What is Airdrop?What is Altcoin?
What is airdrop in the crypto world?
Crypto airdrop is a marketing method based on sending free crypto assets to a wallet address. A newly released coin, token or NFT project can increase its awareness by organizing an airdrop.
Generally, crypto projects distribute their mined assets free of charge through airdrops. Some projects require some simple services from airdrop participants, such as following the project's social media accounts, liking a post, subscribing to a newsletter. In some airdrops, participants are required to hold a certain amount of tokens in their cryptocurrency wallets. In order to receive cryptocurrency during the airdrop process, you must have a cryptocurrency wallet compatible with the blockchain network on which the relevant cryptocurrency operates. Let's say a cryptocurrency running on the Ethereum (ETH) network is organizing an airdrop. You can only participate in this airdrop with an ETH compatible wallet such as MetaMask. Although rare, airdrops have also been seen to distribute large amounts of cryptocurrency. For example, 1inch (1INCH) and Uniswap (UNI) distributed thousands of dollars worth of coins via airdrop. However, their feature is that they are airdrops organized to reward early users. Only wallet addresses that have been interacting with the relevant platforms for a long time benefited from these airdrops. Ultimately, although different conditions may be required for airdrops, the way the airdrop method basically works is based on sending certain amounts of crypto assets to specific or random cryptocurrency wallets. This is true for a coin airdrop as well as an NFT airdrop.
In the crypto world, we can talk about two types of airdrops according to the asset they contain: Coin airdrop and NFT airdrop. In coin airdrops, a cryptocurrency is distributed, and in NFT airdrops, NFT is distributed. However, there are 4 types of airdrops that are valid for both
airdrop categories and differ according to their method:
-Reward airdrops
-Standard airdrops
-Airdrops for token holders
-Special airdrops
These are known airdrop types.
-Standard airdrops are types of airdrops that the user can easily sign up for by entering their first and last name or email address. The purpose of these airdrops is generally to create a wide user information network.
-Airdrops for token holders require the participant to hold a certain cryptocurrency in their wallet to be eligible for the airdrop. In such airdrops, wallets holding Bitcoin (BTC) and Ether (ETH) are generally targeted. Because these constitute the largest communities in the crypto ecosystem.
What is the difference between Airdrop and ICO?
Airdrop events are different from pre-sale events such as Initial Coin Offering (ICO). The purpose of ICO and similar is to finance a new cryptocurrency project. That's why participation in ICOs is not free. An investor can invest in a promising cryptocurrency at an early stage through ICOs. In contrast, airdrop is a completely free marketing method. In fact, most of the time, airdrops aim to increase awareness of a newly released cryptocurrency and naturally participation in its ICO. Thus, a new token or coin can make a much stronger entry into the market.
Conditions for participating in airdrops
Participating in airdrops is quite easy, but there are some requirements and terms that may vary from project to project. In general, it is necessary to follow these steps to participate in airdrop:
1-Open a cryptocurrency wallet. In airdrops, coins and tokens are sent to compatible cryptocurrency wallets. MetaMask is one of the most preferred wallets. MetaMask is compatible with many blockchain networks, especially Ethereum (ETH). If you do not have a cryptocurrency wallet compatible with the airdropped coin, you cannot participate in the airdrop.
2-Make sure you meet the participation requirements of the airdrop you want to participate in. We explained the types of crypto airdrops above. Different types of airdrops may require different participation requirements. For example, an airdrop may require you to have a certain amount of the relevant cryptocurrency in your wallet.
3-Sign up for airdrop. You can usually access the link where you can register for Airdrop from the official social media accounts or official website of the relevant project.
Protecting yourself from airdrop scams
Although airdrop is an advantageous marketing method for both developers and users, it is very open to fraud. Generally, airdrop scams use the phishing method. In this method, investors are asked to connect their wallet to a website in order to receive the cryptocurrencies they earned through airdrop. This seemingly legitimate website actually belongs to scammers. If the investor connects his wallet to this site, he gives full control of his wallet to fraudsters. You can only protect yourself from this type of fraud by doing good research. Be careful to participate in airdrops of projects only through the links they share on their official websites or social media accounts. Be especially careful not to fall for fake social media accounts. Therefore, before participating in an airdrop, make sure that the link you clicked was shared from a real account. Some airdrop scammers may tell you that you have won free tokens and that you need to send a certain amount of crypto money to the wallet address they provide to unlock them. Remember: A real airdrop will never ask for your account information or assets! Airdrops are free events.
Create airdrop wallet
Today, many crypto airdrop participants open cryptocurrency wallets specifically for airdrops as a precaution against fraud. To protect yourself from airdrop scams, you can open a wallet that you will only use to participate in airdrops. This way, you won't face the risk of losing all your assets in a possible theft.
What is altcoin?
