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Drip Crypto Explained: A Simple Guide To Investing in Drip

The Drip network, based on the Drip Token, is a community/investment that pays you back 1% of your investment every day up to 365% each year. This post will walk you through getting started investing in the Drip network.

– This is not financial advice. Crypto is a volatile space. Do your homework please before taking any of my advice. I do not run a financial blog, but being a developer I love new technology, thus the post.

The Drip Network Simply Explained

What is the Drip Network?

The Drip network, based on the Drip Token, is a community/investment that pays you back 1% of your investment every day up to 365% each year.

Here’s a quick explanation of features of the Drip Network:

  • Drip Network token - According to their site, “The official token of the DRIP Network is DRIP (BEP-20) on the Binance Smart blockchain (BSC) that captures value by being scarce, deflationary, censorship resistant, and by being built on a robust, truly decentralized blockchain.” The current price can be seen on CoinMarketCap.
  • Swap - While you used to swap your BNB for DRIP on an exchange like Pancakeswap, they now have a feature on their website that lets you swap your BNB for DRIP without paying the 10%.
  • Drip Faucet - The faucet is where you deposit your DRIP. According to their site, “The DRIP Network’s Faucet is a low-risk, high reward contract that operates similarly to a high yield certificate of deposit by paying out 1% daily return on investment up to 365%.”

What does all this mean? Here’s a simplified explanation:

You deposit a certain amount of DRIP into the Drip Network. Let’s say $10,000. You do not get this $10,000 back, but you earn 1% of it back in DRIP every single day. They say it takes about 3.5 months to get your initial investment back (though by recompounding you can get it back much faster). After that, whatever it produces is all yours.

So who is paying you? How can this project keep paying people? Well, DRIP rewards are paid out from a 10% tax on all transactions. Yes, when you put in that initial $10,000, 10% of it goes to a tax pool so you only end up investing $9000. Sounds rough, but everyone gets taxed too on each transaction. That’s how you keep getting paid day after day.

So in summary, you put in $10,000 (which comes out to be $9000) and you get paid back 1% of that every single day in DRIP.

Let’s leave it at that for now. More will be explained below. Also, feel free to consult their Whitepaper for more details.

To deposit drip, you must have a referral code (or link). Feel free to use my referral at 0xCC55AFf20f63117791d5Df1C0306bA43D72394Eb or referral link drip.community/faucet?buddy=0xCC55AFf20f63117791d5Df1C0306bA43D72394Eb. You can ignore referrals from that point if you want and just collect your 1% daily.

How To Get Started

Let’s walk through how to get started with the DRIP Network.

1. Buy some BNB

First, buy some BNB. This can be done almost anywhere…Coinbase, Kucoin, Binance, etc.

After you have BNB, send it out to your Metamask wallet or your Trust wallet. Remember to send it to the Binance Smart Chain.

(If you don’t see Binance Smart Chain in your Metamask, you add it via the steps in this tutorial.)

2. Swap BNB For Drip

Now head over to the DRIP website and click the “Connect Wallet” button at the top right of the page to connect your wallet to the Drip Network.

Once your wallet is connected, click on Swap to go to the swap page.

Under Buy DRIP, enter your amount of BNB and choose Buy. Remember to check your wallet to approve the smart contract and exchanges that take place.

3. Deposit your Drip

Once you have DRIP, click on Faucet to go to the Faucet page.

Now you cannot deposit DRIP unless you have a “Buddy Referral.” If you don’t have one, feel free to use mine at 0xCC55AFf20f63117791d5Df1C0306bA43D72394Eb. Enter it in the Buddy field down the page a bit below the Deposit field and hit update (will also need to confirm in your wallet) to add your buddy.

Once your buddy is confirmed you are ready to deposit DROP. Enter the amount of DRIP you want to deposit and click Deposit. Again, remember to check your wallet to approve the transaction(s). Also, remember that 10% will be taken as a tax. Also, remember that you cannot get this money back.

After you’ve deposited you’ll see the following stats (with your amounts, not mine):

  • Available: Amount of DRIP you’ve earned (remember it’s 1% a day).
  • Deposits: Total value of DRIP deposits.
  • Claimed: Total amount of DRIP you’ve claimed.
  • Rewarded: Total DRIP from team member referrals.
  • Max Payout: The max you can claim based on your deposit amount and 1% daily up to $365. This goes up when you recompound.
  • Team: Your team.

4. Hydrate Regularly (or Claim)

Now there are two more buttons on the page: Hydrate (recompound) and Claim.

Choose claim if you want to claim your rewards. Simple enough.

Hydrate on the other hand allows you to recompound or reinvest your rewards thus increasing your cash flow and also your max payout. There is a 5% tax on compounding that again goes to rewarding users. If you are not looking to cash out and want to benefit from compounding, then this should be done periodically. This goes into your deposit and is not refunded.

Referrals

Referrals aren’t necessary for the Drip Network, but they are a great way to get some extra DRIP. You can simply enjoy your 1% per day, or you can build up a team for more rewards.

In fact, you are required to join someone’s team to make a deposit into the faucet (mine is 0xCC55AFf20f63117791d5Df1C0306bA43D72394Eb if you need one).

And then in order to actually receive referral rewards from those whom your refer, you must hold BR34P in your wallet, but again this is advanced and you can read more in the whitepaper or this blog post.

You can also “airdrop” or send DRIP to your teammates.

Is DRIP sustainable? Is it stable?

This is the million-dollar question with these new types of offerings. Is it sustainable?

There are a few positives that lead me to think yes.

  1. Price Stability - The 10% tax will deter holders from thoughtlessly selling DRIP (because there’s that tax), thus keeping the price from fluctuating sporadically.
  2. Whale tax - There is a larger tax on those considered “whales” and up to 50%. This discourages those with a mass amount of DRIP from selling off a large number of holdings, thus tanking the price of DRIP. This is interesting as whales controlling the price of crypto has always been a concern in this space.
  3. Deflationary - DRIP claims to be deflationary because it pays stakers and referrers from a tax on transactions and NOT through inflation.

Why Do I Care As A Developer

Why do I care? Why am I writing about the DRIP network on my developer blog?

Well, I like the technology and I think this project is quite unique. It intrigues me and it’s an interesting new take on investing.

Sure it could bomb in a year and hopefully, you’ll have a strategy to win in that situation if it happens.

But overall, I find the technology to be interesting and as a developer who dabbles in blockchain programming, I enjoyed writing about it and found myself investing in it as well.

A Word of Caution

The main concern I have with this project isn’t so much the project as it is the users.

It could be a long-term project that makes people highly profitable and as I said above it could tank in a year.

Such is the way of crypto.

But my concern is with those who recompound the money over and over and never take profits. Imagine recompounding over and over for a year and never taking any profits and then then the price of DRIP tanks and you are left with nothing.

As goes with all crypto investments, when you can, take out your original investment and let it ride. That way you aren’t at a loss if something bad goes down. And if it perseveres for years to come, you’ll be quite a wealthy investor.

Is the Drip Network a Pyramid Scheme?

People ask this because it’s referral-based.

The answer is no, because you don’t have to even deal with the referrals. You can ignore the whole referral system and just enjoy your 1% back per day.

Conclusion

All in all, I find it a very interesting project, so much so that I threw about $2000 of my own money into it. We’ll see what happens.

What are your thoughts? Questions? Comments? Let me know below.

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** This article may contain affiliate links. Please read the affiliate disclaimer for more details.

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Travis Media

Who Am I? I was 34 years old in a job I hated when I decided to learn to code. Read More
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