Airdrops are an easy way to boost your portfolio but finding the best and most rewarding ones is not as easy as many may think. To help those that want to maximize their chances of getting free money in crypto here is a list of things and tools you will need in order to make it in 2022.
The Essentials
Obviously, you will need a Metamask wallet to get started and expandable capital that you can afford to lose. This is a lot different than investing what you can afford to lose because you never know when a protocol will just steal your money while you are completing the required actions to become eligible for the airdrop. Prepare for the best but always expect the worst.
Apart from your wallet and funds you will need to know where to look and which protocols to interact with.
Toolbox
You can find a very helpful spreadsheet in my last article regarding airdrops. On top of that you will need the following:
All Rumors Airdrops is the ultimate spreadsheet for airdrop hunters. It is constantly edited by users who are in the know and it contains a list of 250+ protocols that are rumored to do an airdrop soon. Check it out and don't hesitate to complete the requirements on protocols that you already use or are easy to do.
Chainlist is an easy-to-use tool that adds networks to your Metamask automatically. Connect your wallet, find the network you want to add and complete the process in just two clicks. If you can't find your desired network on Chainlist you will need to do a Google search for the parameters. Always make sure that the information is coming from a reliable source (preferably the official website) so you don't get scammed along the way.
DEX Screener is an awesome tool that gives you a ton of information about almost every blockchain known to man. You can find the most popular dexes on any chain easily and if some of them don't have a token yet chances are they will be dropping one soon.
DeFi Lama Airdrops is a dedicated page showing links to protocols that should launch a token. If the spreadsheet above doesn't have a protocol you are looking for, DeFi Lama probably has it on their list so always make sure to check both before starting your hunt.
Follow DeFi Airdrops On Twitter and turn the notifications on. I mentioned them a few times before because the account never spams and only posts relevant content regarding the latest airdrops in DeFi. Sometimes they will even give you a heads up on an upcoming airdrop that you can still catch.
Coinmarketcap airdrops are almost always not worth it but do check the page every once in a while. Sometimes they will have legit projects airdropping free tokens for a few easy social media tasks. It is definitely a low priority but still worth checking every now and then.
Crypto Airdrop subreddit is also often garbage but you never know what you may run into. If you do give it a shot weed out the scams and participate only in the ones that seem as legitimate as possible. I know that this is easier said than done but use your common sense and do some research before taking action.
Stay In The Loop
Airdrops come and go fast. If you don't catch them on time there will rarely be a second chance so try to stay as informed as possible. If a project is rumored to airdrop a token soon follow them on Twitter, turn on notifications, and read through their documents. No one said that it is easy but if you stay on top of the game the payout can be huge.
Also, try to stay away from Gleam.io and similar "airdrops" that are actually raffles. If they are asking you to tag friends, retweet, reblog or refer people for A CHANCE to win some free coins you are participating in a lottery, not an airdrop. Stop doing their job for them and focus on the projects that are actually useful.
It's a Waiting Game
There are at least five big protocols that I could name from the top of my head that are well overdue for dropping a token. The reality of the situation is that they can wait for as long as they need to so sometimes you will be waiting months and even years before being rewarded for your "contribution".
From my own experience, the best practice is to use these protocols on a regular basis. For example, I use Slingshot on Matic almost daily for about six months now and they still didn't drop a token. It takes time but if you can extract some value from a protocol while you wait for the token to drop, by all means, do so.
Buy, Hold, or Sell?
Lastly, we need to discuss the cashout strategy once you actually get one. It should always depend on the strength of the project and the team behind it. Some will be obvious cash grabs and you will probably want to sell those asap. The latest $SOS airdrop for Opensea users is a great example.
Others can be very lucrative long-term holds. Last year I got a big Badger airdrop and din't know how to act. After a while, I decided to sell half and keep half which turned out to be a good idea.
Sell pressure is always the highest during the claiming period. If you are planning to hold, don't mind the dramatic price drops because a lot of people are selling as soon as they get the tokens in their wallets.
If you wait it out and make a good choice regarding the project, the initial airdrop could be worth 10x more in a month or two.
DYOR, plan accordingly and never marry your bags. If it sounds ridiculous or too good to be true dump it all and never look back. Free money is always better than no money.