Are you a gaming enthusiast looking for an exciting approach to gaming that can also earn you rewards? If you’ve heard of crypto gaming but you’re unsure of what it entails or how it works, then you’ve come to the right place. This all-encompassing guide to Crypto Gaming will cover everything you need to know about this revolutionary new trend.
In this guide, we’ll explore the world of Crypto Gaming, from the basics of what it entails and how it operates, to getting started, the pros and cons of crypto gaming, the best crypto gaming platforms, tips on how to earn money through crypto gaming, the challenges and future of this remarkable industry. Let’s dive in!
What is Crypto Gaming?
Crypto gaming is a new trend that allows players to earn digital currency by playing games. The most popular business models are play-to-earn (P2E) games and prediction-based games. In P2E games, players can earn money by selling in-game items, completing tasks, and interacting with other players. Meanwhile, prediction-based games allow players to bet their digital assets on casino games.
There are many opportunities for gamers to earn money through crypto gaming. For example, some game developers encourage users to purchase tokens early on and then sell them for a profit as the game becomes more popular. Players can also earn money through advertising or by selling in-game items such as virtual land plots, weapons, avatars, and more.
To earn rewards, players must complete tasks that involve interacting with the game and other players. Blockchain technology is used to keep track of all transactions securely and transparently. Gamers have complete ownership and control over their digital assets.
Participating in crypto gaming not only allows players to enjoy playing games but also to earn valuable digital assets.
How does Crypto Gaming Work?
Crypto gaming has some similarities to traditional gaming, such as the ability to use fiat currency to purchase in-game money/ assets and the chance to collect items and level up. However, crypto gaming still differs from God in so many ways.
In Crypto Gaming, players get to collect digital assets like weapons, property, and other cool items that help them advance in the game. They can earn these items by completing quests and challenges, or they can buy them on some NFT marketplaces. These items can range from character skins to in-game currencies that let players customize their characters with new clothing and equipment.
Developers frequently encourage gamers to spend more time playing their games by rewarding them with cryptocurrency or NFTs for completing tasks or quests within the game. These tasks are usually straightforward and may involve tasks such as defeating a set number of enemies or collecting a specified amount of in-game resources.
In addition, there are other crypto gaming platforms that provide various ways for crypto investors to participate in games of chance, including casino games. Some of the popular ones are Bitcasino, and sportsbet.io, each offering a variety of different games for players to enjoy.
Besides, you can even sell or trade your game assets on decentralized marketplaces like OpenSea or Rarible. However, as with any investment, it’s essential to understand the risks involved and do your research before diving into the world of crypto gaming.
What are the Key Features of Crypto Gaming
Crypto gaming is a relatively new and quickly emerging branch of the gaming industry that integrates blockchain technology and cryptocurrencies into video games, providing several unique features that distinguish it from traditional video games.
One of the most notable features of crypto gaming is decentralization. Because they are built on blockchain technology, crypto games are transparent and decentralized, meaning there is no central authority controlling the game and all transactions are recorded on a public ledger. This guarantees that in-game assets are genuinely owned by players and cannot be duplicated or stolen.
Interoperability is another key aspect of crypto gaming. Games that adhere to open-source standards can interoperate with each other, allowing players to utilize their assets across different games and even trade them on decentralized marketplaces.
Play-to-earn is also a unique feature of crypto gaming, providing an opportunity for players to earn cryptocurrencies by playing games. This allows players to monetize their gaming skills and have fun while making money.
Community-driven development is another characteristic of crypto gaming. Developers typically prioritize player feedback and engagement, resulting in a more collaborative and inclusive gaming experience.
Finally, transparency is a fundamental characteristic of crypto gaming. Transactions in crypto games are transparent and publicly verifiable, ensuring that there is no cheating or fraud in the game.
Some of the popular crypto games
Here are some examples of popular crypto games:
Bitcasino: Bitcasino.io is a popular online gaming platform that was established in 2014, and it is one of the first licensed online crypto casinos. It offers a variety of games, including slots, table games, and live dealer games, from some of the leading game providers in the industry.
Sportsbet.io: Sportsbet.io is a cryptocurrency sports betting platform where users can place bets on various sports events using Bitcoin, Ethereum, and other popular cryptocurrencies. The platform offers a wide range of sports, including football, basketball, tennis, esports, and more, with competitive odds and a user-friendly interface.
