Crypto gaming can lead to a very lucrative passive income stream for you. All you have to do is educate yourself on it and get started the right way. Let’s help you get started.
What is Crypto Gaming
Crypto gaming also known as GameFi is one of the exciting new trends in crypto technology combining decentralized finance (DeFi), non-fungible tokens (NFTs), and blockchain-based online games.
A list of crypto games to watch in 2022 has been curated by me and you can read it here.
A majority of people these days find numerous ways to make passive income to supplement their regular 9 – 5 salaries. Some move towards the direction of freelancing, dropshipping, or affiliate marketing. While these are all very lucrative means, making passive income with crypto gaming is much easier and a lot more fun.
Let’s go a little further. Crypto gaming counterpart traditional online games operate on a “pay-to-win” model. What this means is that players are allowed players to win, lose, or in other cases, purchase upgrades in order to gain an advantage over others. The only benefits of traditional online games are in the game itself. Sometimes if you’re really good, you get to play in very competitive tournaments where the chances of you winning are slim.
On the other hand, GameFi introduces a “play-to-earn” model. Here, the play-to-earn model gives players rewards in different forms. Games payout rewards as an in-game cryptocurrency, as NFTs, and in some cases a combination of both. Additionally, these rewards can also serve as investments that when held, sold, or traded externally in a secondary market.
In some rare cases, players can earn popular currencies for their play. Some GameFi concepts include crypto betting sites, arcade-style games, and interestingly, DeFi Pet games. Here, wealth is distributed to players according to their skill, dedication, and time invested.
Why did crypto games happen?
Traditional games left no room for ownership even after a player spends a large amount of money on bets, skins, weapons, upgrades, etc. As mentioned earlier, only 1% of players actually earn consistently. And this cuts across betting, arcade, and other types of games.
Whereas in a crypto game, the user has the opportunity to own the items that are acquired during progress in a game. These are called NFTs (non-fungible tokens) and the ownership of these assets is a result of the blockchain. In cases like crypto betting, players can earn in-game tokens whether they win or lose. Since such games are developed on blockchain networks, all the connected computers have access to the same amount of information (all of it), decentralizing the control over information, giving equal powers and controls to the players and creators.
This concept involves giving players financial incentives to play and progress through games. In some cases, this has allowed gamers to earn a full-time income by doing so.
Here are ways you can earn too.
How To Earn Passive Income from Crypto Gaming?
There are a number of ways players can earn money from crypto gaming and here are a few:
The concept of crypto gaming is called “play-to-earn” for a reason. You actually have to research, learn and participate before you can begin to earn. Games such as Axie Infinity have seen the largest number of earners in 2022 and it’s never too late to start. Participation is key. If you’re skeptical about joining an already established platform and want to join one from the ground up, there are a lot of platforms just starting that you can jump on.
By Staking and Holding
Some games like Scorefam also include DeFi elements such as staking and holding. Staking is the process of committing your cryptocurrency and making plays on a particular network. And holding or HODLing, meaning hold on for dear life in crypto lingo is simply where players can lock away certain tokens in order to earn annual interest and other rewards.
By Trading and Selling
In the case of NFT infused gaming, players can easily prove ownership of their in-game items and either trade or sell them in exchange for other NFTs, the cryptocurrency of fiat currency.
Mos crypto games have their underlying cryptocurrency already up in the open market. So a cool way to make the big bucks is by researching and investing in these currencies. And as user adoption increases, so does your investment.
Benefits of Crypto Gaming
Asset Security and Safety
With a majority of crypto games, there is usually no single point of failure, meaning players will no longer be at risk of losing track of what they own if the underlying gaming company experiences technical issues. Also, Items such as Tokens and NFTs acquired during gameplay cannot be counterfeited, removed, or destroyed. Instead, with the growth of the underlying gaming company, your assets will increase in value
Asset Growth and Transparency
Most cryptocurrencies allow you to see a profit when you buy and hold over a certain period of time. Also, game-native cryptocurrencies can be sent and received without the need for intermediary settlement, clearing, or custody.
To Sum it all up, like any passive income, a person must have knowledge of the industry. This is acquired by simply doing your own additional research. You can do this by examining the crypto games’ website, reading their whitepaper, interacting in their community on socials such as Discord and Twitter. Additionally, time and dedication is also an element of a lucrative passive income crypto gaming earning. To see significant growth in any passive income much commitment and man-hours towards your intended goal is key.