TLDR
This guide will explore Play-to-Earn games in crypto, where players can win digital assets like cryptocurrencies or NFTs and generate income.
To get started, you must familiarize yourself with the basics of blockchain and cryptocurrency, set up a crypto wallet, and sign up for a game. As you play, you will start earning rewards and pay attention to the game’s rules and regulations. Joining communities and connecting with other players is a great way to learn and have fun.
Whether you prefer NFT-based games or Play-to-Earn games where you earn cryptocurrencies, WEB3 gaming is the future of gaming and a thrilling way to earn extra income.
Welcome to the world of play-to-earn (P2E) crypto gaming!
In this beginner’s guide, we’ll take a look at what P2E crypto games are and how they differ from traditional online games. We’ll also explore the benefits of P2E crypto games and provide some tips for getting started in this exciting new gaming world.
Whether you’re a seasoned gamer or new to the scene, this guide will help you understand the basics of P2E crypto gaming and how you can join in on the fun. So, let’s dive in!
If you are a classic gamer, you know that the only motivation in traditional gaming for playing is personal enjoyment through the gaming experience. Players spend money on the game but cannot show the best play to earn the rewards unless they are professional esports players or have a large following as a streamer.
On the other hand, crypto games allow most players to earn real money through gameplay and winning matches. One of the winning players could soon be you!
So, what is a Play-to-earn game?
The play-to-earn game model allows players to earn money, collect cryptocurrencies or NFTs within a blockchain-based game, and then use these digital assets to earn tokens and generate income.
The play-to-earn mechanics allow players to sell their in-game assets or play to earn space and crypto rewards, which can be exchanged for real-world money. Think of it as a fun way to earn crypto games and make money while enjoying your favorite game.
One of the key features of play-to-earn games is that the more users participate, the more opportunities they have to earn crypto assets and increase the value of the assets they already own.
This is because as more players join the game and develop the in-game marketplace, the game’s overall value increases for the community and developers.
While earning tokens and generating revenue does involve skill and strategy, it’s also important to note that the more talented users are likely to acquire more assets than players with less talent. However, regardless of skill level, players worldwide are joining in on the decentralized gaming movement.
Some basic concepts in Play to Earn you should know
Blockchain
“Cryptocurrencies like Bitcoin and Ethereum are powered by a technology called the blockchain. At its most basic, a blockchain is a list of transactions that anyone can view and verify. Cryptocurrencies and the blockchain technology that powers them make it possible to transfer value online without the need for a middleman like a bank or credit card company.”
Coinbase.com
Cryptocurrency
Cryptocurrency is a digital currency in which transactions are verified, and records are maintained by a decentralized system using cryptography rather than a centralized authority.
The most popular are $BTC and $ETH if you’d like to look more into it.
You can find details about any coin on CoinMarketCap or CoinGecko, as they provide a fundamental analysis of the digital currency market (price, volume, market capitalization, etc)
Crypto wallet
Crypto wallets hold the private keys to your cryptocurrency, keep them safe, and allow you to swap the coins. They can be either physical devices, software programs, or online services.
The most commonly used cryptocurrency wallets are Metamask and Trust Wallet.
Private key
“The private key is like a password to your bank account. Please don’t share it with anyone, or they could steal all your money.”
Forbes.com
Crypto address
Also known as the public key, it is generated alongside your private key as a pair; your public key is a long string of characters run through an algorithm to produce your wallet address.
What are the steps to start earning in a crypto game?
- Create a crypto wallet: Make sure you store your private key safely. Otherwise, you could lose your assets forever.
- Sign up for free on your chosen play-to-earn game: You would need your wallet to sign up for most games, while other games might require a username and password, following the traditional game sign-up process.
- Pay the entry fee or buy the entrance NFT.
- Advance in rank, level, or stage by trading and winning battles: Most blockchain games have communities of players and fans, usually on Discord or Telegram. Such a community provides a social space for gamers and advice for new players.
- Reach minimum token withdrawal limit.
- Withdrawal of crypto earnings to your wallet.
- Convert tokens (or the NFT you won) to Bitcoin, Ethereum, or other cryptocurrencies: You can exchange your winnings into stablecoins, cryptocurrencies where the price is supposed to be the same as a reference asset, which is fiat money (regular money); for example, the stablecoins for $USD are $USDT, $BUSD, etc.
- Withdraw crypto into your local bank account or trade on your favorite crypto exchange.
Pro Tip: Here are some exchanges we suggest you check out: Binance, Kraken, and KuCoin.