Axie Infinity: This is a game that allows players to collect, breed, and battle creatures called Axies. Players can earn the game’s native cryptocurrency, Axie Infinity Shards (AXS), and trade their Axies on various marketplaces.
The Sandbox: This game allows players to buy and own virtual land, create game experiences using their imagination, and monetize their creations using the SAND cryptocurrency.
Decentraland: In this game, players can own and develop virtual real estate using the MANA cryptocurrency. They can also participate in various activities such as games, events, and social gatherings.
CryptoKitties: This game allows players to collect and breed virtual cats called CryptoKitties. Each CryptoKitty is a non-fungible token (NFT) that can be bought, sold, and traded using the Ethereum cryptocurrency.
Advantages of Crypto Gaming
The integration of blockchain technology and cryptocurrency into the gaming industry has brought about increased player engagement and a range of benefits, including:
The security features of crypto games are what sets them apart. They allow players to easily protect their earnings and withdraw their deposits at any time, even after the game has ended.
Amazing Earning Potential
Crypto gaming offers players the chance to earn money while enjoying their favorite games. The more they play, the more in-game items they can collect. These in-game items can then be traded for crypto or real currency. This creates a legitimate opportunity for passive income through cryptocurrency.
Cost-Effective and Private Transactions
Unlike traditional payment methods like credit cards or bank transfers, cryptocurrency transactions do not have hidden fees, and the transfer of money is instantaneous. By using cryptocurrencies in online games, players can avoid unnecessary and hidden fees since it is a peer-to-peer transaction between users, eliminating the need for middlemen. Additionally, cryptocurrency purchases are private, and players can choose not to share their transaction history.
True Digital Ownership
When players acquire a digital asset in a crypto game, they have full ownership of that asset. This ownership is tied to the player, rather than the game itself. In traditional games, players often experience buyer’s remorse because the game devalues their previous purchases, making them feel cheated. However, in crypto games, players don’t have to worry about losing their assets if the game shuts down. This gives players true ownership of their gaming experience.
Traditional games are centralized, meaning that the developers are in control and make the rules for players. However, in blockchain gaming, players have a say in the development of the game. Many games introduce “governance” tokens that give players decision-making power. If a majority of players vote for a change in the game, the developer will be forced to make the change. This introduces a level of democracy that is not present in traditional games.
Disadvantages of Crypto Gaming
Crypto gaming, also known as blockchain gaming, is a type of gaming that incorporates blockchain technology to allow players to store and trade game items as digital assets. While this technology has several benefits such as increased transparency and security, there are also some disadvantages to crypto gaming.
Barrier to entry
One of the major drawbacks of blockchain gaming is the high entry barrier. In many pay-to-earn (P2E) games that employ this model, players must purchase an NFT before starting to play. Furthermore, popular games may require players to spend money to progress. Although players can earn digital currencies during gameplay, the time and effort involved can make it inconvenient for most.
Despite the high security offered by blockchain technology, any platform that holds private crypto tokens or Ethereum keys is vulnerable to hacking and other malicious activities. Furthermore, identifying and tracking these users after security breaches or cyberattacks is difficult due to the anonymity of blockchain technology
Gaming is often developed around earning not fun
Crypto gaming has often been criticized for its gaming mechanics, which prioritize earning over fun. Some argue that developers may prioritize the game’s economic model over the aspects that make it enjoyable. This could result in a player having a difficult time unlocking an in-game item, making the experience exhausting and detracting from the fun of earning it. Ultimately, this goes against the very purpose of playing a game, which is to have fun.
The instability of the cryptocurrency market can greatly affect the economy within crypto games, creating a challenge for players to determine the accurate pricing of in-game items. As a result, players who invest in digital assets may experience significant losses.
Slow adoption rate
The growth and acceptance of crypto gaming are still in their early stages. Although there are several crypto games accessible, they have not yet gained widespread popularity. This could pose a challenge for game creators to earn income from crypto games and could restrict the overall expansion of the crypto gaming industry.
How to Get Started with Crypto Gaming
Here’s how you can get started with crypto gaming:
Create A Crypto Wallet
Cryptocurrency wallets allow you to connect with game marketplaces to buy and sell game assets. It’s also a safe place to keep your game rewards.
Here’s how to set up your wallet:
- Download your preferred crypto wallet app
- Create a free account
- Ensure to write and keep your private key: this is presented in the form of a 12-word or 24-word phrase. Ensure that it is kept in a safe place. You won’t be able to access your crypto if you misplace or forget this seed phrase.
