The video gaming industry is worth a lot of money, reaching 97.7 billion USD in the United States in 2022. That figure is much higher when you expand to the global scene. Today, we have play-to-earn games, a radical yet familiar departure from what we’ve been used to over the years.
The primary feature of play-to-earn (P2E) games is the ability to earn in-game rewards that you can trade in the real world. Think of it as holding in-game assets like utility or non-fungible tokens (NFT). As a result, this business model has become appealing to creators and players.
We’ll take you through how to successfully navigate the P2E industry and what to watch out for. You’ll need a few things to prepare before hitting the play button on your first P2E game. So, here’s our guide to play-to-earn gaming.
What is a P2E Game?
We know the regular gaming industry, where we get the best laptops to handle the high graphics demands of the games. In addition, you’ll buy the in-game resources for upgrades and better standing to survive. That is the model for mainstream games.
With P2E games, you don’t need this upfront startup cost. Instead, you earn as you play them. Depending on the creators, the rewards could be tokens, cryptocurrencies, or NFTs.
Play-to-earn games come with ecosystems, and the earnings help the players upgrade their characters or transact with other players. The more you earn, the more you have to improve your chances in the game. Furthermore, you can trade your in-game acquisitions on mainstream trading platforms.
The blockchain connection
Play-to-earn games are different from your regular ones, such as video poker on SlotsLV or traditional strategy games. Unlike welcome bonuses or recurring crypto promotions on iGaming platforms, P2E games offer crypto tokens throughout the game. The rewards are generated as players complete missions, accomplish tasks, or cross new milestones in the game. However, you need an initial deposit to get these games rolling.
Creators develop P2E games on a blockchain. Hence, you must be a crypto enthusiast to gain the most from them. What would you do with the NFT and token rewards if not to trade them?
P2E games are blockchain-based, meaning you must know how Web 3.0 operates. The more skills and in-game resources you have, the better your chances are of earning more rewards.
The in-game marketplace
These games often start with a main character, and players earn rewards (NFT, tokens, etc.) as they play and go through the storyline. Then, they can trade these rewards for character upgrades.
The trades can only happen within the marketplace. Also, you can interact with other players and exchange your rewards for something else – be it additional items or character perks. You can sell the assets you picked up while playing the game.
Some play-to-earn games provide assets that you trade on mainstream cryptocurrency trading platforms. For instance, a new player wanting to join the game can purchase your in-game assets on a wider platform, which converts your in-game earnings into actual cryptocurrency or fiat currency.
What You Need for P2E Games
There are a few things to put in place before starting P2E games. They include the following:
A crypto wallet will perform two functions for you. First, it’ll store the cryptocurrency you’ll use to purchase in-game assets from other players. This is if you are just starting and want to get ahead in the game.
On the other hand, the wallet will provide storage for your profits after selling the tradable resources. It is an essential component for all blockchain-based applications.
In fact, you can’t dive into play-to-earn games without a crypto wallet, except if you don’t want to bring your earnings into the real world.
Cryptocurrency exchange account
Crypto wallets are for personal storage. However, you need a platform to convert cryptocurrency earnings to fiat currency. Crypto exchanges provide the resources and features for trade.
Let’s say you won some NFTs in the game and sold them off for Dogecoin. The cryptocurrency will remain in your wallet until you exchange it for another or fiat currency.
Fortunately, setting up a crypto exchange account for trading is easy. You can pick from the biggest crypto exchanges, but ensure it is licensed and regulated.
Cryptocurrency or NFT earning?
P2E games could offer crypto or NFT rewards. However, earning NFTs could be better. You can develop them and increase their value before trading them off.
The NFT reward can be land, pet, animal, music, etc. Players can buy in-game assets to upgrade their value in the game. Then, selling for profit will be easier on NFT marketplaces.
Getting it All Together
Playing your first P2E game could be overwhelming, especially if you are not into cryptocurrencies. However, they are simple enough and are more like regular games. The primary difference is in how they handle in-game resources.
Popular P2E games include AXIE Infinity, TAMADOGE Arcade, Calvaria, etc. Some developers offer free entry, meaning you can pick your character and start playing the game. On the other hand, some developers require an upfront purchase of the character.
Whichever is the case, pick your character and start playing. Earn rewards and upgrade your in-game ability. That is often the case with NFT-based P2E games.
Then, you can take the NFT or cryptocurrency rewards to mainstream trading platforms. That is where the real earning happens, as staying in the ecosystem does not give you real-life rewards.