How Can You Earn Money With NFT Games?
In the world of crypto, there are many ways to make money. Trading, mining, staking… But what about gaming? That’s right; you can earn money while playing games! It’s possible thanks to ERC-721 tokens, the standard that is used for most non-fungible digital assets.
In this article, we are going to talk about how you can earn money by playing NFT games (also often called “play to earn games” or “play to earn crypto games”) and what are the best ways to monetize your skills on this new market.
Table of Contents
What are NFT games, and how do they work?
First of all, let’s define what an NFT game is. As we mentioned before, ERC-721 tokens are used to create unique digital assets that can be fungible (ex: ETH) or non-fungible (ex: CryptoKitties).
ERC-721 tokens are all unique because they can be distinguished from one another thanks to their “id.” If you own an ERC-721 token, only you have access to it. This makes it possible to represent in-game items, collectibles, and even rare cards in trading card games.
NFT games are different from traditional ones, thanks to blockchain technology. While you can’t own anything in conventional games, digital assets are genuinely yours on the blockchain. They are truly unique and non-fungible, so they can be traded or used as game items or even as cross-game assets that you can potentially use in other games as well.
NFT games are therefore often based on collecting or creating items. As a result, you will spend most of your time earning tokens, which you will later exchange for other assets or combine to develop new ones.
How can you earn money with NFT games?
Now that you know the basics let’s talk about why playing NFT games can be interesting for you as a gamer.
Perhaps the first reason is that it allows you to make money while playing games – which I think everyone can agree to. But what other benefits are there? There are three ways you can earn money playing NFT games: making tokens, trading items, and staking.
Let’s quickly go over each one of them. You can use different strategies to monetize your gaming skills depending on the type of game you play and the type of item you decide to collect or create. For example, you can check out a game like Solchicks for a great play-to-earn crypto game.
In this case, you will be earning rewards for completing quests or achievements or simply by playing the game. In addition, you can be rewarded with items and tokens.
This often comes down to “farming” in traditional gaming. By farming, you will be repeating specific tasks to earn rewards, which will allow you to progress in the game.
This monetization option is more directly related to your gaming skills since you will be trading your items on an external marketplace. Once you have boosted your avatar or collected many valuable items, you can sell them on the marketplace to other players in exchange for tokens.
The item or character value depends on their rarity, strength, or simply good looks, and it is expected to increase over time, at least for highly-popular games that grow fast. This type of monetization usually comes down to buying low and selling high.
The concept is simple: by locking up tokens or NFTs in smart contracts, you will be rewarded for that with a kind of a passive income you’d get from time deposits in the bank. And the game grows, so does your stake in it.
For example, you can become a wizard in the blockchain game “Etheremon,” and by staking some of your ERC-721 tokens to the game over time, your power will grow within it. This way, you will access more powerful spells or improve your equipment. However, to earn a significant amount of money by staking your tokens, you’ll have to make quite a significant initial investment.
What are the top tips for earning money with NFT games?
I would go with the following list of advice:
1. Look for the already popular games, have a good community, and are growing fast. It will be easier to monetize your skills on these games.
2. Get high-level characters or rare items within those games to either sell them on an external marketplace or make use of them inside the game itself (staking).
3. You can also try having fun with your items, combining them, or looking for rare combinations to make them worth more.
4. If you are still playing the game, it means that you are enjoying it even if you are not monetizing it right away – at least you have a chance to earn something in the future!
Are there any risks associated with earning money with NFT games?
There are some risks with NFT games, but they’re all easily avoidable if you’re not being completely careless. Here are some of them:
– You can lose your NFTs by sending them to the wrong address or getting hacked. So you should especially look out for malicious smart contracts.
– If you are gaming on a decentralized app, there is no guarantee that they will stay popular and successful over time. Your items and characters may lose value if you don’t sell them at the right moment.
– Your account could be banned if you break the game’s rules or try to manipulate it somehow. Don’t use bots for farming in-game items or trying to cheat in any other way.
The best way to keep your NFTs safe is to use a hardware wallet such as the ones made by Trezor and Ledger. It’s similar to how you would store cryptocurrencies, and you shouldn’t put all of your eggs in one basket (which would be your PC, laptop, or phone).
The NFT game industry is still in its infancy, and it’s hard to predict how big the market will grow. However, one thing that we know for sure is that if you’re interested in this type of gaming or simply want to make some extra cash, there are plenty of opportunities out there waiting for you. So just pick your game, sit back, relax, and see for yourself.