Is Crypto Gaming Profitable?
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Is Crypto Gaming Profitable?
Crypto gaming is all the rage now, and for a good reason! This new form of gaming has already revolutionised the gaming industry with unique mechanics and ecosystems. Traditional gaming is the most popular form of entertainment, so it’s no surprise that crypto-based gaming has turned heads for both gamers and traders.
However, although crypto gaming is fun and interesting, much of its popularity stems from the ability to make a profit. That’s right! Unlike traditional games, with cryptocurrency gaming, you can actually earn revenue from playing. Players can do this in several ways, such as earning XP through levelling up or winning battles against other players.
But the question is – Is crypto gaming actually profitable? Or is it ‘profitable’ in the same way gambling is? Gambling is advertised as a way for anyone to make huge profits, but in reality, this is only the case for a minority. So, is this the same with crypto gaming?
In this article, we’ll dive into what cryptocurrency gaming is and whether players can make a profit from it. Let’s get started!
Source: Unsplash
What Is Crypto Gaming?
To understand crypto gaming, you need to know how it differentiates from traditional gaming. Traditional games such as Fortnite, Minecraft, Call of Duty, and any others you can think of are all centralised. This means that all the XP, items, and other in-game assets you earn whilst playing can only be used in the game they originate from. Additionally, with traditional games, there is usually no way to profit from playing.
On the other hand, crypto gaming is a form of gaming that’s based on blockchain technology and is decentralised. Players begin by buying cryptocurrencies or NFTs (non-fungible tokens), which they can use in the crypto game of their choice. All in-game assets and rewards can also be used across other crypto games, introducing a whole new dynamic compared to traditional gaming.
Most importantly, crypto gaming allows gamers to earn money through playing. This is known as the play-to-earn (P2E) model. This model varies between each crypto game, and gamers have plenty of options for generating revenue. But is crypto gaming actually profitable?
Can Crypto Gaming Really Be Profitable?
The play-to-earn model, which is the basis for almost all crypto games, allows gamers to actively or passively generate income. For example, completing tasks, winning competitions, and levelling up, can earn crypto gamers various rewards. These rewards include native coins of the games, other cryptocurrencies, or even NFT assets.
Although each crypto game is different, usually, the more time you spend playing a game, the more rewards you can earn. This model is the perfect incentive for gamers to dedicate more time to crypto games, which explains their recent explosion in popularity. So, gamers can spend time earning points and XP to level up and earn in-game currency, which they can then transfer to currencies with real-world value.
Furthermore, as a game increases in popularity, more traders and gamers will start buying its native coin. This leads to the value of the coin rising, resulting in profits for anyone who has invested in it. So, if you already love to play games, crypto gaming can be a fantastic option for you!
The Risks of Crypto Gaming
However, just because it is possible to make a profit from crypto games, this isn’t guaranteed for all players. Firstly, before they can get started with a crypto game, players need to purchase the game’s native token. This can be costly, as many games require a minimum amount of coins to be purchased before a player can participate in any activity. Therefore, in most cases, players start out with a loss.
Additionally, a game’s popularity can influence how much revenue players can generate from it. For instance, if a game has few players, this means that it has fewer traders purchasing its native coin since the coin’s sole value is in-game use. Subsequently, the game’s token value will drop, meaning that anyone who has bought it will experience losses. This volatility is the main reason why traders may hesitate to buy gaming coins.
Many crypto games also require a significant amount of dedicated hours for gamers to profit from them. If you’re not really interested in playing games or have a busy schedule, crypto gaming may not be your best option for generating revenue.
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How Can I Buy Crypto Gaming Tokens?
You can buy crypto gaming tokens the same way you buy other cryptocurrencies. If you already have a crypto portfolio, you just need to buy a new gaming token through your chosen exchange. On the other hand, if this is your first time purchasing crypto, then you will need to complete a few extra steps.
Being a crypto newcomer and trading for the first time can be an overwhelming experience. Many new traders make mistakes, give up, or even fall for scams when buying their first crypto. This can be due to insufficient research or not seeking the necessary guidance. However, you can avoid these issues when buying gaming coins with the help of a broker.
A broker is an individual or company that is well-versed in the trading world. Their main purpose is to help traders make decisions and trade various assets through useful tools and resources. If you want to buy gaming tokens, but you have no idea where to start, then using a broker is your best option.
To find a suitable broker for your needs and experience level, you should use a crypto platform. These platforms employ AI technology to make compatible matches between brokers and traders. A perfect example for such a platform is Bit GPT which has gained a lot of positive reviews lately. The use of a reliable platform will save you plenty of time and help you avoid accidentally stumbling into a scam.
