What Is Crypto Gaming?
The global video gaming industry has turned into a billion dollars industry, and it is just a matter of time before cryptocurrency becomes a great deal in the online gaming industry. A handful of online games have already integrated cryptocurrencies to carry out gaming economics. Therefore, understanding what is crypto gaming is a topic of concern for many crypto and gaming enthusiasts.
Play to earn (P2E) is a phenomenon that has gained popularity as cryptocurrencies have taken the world by storm. Like the financial system, the gaming industry also needed fresh air to keep it going upward. Cryptocurrency has emerged as the best source to keep the gaming world alive.
Crypto games is a term attributed to such games which have a connection to blockchain technology. For instance, metaverse and NFT games based on the P2E model are the perfect examples of crypto games.
Let us further explore and learn what is crypto gaming.
Crypto Gaming Introduction
Although video gaming money is an age-old concept, it was always a challenge for players who do not have bank accounts. Generally, such users were unable to collect their winning money.
However, the advent of blockchain technology has created opportunities for e-gamers to enjoy playing games and gather their winnings hassle-free in cryptocurrencies of their liking. Thus, online games have added an element of real-world economics.
Crypto gamers can gather rewards in NFTs (non-fungible tokens) or cryptocurrency by playing and winning tournaments, while these digital assets become the winner’s property.
Moreover, gamers can exchange their digital tokens with stablecoins like USDC through decentralized or centralized cryptocurrency exchanges. Then, users can convert these stablecoins into fiat money.
How Does Crypto Gaming Work?
Crypto gaming has multiple business models, and each has made enormous success globally.
Regarding developers’ income, they generate revenue through advertisements and in-game sales of items like skins, weapons or virtual lands.
The developers, in return, incentivize players on the platform by paying them in NFTs or crypto. Since these games are highly immersive and addictive and require players to play individually or form teams to compete against others, each team or individual is rewarded when they complete a quest or win a certain tournament.
Similarly, other platforms offer ways for investors to gamble on their platforms. Usually, these platforms have casino-related games, for example, BitStarz, MBitcasino etc.
Top Crypto Gaming Tokens
Global gaming is worth more than $12.8 billion, as per CoinMarketCap. Although many of these tokens offer utility limited to in-game purchases, some have real-world value.
Here are the top crypto gaming tokens ranked in terms of market capitalization.
- ApeCoin (APE)
With a market cap of $2.23 billion, APE is the most valuable gaming token. It is the native token of the Bored Ape Yacht Club, a collection of NFTs created on the Ethereum blockchain.
With increased popularity, many third-party developers have also incorporated APE in their e-games, thus adding significant value to the token. For instance, players of Benji Bananas can earn coins and swap them with Apecoin.
- Decentraland (MANA)
MANA is a token of the Decentraland virtual world built on the Ethereum blockchain. Users can trade virtual real estate by interacting with others and playing games on the platform.
Moreover, players can use in-game NFTs through MANA or exchange them for in-game products and services. MANA’s market cap is more than $1.8 billion.
- Sandbox (SAND)
The market cap of SANS is estimated at $1.6 billion. It is another metaverse running on the Ethereum blockchain. The Sandbox offers users an option to purchase and sell plots known as the LAND.
Earning Money with Crypto Gaming
The crypto gaming industry is huge that in-game rewards seem to be a small paycheck. Such in-game purchases of plots and weapons may seem like small rewards, but they can become a million-dollar worth of belonging in the real world.
For instance, DMarket is an online marketplace selling NFTs worthy of millions of dollars. Just like crypto stocks, crypto gaming rewards are also expected to swell in value in the future.
Thus, experts tip it is the right time to enter the crypto gaming space and earn in-game winning rewards while saving tokens for future sales at higher prices.
Crypto Gaming Risks
However, all is not glitter; crypto games have their share of risks that are always associated with cryptocurrency.
The following are a few risks linked with crypto gaming.
- Crypto gaming is subject to demand and supply mechanics. For instance, if players abandon any game, it will lose value, and thus in-game purchases and currency could become worthless.
- High volatility is another major risk associated with crypto gaming. Hence, players cannot measure their earnings with certainty.
- Hacking and scamming is also risk when it comes to online games. Many platforms have experienced hacking incidents and lost millions to such threats.
Frequently Asked Questions
What is the difference between crypto gaming and blockchain gaming?
Blockchain gaming primarily focuses the censorship resistance, ownership and decentralization. In contrast, crypto gaming is more inclined to rewards related to players.
What is crypto gaming?
It is a decentralized version of traditional e-gaming, where winners are rewarded with NFTs and cryptocurrencies.
What are the best crypto games?
The following are a few famous crypto games.
- Axie Infinity
- The Sandbox
- Ember Sword
What is crypto gaming? Is this a question heavily asked in the crypto space? However, it is a relatively new concept but has already gained popularity among the e-gaming community.
Since winning money from e-games is not easy, traditional financial systems do not support such transactions. However, cryptocurrency has adopted e-games as its extension by supporting easy payments on rewards and in-game purchases.
Moreover, it has already become billion dollar industry. The P2E concept has vastly gained acceptability as it rewards players through cryptocurrencies and NFTs.
However, a few risks are associated with crypto gaming, like high volatility and demand-supply mechanics. Imagine if players abandon any game, its value will decrease, so purchases made by players will also lose valuation.
In short, crypto gaming is the future of e-gaming.
Please leave feedback in the comments section, and let us know your favorite crypto game.