Airdrops can be used for a variety of purposes, such as promoting a new cryptocurrency or rewarding users of a decentralised application (DApp), among others. However, the process of receiving airdrops is usually quite similar.

Most crypto airdrops are carried out automatically by sending tokens to public wallet addresses of users of a specific blockchain or DApp until a certain date.

For example, when the popular decentralised exchange launched its governance token, anyone who connected their Ethereum wallet to Uniswap before September 1, 2020, received a UNI token airdrop.

To spread awareness about a project, some crypto airdrops require individuals to perform specific tasks such as retweeting and following a Twitter account, joining a Telegram or Discord community, referring people to a website, and so on. Other airdrops are used to reward active project participants or long-term "HODLers" of a coin.

During a coin airdrop, a small portion of a token's supply is typically distributed to a large number of people. Some airdropped coins end up rising in value, providing significant "free" investment returns to holders, while others fall in value only months after the airdrop.

Cryptocurrency airdrops involve distributing free tokens or coins to a specific group of users, typically as part of a marketing strategy or to promote a new project. Airdrops are often given to users who hold a particular cryptocurrency or have met certain conditions, like signing up for a newsletter, following social media accounts, or participating in a community.

Airdrops can serve several purposes: raising awareness for new projects, rewarding loyal users, or distributing governance tokens in decentralized finance (DeFi) platforms. These tokens are sent directly to users' wallets.

While airdrops can offer opportunities for early access to new projects, they also carry risks, such as scams or the potential devaluation of tokens, so users should exercise caution when participating.