ve done so, you’ve possibly given a thief complete access to your account information.

Then there’s the issue that not all airdrops are genuine. Who doesn’t like free money, after all? However, some of these projects are simply enticing people to acquire more tokens in order to increase the value of their airdrop. 

What’s the catch? They may just flood the market with a massive amount of these tokens all at once, causing the price to plunge and rendering the airdrops you received earlier essentially useless.

Some people may consider airdrops to be of low quality. Instead than handing out free tokens at random, perhaps it would be better to reward those who are putting in the effort on a project, such as miners.

Oh, and here’s the catch: even if you do obtain an airdrop, you might not be able to use it very well. Sometimes these airdrops claim to be worth a lot of money, but if you can’t exchange ’em because there’s no market, they’re just flashy, worthless digital baubles. So, before diving in, it’s always a good idea to be cautious and conduct your own research.

Disclaimer: The information provided is not trading advice but for educational purposes only. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions



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Cryptocurrency

Cryptocurrency Market Update: Bitcoin Slips Below $70,000 Amidst High Liquidation

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In a swift turn of events, Bitcoin (BTC), the pioneering cryptocurrency, dropped below the $70,000 threshold early on Wednesday following a wave of investor sell-offs. Just a day prior, Bitcoin had crossed the $71,000 mark, but market sentiment swiftly shifted, dragging other major altcoins—including Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Solana (SOL), and Litecoin (LTC)—into the red zone.

According to CoinMarketCap data, the overall Market Fear & Greed Index stood at 75 (Greed) out of 100, indicating a mix of optimism and apprehension among traders. Notably, the Bittensor (TAO) token emerged as the top gainer with a remarkable 24-hour surge of over 7 percent, while dogwifhat (WIF) experienced the largest loss, plummeting nearly 16 percent.

Bitcoin (BTC) Price Update Bitcoin’s price tumbled to $69,089.01, marking a 24-hour dip of 3.05 percent, as reported by CoinMarketCap. On the Indian exchange WazirX, BTC was priced at Rs 60.93 lakh.

Other Major Cryptocurrencies Ethereum (ETH) saw a 24-hour loss of 4.81 percent, trading at $3,508.86, while Dogecoin (DOGE) registered a dip of 5.59 percent, currently priced at $0.1879. Litecoin (LTC) and Ripple (XRP) also experienced losses, with Solana (SOL) marking a 24-hour loss of 3.44 percent.

Top Gainers and Losers Bittensor (TAO) led the pack of gainers with a 7.30 percent surge, while dogwifhat (WIF) suffered the most significant loss, dropping by 15.58 percent.

Market Analysis and Expert Insights Experts weighed in on the market scenario, attributing Bitcoin’s downturn to heightened liquidations and cautious sentiment ahead of the upcoming US CPI data release. While Bitcoin’s immediate support rests at $67,700, resistance is expected at $70,400. Ethereum proponents face challenges amid hopes for an ETF approval, with the SEC providing limited updates on the matter.

Final Thoughts The cryptocurrency market remains highly dynamic, with prices fluctuating rapidly and investor sentiment playing a pivotal role. As the market navigates through volatility, it’s essential for investors to stay informed, exercise caution, and seek expert advice before making any investment decisions.

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Cryptocurrency: A Scapegoat for Foreign Policy Failures?

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Cryptocurrency has once again found itself at the center of a heated debate, this time regarding its alleged role in facilitating illicit activities and circumventing sanctions imposed by the United States. The Biden administration, in particular, has come under scrutiny for its handling of the issue, with some accusing it of using digital assets as a convenient scapegoat for broader foreign policy shortcomings.

In a recent hearing before the Senate Banking Committee, Deputy Treasury Secretary Wally Adeyemo raised concerns about the misuse of cryptocurrencies by foreign adversaries such as Iran, Russia, North Korea, and militant groups like Hamas. Adeyemo’s remarks underscored a growing unease within the U.S. government regarding the potential national security implications of unregulated digital currencies.

However, voices from within the cryptocurrency industry and Congress have pushed back against the administration’s narrative. Faryar Shirzad, Chief Policy Officer at Coinbase, one of the leading cryptocurrency exchanges, pointed out that the prevalence of illicit activity in the crypto space is relatively low compared to traditional finance. Instead of demonizing cryptocurrencies, Shirzad argued, the focus should be on targeting bad actors operating offshore.

Senator Tim Scott, the ranking Republican on the Senate Banking Committee, echoed these sentiments, accusing the Biden administration of using digital assets as a distraction from its failure to effectively combat financial flows to sanctioned entities. Scott’s criticism reflects broader skepticism among some lawmakers about the government’s approach to regulating cryptocurrencies.

One area of potential agreement between the Biden administration and the cryptocurrency industry is the need for clearer regulations governing stablecoins, a type of digital asset pegged to a fiat currency like the U.S. dollar. Both sides recognize the importance of addressing the potential risks associated with stablecoin issuance and usage, particularly in the context of national security and financial stability.

The debate over stablecoins has intensified following reports of their alleged role in facilitating illicit transactions, including those linked to Russia’s war effort in Ukraine. The Treasury Department has called for increased oversight of stablecoin issuers and transactions, while also advocating for legislation that would subject them to stricter regulatory standards.

Despite the contentious nature of the discussion, there are signs of bipartisan cooperation on certain aspects of cryptocurrency regulation. A bipartisan bill addressing stablecoin regulation passed the House Financial Services Committee last year, signaling a potential path forward for legislative action in this area.

As the debate over cryptocurrency regulation continues to unfold, it is clear that finding the right balance between innovation and security will be paramount. While concerns about illicit activity and national security must be addressed, policymakers must also recognize the potential benefits of cryptocurrencies in fostering financial inclusion and technological advancement.

Ultimately, the resolution of these issues will require thoughtful collaboration between government officials, industry stakeholders, and lawmakers to develop a regulatory framework that promotes innovation while safeguarding against misuse. Only through constructive dialogue and cooperation can we ensure that cryptocurrencies fulfill their potential as a force for positive change in the global economy.

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Bitcoin Resurgence: Why Wall Street Is Embracing the Crypto Revolution

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Andrew Pratt of Wiser Wealth Management in Marietta, Ga., finds little resistance as he proposes Bitcoin investments to his firm’s committee. With Bitcoin surging 140% in the past year and backed by giants like BlackRock, skepticism has waned. Pratt sees the potential to allocate a modest 1% of client portfolios to Bitcoin, acknowledging the limited downside risk compared to potential gains.

The debate over Bitcoin’s intrinsic value seems to have lost its relevance amidst its soaring market performance. Once dismissed, Bitcoin now boasts a market value of $1.3 trillion, driving the total crypto market to $2.5 trillion. Wall Street, once wary, now views cryptocurrency as an opportunity for profit rather than a speculative venture.

Despite lingering doubts about Bitcoin’s utility beyond speculation, Wall Street executives are increasingly supportive. BlackRock’s CEO, Larry Fink, notably reversed his stance, endorsing Bitcoin’s long-term prospects and championing the iShares Bitcoin Trust, now one of the largest Bitcoin ETFs with nearly $18 billion in assets.

While skepticism persists about Bitcoin’s status as a real asset or currency, its growing acceptance on Wall Street underscores the evolving landscape of finance. As institutions embrace cryptocurrencies, Bitcoin’s journey from pariah to portfolio asset highlights the transformative power of digital assets in reshaping traditional investment strategies.

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