Altcoin, also known as alternative coin, is a term used to describe digital currencies other than Bitcoin. Every existing Cryptocurrency other than Bitcoin can be considered an altcoin. The first altcoin to hit the market after the success of Bitcoin was Namecoin (NMC). Although Bitcoin, the first cryptocurrency, dominated the majority of the cryptocurrency market for a long time, its market share decreased with the increase in altcoins. As of March 2021, there were almost more than 9,000 cryptocurrencies in the market. Altcoins accounted for more than 40% of the total cryptocurrency market in March 2021. Since many of them are derived from Bitcoin, and the pioneer cryptocurrency is bitcoin, altcoin price movements tend to mimic Bitcoin's movements. However, analysts say that the maturity of cryptocurrency investment ecosystems and the development of new markets for these cryptocurrencies will make the price movements of altcoins independent of Bitcoin's trading signals.
Why is it called altcoin?
The fact that cryptocurrencies other than Bitcoin are called altcoins symbolizes that Bitcoin is the original cryptocurrency and subsequent cryptocurrencies are considered alternatives to Bitcoin. “Altcoin” is a combination of the words “alt” and “coin” and includes all alternatives to Bitcoin. The basic framework for Bitcoin and altcoins is similar. Therefore, they share code and function as P2P systems, or as a giant computer that can process large amounts of data and transactions simultaneously. In some cases, altcoins also aim to become the next Bitcoin by becoming a cheap method for digital transactions. The best-known examples are ERC-20 tokens, which sit at the top of the Ethereum blockchain. Since Bitcoin's creation in 2008, most of the more than 9,000 alternative cryptocurrencies released were actually designed as modified copies of Bitcoin, a process known as Hard Fork. However, despite all these similarities, each altcoin has functions that make it different from others. Therefore, it cannot be said that altcoins are exact copies of Bitcoin. Bitcoin-derived altcoins offer a similar mining process, often based on Bitcoin's “Proof of Work” (PoW) idea algorithm. However, there are several other cryptocurrencies that are experimenting with alternative methods of achieving consensus algorithm within different blockchain networks. Proof of Stake consensus algorithm is the most common alternative to Proof of Work. In addition, other important examples include Delegated Proof of Stake, Proof of Burn, Proof of Authority and Delayed Proof of Work consensus algorithms. Although some users may find the term "altcoin" derogatory or condescending, it is generally accepted that the term altcoin is neutral. Therefore, the term altcoin does not express a positive or negative sentiment. On the other hand, the term “shitcoin,” for example, expresses a negative sentiment and is often considered derogatory.
The Reason For The Emergence of Altcoin
The reason for the emergence of altcoins is to expand the cryptocurrency world and this sector. It is also aimed to make transfer transactions faster than Bitcoin. Mining operations are easier for altcoins than for Bitcoin. Thanks to the altcoins released, the market became more active and cryptocurrencies with faster transfers were created.
What is the Difference Between Bitcoin and Altcoin?
Bitcoin is the first example of a cryptocurrency, and its philosophy and design set the benchmark for the development of other digital currencies. However, its implementation has some shortcomings. For example, Proof-of-Work (PoW), the consensus mechanism used to create blocks, is energy intensive and time consuming. Bitcoin's smart contract capabilities are also limited. Altcoins improve upon the limitations experienced by Bitcoin to provide a competitive advantage. Several altcoins use Proof-of-Stake (PoS) consensus to minimize the time and energy consumption required to create blocks and verify new transactions. Another example is Ether, the world's second largest cryptocurrency by market cap, used as gas (or payment for transaction costs) in smart contracts on Ethereum. Altcoins also address traditional criticisms against Bitcoin. For example, stablecoins do not exhibit the price volatility of Bitcoin, making them ideal tools for day-to-day transactions. Altcoins have created a market for themselves by separating themselves from Bitcoin in this way. As a result, this attracted investors who saw its potential as an alternative to Bitcoin. Therefore, investors expect to make profits as altcoins gain more interest and users and appreciate in price.
-High liquidity
-There is a greater level of user and transaction privacy
-Affordable mining services provided
-There are coins with higher transaction speeds
-Technical improvements are made to speed up mining
-Provides more investment opportunities
-Strong fluctuations can lead to significant gains
-Taking more concrete steps with crypto money that is suitable for the purpose
-It enables almost all transactions made in central financial systems in the field of DeFi
Disadvantages of Altcoins
Altcoins have advantages as well as disadvantages. There are many different altcoins and each has different features.
-They can experience strong fluctuations, causing losses to increase significantly.
-It is difficult to trust an altcoin that has not yet made a name for itself. A small mistake can cause investors to panic and cause even the most promising altcoin to lose value.
Altcoin Prices
Altcoin prices change periodically. Just like exchange rates, altcoin prices may increase or decrease depending on various fluctuations. In general, the price of altcoins is determined by the interest of investors. Altcoins are purchased from cryptocurrency exchanges. You can purchase altcoins by creating a membership in a reliable cryptocurrency exchange and sending money from your account or using alternative payment systems allowed by regulations, if any. By following the changes in the cryptocurrency exchange, you can buy and sell altcoins through your account and earn profits. Since altcoin prices change constantly, you can access current data on our Cryptocurrencies page.