- Transfer crypto from your exchange into your crypto wallet. Note: when buying crypto with a non-custodial wallet, you may not be able to use fiat currencies (such as US dollars or Euros), so you will have to transfer crypto from another location. Follow the on-screen instructions on your crypto app to deposit successfully.
- Your crypto will arrive in your wallet and ready to use to interact with crypto gaming platforms.
Sign Up Or Download a Crypto Game
Crypto Games can be played on their designated websites or apps. So sign up for a free account on your preferred crypto gaming platform. Some of the gaming platforms you can join are Battle of Guardians, Plant Vs. Undead, Defi Kingdoms, MetaWars, Axie Infinity, Bitcasino, and Sportsbet.io.
Purchase In-game assets
Depending on the game of your choice, you might be required to purchase in-game assets. Buying assets for your game, which is often in the form of NFTs, is relatively simple. Once you have a compatible wallet, you can access your NFT collection through a crypto game platform or a Web3 wallet like Metamask.
When buying an asset in the marketplace, you’ll typically be required to pay a buying price and a gas fee. The gas fee is a small fee that is necessary to finalize the transaction on the blockchain. This fee is distributed to validators, which are computers in the network that help to ensure the blockchain runs smoothly.
The buying price is usually divided into two parts: a portion goes to the game developers as a percentage of all transactions in the marketplace, while the largest portion is given to the creator of the asset.
Join a Guild
Some crypto games can sometimes require a significant investment, which can be a barrier to entry for many players. To address this issue, groups of players have formed Guilds. These are groups of users who pool their resources and rent out assets using smart contracts on the blockchain or other private methods. This allows players to participate in the economy without having to make a significant upfront investment.
Renting assets can be a more affordable option in the short term, but players should be aware that they may lose ownership and income in the long run. To mitigate this risk, players who cannot afford to purchase NFTs upfront can start as renters, or “scholars,” and work their way up by playing the game. In this way, everyone has the opportunity to participate in the game’s economy, regardless of their initial investment.
Advance In Rank, Level, And Stage
Depending on the type of game, particularly in play to earn games, you will have to climb through the hurdles of different stages, have a weapon upgrade, fight little battles, improve beyond ranks, and be victorious in battles against villains to progress in the game. The amount of tokens you receive for completing each of these tasks is determined by the difficulty of the level, rank, battle, and/or villain. After earning the minimum number of game tokens required in the game, you will be able to withdraw the tokens to your crypto wallet.
Top Crypto Gaming Platforms
Here are some of the top crypto gaming platforms to interact with:
Bitcasino is a leading online gaming platform that was established in 2014. It operates under a license from the Government of Curacao and is owned and operated by mBet Solutions NV. Bitcasino has received a lot of positive reviews from existing users over the years Here is a detailed overview of Bitcasino.com, including its features, pros, and cons:
Bitcasino offers an easy-to-use platform with a user-friendly interface and an intuitive design. Its layout includes a light and dark mode which enhances the gaming experience. There are over 1800 games available from top gaming developers on the site. You can start with the natural or demo mode.
The platform also supports multiple languages, including English, Dutch, and Portuguese, as well as various payment methods.
Pros of Bitcasino
- It has a good reputation.
- It has a wide variety of games for everyone, including slots, table games, and live casino.
- Users can fund their accounts with a variety of crypto methods.
- Access to various exciting promotions and tournaments
- Helpful live chat customer support.
Cons of Bitcasino
- Live chat is available only for registered users.
- Sports betting odds are lower compared to industry standards.
- No welcome bonus for new users
Sportsbet.io is a widely recognized online sports betting platform that was founded in 2016. It has garnered a significant following due to its fast and reliable services, transparent betting policies, and enjoyable betting experience. Users can select from a wide range of live events, diverse betting options, and competitive odds. Additionally, the platform provides appealing promotions that attract both new and loyal customers.
- It has a user-friendly interface that allows for easy navigation and ease of use.
- Instant cash-out options are available for players who wish to withdraw their winnings.
- It supports deposits in the form of cryptocurrencies such as Bitcoin, as well as a few traditional fiat currency options.
- Promotional offers and bonuses are offered to incentivize players and add more value to their experience.
- It allows users to transact in a wide range of currencies, including both fiat money and cryptocurrencies like Bitcoin.
- Players are offered attractive and competitive market odds to place bets on.
- It supports instant cashing out, enabling users to withdraw their winnings easily.
