Crypto airdrops work by distributing free tokens or coins to the cryptocurrency community, often to wallet addresses that meet specific criteria. A project may airdrop tokens to incentivize usage, create loyalty, or reward early adopters, as seen in the Uniswap and ENS airdrops. Users typically have to claim these airdropped tokens actively.

Crypto airdrops are typically treated as income and thus subject to income tax when received. The value of the airdrop is assessed when it is received and must be reported on tax returns. Read our Ultimate Crypto Tax Guide for more info, and definitely consult a tax advisor for specific regulations and requirements.

A crypto airdrop is a marketing strategy blockchain projects use to distribute free tokens or coins to existing or potential new users. Airdrops aim to increase adoption, create a community of users, and reward early project supporters, often as part of a broader user acquisition strategy.

Crypto airdrops can be found through community announcements, Twitter, and dedicated websites that track upcoming airdrops, like our Airdrop Hunter, which you can use to track your airdrops and your completion of their tasks. Participation in blockchain projects and staying engaged with the crypto community can also increase the likelihood of discovering airdrop opportunities.

Airdropped crypto can vary in safety; while legitimate projects use airdrops to reward users, some airdrops may be scams or have strings attached. Always research a project and its legitimacy thoroughly before interacting with an airdrop to ensure it's safe and not part of a scam. Consult our Ultimate Safety Guide for more info.

Crypto airdrops can be worth it when the token has utility or value, and the airdrop’s project is legitimate and has growth potential. Jito’s JTO airdrop, for example, was worth it. However, not all airdrops lead to profit, and some may involve risks. Evaluating the project's fundamentals and intent is critical before participating.

To receive airdrops from crypto, actively participate in the crypto community, use blockchain platforms that may offer airdrops, and follow projects for announcements regarding criteria for eligibility. Engaging with the ecosystem increases the chance of being included in potential airdrops. For tips on hunting airdrops, read more here.