Play-to-Earn: What It Is and How to Cash Out
article-286

Play-to-Earn: What It Is and How to Cash Out

The emergence of play-to-earn games presents users with an opportunity to engage in activities that yield both cryptocurrencies and NFTs, which can subsequently be sold on the market. By actively participating in these games, players can amass additional items or tokens to generate income, to the extent that some individuals have even begun supplementing or replacing their traditional salaries through their involvement in these blockchain-based games. As always, it’s important to remember that engaging in such activities carries a certain degree of risk, as it typically entails an initial investment to acquire characters and items necessary for gameplay.

Basics

The use of blockchain technology plays a crucial role in ensuring the uniqueness and collectibility of virtual assets earned in gaming, thereby facilitating the establishment of functional digital economies. By leveraging the capabilities of blockchain and NFTs, the creation of non-duplicable digital items became possible, consequently introducing the concept of digital scarcity.

When it comes to converting your gaming earnings into tangible value, the process generally involves depositing your NFTs or cryptocurrencies into an NFT marketplace or exchange. While directly converting them into fiat currency is unlikely, a prudent approach is to first sell them for a stablecoin.

Once you have successfully sold your NFTs or tokens, you can proceed to convert the obtained stablecoin into your preferred fiat currency and subsequently withdraw it using the available channels compliant with the regulations of your country.

The Principle of Play-to-Earn

The evolution of blockchain games has witnessed a remarkable progression since the days of trading basic NFT collectibles like Cryptokitties. Today, an enticing opportunity awaits, allowing anyone to earn monetary rewards through the act of playing crypto games, irrespective of possessing the most coveted NFTs in their wallets.

The notion itself holds great appeal, considering the scarcity of opportunities within traditional video games to generate real-world income by selling digital assets. Thanks to the emergence of play-to-earn games, users are now empowered to profit within the realm of cryptocurrencies, introducing a novel dimension to their gaming experiences.

How Play-to-Earn Games Work

Engaging in play-to-earn initiatives empowers players to effortlessly generate a consistent stream of cryptocurrency income through their active game participation. While the specific mechanics vary across games, rewards typically stem from activities such as staking, cultivating in-game currencies, or procuring tradeable NFT items. 

In contrast to earlier blockchain games that heavily relied on a chance for profitability, play-to-earn has ushered in a new era of in-game economies and business models where players can actively work to secure an income. A prominent illustration of this concept is found in Axie Infinity, a renowned Ethereum-based game that artfully merges traditional video game elements and gameplay with the established blockchain gaming model. 

Axie Infinity seamlessly incorporates captivating features reminiscent of the traditional gaming industry, including an adventurous campaign mode, intense PvP battles, and enthralling tournaments. The game caters to a diverse range of players, offering compatibility across various platforms such as Windows, Android, Mac OS, and iOS.

How to Earn Money with Play-to-Earn Games

Under the GameFi umbrella, play-to-earn games combine elements of gaming and finance. These games offer compelling financial incentives to players as they progress through the virtual realms. The key to earning income lies in engaging in specific actions repeatedly, allowing users to reap the rewards through two primary avenues:

  • Accumulating in-game cryptocurrencies: In Axie Infinity, for example, players can acquire Smooth Love Potion (SLP) by completing daily quests or engaging in battles against formidable foes and fellow players.
  • Earning and trading in-game NFTs: Each non-fungible token represents a unique item, character, or collectible within the game. These NFTs can serve purely cosmetic purposes or possess practical functionalities integral to the gameplay experience.
  • Staking: Certain NFT games enable users to lock up their NFTs or cryptocurrencies in smart contracts, which, in turn, generate lucrative rewards. For instance, by staking MBOX tokens, players can receive MOMO NFT Mystery Boxes as rewards. Inside each box, a randomly assigned NFT of varying rarities awaits, presenting an opportunity for resale on the secondary market. It's worth noting that substantial staking rewards require a considerable initial deposit.

The Role of Blockchain in Keeping Play-to-Earn Games Secure

In the realm of gaming, play-to-earn is not an entirely novel concept. Numerous online games, often categorized as massively multiplayer online role-playing games (MMORPGs), have long featured fiat-based auction houses or secondary markets managed by gold farmers. However, what sets play-to-earn cryptocurrency games apart is the fact that their currencies and items exist on blockchains. These blockchains possess inherent characteristics that provide irrefutable proof of ownership, legitimacy, and rarity.

