Play-to-earn gaming has definitely taken the crypto world by storm, with participants being rewarded with NFTs (non-fungible tokens) or cryptocurrency. Let’s find out what play-to-earn gaming is, how money is made and what you need to know before taking the plunge.
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Before I continue, note that the content in this article is provided for information purposes only. It is not intended to be, nor does it constitute, any form of investment advice. Bitcoin and other Cryptocurrencies are highly speculative and volatile assets, which carry several risks, including the total loss of any monies invested. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
What is play-to-earn gaming?
Play-to-earn gaming is just what it sounds like. It involves playing games on the internet to earn money in the form of cryptocurrency or NFTs.
Gone are the days when gamers were overlooked and crossed out as outcasts for “wasting their time” playing games instead of doing something productive. Now, anyone can create a play-to-earn game account, purchase a few items needed in the game and simply start playing and making money.
Must you put up capital to play? Though you can play some games without purchasing items, you’ll soon realise you won’t earn much, or you’ll be losing to other gamers with higher ranks.
What are NFTs (non-fungible tokens)?
To better understand NFTs, you need to know the meaning of the term ‘fungible’, which is something that is easily replaceable or common. Therefore, non-fungible means non-replaceable or uncommon.
That said, non-fungible items are more expensive than fungible items. An example is the Mona Lisa painting by Leonardo da Vinci. It’s irreplaceable and estimated to be worth around £640 million, taking into account inflation.
In the crypto world, specifically in play-to-earn games, there are usually some unique items that are difficult to obtain. They are usually one of a kind and, in most cases, have significant abilities in the game. You’ll also find that such items cost a lot, and you can sell them to other players for a considerable amount of money. These items are earned or purchased during gameplay – they are the NFTs in play-to-earn games.
How do you make money in play-to-earn games?
Different games have their own unique gameplay, but they share a somewhat similar way of making money.
During gameplay, you earn points or tokens by completing various objectives or competing with other participants. You can then exchange these points or tokens for money.
You may also notice that you can upgrade various items to add value to them. Once their value increases, you can sell or rent them to other players to make money.
What should you know before taking the plunge?
1. Understand the play-to-earn game
Remember, you’re putting your hard-earned money into the game and don’t want to lose it. You could start by:
- Reading and understanding the official FAQ page (from the game website)
- Watching YouTube videos related to the play-to-earn game you’re interested in
- Finding out whether you can carry out a test run first to gain some hands-on experience
2. Crunch numbers and create a game plan
Once you understand your game of interest, you’ll be in a position to predict how much you could make after a particular period. Crunch the numbers and create a game plan to achieve your goals. You can even set aside a specific time you’ll play and figure out how much you can earn within that period.