There are numerous video games that use in-game currency, such as V dollars in “Fortnite” and Robux in “Roblox.” Most games, however, penalize any player who sells their in-game currency to another. In contrast, many Web3 games allow players to generate crypto by completing quests or outperforming other crypto gaming assets that are free to sell to others. These crypto games can pay players and store data due to the blockchain technology and smart contracts they use. What is crypto gaming? It is a fusion of video games with cryptocurrency, where blockchain technology presents in-game assets with real-world value. But amidst the charm of potential money lies a territory full of risks. So through this article, let’s find out more about crypto gaming.
How does crypto gaming work?
The games often employ the use of nonfungible tokens and even cryptocurrencies. Generally, most crypto games have a specific gaming token that is used to reward players. In the popular “My Neighbor Alice” game, an ALICE token is offered to players for participating in events. Players use the ALICE token to purchase in-game assets, avatars, and NFTs. The blockchain gaming ecosystem relies partly on Web2 and partly on Web3 technology.
Gaming environments are usually stored on centralized servers; similarly, some or all player data are stored on centralized servers. Instead, crypto gaming coins and NFTs indicating virtual items are usually on distributed ledgers. The players are incentivized in play to earn games since they are rewarded for participating with cryptocurrency and NFTs. The play-and-earn model brings the gap together between playing for fun and for profits; the rewards of the players have real-world value and can be sold at secondary markets.
The ways for players to earn assets
The creators of blockchain games receive revenue from two sources: advertising and the sale of the items, while the game’s native cryptocurrency is cashed in. Some of these revenues are passed onto the players through rewards in the form of virtual assets. Here are three ways of earning assets by playing crypto games mentioned below:
1. Winning cryptocurrency or NFTs for success
Most play-to-earn games will have particular success metrics that track players’ earnings. For instance, a blockchain-based trading card game would give the player a certain amount of cryptocurrency tokens for every opponent he beats.
2. Level up your characters
Sometimes, you are rewarded for leveling up the in-game character. For instance, a blockchain-based RPG will reward its players with game items every time they level up. Such in-game items are normally minted as NFTs that can be sold on the secondary market.
3. Gambling with cryptocurrency
Crypto gambling games are the same as regular gaming, but they use cryptocurrency for rewards instead of fiat.
Earning real money in crypto gaming
Crypto games reward players with cryptocurrency or NFTs. Players own these assets after being earned and have the ability to trade them for stablecoins or even fiat currency—that’s just a fancy way of saying dollars that one can spend in the real world. During the early stages of gameplay, a normal earring has fewer assets. So you will ultimately make less money playing. but, just like that stock, their value could change up or down. If you own the assets, maybe there is even a chance that, at a later date, you will be able to sell them for more dollars and cents. The value of an asset can also decline with time.
How to get started on crypto gaming?
When playing blockchain-based games, you will typically require a cryptocurrency wallet. It may be helpful to identify a few games that interest you for this reason. Once you have a game in mind, you can find the cryptocurrency wallet that is required for the game. For instance, the “Axie infinity” uses the Ethereum blockchain. This is the only one you can play if you have an Ethereum wallet, which could be MetaMask.
After creating your crypto wallet and saving your wallet passphrase somewhere safe, proceed to the website of your chosen game to sign up for an account. Most games either come with software or have a web-based gaming environment. Some games first demand you to buy some digital assets before you can start playing. For instance, you may need to buy a character NFT or governance token before doing anything else in the game.
Risks involved in crypto gaming
There are some risks involved to avoid while crypto gaming, such as:
1. Sending tokens to the wrong wallet:
If the player is playing various blockchain games, he is prone to sending the tokens to the wrong wallet. Multiple checks should be done when transferring tokens from one wallet to the other to confirm if it can hold the tokens you are sending. You cannot retrieve tokens once they have been sent to the wrong wallet.
2. Scams and hacks
Never share your wallet passwords. When someone else gets your passwords, they can use them to steal your tokens. You should also be wary of any game that sounds too good to be true. Early in 2022, there was a promising new game called “Anirand. This game issued NFTs and tokens even before there had ever been any gameplay video and enlisted numerous Alogorand influencers to promote it. Unfortunately, the producers withdrew their tokens from their liquidity pool, closed their social media accounts, and made off with about $550,000 in Algorand from its investors.
3. Value fluctuation
If a game is going through a popularity decline, then the value of outfits and associated assets will naturally decrease as well. One notable example is the popular NFT-based game “Axie Infinity.” In January 2022, the average monthly play count was 2.7 million; however, by March 2023, it had dropped substantially to 389,000. The native token of AXS went down to $9.99 from $94.33 in January 2022.
4. Legality
Before you begin decentralized gaming, determine whether it is legal in your region. Online gambling is illegal in some states; you may actually get caught and be in trouble if you use cryptocurrencies to avoid these regulations.
Conclusion
The crypto gaming industry is now widely popular. It offers both enjoyment and investment opportunities. By gaming in crypto gaming, the player can actually own the rewards. Through this article, we have explored all about crypto gaming and how to start playing in it. While gaming, keep in mind the risks involved and avoid them.