Imagine a blockchain network as an unalterable database diligently upheld by a distributed network of computers, with each user holding a copy of the blockchain data. This decentralized nature renders it virtually impossible for anyone to manipulate, duplicate, or erase blockchain information. Consequently, blockchain play-to-earn games can be developed with robust safeguards against fraudulent activities and corruption prevalent in traditional games, such as item replication, gold hacks, and other exploits.

The rarity of in-game items plays a pivotal role in determining their value. In the realm of blockchain, there are no instances of copy-and-paste duplication. If an item is genuinely unique, its one-of-a-kind nature remains immutable. This fundamental principle fosters the creation of genuine value for in-game items.

How Much Can You Earn From Play-to-Earn?

It is uncommon for traditional gaming to provide financial rewards to ordinary players. Grasping the concept of earning a living through a blockchain game can be daunting. Yet, in reality, many individuals, particularly in developing nations, are generating substantial incomes from crypto games like Axie Infinity.

One approach that offers a more consistent income is farming, where your earnings correspond to your skills and the time dedicated to playing. This method has gained significant popularity in the Philippines, where Axie Infinity has emerged as an alternative to traditional unemployment benefits. Players can earn monthly amounts ranging from $200 to $1,000 (USD) by engaging in SLP farming, depending on market prices and playtime. 

Although farming yields are typically lower than those obtained through trading NFT creatures and items, this avenue provides a safer and more reliable income for individuals in need.

In games such as Axie Infinity, players can even utilize their NFTs (known as Axies) to breed new ones. However, predicting the value of a newly bred Axie is challenging. Notably, in October 2021, the most expensive Axie ever sold, named Angel, was purchased for an astounding $131,970 on November 7, 2020, and is currently listed for 3,000 ETH. 

While these figures may appear enticing, forecasting an average income for individuals selling NFTs from play-to-earn games proves difficult due to the unpredictable nature of such transactions.

Play-to-Earn Games: How to Get Started

To embark on a play-to-earn game, new players must meet certain requirements. At a minimum, you'll require a crypto wallet to safeguard your crypto assets and establish a connection with the game.

Furthermore, it's possible that you'll need to make an initial investment to partake in the game, such as assembling a team of characters or acquiring in-game items. Engaging in a digital crypto-based economy typically incurs costs. For example, Axie Infinity demands an initial investment to procure Axies. Although this initial investment can be recouped within a few months of gameplay, it does establish a barrier to entry.

Alternatively, you can explore the concept of scholarships, where you borrow Axies from another player at no cost and subsequently share the income you generate with that player, known as the manager. In essence, a predetermined percentage of your earnings is allocated to the player providing the scholarship. Once you have assembled your introductory team and fulfilled daily tasks and challenges, you will steadily accumulate SLP, an ERC-20 token that can be traded on various crypto exchanges.

Cashing Out Earnings From Play-to-Earn Games 

When engaging in NFT games, there are two primary avenues for earning: acquiring NFTs for resale or engaging in consistent gameplay to generate a continuous flow of in-game cryptocurrency. Participating in these activities will grant you NFTs, tokens, or both, which can be sold on the secondary market. Depending on the specific cryptocurrencies and items you possess, it may be possible to sell both your NFTs and tokens on a recognized platform. However, it is essential to determine whether the non-fungible tokens you intend to sell are listed by the platform in your country. Additionally, you will need to complete the KYC (Know Your Customer) process to verify your account.

How to Cash Out Crypto Earnings?

