The five major misunderstandings of retail traders concerning Alpha points, hoping to be helpful to everyone.
Misunderstanding one: The higher the point threshold of a project, the more profit it represents?
The truth is: the height of the point threshold has no relation to expected returns. If there is, it is likely an inverse relationship.
The essence of airdrops is Binance rewarding everyone for providing liquidity to the Binance wallet. For Binance, the goal is to give satisfactory rewards. They won't be particularly high or low. Because if it's too high, there's no need; $80 is satisfying for everyone, and there's no need to give $400. It's better to save the money to attract more people; if it's too low, people will complain and give up, so they can't issue $10.
However, projects listed can be good or bad, and the token price is determined by the market, which Binance cannot control; therefore, Binance adjusts the Alpha point threshold to control the number of recipients. This way, they can control the earnings of each individual account.
So if the point threshold is low, it's likely because it's a good project with a large airdrop, requiring more people to share, allowing everyone to receive around $80.
If the point threshold is high, it's likely because it's a garbage project with a small airdrop, so only a few people can share to ensure everyone can receive $80.
Do you understand this underlying logic? A low point threshold likely indicates that airdrop returns are too high, requiring more accounts to dilute them. Therefore, it is more likely to be substantial profit.
Misunderstanding two: Should I stop earning points after receiving an airdrop?
The truth is: You must never stop earning points! The scores from 16 days ago will expire. If you stop earning, your score will continue to decrease. So even if you receive an airdrop, you shouldn't stop earning points; at least ensure that the points won't decrease further.
Misunderstanding three: Whether unreceived tokens are reissued or not depends on the officials' mood?
The truth is: In theory, the rules for reissuing rewards are clearly stated in the APP, and the officials should strictly follow these rules.
If reissuance becomes subject to the officials' mood, it means the public rules can be arbitrarily changed. Who knows, maybe tomorrow the officials will decide to ban accounts based on their mood, and the day after they might give 10 Alpha points to someone with 32,000 trading volume based on their mood.
But for some unknown reason, a large batch of recent airdrops has not been reissued. Take EDGEN as an example; its residual value is definitely over $10 per person, but it hasn't been reissued, so it's highly probable that the officials are being greedy.
Misunderstanding four: Is it good to eat two airdrops a day or three airdrops a day?
The truth is: It's not necessarily a good thing. The more you consume, the more points you lose. Three projects on the same day may not all be good projects, so it's mainly about how much the airdrop is worth; it's better to choose wisely.
Misunderstanding five: Will trading volume wear me out? Can't I just buy low and sell high? I've seen many people earn back their losses using this method.
The truth is: Gains and losses come from the same source. What you value is the profit from price increases, while the project side values your principal.
You think about buying low and selling high, which is investing, but if you know nothing about the project, the next minute the market maker might crash it, and you could end up losing everything.
Earning airdrops is just earning airdrops; don't confuse it with investing; the two should be distinguished. If you want to invest, exchanges have BTC, SOL, ETH, and the BSC chain has projects like BOB, all of which are better than the air tokens you're earning points on.