In crypto games, the dream of many gamers is technically realized, namely, the ability to convert game currency into real money. Except
What are crypto games?
The profitability of the traditional gaming industry is not just comparable to that of the film industry. It is quite possible that in the near future, games will surpass cinema. The concept of games as a business is quickly gaining minds, and there is nothing surprising in the appearance of games on the blockchain.
Combining the ideas of endless games and decentralized finance was the beginning of a new entertainment industry segment – GameFi, and P2E is one of the ways to implement the new concept. To make money on games, in the same way, you will need to combine your experience as a gamer with the ability to compare the potential profitability of QNT vs SOL and recognize dubious crypto projects.
How it works
Actually, the fundamental difference between crypto games and the already familiar ones is their placement on the blockchain. Although this entertainment industry segment is still very young, many games are already available in different genres. Crypto games for mobile and desktop devices are compatible with different operating systems. In the game world, participants use fungible and non-fungible tokens.
Thanks to blockchain technology, the user receives ownership of the asset and can dispose of it at his own discretion: for example, exchange, rent, or sell. A potential buyer can verify the authenticity of the token by viewing all previous transactions. Coins are issued in the form of NFTs, characters, and other elements of the game world.
Placing digital entertainment on the blockchain has added a number of properties to them:
- Anonymity.
- Decentralization.
- Transparency.
- Security.
It is quite logical that for such leisure, you will need to have a crypto wallet since all received or created tokens are tied to the participant’s wallet and not to the platform.
How and how much can you earn
There are several typical strategies for making money on Play-to-Earn:
- Mining tokens.
- Passive income from renting gaming assets.
- Staking.
- Speculation in gaming assets.
You can earn money by receiving payments for completing quests, winning competitions, and participating in various other game events. The limited number and uniqueness of in-game items, they initially represent real value, which can often be increased in various ways. That is, a rare item with a unique set of characteristics can be sold for a lot of money.
Some projects provide for the possibility of staking. Users lock their tokens in smart contracts and receive rewards. For example, users earn Mystery Boxes MOMO by staking on NFT MBOX staking. In each such box, NFTs randomly drop out, including very rare ones and, accordingly, expensive ones.
It is most likely not possible to convert tokens or in-game currency directly into fiat, at least not yet. They need to be withdrawn to a crypto exchange or NFT marketplace and exchanged for stablecoins or another cryptocurrency that can be freely exchanged for fiat money.
Theoretically, earnings are not limited since the cost of rare game items can reach hundreds of thousands of dollars.
Prospects for the P2E segment
The first blockchain games appeared in 2014, but this segment began to develop in earnest in 2021. It is pretty predictable that the major players in the gaming industry will soon begin to explore new features actively. The expected active development of the industry opens up new prospects for making money on NFTs. This is a rare chance to replicate the success of early crypto investors. However, investing in this direction is much higher than the average risks of investing in cryptocurrencies.