The most traded altcoins include digital coins such as Litecoin, Ethereum, Cardano, Tether, Dash, Ripple. In addition, altcoins may become popular periodically and see more demand. Ethereum, Tether, Bitcoin Cash, Ethereum Classic, Litecoin, Ripple and Dogecoin are the largest altcoins by market cap as of March 2021. Since the most traded altcoins are constantly changing, you can access up-to-date data on our Cryptocurrencies page.
What Are The Most Popular Altcoins Right Now ?
On a global scale, in terms of cryptocurrencies with the largest market cap, Ethereum (ETH), Polkadot (DOT), Litecoin, Tether, Ripple and Cardano (ADA) have been trending lately. When it comes to digital currencies with smaller market caps, Aave has also been seeing moves in coins like Chiliz (CHZ), Uniswap (UNI), and 0x (ZRX).
What İs Altcoin Season? What Happens in Altcoin Season?
Generally speaking, during Altcoin season, Bitcoin tends to lose some of its dominance in the crypto market to Altcoins. In other words, Bitcoin's market cap decreases compared to the overall market cap of other crypto assets in the market. The market cap measure is used relatively frequently to indicate the “size” of a crypto asset and is often determined by multiplying the circulating supply by the price of an asset. There are some calculations that try to determine the beginning and end of the Altcoin season with percentages and numbers. However, it is necessary to be very careful as they lack objective basis and can therefore be very misleading. In general, if altcoins have started to be on the agenda a lot, this is an indication that you are in Altcoin season.
Why İs Altcoin Season Happening?
It is almost impossible to say exactly what caused the altcoin season. However, the generally accepted idea is that following a Bitcoin bull (or at least signs of one), investors tend to sell some of their BTC to realize their gains. They then buy altcoins with some of these profits, which can naturally cause the prices of various altcoins to rise. Since the volume in altcoins is lower than the volume in Bitcoin, the price movement (rise and fall) in altcoins can be much faster.
Should You Invest İn Altcoins?
There is no doubt that cryptocurrencies have a certain appeal as an investment. Altcoins offer a serious opportunity as they have a much higher advantage in terms of percentage gain, on the other hand, their risks are also much higher. Take Dogecoin for example. The cryptocurrency gained significant value in late January 2021 for no other reason than people started buying it with intense interest, causing the altcoin to go viral. While such investments quickly become popular, they can also fall out of favor just as quickly. It is necessary to be more careful when investing in something that experiences sudden popularity than when investing in something you believe in in its long-term project, because you risk losing a lot when there is inevitably a pullback.
Which altcoins should you invest in ?
If we could predict price movements, we would be more than happy to tell you what will happen. Unfortunately this is not possible. On the other hand, we may not be able to predict the future, but if you don't want to miss the next big Altcoin gains, you should continue to do constant research.
Altcoin Types
Some of the main types of altcoins include mining-based cryptocurrencies, stablecoins, security coins, and utility coins. Depending on their functionality and consensus mechanisms, altcoins are divided into various categories. However, it is possible for an altcoin to fall into more than one category.
Mining Tokens
As their name suggests, they are mining-based altcoins. Most mining-based altcoins use Proof-of-Work (PoW), a method where systems generate new coins by solving difficult problems to create blocks. Examples of mining-based altcoins include Litecoin, Monero and Zcash. In early 2020, most of the top altcoins fell into the mining-based category. Pre-mined coins are an alternative to mining-based altcoins. Such coins are not generated through an algorithm, but are distributed before being listed on cryptocurrency markets. Ripple's XRP is an example of a Pre-mined coin.
Stable Coin
Cryptocurrencies have been fluctuating since the day they were first released. Stablecoins aim to reduce this overall volatility by pegging their value to a basket of commodities such as fiat currencies, precious metals, or other cryptocurrencies. The basket is intended to act as a backup to save owners if the cryptocurrency fails or encounters problems. It is supported by mechanisms that will ensure that price fluctuations for stablecoins remain within a narrow range. Social media giant Facebook's Diem is the most famous example of a stablecoin. It is a dollar-backed coin. Other examples of stablecoins are USDC and MakerDAO.
Security Token ( Security Coins)
Security tokens are similar to securities traded on exchanges, except they have a digital origin. Security coins are similar to traditional stocks and often promise shares in the form of ownership or dividend payments to owners. The possibility of price appreciation for such tokens makes them attractive so investors put money into them. Security coins are often offered to investors through initial coin offerings or ICOs.
Utility Token
Utility Coins are used to provide services within a network. For example, they can be used to purchase services or redeem rewards. Unlike Security coins, Utility Coins do not pay dividends or an ownership stake. Filecoin, used to purchase storage space on a network, is an example of a Utility Token.
