If you haven’t heard of NFTs, you’ve been living under a rock for the past couple of years. However, you may not have heard of NFT gaming, which are play-to-earn games built on blockchainS. To take part in an NFT game, you need to invest in the game’s native coin and then buy characters and in-game assets dressed up as NFTs. Then, you can earn native crypto by simply playing the game and achieving accolades. To help get you clued up, we’ve put together this short beginner’s guide.
How Are NFTs Integrated Into Games?
Developers use smart contracts, which are unique pieces of code, to import NFTs into a game’s mechanics. Doing this allows all artwork in the game to exist as an NFT, which means only you own the asset. This you can sell within the game or on other NFT marketplaces to make a profit.
The most well-known NFT games around include Axie Infinity, Decentraland, and Tamadoge. They all proved extremely popular and have a thriving community, with Decentrand’s native coin, “MANA,” being named one of the most profitable coins to invest in for 2023. On the back of the NFT success, play-to-earn (P2E) mechanics were added.
What is Play-to-Earn?
Making money from in-game NFTs requires luck because owners need to find willing buyers, which can be difficult. Developers have recognized this and decided to reward players for backing their projects by allowing fairer opportunities to earn through the P2E mechanics. Simply put, this means that the more achievements you earn and tasks you complete, the more native coin you can earn.
Earning cryptocurrency to play games certainly has its appeal because it can easily be converted into fiat currencies or other cryptos – check prices on okx.com. However, the world of blockchain comes with risks.
Risk and Returns
NFT games are fun, but if you scratch beneath the surface, you’ll see a fluctuating trading market. The amount of profit you can earn from an in-game NFT is determined by community worth, which puts you in the crosshairs of the turbulent crypto market. When you’re playing NFT games, to have fun but only invest in assets you don’t mind losing.
Where there’s money involved, scammers are never far behind, and the crypto world is no different. Given the ease of access to layer1 blockchains, there have been several bogus NFT games, which are designed to make you trade with fraudulent s or enter you into malicious smart contracts. The best way to avoid NFT game scams is to learn about NFTs and research projects before you invest any money. If a game has a thriving community on the likes of Discord, Reddit or Twitter, the chances are that it’s safe to invest in.
Take Away
NFT games are designed to be fun, transparent, and rewarding, but it comes with risks like any other blockchain investment. You can manage risks by keeping your assets in a secure wallet and ing NFT games with plenty of research.