Due to ever-evolving trends in digital consumption and the introduction of NFTs, play-to-earn crypto is now on the rise. Here’s how you can get in on the action.
The video gaming market had an estimated market value worth over US$180 billion in 2020. This will further grow to up to US$268 billion by 2025.
Today, gaming is no longer considered a time-waster, considering that more gamers are eking their way through life behind the screens. Play-to-earn crypto games have emerged as favorites among these gamers, more so during the ensuing lockdown caused by the pandemic.
Most gamers now understand the value of playing-to-earn games. Developers have also taken this emerging demand for play-to-earn video games to broaden the gaming ecosystem. Currently, the introduction of non-fungible tokens (NFTs) and the ever-evolving trends in digital consumption have led to an exciting intersection between cryptocurrency and gaming.
If you are interested in the play-to-earn model, this article will surely excite you. Here we present a complete guide to the play-to-earn crypto ecosystem.
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What are play-to-earn crypto games
The play-to-earn business model is among the latest developments in the gaming industry. The model embraces the concept of an open economy by providing financial benefits to the gamer. Unlike in the past, where gamers played for fun or as a past-time, the play-to-earn model now provides financial paybacks to gamers who add value to the gaming ecosystem.
Over time, leading cryptocurrencies consciously decided to merge the play-to-earn model with the crypto concept. The idea birthed the play-to-earn crypto games. Play-to-earn crypto games utilise the NFTs to provide in-game assets for players. The model rewards players for winning different stages of the game. However, unlike in any other play-to-earn model, here, the reward is in the form of crypto assets.
This means that gamers can now enjoy playtime with the added advantage of earning crypto assets. Most modern developers offer gamers rewards based on a combination of NFTs and in-game crypto assets. The tips are tradable and may also be sold to other players. You may also sell the crypto assets to other external traders. Crypto assets are tradable, making the play-to-earn concept a unique pastime and earning option for gaming enthusiasts.
Step-by-step guide to play-to-earn games
1. Get a digital wallet
Each play-to-earn game has varying requirements for first-time participants. However, depending on the platform you opt for, there could be certain observable similarities. You may need to have a crypto wallet in all the play-to-earn crypto games. Common crypto wallets include the MetaMask or the Binance Chain wallet.
The crypto wallet is critical because it allows you to store and connect into the play-to-earn game.
2. Make initial Investment
In most play-to-earn crypto games, gamers need to make an initial investment to play. The approach involves setting up a team of characters, enabling the playing process. As a gamer, you also need to purchase items used in-game. This is, however, not a new concept. Entering the crypto-economy is never entirely free.
For instance, entering the Axie Infinity, an investor may need to part with as much as US$600. The initial amount gives you three Axies. Ideally, this initial investment can be recovered within the first few months of gameplay. Even then, it's also a strategic barrier to entry.
In other cases, you may consider going for scholarships. In this case, you can borrow Axis from any other player for free. After this, the players may decide to share the proceeds. The arrangement depends on mutual understanding between the manager and the one seeking the scholarship.
· Play and earn
Once you have begun the process of playing, you'll probably start making money within a short span. The method of play-to-earn can take two main approaches. The first is finding NFTs to sell. You may also play regularly on the different play-to-earn platforms. Both options can help you build a formidable revenue stream over time.
Depending on your consistency, you may be able to build enough NFTs and tokens to sell. Binance is currently one of the leading options to sell you NFTs and tokens. However, you should always check to ensure that your non-fungible tokens you want to sell are listed by Binance or any other NFT marketplace of choice.
Further, you may need to go through the KYC process. This process entails the verification of your account. It's essential before beginning the gaming process.
3. Cashing out crypto
Before starting on the play-to-earn crypto games, you need to be sure that you can quickly cash out your crypto after playing the games. First, you may need an exchange platform. The platform should offer you play-to-earn crypto with tradable pair options. Some options currently allow the exchange of the tokens for US dollars and Euros.
You may also consider the crypto card, which allows you the option to withdraw to the bank. Some common options include the Binance Visa card.
If you are using a crypto wallet, all you need is to copy the deposit address then paste it onto the sending wallet. This will transfer the cryptocurrency token. It's essential to consider the fees. When selling, you can use a limit or stop-limit order.
Most popular play-to-earn games
Now that you understand the basic steps involved in play-to-learn games, let's assess some of the standard options.
· Axie Affinity
Axie infinity involves the collection, breeding and battling of token-based creatures known as Axis. The game has more than 500 available body parts for the creatures. In this game, the creatures are into four main categories: expected, rare, ultra-rare, and legendary. Axies can be bred up to seven times, and each Axies an NFT with unique attributes. The game is an ERC-20 token hosted on the Ethereum platform.
Decentraland is the other standard play-to-earn game. Players can create and monetise various content and apps here, including land. If you are creative enough, this game can sell your virtual land for up to US$900,000. The game is also an ERC-20 token.
Sandbox has an almost similar gaming concept to Decentraland. In this game, players can create and exchange different digital assets. The native token in the game, known as SAND, is also an ERC-20. The game also has another token known as LAND. The Sandbox Metaverse is composed of 166,464 LANDS.
Pros of play-to-earn games
1. Monetised fun
Video games are already a fun activity to engage in as a pastime. It's more exciting when the fun can couple with actual earnings.
2. It's a virgin field
Nothing is more exciting than venturing into a new frontier in an area with great potential. Players looking to unlock near possibilities in the field will make significant headway.
1. Barrier to entry
The existence of fees introduces a barrier to entry into this new frontier. Further, the fees charged to players when they sell digital items may also present another concern.
2. There's a potential for volatility
Just as with the crypto market, play-to-earn games present relative risks related to emergent volatile price swings. Those looking to profit faster from these games may face a real challenge when dealing with the apparent price shifts.
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