More details
Binance is a great combination of low fees, deep liquidity and multiple cryptocurrencies and trading pairs. We have tested every aspect of it and it STILL holds its reign as the top exchange in the world. In our view, it is the perfect crypto exchange for both newbies and advanced traders alike.
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Biggest exchange in the world.
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Industry's lowest trading fees.
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Advance trading options like leverage trading.
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600+ crypto options, 150+ for the US.
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Lucrative on-site staking options.
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Hiccups in account verification.
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Less regulated than some competitors.
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The corporate structure is not transparently.
More details
Kucoin stands out among other crypto exchanges due to its impressive span of 1100 markets and 600 digital currencies. This, coupled with a user-friendly interface and secure investment environment, has made Kucoin an increasingly popular choice. However, US customers can not use the trading platform.
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Ability to earn interest on crypto.
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Low fees.
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Good customer service.
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Volume discounts on fees.
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Features like margin and futures trading.
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Not licensed in the U.S.
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Lack of investment programs.
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Low trading volume.
What are NFTs?
Non-fungible tokens, or NFTs, are digital assets with unique identification codes and metadata that make each unique. In play-to-earn gaming, NFT games enable users to take ownership of in-game items (trading, selling in-game NFTs, etc.), such as virtual clothing or plots of land.
NFT Gaming
NFT games, a sub-genre of play-to-earn gaming, offer a unique game experience compared to simply holding crypto-collectibles in a wallet. These games utilize NFTs in gameplay mechanics, rules, and player interactions.
For example, a game may use an NFT to represent your unique character or avatar. Digital items in the game could also be NFTs. These can be traded or swapped in the game’s marketplace with other players for profit.
To use Non-Fungible Tokens in a game, developers create smart contracts to establish the NFTs’ rules. Smart contracts are self-executing codes stored on a blockchain. This enables the creation, swapping, and implementation of these crypto assets within the game.
What are the potential earnings?
The potential earnings from playing an NFT can vary depending on the specific game and market demand for in-game currency. The money from such games comes from other players buying the tokens or coins earned.
Players can sell their goods on the market, at auction, or through bartering to generate income.
It’s important to note that the value of NFTs in a game can depend on their use or collectability. While losing money in these games is possible, this doesn’t necessarily mean you were cheated. The value of NFTs is speculative and can change depending on how the market perceives them. So, one should not rely on the market’s strength to recoup losses.
Popular NFT Play-to-earn crypto games
1. MOBOX Box
The MOBOX Collection is a game platform that combines DeFi crop farming with NFTs. The collection aims to provide players with the most important MOMO NFTs possible.
2. Alien Worlds
Alien Worlds is an NFT Metaverse where you can play with unique digital items (NFTs).
Trade Game Cards. Players stake Trilium to planets to vote in the upcoming Planetary elections and increase the Planet’s reward pool.
Players may select Alien Worlds NFT game cards for their strategy on Binance Smart Chain(BSC) and WAX for mining, fighting, and completing missions together.
Alien Worlds was one of the most popular games of 2022, as per DappRadar rankings. The game’s future development will show if it can beat Axie Infinity’s popularity.
3. My Neighbor Alice Collection
My Neighbor Alice is a game where players build a virtual world using NFT cosmetics. Game items are only cosmetics; users can still get them for free in the secondary market.
4. Gods Unchained
Gods Unchained is a player-versus-player card game with an arena mode using blockchain technology. Each player has unique card packs that they can use to fight other players.
Users build decks with battle players; they can use or sell their in-game items for God’s tokens if they win battles.
You can find other NFT games and keep up with upcoming crypto games by accessing DappRadar.com.
Play-to-earn crypto games with rewards in cryptocurrency
In the NFT crypto game model, the players are winning NFT rewards. In this Play-to-earn model, the rewards users earn are the tokens (cryptocurrency). Either the game’s native token, utility token, or an in-game currency that already exists. It might initially seem the same from the player’s perspective, but let’s see what this can mean for you.
Native Cryptocurrency
Games can incorporate their own digital currency as tokens, which function similarly to traditional cryptocurrencies. A prime example of this concept is Axie Infinity, where players earn two native tokens, AXS and SLP, that operate on the Ethereum blockchain.
Similar to other cryptocurrencies, the value of these native tokens fluctuates, allowing players to purchase and sell them based on market conditions. Other notable examples of games with their own native cryptocurrencies include The Sandbox’s $SAND token and Decentraland’s $MANA token.
Axie Infinity
Axie Infinity is one of the major companies in the top crypto games and is a full blockchain game-based platform that follows the Pokemon model. The game offers the users the feature to trade and make money by exchanging Smooth Love Potions, Axis, and Axie Infinity Shards, as well as collecting coins, and also provides a battle mode.
