While cryptocurrency may not yet be mainstream, it’s still one of the best ways to build an income stream—especially if you can get it through simple, fun activities like playing games on your computer or smartphone. There are lots of options to choose from, but only one GameFi, which makes earning cryptocurrency effortless as you play your favorite casual games. Here’s everything you need to know about this exciting new way to earn cryptocurrency through gameplay.
What is GameFi?
GameFi is a play-to-earn blockchain game that provides players with economic incentives, combining the words game and finance. By combining cryptocurrencies, non-fungible tokens (NFTs), and blockchain technology, GameFi creates a virtual gaming environment. For many games, rewards are achieved by completing quests, battling other players, and going through levels. Rewards can also be traded off the game through the crypto exchanges and Non-Fungible Token (NFT) marketplaces.
Blockchain, on the other hand, offers an alluring opportunity to reward players in a multitude of ways, such as providing players with profit sharing tokens or allowing them to earn by creating content or acting as a moderator. Not only does it provide opportunities for continuous growth and cash flow but also can give rise to assets that are truly unique. Moving forward, game developers will increasingly be able to offer their users unique experiences that were simply impossible before blockchain technology entered into gaming. And therein lies one of our fundamental goals at GameFi — engaging users from all walks of life in games they love.
How it works
There are various ways to reward players in GameFi, such as cryptocurrencies or in-game assets, such as avatars, virtual land, weapons, and costumes. Each project will have a different model and economics. For the most part, in-game assets are NFTs running on the blockchain. This means they can be traded on NFT marketplaces, but in some cases they must be converted into NFTs before players can trade or sell them.
Certain in-game assets will offer certain benefits to players, giving them a greater chance to get more rewards. However, some games may also offer avatars and cosmetics which have no effect on gameplay or earnings. You can earn rewards by completing tasks, battling other players, or building and managing revenue-generating structures on your plot of land, depending on the game. Some games also allow players to generate passive income without actually playing the game. This is possible through investing in player to player lending and transferring portions of in-game assets to other players.
How to get GameFi cryptocurrency
In order to start earning GameFi, you first need to download the app and create an account. Once you’re logged in, you can begin playing games and completing tasks to earn points. These points can then be redeemed for GameFi tokens, which can be used to purchase in-game items or exchanged for other cryptocurrencies. The more points a player has, the more options they have when it comes to what they want to do with their earned cryptocurrency.
The game is easy to navigate and, like many other apps, allows you to watch videos or complete surveys for bonus points. While these options aren’t necessarily better than playing games or completing tasks, they can be more time efficient. In addition to earning in-game points quickly by watching videos or answering surveys, users can also purchase GameFi with fiat currency if they want quicker access to tokens. Users who want more control over how they earn their cryptocurrency can consider earning additional points through referrals and performing various tasks on social media platforms such as Facebook and Twitter. This will require a little extra work but may also earn players larger amounts of points that can be redeemed for tokens faster.
Digital asset ownership
The use of blockchain technology in gaming means that digital assets are seen as being ‘owned’ by the gamer and can be either sold or made more profitable in many different ways. People that play GameFi will own avatars, pets, houses, weapons, tools, and other assets that can be minted and that can all be done on the blockchain. This provides players full ownership of their assets, authenticity, and a verification process.
Playing games like Decentraland and The Sandbox that center on land ownership and allow players to monetize it, are popular metaverse games. Gaming enthusiasts can develop land in The Sandbox to create revenue. Players can make money by, for example, charging visitors to visit their land, by hosting custom content, or by renting their customized land to other players.
Play-to-earn model (P2E)
At the core of GameFi’s gaming projects, Play-to-Earn (P2E) is a groundbreaking video game system that differs significantly from the usual Pay-to-Play model. In other words, players need to purchase a license or ongoing subscription in order to play video games like Call of Duty. Video games offer very limited financial opportunities to players since they require players to invest resources into the game and then relinquish any rights they may have to these in-game assets. Players are granted full rights to their assets in Player-Owned, Economically Exploited (P2E) games while they also have the opportunity to earn revenue from the game.
Keep in mind that it’s dependent on the model and game design the developers want to employ. In blockchain technology, players should be able to have full control over their in-game assets, but that’s not always the case. Remember to familiarize yourself with the game and its creator before investing time and money into a pseudo-2D game. We should also take note that, in some P2E games, you may have to pay in order to access all the gameplay elements, even if it is free-to-play, which is important to consider when taking risks. If a P2E game has high investment levels with small return on investment, then you are more likely to lose the money you invested initially.