- Users can access a live-streaming service to watch the sports events they have placed bets on.
- In addition to other rewards, users enjoy a price boost for betting on different sports.
- The live chat feature is exclusively accessible to players who have created an account on the platform.
- There is no dedicated iOS app available for download.
- The bonus system differs from the standard format typically used on other platforms.
Axie Infinity is an exciting blockchain-based game that is set in a digital world where players can collect cute and unique creatures called Axies to engage in battles with other players. The game, designed by Sky Mavic, provides a diverse range of entertaining experiences, such as constructing kingdoms, breeding and raising Axies, as well as competing in thrilling battles.
- Axie Infinity allows players to breed, train, and trade virtual pet creatures called Axies.
- It has an Arena mode where players can compete against each other to win cryptocurrency rewards for winning matches.
- Players can earn Smooth Love Potion (SLP) tokens.
- It has a thriving gaming economy
- It has an active and lively community
- It has a scholarship program that offers players free Axies and a share of the rewards they earn while playing
- High volatility of SLP tokens
- Periodic scamming incidents
The Sandbox is a popular cryptocurrency play-to-earn game that offers a unique combination of creativity and the ability to earn money. It is a multiplayer metaverse game that enables players to earn money from gaming with non-fungible tokens (NFTs). The Sandbox was created by Pixowl in 2011 to introduce people to blockchain technology through the world of virtual gaming.
- You can create many multiplayer gaming experiences
- Supports gamers to develop and build infrastructures on Sandbox lands
- Users can host virtual concerts and events
- Supports the creation and trade of voxel art
- Players have the liberty to design and create their virtual world as they want.
- Players can create and trade voxel art assets
- The game has impressive community interaction
- The utility token, SAND, has limited use outside the game
- New players may find it challenging to start playing the Sandbox game
- There’s a high possibility of finding scammers in the game
Battle of Guardians
The Battle of Guardians is one of the top NFT multiplayer games. This game, which was developed using Unreal Engine, consists of real-time epic battles and offers rewards to players for completing quests and winning tournaments.
- Real-time multiplayer battles
- NFT Synthesis, which allows the fusing of two characters into a stronger character
- Players can access scholarships to play for free and earn rewards
- It has several game modes to make the game interesting.
- Has an NFT marketplace for trading characters
- Offers a wide range of unique characters to choose from
- Allows NFT renting, which creates a source of passive income for players
- Players can combine NFTs, to create new and more sophisticated NFTs
- Some players may find the gameplay to be repetitive or limited in scope,
- There isn’t a detailed roadmap to show the game’s future development.
How to make money with crypto gaming
Crypto gaming allows players to earn digital assets while playing games, which can be converted into crypto or fiat money. Here are some effective strategies for making money from crypto gaming :
Trading In-Game Assets
One great way to generate income through crypto gaming is to trade in-game assets with other players. Several crypto games offer players the option to trade various in-game assets, such as armor, weapons, and skins in-game or NFT marketplaces.
To be profitable in this, you must have a comprehensive understanding of the game’s economic model and the value of different game assets. You will also need to identify trends and opportunities in the market, be willing to take calculated risks, and make informed decisions.
Participating in Tournaments and Competitions
Several crypto games host tournaments and competitions where participants can win cryptocurrency prizes. If you excel at these events, you can earn cryptocurrency and gain recognition in the gaming community. However, to be successful in these tournaments, you must be proficient in the game, capable of competing at an advanced level, and able to manage your time wisely while balancing gaming and other commitments.
Playing and Earning the in-game currency
Most blockchain games come with a virtual currency that can be exchanged for other cryptocurrencies or cashed out. For instance, Axie Infinity is a crypto game that uses Smooth Love Potion (SLP) as its in-game currency and as a breeding item for characters. Whenever you play Axie Infinity and emerge victorious from battles against the characters known as Axies, you earn SLP, which you can convert to another crypto or cash out.
The gameplay requirements of some crypto games vary. Some games like CryptoBlades, Splinterlands, and Axie Infinity require active player engagement in battles to earn rewards, while others such as Bomb Crypto’s Treasure Hunt mode require players to activate the game mode, after which the in-game characters do all the work to complete the level.
Breeding Game Characters
Crypto gaming offers more than just battling with other players/ characters – players can also earn passive income through breeding. Breeding in this context refers to creating a new asset that can be used within the game. A popular example of a breeding and collecting game is CryptoKitties, where players can pair a male and female NFT cat and breed them to create new cats that can be sold on NFT marketplaces. The newly bred cat inherits features from its parents and its attributes are influenced by its generation, which determines its value in the game.
