Can I earn money with NFT games?

NFTs are unique digital collectibles on the blockchain.
Because of their blockchain characteristics, they are well suited for use in games as representations as characters, consumables, and other tradable items.
NFT gaming took the world by storm in mid-2021, with AxieInfinity surpassing 1 million active players.
There are many excellent NFT games already available, with more to come in the future.
So in this article, we will thoroughly explain what NFT games are, their features, how to get started, and what the future holds.
If you are interested in starting an NFT game in the future, please refer to this article.

What are the characteristics of NFT games?

First, let’s look at the characteristics of the NFT game.
From the beginning of the CryptoKitties craze, NFT games were developed and the concept of the Play-to-Earn model was born.
NFT games are popular as a game-fi which is a way to generate income.
NFTs in the game can be sold to other collectors or players, or to earn tokens in the play-to-earn model.
Game-fi thus mixes the worlds of finance and gaming, offering players the opportunity to earn income while they play.

Recently, players have been able to experiment with multiple game models on a variety of topics.

When moving NFTs for gaming, they can be transferred to compatible wallets.
NFT games exist primarily on the Ethereum and Binance Smart Chain (BSC) and can be played in a variety of ways.
Some, such as CryptoBlades and AxieInfinity, offer a combat experience with collectible characters, while others, such as Sorare, use collectible cards.
Let’s take a look at the specific features of NFT games.

  1. Games can be monetized.
  2. Create one-of-a-kind items
  3. Items can be used interchangeably in multiple games
  4. Keep items with you even after the game is over
  5. Hard to cheat

Games can be monetized.

The first feature is the ability to monetize the game.
NFT games are different from games that just put crypto-collectibles in a wallet; NFT games use NFT for rules, mechanics, and player interaction.
For example, the game can represent your unique character or avatar as an NFT. Digital items found during game play could also be NFTs.
The NFT can then be exchanged or traded with other players for profit.
In this way, you can monetize your in-game items.

You can create one-of-a-kind items.

NFT in-game assets will not be available for use in other games to maintain their rarity.
The existence and history of ownership and control is completely unalterable and will be available to the public via the blockchain.
Each item is also given full transparency and verified rarity by the blockchain explorer.
Thus, you can own, buy and sell one-of-a-kind game items.

Characters and items can be inter-used in multiple games.

Another unique feature of blockchain games is that items can be used interchangeably in multiple games.
Participants can exchange game items with others at any time and receive a fair profit.
The purchaser becomes the current owner by transferring ownership, and the transaction is recorded in the blockchain.

The item can be held on to even after the game ends.

One of the features of blockchain games is that items in the game can be held as NFTs.
In-game assets are not replaceable and cannot be duplicated. Therefore, they cannot be illegally acquired or lost when the blockchain game ends.
They can be stored and placed in a decentralized wallet such as Metamask.

It is not susceptible to fraud.

One of the main advantages of NFTs is the ability to prove ownership: because they are on the blockchain network, ownership can be stored in just one account.
Most importantly, NFTs are not distributable and cannot be shared among many owners.
At the same time, the ownership advantage of NFTs protects consumers from the risk of receiving counterfeit NFTs.
Thus, the advantage of NFT games is that they are difficult to cheat.

3 Steps How to Earn Money with NFT Games

Now, I would like to explain how to earn money in NFT games in three steps.
The amount of money you can earn playing NFT games depends on the mechanics of the particular game and the market demand.
To earn money in NFT games, you must cash in by selling NFTs on the market, an exchange, or an auction house.
In games, value is derived from either the collectibility or in-game utility of NFTs or tokens. These two factors also lead to speculation.
Let’s take a look at the following steps on how to play and earn money in the game specifically.

  • Register in the Marketplace
  • Collect items in the game
  • Sell collected items in the marketplace
  • Convert the virtual currency obtained from the sale into Japanese yen

Register in the Marketplace

Register an account to buy and sell in-game items in the marketplace.
We recommend Onesa or Rariable, but other marketplaces will be explained later.

Collect items in-game

As soon as possible, play blockchain games to collect NFTs.
In blockchain games, various game items will become your own assets in the future.
Collect as many in-game items as possible.

Sell the collected items in the marketplace

Collected items can be sold in the marketplace where you have just registered your account.
Here are the steps for selling.
Deposit Ethereum into your MetaMask wallet.
Connect Metamask or other wallets to the marketplace

Exchange the virtual currency obtained from the sale into Japanese yen.

By simply selling, you have not yet earned Japanese yen.
The last step is to convert the ethereum or other virtual currency you acquired by selling it into Japanese yen.
You can convert Ethereum into Japanese yen by sending money to a Japanese exchange, such as Coincheck.
You can also convert it into dollars on overseas exchanges.

List of NFT Popular Games

Now, let us introduce you to NFT games.

