Airdrop is a term heard a lot by those interested in cryptocurrencies. In a new crypto project, it means giving users cryptocurrency for free or in exchange for a simple task like sharing a social media post.

It first became popular in 2017-18. Many crypto projects now use airdrops to promote their ICOs and generate interest about their new digital assets.

Cryptocurrency airdrops are very useful within companies as they allow people to acquire tokens without having to buy cryptocurrencies. It can attract people who haven't heard of the project and eventually become investors or at least provide free advertising for the company.

There are various types of airdrops. It is stated below.

• Users can get free tokens simply by signing up for a newsletter or something similar.
• To perform a simple task. Often times this involves retweeting something about the project, creating an Instagram post and tagging a few friends or joining a Telegram group.
• Long-term membership only in a particular project, website, or community.
• It is the reward for holders of a cryptocurrency when the derivative of that cryptocurrency comes out. For example, the "Bitcoin Cash" event that occurred in 2017. Bitcoin users holding BTC automatically received an equal amount of BCH.