Cashing out your crypto earnings from play-to-earn games involves a few steps. Here's a general guide on how to cash out your crypto earnings:

  1. Choose a Wallet: Select a reliable cryptocurrency wallet that supports the specific cryptocurrencies you have earned in the game. Popular wallets include MetaMask, Trust Wallet, and Coinbase Wallet.
  2. Transfer Your Earnings: Transfer your earned cryptocurrencies from the game platform to your chosen wallet. This usually involves initiating a withdrawal or transfer process within the game interface, specifying the wallet address as the destination.
  3. Exchange or Sell: Once your earnings are in your wallet, you can choose to exchange them for other cryptocurrencies or sell them for fiat currency. Look for reputable cryptocurrency exchanges that support the cryptocurrencies you want to exchange or sell.
  4. KYC Verification: Some exchanges and platforms may require you to complete a Know Your Customer (KYC) verification process before you can withdraw or trade your earnings. This typically involves providing personal identification documents and other relevant information.
  5. Withdraw or Trade: If you're looking to convert your earnings into fiat currency, follow the withdrawal process provided by the exchange or platform to transfer the funds to your bank account. Alternatively, if you prefer to keep your earnings in cryptocurrency, you can trade them for other digital assets or hold them in your wallet for future use.

Remember to consider any applicable fees, withdrawal limits, and taxation regulations when cashing out your crypto earnings. It's also important to stay updated on the regulations and policies of your country or region regarding cryptocurrency transactions.

Play-to-Earn NFTs Cashout

Cashing out play-to-earn NFTs involves a process that allows you to convert your earned NFTs into a tradable asset or fiat currency. Here's a guide on how to cash out your play-to-earn NFTs:

  1. NFT Marketplace: Look for a reputable NFT marketplace that supports the specific type of NFTs you have earned in the game. Some popular NFT marketplaces include OpenSea, Rarible, and SuperRare. Ensure that the marketplace allows for the type of NFTs you possess (e.g., Ethereum-based, Binance Smart Chain-based, or other compatible blockchain platforms).
  2. Create an Account: Sign up and create an account on the selected NFT marketplace. Follow their registration process, which may include providing an email address, username, and password.
  3. Connect Wallet: Connect your cryptocurrency wallet to the NFT marketplace. Most NFT marketplaces support wallet integrations like MetaMask, Trust Wallet, or other compatible wallets. This connection allows the marketplace to access your NFTs and facilitates transactions.
  4. List Your NFTs: Create listings for the NFTs you want to cash out. Provide relevant details such as title, description, images, and desired price for each NFT. Set the listing as "sell" or "auction," depending on your preference.
  5. Transaction Fees: Be aware of the fees associated with the NFT marketplace. These may include listing fees, transaction fees, and potential gas fees (network fees) required to process the transaction on the underlying blockchain. Consider these fees when determining your desired selling price.
  6. Marketing and Promotion: Promote your NFT listings through various channels, such as social media, online communities, and dedicated NFT marketplaces. Building visibility and attracting potential buyers can increase the chances of successfully cashing out your NFTs.
  7. Completing the Sale: When a buyer is interested in purchasing your NFT, they will initiate the transaction through the marketplace. Follow the provided instructions to finalize the sale, which typically involves confirming the transaction and transferring ownership of the NFT to the buyer.
  8. Withdraw or Trade: Once the sale is completed, you can choose to withdraw the proceeds from the NFT sale to your connected wallet or exchange the earned cryptocurrency for fiat currency on a supported cryptocurrency exchange.

Remember to consider any platform-specific rules, policies, and fees associated with the NFT marketplace you are using. Additionally, keep in mind the tax implications and regulations regarding cryptocurrency transactions and earnings in your jurisdiction.

Conclusion

Participating in the play-to-earn revolution opens up opportunities to earn cryptocurrencies through gaming. While it's important to approach new projects cautiously to avoid risks, play-to-earn offers gamers the potential to generate income. 

To delve deeper into the GameFi and play-to-earn concepts, consider visiting the NFT section on the designated platform. On this platform, you'll find frequent releases of NFT Mystery Boxes from esteemed developers like MOBOX and My Neighbor Alice. These Mystery Boxes contain valuable and usable in-game NFTs that can assist you in establishing a strong foundation in the gaming world.

Play-to-Earn
Follow us
Hexn operates under HEXN (CZ) s.r.o. and HEXN Markets LLC. HEXN (CZ) s.r.o. is incorporated in the Czech Republic with the company number 19300662, registered office at Cimburkova 916/8, Žižkov, Praha. HEXN (CZ) s.r.o. is registered as a virtual assets service provider (VASP). HEXN Markets LLC is incorporated in St. Vincent and Grenadines with the company number 2212 LLC 2022, registered office at Beachmont Business Centre, 379, Kingstown, Saint Vincent and the Grenadines