  • Axieinfinity
  • Sorare
  • Sandbox
  • PolkaFantasy

Axieinfinity

Axieinfinity

AxieInfinity has become one of the most famous play-to-earn games. The game requires an initial investment to purchase three Axies.
Or you can receive a free scholarship from another player.
Once you have a starter team and start completing tasks and challenges, you will earn Smooth Love Potion (SLP), an ERC-20 token that can be traded on the exchange.
Breeders use the SLP to breed new axes, creating an economy of items.AxieInfinity is particularly popular in the Philippines, where many users have begun to live off its play-to-earn model.
Many players earn between $200 and $1,000 (USD) per month, and many more depending on market prices and time invested.
Advantages and disadvantages include

  • The value of Axies can increase
  • Visual gameplay experience
  • Still free to play
  • Value of Axies may decrease

Sorare

Sorare is a fantasy soccer game involving collectible and tradable soccer players from real life.
Players use free cards for beginners or purchase tokenized cards to create a five-player soccer team.
Earn points and level up for each game won, goal scored, or other event completed.

CryptoSpells

CryptoSpells is a mobile card game that allows players to earn virtual currency by playing.
Each card has a unique value, and players can trade cards with other players using virtual currency.
Virtual currency can be earned by winning tournaments, making the game more interesting and the cards more valuable.

The Sandbox

Initially a mobile title, The Sandbox is a real estate-driven NFT game.
The Sandbox and its land exploded in late 2021 after the concept of the metaverse became a trending topic online.
Players can build it with LAND (Sandbox digital plots) and monetize or sell it in exchange for SAND (Sandbox tokens).
As for the gaming aspect, this virtual voxel-based world allows players to create games and content on their land.
According to the roadmap, the first public alpha launched in November 2021 will last until December 20.
In 2022, we can expect further testing, a sandbox DAO launch, and a mobile launch.
Advantages and disadvantages include

  • Create, play and trade games and assets
  • Stylish voxel-based visual experience
  • It is a metaverse platform
  • Still in alpha stage

PolkaFantasy

This game is considered the best NFT and multiverse game in Japan, aimed at meeting the requirements of better NFT platforms.
The game offers the ability to earn money while fighting enemies, and users like the fact that the game can be played for low fees.

NFT Game Challenges

Let’s look at some of the challenges of the NFT game. The main challenges are as follows

The quality of the games is low compared to smartphone games, etc.
Many things to prepare, such as a virtual currency trading account
Lack of legislation

Low quality compared to mobile phone games, etc.

There were several projects that sold NFTs before the game was developed in order to fund the development of the game.
While the concept is interesting, it leads to the same incentive problem.
If a game developer raises $100 million in a token sale, is there really any incentive to actually develop the game?
Furthermore, users who purchase the tokens are more concerned with the rising price of the tokens than with the quality of the game.
Thus, quality often tends to suffer in terms of development costs and other factors, except for games that are not blockchain.
To get started with NFT games, you will need to have at least the following ready

  • Virtual currency such as Ethereum
  • Digital wallet
  • Choice of gaming platform

Many things to prepare, including a virtual currency trading account

In particular, some games require pre-purchase of in-game items to get started, which requires knowledge of virtual currency.

Legislation is not complete.

Legislation regarding NFTs and cryptocurrencies is not complete, and the U.S. Securities and Exchange Commission (SEC) has become more hostile toward the crypto industry.
The SEC seems determined to acquire more regulatory jurisdiction over digital assets and the DeFi sector.
Several times during 2021, regulators hinted that most cryptocurrencies and projects may be operating as unregistered securities.
In addition, other political actors have mentioned the dangers for investors entering the digital asset space via DeFi, NFTs, or DAOs.

What is the future of the NFT game?

Consider what the future holds for the NFT game.

  • Major companies may enter the market.
  • Improvement of laws and environment
  • Impact on the value of virtual currency

Major companies are likely to enter the market

The following companies have already entered the market, and the number is expected to increase after 2022.
One of the concerns that has arisen is the issue of legal arrangements.
As legal arrangements improve, it is expected that more and more major companies will enter the market in the future.

Improvement of laws and environment

Currently, there is no legal framework for NFTs in Japan, making it a lawless area.
In the past few months of last year and 2022, more and more gaming companies have tried to integrate NFTs directly into their games, including Ubisoft, EA, Take-Two, and Microsoft. However, the majority has seen pushback from users.
NFT is also bad for the environment and inefficient.
As NFT games become more mainstream, larger projects need to change this negative perception to a more optimistic view.
In the long run, the merger of traditional gaming assets with digital assets seems to be the next logical step to take these industries into the financial future.

It could also affect the value of virtual currencies.

Currently, most crypto games require players to use real money to purchase virtual reality goods.
Using cryptocurrency instead of money makes the process much easier when applied by NFT gamers and developers.
Therefore, as the NFT gaming market itself becomes more popular, it will naturally affect the value of virtual currency.

Summary of how to make money with NFT games

NFT games receive digital collectibles and also allow players to reciprocate each other’s NFTs.
Game-fi has created a new NFT gaming economy that has changed the way people earn using NFTs.
The concept of making money has been transformed by NFTs, allowing people to earn money simply by playing and playing games.
One caveat, however, is that you can lose money playing NFT games.
Because NFTs are speculative and their value depends on what people place in NFTs, losses also depend on market forces.
As with any crypto investment, be sure to start with funds you can afford to lose.