What Is Play-to-Earn and How to Cash Out?
- August 4, 2022
- Binance Academy Crypto Earn Crypto
- Kuro Satoshi
Blockchain helps guarantee the collectibility of these items and create working digital economies. Blockchain technology and NFTs allowed for the creation of digital items that are impossible to duplicate. This created the concept of digital scarcity.
To cash out, you’ll need to deposit your NFTs or crypto to an NFT marketplace or exchange like Binance. It’s unlikely you’ll be able to convert straight into fiat, so selling for a stablecoin first is a good idea.
Once you’ve sold your NFT or tokens, you can then convert the stablecoin into the fiat of your choice and withdraw using the available channels in your country. Another option is to use the stablecoin with a crypto card like the Binance Visa Card.
Blockchain games have come a long way from trading simple Non-Fungible Token (NFT) collectibles like Cryptokitties. Now you have the chance to earn money playing crypto games, even if you don’t have the rarest NFT in your wallet.
The idea sounds appealing, as video games rarely give gamers the chance to make real-life income by selling digital assets. With this new model of play-to-earn games, users are now able to make money in the crypto world.
What are play-to-earn games?
How do play-to-earn games work?
2. Earning or trading in-game NFTs. Each NFT may represent an item, character, or another collectible in the game. Depending on the game, these can be purely cosmetic or fulfill a use or purpose in-game.
How does blockchain technology secure play-to-earn games?
You can think of a blockchain network like an immutable database. It is maintained by a distributed network of computers (users), each holding a copy of the blockchain data. This means that it’s virtually impossible for someone to change, duplicate or delete blockchain data.
As such, blockchain games can be developed in a way that prevents fraud or corruption, such as item duplication, gold hacks, and other exploits that are common in traditional games. A crucial part of an in-game item’s value is its rarity. With blockchain, there is no copy and paste. If an item is unique, there’s no way for it ever to be replicated. This helps to create real value for in-game items.
How much income do people make from play-to-earn games?
Gaming usually isn’t known for monetarily rewarding the average user. It can be challenging to understand that regular players can make an income from a blockchain game. In fact, many people are earning living wages from crypto games like Axie Infinity, especially in developing countries.
Farming can provide a more steady stream of income, where your earnings are proportional to your skills and the amount of time you play. This farming method has proved popular in the Philippines, where Axie Infinity has even become an alternative to unemployment benefits. Players can make between $200 to $1,000 (USD) monthly farming SLP, depending on the market price and playtime. Farming benefits are typically lower than the alternative of trading NFT creatures and items but are much safer for anyone who needs a regular income.
With games like Axie Infinity, you can even use your NFTs (Axies) to breed new ones. However, you cannot accurately predict the value of a newly bred Axie. As of October 2021, the most expensive Axie (Angel) sold went for $131,970 on Nov 7, 2020, and is now listed for 3,000 ETH. While these numbers sound tempting, predicting an average income for someone selling NFTs from play-to-earn games is difficult due to their random nature.
How to start playing play-to-earn games
You also might need to make an initial investment to play, such as setting up a team of characters or purchasing items used in-game. Entering a digital crypto-economy usually isn’t free.
As of October 2021, Axie Infinity requires an initial investment of around $600 to purchase three Axies. While this can be paid off within a few months of gameplay, it still creates a barrier to entry.
How to cash out from play-to-earn games?
When playing NFT games, we mentioned there are two main options for earning: finding NFTs to sell or playing regularly to make a stream of in-game cryptocurrency.
Cashing out crypto from play-to-earn games
From playing The Sandbox, you’ve managed to earn some SAND that you now want to sell. To cash out your SAND, you first need to deposit them into your Binance account.
1. If you’re using MetaMask or another crypto wallet, copy the deposit address into the sending wallet to transfer the cryptocurrency tokens. Don’t forget you will need crypto to pay your fees, such as BNB for Binance Smart Chain and ETH for Ethereum.
2. Then, on the exchange view, pick a suitable SAND pair to trade. SAND/BUSD is a good option, as BUSD is easily exchangeable for fiat currencies and can be used to lock in your earnings.
Cashing out NFTs from play-to-earn games
1. To sell your NFTs on Binance, create or log into your Binance account. You’ll need to make sure your NFT is in a compatible wallet like Metamask. You’ll also need to complete KYC verification.
3. Select either BSC or ETH, depending on the network your NFT is on. You’ll then see the address that you’ll need to send your NFT to.
Play-to-earn games are a new development when it comes to earning with cryptocurrencies. With most new projects and ideas, you usually need to be first in the queue to take advantage of them. However, play-to-earn has made it possible for gamers to earn money. You should always be careful, though, as many games can be high-risk, unsustainable due to bad tokenomics, or even scams.