Staking involves locking your tokens to receive rewards, and during this period, the tokens are available for other users to trade. This process occurs for a specific duration, known as epochs, and after completion, you earn rewards, mainly transaction fees.
Several crypto games have staking pools, like DeFi Kingdoms, where players stake tokens such as JEWEL in the Gardens to receive JEWEL emissions. Players unlock more rewards as they move through epochs. If you remove your staked tokens before the epoch is over, you miss out on rewards. Additionally, there is a risk of impermanent loss if the token’s value decreases while staked, meaning staking tokens does come with some risks.
The Challenges of Crypto Gaming
We have all seen the amazing benefits of crypto gaming and how to make money with it. Let us now consider some of the challenges of crypto gaming that could impact the longevity of this industry.
Crypto gaming has been in development for years, but it still lacks the speed and sophistication that gamers are familiar with in traditional video games. Speed is a fundamental issue that must be addressed to scale up the emerging industry and bring it up to par with its traditional counterparts.
While blockchain games currently offer limited activities such as asset creation and trading, traditional video games have achieved incredible levels of complexity and sophistication. If the blockchain gaming industry fails to keep up, it may not be sustainable in the long run. The uncertainty surrounding regulations further complicates the situation, making it more challenging to overcome this challenge.
Another notable challenge with crypto gaming that must be addressed is scalability. For crypto games like Axie Infinity or CryptoKitties with hundreds of thousands or even millions of users, a huge transaction processing capacity is required. However, when CryptoKitties was first introduced on the Ethereum blockchain, it attracted so many players that the entire system came to an immediate halt. Despite various improvements in the gaming platform, there is still a possibility of a recurrence of such event.
Many crypto games rely heavily on crowdfunding efforts as their foundation. As a result, it’s important to constantly attract and engage users to keep the platform running. However, introducing traditional gamers to crypto gaming can be a challenging process. This is because most, players have to integrate the Metamask Chrome extension, create an address, register with an exchange, and purchase cryptocurrency before they can begin playing. To scale crypto gaming to a wider audience, developers must seek innovative ways to make the gaming experience less unusual for new gamers.
The crypto gaming market has suffered from some significant security breaches recently, and this is likely to negatively impact users’ views of it. One of the notable recent ones was the Ronin bridge hack, which resulted in Axie Infinity players losing over $600 million worth of cryptocurrency. Additionally, a rug pull worth $3.5 million occurred in a crypto game known as Dragoma.
The rules around using cryptocurrencies and blockchain for gaming are still unclear and evolving. This means there is a risk that regulators may intervene and limit or ban the use of cryptocurrencies for gaming purposes.
The Future of Crypto Gaming
As blockchain technology becomes more mainstream and accepted, we can expect to see more widespread adoption of crypto gaming. This could lead to more investment in the industry, as well as a wider variety of games and platforms. Blockchain companies, like Solana and Polygon, are already investing in early-stage crypto games that incorporate decentralized finance (DeFi) into their systems. This investment surge has resulted in a significant increase in funding for crypto gaming platforms, with 128 companies receiving $1.2bn in investments in the first quarter of 2022, according to a report by Drake Star Partners
Furthermore, as crypto games like CryptoKitties, Etheremon, and Etherbots gain more popularity among everyday gamers, we can expect to see improvements in user experience. Developers will likely work to simplify the complex aspects of crypto gaming, making it more accessible to a wider audience. We could also see the addition of new and improved features like AR and VR to games to enhance the gaming experience.
To succeed in this rapidly evolving terrain, crypto game brands will need to create interesting gaming experiences for various platform types, while also offering players NFTs that promote interoperability and trading. By introducing new crypto games with good wallets, brands can attract and empower more gamers while giving them greater control over their digital identities
Crypto gaming is an exciting and innovative development that blends traditional gaming benefits with the security, transparency, and decentralization of blockchain technology. It offers players a unique and engaging way to play, trade, and earn rewards and has the potential to completely transform the gaming industry.
Despite facing challenges such as regulatory uncertainty and complexity, the future of crypto gaming is optimistic. As blockchain technology continues to evolve and gain mainstream acceptance, we can expect to see even more groundbreaking advancements in the crypto gaming space. This rapidly growing industry presents an opportunity for gamers and investors alike to explore and take advantage of its potential benefits.