Axie has both models and was considered one of the best free-to-play go-to-earn games due to many players and supporters.
Existing cryptocurrencies
Many play-to-earn games use existing cryptocurrencies, such as Cardano, Bitcoin, and Ethereum, as incentives for players’ best play. This is why many games are named after the specific cryptocurrency they use. Games like Bitcoin Pop and Bitcoin Tycoon are examples of this.
Additionally, some games include the term “crypto” as a reference to their play-to-earn models, such as Crypto Dragons and CryptoKitties.
While these tokens are already established, which provides users security, the earnings potential is not as big as for the crypto games with native tokens.
Advantages Of Play-to-Earn Games
For Players
Games from all types of categories have embraced the play-to-earn model. One can play shooters, action, horse racing, fighting, and horse racing games, and many more game genres. The advantage of blockchain games is that they create a competitive space, allowing gamers to earn money while playing.
Play-to-earn games could be the key to unlocking the future of mass working through gaming. While not all the projects are at this stage, blockchain games will enable players in time a way to make a full-time living best games.
Axie Infinity, one of the most popular crypto games, pioneered the free-to-play go-to-earn as a primary revenue source for gamers.
For Developers
NFTs and tokens allow game developers to create a truly unique gaming experience. By launching a project and releasing their NFTs and tickets, developers can generate initial investments from players interested in playing their games rather than relying on equity investors and VC firms.
This allows them to build a gaming ecosystem with virtual worlds and an economy around the game. Players are likelier to believe in these blockchain-based assets because they own them.
Creating open-world economies also enables developers to collaborate and create unique experiences for players, which can lead to increased retention and engagement. This can be a huge advantage for developers as they can earn a commission on secondary sales of their game-created in-game digital assets for life. This creates a new revenue stream for them and a way to monetize their games.
The decentralized nature of blockchain-based games also allows for a more immersive and fair gaming experience, where players can truly own their digital assets.
So what is the catch?
What’s the catch, you might ask – and for a good reason. One of the main disadvantages of crypto games is their high level of volatility. The value of the virtual currency can fluctuate significantly in a short period of time, making it difficult for players to predict the value of their in-game assets and potentially causing financial losses.
Additionally, many crypto games are not regulated, which can leave players vulnerable to fraud and other financial crimes.
How can you avoid these disadvantages?
You can avoid these issues by doing your research (DYOR). Due Diligence is essential in evaluating any investment opportunity, including crypto games. Here are a few steps you can take when DYOR for crypto games:
- Research the game’s development team: Look for information about its developers and their industry experience. Check if they have a track record of delivering on their promises and if they have any relevant experience in the gaming industry.
- Look into the game’s virtual economy: Understand how the game’s economy works, including how in-game assets are generated and traded. Ensure the game has a transparent and fair system to prevent inflation and other economic issues.
- Check the game’s smart contract: Review its smart contract code to ensure it is secure and has been audited by a reputable third party.
- Assess the game’s community and adoption: Look into the game’s community and adoption rate. A game with a large and active community is more likely to be successful than one with little engagement.
- Evaluate the game’s potential for growth and development: Consider the game’s potential for growth and future development. A game with a strong roadmap and regular updates is more likely to be successful in the long term.
It is important to note that DYOR is an ongoing process, and you should keep monitoring the game’s performance and the team’s activity.
Conclusion
In conclusion, Play-to-Earn (P2E) crypto games offer a unique way for players to earn crypto and real money through gameplay. While you might initially feel overwhelmed with all this new information, the fun, and the earnings make the experience more seamless.
Now that you’ve learned about the exciting world of P2E crypto gaming, it’s time to take the next step and start playing! Remember to research, pay attention to the crypto game’s rules, and follow the steps outlined in this guide to maximize your earning potential. Don’t be afraid to reach out to the community and ask for help if you need it.
P2E crypto gaming is constantly evolving, and new opportunities are always arising, so stay informed and watch for new games and features. Join the Play-to-Earn crypto gaming community today and start earning while you play!
Susan Oh
Susan Oh is a leading figure in the integration of AI and blockchain for social good, serving as the CMO for BeOmni by Beyond Imagination and a civic technologist dedicated to creating scalable solutions. She is a board member of the Blockchain Commission For Sustainable Development supported by the UN GA Office of Partnerships, and a member of the Global Sustainability Network, a joint initiative by the Vatican and the Church of England to combat human trafficking. Recognized with the...
