Gamers like to play games, but such a hobby is expensive. So how about earning some money on the side while playing? This business proposition is alluring to millions of people worldwide. Some people even made a career out of it. However, many experts believe that it’s a dangerous market, riddled with scammers and people who are willing to grab your cash and leave. The play-to-earn market is a new business model where you can earn cryptocurrencies while playing. It sounds good on paper, and the market is undoubtedly growing, but competition is fierce, and starting investment costs are increasing. So how did this business model start, and how can you get started in it?
The Play-to-earn Model
The play-to-earn model got its roots in free-to-play models, in which people can play a game for free and earn in-game assets that they can trade with others. In this case, play-to-earn games use blockchain and cryptocurrencies instead as digital assets that players can trade with one another.
The most common play-to-earn model is when the developers tokenize cryptos, and players can earn it the longer they play a game. Moreover, they can earn these tokens through various processes that engage players. For example, some tokens can be earned through trade and other in-game options. In some games, players are even free to trade these tokens.
There are many options to earn from these games. First is gaining cryptocurrencies in the game and converting them to cash through investments and third-party brokers. Another option is to keep cryptocurrencies for yourself and use them in real-life shops. Did you know that Starbucks is now accepting Bitcoin? So there are a lot of opportunities to use cryptocurrency in real life now.
The play-to-earn model looks excellent and alluring, especially if you’re a gamer. But take caution because it’s a highly unregulated environment.
Cryptocurrencies and play-to-earn games can be scams, and this is something that people are wary about. Quite recently, a scam from a cryptocurrency known as ‘Squid’ (from the hit show ‘Squid Game’) was divulged to the public. People who invest in this crypto can’t resell it, making it hard to invest. It’s estimated that the developers of this crypto got away with more than $3 million.
With this in mind, experts believe that people who enter into cryptos and play-to-earn models need detailed knowledge of the market. They should also know what they are getting themselves into, as younger audiences might be allured into such a market using their parents’ money.
A Highly Competitive Market
Another problem is that the market is very competitive. The current rise of play-to-earn games has brought in people worldwide to invest in such a market. What used to be a niche market is now filled with amateur investors and gamers from all sorts of lives.
A highly competitive market is problematic, especially when it relies on tokens. The ecosystem gets flooded by new players and their money, which can decrease the value of the in-game tokens, or in some situations, increase it drastically so that only players with a sizeable amount of money can enter it.
It’s quite common to see people lose money from this model. Moreover, it’s becoming all-too-familiar to see people lose everything in such an investment. However, many also made a career and living out of play-to-earn games. So how can you get started?
Choosing the Right Play-to-earn Game
There isn’t a right play-to-earn game. With so many in circulation right now, you can choose something that fits your daily enjoyment. However, if you want to earn the big bucks, you’re also going to need to choose a game with a decent number of people.
Games such as Axie Infinity are a great choice for you, but entry costs are around $500 right now and rising. There are also play-to-earn MMORPGs such as Infinite Fleet. However, this requires you to have a decent gaming PC to play. That’s an investment in itself, and if you’re a gamer, there’s a good chance that you have one ready.
Knowledge Is Power
Once you’ve chosen the right game for you, it’s time for you to do your research. Don’t use your hard earn money just yet. Know about the game’s economy and ecosystem. The main things you should look out for are how you can earn tokens and how you can trade with others.
For example, in Axie Infinity, you can breed monsters that you can then sell to others. You can also use them to fight, where you can earn some tokens and some experience for your Axies. You can earn as much as $1 million on a single Axie trade if you’re experienced enough. Once you know your market, you can start your game plan.
Once you have your game plan, convert your cash into cryptocurrency and get into the game. It sounds simple, but it requires you to be smart about your investments beforehand.
Remember that there is an excellent chance to lose money in the play-to-earn market, just like any investment. But if you start wisely, you can earn a decent profit by playing these games.