Choosing a Gaming Token
After you’ve connected with a broker, you’re ready to start trading crypto gaming coins! To find tokens to trade, we suggest checking out a coin marketplace. For instance, CoinMarketCap lists thousands of active coins and includes helpful information about each. You can head to this site’s ‘Gaming Token’ page to see which tokens are currently the most popular. Be sure to look at information about any potential coins, such as their total supply, market cap, and current supply.
Next, you should go to the official website of any gaming tokens you want to buy. On the coins’ websites, you’ll find much more information about the project and the team behind it. For example, a whitepaper is a document you can find on most cryptocurrency websites. This important document includes technical information about the coin, such as its tokenomics, ecosystem, and roadmap.
It’s vital not to skip this step, as looking at websites and whitepapers can help you identify scams. For instance, if the whitepaper is non-existent or lacks detail, then that can be a red flag for a project. So, take your time and do as much research as you can before buying any gaming tokens or other crypto. This way, you’ll be less likely to lose your assets and more likely to make a profit from buying gaming crypto coins!
Top Gaming Tokens of 2023
Want a head start when entering the world of crypto gaming? Here are the coins of the most popular crypto games of 2023:
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The Sandbox (SAND)
SAND is a token that players can use to build and interact in a 3D virtual world known as The Sandbox. With this token, players purchase LAND, a personalised real estate space to host events, create games, and engage with others.
The Sandbox, which is always full of exciting things to experience, regularly hosts quests and festivals where players can win SAND tokens, NFTs, and other exclusive rewards.
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Decentraland (MANA)
MANA is the native token of the virtual reality platform Decentraland, powered by the Ethereum blockchain. Players can use various building tools to create scenes, artwork, and even challenges for other players.
This VR game also presents plenty of events where players can win prizes. Gamers can trade these prizes for other assets or use them to buy virtual real estate or wearable items for their avatars. Additionally, since Decentraland is controlled via a DAO, players can also use MANA tokens to vote on the world’s future.
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Axie Infinity (AXS)
Axie Infinity is a battle game inspired by Pokémon and facilitates battles between players.
Players can purchase AXS to buy Axies, NFT tokens with various strengths and attributes. With these Axies, players can enter 3v3 battles with other players to win and earn XP points in the Axie Infinity battlegrounds.
Additionally, players can breed Axies and sell them on the Axie marketplace for other currencies. Since AXS is a governance token, players can also use it to participate in votes regarding the game’s evolution.
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Enjin Coin (ENJ)
Enjin Coin is a valuable token players can use in multiple crypto and blockchain-based games. The flexibility of this coin makes it one of the most popular tokens for crypto gamers and traders.
For example, players can buy this coin to join games such as Azure Heroes, Bitcoin Hodler, Impulse, Space Misfits, Cede, Stormrite, Tian Flight Studios, Virtual Worlds, Wavelings, and Zeal.
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Battle Infinity (IBAT)
IBAT is the native token of the Battle Infinity gaming platform. This platform hosts P2E battle games that it has integrated into a metaverse world called ‘The Battle Arena’. Players can use IBAT tokens to participate in battles or watch other players. IBAT owners can directly convert their tokens and rewards into other currencies through the platform’s decentralised exchange, Battle Swap.
There are also plenty of other activities in this metaverse that allow players to earn more tokens. This includes an NFT-based fantasy sports game called the IBAT Premier League which will launch soon.
Final Thoughts – Should I Try Cryptocurrency Gaming?
To conclude, crypto gaming is a unique type of gaming that can be profitable for gamers. As opposed to traditional gaming, crypto games allow players to earn assets and transfer them to currencies with real-world value. This is typically in the form of the game’s native token, NFT assets, or other popular crypto coins.
Thankfully, players also have plenty of options for making a profit from crypto games. Although it varies between each game, usually players can battle others, win prizes, and level up to earn in-game rewards. They then have the choice to trade, sell, or collect their rewards. Due to this, to answer our original question – yes, crypto gaming can be profitable!
However, before you dive in with hopes of generating income from crypto games, you must be aware of the risks. You’re not guaranteed to make any profit, and since their crypto game tokens are often highly volatile, you’re even at risk of losses. Crypto gaming is certainly not for everyone and can quickly become a chore if your only interest is making a profit.
On the other hand, if you enjoy gaming, want to join a community of gamers, or are interested in experiencing an innovative use of blockchain technology, cryptocurrency gaming is definitely suitable for you.
There are hundreds of crypto games to choose from, and many introduce interesting mechanics that you won’t find in traditional games. From building unique avatars, trading with other players, and contributing to the evolution of a virtual world, the possibilities are endless when it comes to crypto gaming!
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