All About Cryptocurrency Airdrop Scams
When a new cryptocurrency launches, it is common for free tokens to be given away via an airdrop. But this technique can also be utilized by hackers to take control of your wallet.
So, how do you know when an airdrop is legit? And how can you protect yourself from cryptocurrency airdrop scams? Keep reading to learn more.
What is a Crypto Airdrop?
As mentioned above, when a new cryptocurrency launches, one way of marketing and getting individuals interested in the cryptocurrency is by giving away some of the tokens for free. This is done via an airdrop.
A cryptocurrency airdrop is basically a crypto giveaway usually open to the public, and when you accept, a small amount of that particular cryptocurrency is added to your digital wallet. But while many cryptocurrency airdrops are legit, the scam of using a fake airdrop to steal your wallet information is sadly growing.
Some crypto airdrops also require registering online, something which has made it easier for scammers to find their targets.
What is a Fake Crypto Airdrop?
A fake crypto airdrop honestly looks a lot like a real one. You may see an ad online, offering you some free cryptocurrency if you visit their site. The site may even be well built to look like the token you were interested in receiving as a freebie. Additionally, the token advertised may be one you are familiar with.
While all of these aspects might make you feel safe enough to click claim, don’t do it until you have done ample research. When it is scam, once you click claim they will urge you to sign into your wallet or provide your seed phrase to receive your cryptocurrency. Do not input either of these things.
If you input your seed phrase, or sign into your wallet via the link provided, your information is likely being stolen. This means the scammer can come back and drain your wallet later.
How to Tell if a Crypto Airdrop is Legit
It can be very difficult to spot a fake airdrop from a real one, but there are some things you can look for to ensure you aren’t giving your information to the wrong people. They are as follows:
1. Check the URL
Once you get to the URL of the “free crypto” domain, take a close look at the URL. Look for misspellings, or “typos,” which could indicate the domain is a close copy. Additionally, we recommend opening a separate window with Google, and googling the name of the crypto the free airdrop is for. Compare the two domains. If they aren’t the same, it’s probably a scam.
2. Urgent Notices
While most airdrops don’t last forever, there is often a specified time frame during which they will occur. Be cautious if a website tells you that you only have minutes to claim your free crypto or simply to “act now,” as these may urge you to click buttons without taking proper precautions.
Never listen to an urgent notice. Nothing is too urgent that you can’t take 10 minutes to investigate.
3. It Sounds Too Good to Be True
We are sorry to break it to you, but there are no Bitcoin airdrops. We also highly doubt there will be Ethereum or Solana airdrops anytime soon. Airdrops only occur with newer tokens, typically those that have passed the ICO stage. If someone tells you there is an airdrop of a famous coin or a large number of a somewhat popular token, it is probably a scam.
4. They Request Your Password
No legitimate airdrop will request your seed phrase or your wallet password. Read that again.
The only thing a legitimate airdrop needs from you is your public wallet key. This is the number/letter combination that you share regularly to receive deposits in your wallet. If the airdrop asks for anything beyond this, run.
5. You Are Asked to Pay a Small Fee
Remember, airdrops are always free to the user if they are legit. That is how this type of marketing works—they give you a small amount of the token in order to convince you to buy more, or in hopes that you will convince your family and friends to buy some.
If you click to participate in an airdrop and they say you have to send some crypto in order to receive it—this isn’t a true airdrop. It’s either a scam or you are just buying a worthless crypto, and we promise it is likely not worth it.
6. The Site on Which the Ad is Posted
Legitimate airdrops will use official channels to spread the word about their new token. While some may use forums like BitcoinTalk or Reddit, it is very rare that airdrops need to run ads to give away their token. Be cautious of where you see the ad and when. And if it’s a pop-up window, know that it is likely a scam.
Airdrops are one of the trickiest scams to avoid because there are legitimate renditions of this method of distributing tokens. But if you follow the above steps, you should be able to keep yourself safe from these scams. Just remember that no one needs your password or seed phrase—ever. That is for your eyes only.
The Best Way to Protect Yourself From Airdrop Scams
The number one way to protect yourself from getting caught up in an airdrop scam is to have a dedicated wallet just for airdrops. This way, in case you accidentally click, the thief makes off with a wallet full of nothing.
Just remember that if an airdrop is successful, transfer the funds from your airdrop wallet to your real one before signing up for the next airdrop. This will keep your real wallet safe but allow you to apply for airdrops without worry. Still, don’t give them your seed phrase, though.
Overall, crypto airdrops can be both legit and a scam, so always approach these investment opportunities with the utmost caution. And remember, if it sounds too good to be true, it probably is.
