Are Play-to-Earn Crypto Games a Legitimate Revenue Stream?
If you are wondering if making a living through crypto gaming is a legitimate source of income, here is what you need to know.
The P2E (or play-to-earn) industry is growing very fast because the financial benefits of these games are a huge motivation for players. Play-to-earn games have become so popular as people may earn currency and have fun at the same time. These crypto games reward participants with digital cash or non-fungible tokens.
What are Crypto Games?
Crypto games are one of the ways of the cryptocurrency market through which people can earn tokens. While the process of earning crypto by regular investing, staking, slot auctions, or similar, may seem pretty dull, play-to-earn gaming is a very appealing concept.
As the name imples, P2E (play-to-earn) crypto games are a way of earning some form of cryptocurrency by playing games. These games allow you to make currency by carrying out quests, winning battles, and completing other kinds of challenges.
You can start playing for free, but sometimes you need to make an initial investment (which is considered the “catch”). After earning some crypto, you can exchange it for Bitcoin, Ethereum, or another token on a decentralized exchange.
As we mentioned, you earn tokens by playing these games and then you can either transfer them into a cryptocurrency wallet or use them to buy other in-game items or NFTs.
How Can People Play to Earn?
There are specific game mechanics for each NFT game, and they allow players to earn real rewards. The main popular avenues in blockchain games are the following:
- Players may earn NFTs simply by interacting in the game environment. You will get bigger earnings if you have higher skill levels and spend more time on it.
- It is also possible to create collectible and tradeable NFT items through gameplay. You may even combine an existing pair of NFTs to “breed” or produce new ones.
The in-game assets can be anything — from skins or cards to a specific type of cryptocurrency that players can transfer to the real world and sell for real money on their own terms.
How to Choose the Right Play-to-Earn Game?
There are already hundreds of play-to-earn games, and before jumping in, you need to understand how rewards are paid out, how you can convert in-game coins to other cryptocurrencies, and what you actually want to gain from your experience.
The offered rewards are in different forms: NTFs, coins or both. First of all, it’s important to understand how you will earn rewards for gameplay, and how much time it will take to earn them. There are some games that require simple tasks to earn NFTs, and others need a bigger investment to get rewarded.
Converting the popular blockchains to another coin may not be an easy process. It takes time to sell NFTs, and in-game coin values fluctuate quickly. Understanding how you can utilize your coins for real-world earnings can help you decide if the game is the right one for your goals.
Play-to-Earn Crypto Games as a Legitimate Revenue Source
The video game industry has been having a massive growth and making gaming more enjoyable for gamers from across the globe while building a robust ecosystem for game developers.
Nowadays, blockchain games are getting millions of users every day who are trooping to play and earn money for themselves, along with massive investments. These play-to-earn games promise players several benefits but they have some downsides, either.
- These games encourage mainstream adoption of blockchain technology.
- Users are rewarded for their contribution to the gaming industry.
- Loyal gaming communities are being built.
- They are an alternative source of income.
- NFT and DeFi sectors of the crypto industry are developing.
- Sometimes experienced gamers tend to win all the contests.
- The bad players in the space exploit others.
- There are risks of oversaturating the NFT market.
Play-to-earn crypto games are not only just for fun. These games allow people to earn rewards and sometimes, a living. Many people wonder if crypto games can replace their day jobs. The truth is that lots of gamers across the world are making a living through crypto gaming.
As a matter of fact, players have been requested to pay tax on their winnings from crypto games. This means that the world is gradually acknowledging play-to-earn games as a source of income and revenue generation for not only the game developers but also the players.
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