The popularity of crypto gaming is growing, and the purchase of gaming coins as an investment vehicle is becoming increasingly common. Learn how to invest in crypto gaming as we go over some of the top gaming crypto coins and go over how to get started.
What are crypto gaming coins?
What are crypto gaming coins? Gaming coins are a sort of cryptocurrency that can only be used on specific gaming platforms. These coins are used as playable currency on the gaming platform to which they are native.
Users have the option of purchasing them on renowned cryptocurrency exchanges such as Coinbase or on the gaming platform on which they were first developed. You could also be able to collect coins from other players or earn them within the game itself, although this will depend on the platform you’re using.
Some gaming coins have a lot of value on the gaming platforms they were originally designed for, but their worth may be limited when transferred to other gaming platforms. Others, however, have discovered notoriety and a sizable amount of value in the cryptocurrency markets outside of their platforms, which makes them a superior investment overall.
However, even the most widely used coins in the gaming industry are distinct from major cryptocurrencies like Bitcoin and Ethereum because they are not nearly as prevalent. You will rarely find a retailer that they were designed for that will take these coins as payment, and there is not much of a reason to keep them outside of their respective native gaming platforms.
How to invest in crypto gaming?
How to invest in crypto gaming? There are a variety of approaches one can take to generate income with NFT-based and GameFi projects. Let’s find out more!
Earning in-game tokens
The majority of games based on blockchain technology feature in-game money as well as native tokens that can be cashed out or traded for other cryptocurrencies. For instance, the in-game cash in Axie Infinity is called Smooth Love Potion ($SLP), and it also serves a secondary purpose of being an item that can be used to breed the many playable characters.
Games based on the blockchain provide more than just the traditional elements of combat, exploration, and collection. Another effective method for generating passive revenue is to participate in “breeding,” also known as the process of creating a new token that will be used in the game.
The game CryptoKitties is a nice illustration of this. Players of this game can match up a male and female NFT cat character and breed them to produce new characters that can be sold on NFT marketplaces. Players can do this while they are playing this game.
Minting new in-game items
Players can manufacture their in-game items, wearables, and other collectibles in certain metaverse games, and then earn royalties from the secondary sales of those items. In other GameFi initiatives, players have the opportunity to create new weapons and then sell them on the market or submit designs for NFT collectibles.
If these designs are accepted, they will be put to the game, and the artists and designers who contributed them will be eligible to receive royalties on secondary sales forever.
When playing games that are based on blockchain technology, one additional option to generate money is through staking. Staking is one of the best ways how to invest in crypto gaming. Locking tokens to receive rewards requires making those tokens accessible to other players so that they can be exchanged. This is known as staking.
Trading non-fungible tokens (NFTs)
When we talk about trading NFTs, we mean buying and selling them. Although it might sound simple, this method of making money through blockchain gaming requires you to do your own research (DYOR), have patience, and possibly even make an initial investment.
Participation in various competitions and events
Some games that are based on blockchain technology include tournaments and other special events that provide players with one-of-a-kind chances to earn rewards. For instance, in certain games, players are required to participate in a tournament and pay an entry fee. The winner of the event is awarded the prize pool. These games may also include special events, in which players can band together to take on bosses and gain unique rewards for their efforts.
Even though this method of making money is not suitable for everyone, it is nevertheless important to bring it up. Mining a token is the process of creating new tokens for circulation by using specialized hardware that “mines” for them. Within GameFi, the mining phase kicks off as soon as a new gaming project is made available to the public.
Miners immediately begin the process of putting the new game’s native token into circulation so that it may be utilized within the game. In the world of cryptocurrencies, “mining” refers to the process of using specialized hardware to solve difficult mathematical problems to generate the next block.
Sadly, it is a process that requires a significant investment of both money and effort. In addition, the process of mining coins places a significant amount of strain on the graphics processing unit.
Best gaming crypto coins
Now that we know how to invest in crypto gaming, let us take a look at some of the top gaming coins to keep an eye on and think about purchasing as an investment:
The cryptocurrency used in the online community of Decentraland, which uses the Ethereum (ETH) blockchain as its underlying technology, is referred to as Decentraland (MANA). Users can engage in activities such as gaming, chatting with other users, and trading virtual items within Decentraland.
Players have the option of exchanging their MANA for a wide variety of in-game goods and services or purchasing Decentraland NFTs, which are representations of virtual land parcels.
It is the native currency of the Bored Ape Yacht Club, which is a collection of non-fungible tokens built on the Ethereum (ETH) network. ApeCoin was founded by The Bored Ape. ApeCoin has been implemented into video games by a variety of independent developers. Users of the P2E smartphone game Benji Bananas, for instance, can swiftly convert the one-of-a-kind tokens they earn for ApeCoin.
The Sandbox (SAND)
It is an additional metaverse or virtual environment that is powered by the Ethereum blockchain. The Sandbox (SAND) tokens allow for a variety of gameplay interactions, one of which is the acquisition of digital landholdings in the style of LAND. LAND is the game’s native currency.
Lucky Block ($LBLOCK)
It is a brand new GameFi initiative and crypto gaming asset that supports transactions on the Lucky Block blockchain. Many people believe that Lucky Block will be the next cryptocurrency to blow up and surge in value in 2022. Lucky Block was created by GameFi. Because it has applications in the gaming sector, it is now considered to be one of the most valuable gaming tokens on the market.
Axie Infinity ($AXS)
Axie Infinity is one of the earliest play-to-earn gaming platforms to come aboard the crypto realm. It is also one of the greatest play-to-earn gaming platforms now available. It is a trading and battle gaming project that is based on blockchain technology and is partially owned and operated by its players.
Players have the chance to buy, gather, and trade in-game animals known as Axies. These creatures are capable of taking on a variety of shapes, and there are over 500 parts available for them.
Learning how to invest in crypto gaming is necessary for everyone interested in pursuing crypto gaming as an investment opportunity. This is because the conventional piece of advice to do your research before investing is more important than it has ever been. Because crypto gaming and gaming coins are still relatively new, they do not yet have a proven track record. To ensure that your choice is well-informed, take your time to study what they have to offer and what their objectives are.
The application of cryptocurrencies in the gaming industry is at the forefront of an ongoing economic and digital revolution. We are a team of gaming product consultants here at Lunar Sky Games, and we have more than ten years of experience working in the business. We collaborate closely with web3 firms to assist in the development and expansion of their product lines. Your ideas will become a reality with our assistance. Get in touch with us right away to schedule a consultation.