What is a Cryptocurrency Airdrop? How Do I Earn Them?

What Is A Crypto Airdrop?

A crypto airdrop involves a platform depositing a (new) token into the wallets of participants.

It’s as simple as that. However, airdrops should be distinguished from hard forks. While hard forks also usually result in holders receiving a new cryptocurrency, they occur only when a blockchain splits into two competing chains, usually as a result of some controversy over how to update its protocol. By contrast, an airdrop doesn’t involve a hard fork.

Airdrops are basically a means of creating two things for a new coin:

• 1) a market, which will provide a new token—and its native platform—with liquidity; and
• 2) an ecosystem of holders, who can use the token to interact with its platform.

Either way, the platform conducting the airdrop stands to gain from it, even if it might seem as if it’s giving stuff away for free. At the same time, participants receive an asset that could increase in value over time.

How to Qualify For A Crypto Airdrop

There are various ways to qualify for a cryptocurrency airdrop. While every crypto project has its own rules regarding drops, there are three main ways to earn coins.

Holding crypto tokens and snapshots

The most common involves holding a minimum amount of another cryptocurrency in an eligible wallet.

For example, in November 2021, holders of the OMG Network’s OMG token were able to participate in the Boba Network’s airdrop for BOBA. If you held OMG with some of the best cryptocurrency exchanges  (including Binance, Crypto.com,  Coinbase, and numerous others), or if you transferred OMG to an address on the Boba Network, you would receive BOBA on a 1:1 basis.

In this case, participants needed to hold OMG in these locations during the time of a ‘snapshot’ of the Ethereum blockchain (on which OMG and BOBA operate). If they held OMG in eligible locations during this snapshot, they would then receive an equal amount of BOBA one week later.

Many Layer-2 networks and Superchains (like Base or Inc) use snapshots to reward users who bridge assets or hold ecosystem-specific tokens.

Airdrop farming

In 2026, airdrops often reward “proof of use.” Users can qualify for them by interacting with a protocol’s decentralized application (dApps) and completing tasks. These tasks include:

• Bridging: when users move funds from Ethereum to a new network.
• Swapping & Lending: when users trade on a network or provide liquidity on a decentralized crypto exchange
• Governance: when users vote on project proposals when using digital platforms.

Testnets and social tasks

Testnet participation requires you to test a network’s speed and security using “fake tokens.”

Social tasks can require users to follow a social media page, join a Discord channel, or complete know your customer (KYC) protocols. Users can later receive tokens as payment for completing these tasks.

Where to find upcoming airdrops

There are several places that curious investors can visit to check upcoming airdrops. These include icomarks.com, airdropalert.com, and CoinMarketCap, all of which offer lists of future airdrops and details on how you can get involved.

How to Find Unclaimed Crypto Airdrops

There is a good chance you’ve earned a coin airdrop, given that numerous airdrops let you participate simply by virtue of holding a particular token with an eligible exchange at the time of a snapshot. You may have to take steps to claim your free token.

If you’ve potentially earned airdrops through an exchange, check your account with it. For instance, if you’ve heard there has been an airdrop for BOBA, go to your exchange account, check the deposits page, and see if any BOBA has been deposited into a BOBA address the exchange may have created for you.

Likewise, if you hear that an airdrop was open to anyone who held a particular third-party wallet, check that wallet. And regardless of the particular conditions, if you know that you’ve fulfilled them, try to contact the parties involved in running the airdrop (be it an exchange or platform).

Do Any Countries Restrict Airdrops?

Yes, some countries do tend to restrict cryptocurrency airdrops. As an example, the aforementioned Morpher airdrop excluded anyone from the following nations:

United States, Afghanistan, American Samoa, The Bahamas, Botswana, Democratic People’s Republic of Korea, Ethiopia, Ghana, Guam, Iran, Iraq, Libya, Nigeria, Pakistan, Panama, Puerto Rico, Samoa, Saudi Arabia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, US Virgin Islands, Yemen

Nations restrict airdrops for various reasons, but in the United States, the main reason why residents can’t participate in them is because of securities laws. Effectively, airdropped tokens or tokens sold as part of a crowdsale are likely to be viewed by the Securities and Exchange Commission (SEC) as unregistered securities. This would therefore open anyone who organized an airdrop to legal action.

While the United States hasn’t banned airdrops, other nations have, with China being the most obvious example. As such, anyone caught participating in an airdrop in such a country runs the risk of prosecution.

Are Airdrops Usually Taxed?

In many nations that have begun updating their taxation laws or regulations to account for cryptocurrency, airdrops generally are taxed.

Airdrops in the United States are taxable at the time of receipt as ordinary income. In other words, if you receive airdropped tokens that, at the time of the airdrop, are worth $100, then this $100 will be added to your taxable income.

Other nations take a different approach to airdropped tokens. In Canada and the United Kingdom, for instance, airdropped tokens are usually subject to capital gains tax, with the taxable amount calculated at the time of disposal. So if you receive an initially worth token of £100 at the time of receipt, but then you sell it later for £1000, £900 will be added to your taxable gain.

In sum, you are likely liable for some form of tax if you receive an airdrop. So check with your local or national tax authority for more details, or with a qualified tax expert.