What is Crypto Gaming? The Ins and Outs (2024)

What is crypto gaming? It's the fusion of traditional video games with cryptocurrency, where blockchain technology gives in-game assets real-world value. In other words, it's an exciting realm where players immerse themselves in thrilling experiences while reaping tangible rewards.

But amidst the allure of potential earnings, lies a landscape rife with risks. Tales of losses serve as cautionary reminders, urging players to proceed with caution. Yet, trusted exchanges like Binance and Kraken, along with secure wallets like Ledger Nano X, seek to make the navigation of the crypto gaming world as secure as possible.

So, let's get into the depths of crypto gaming! As this dynamic industry continues to evolve, the integration of blockchain technology promises to elevate the gaming experience to new heights. And it's not just about gaming – gamified learning experiences, such as BitDegree's Web3 Exam and Missions, are also part of this thrilling evolution.

What is Crypto Gaming?

When exploring the multifaceted world of digital gaming, both gamers and investors are wondering: "What is crypto gaming?" In essence, crypto gaming represents a blend of traditional gaming experiences with the innovative realm of cryptocurrency. But what exactly does this integration entail?

Well, for one, unlike the conventional virtual currencies that many gamers are accustomed to (coins, gems, gold, etc.), which hold value only within a specific game's ecosystem, crypto gaming introduces currencies with real-world value.Players can earn, trade, and even cash out their in-game assets, thanks to the decentralized nature of blockchain.

Not only do crypto games feature currencies such as Bitcoin and Ethereum, but they also incorporate NFTs. These NFTs stand as unique digital assets, with each token holding specific attributes or details, making it distinct and non-exchangeable on a one-to-one basis^[1].

The advent of crypto gaming has significantly reshaped the modern gaming landscape. For game creators, it serves as a groundbreaking method to motivate gameplay, stimulating a deeper connection and dedication from players. The appeal is not just the in-game excitement but also the tangible benefits that could be converted into actual financial gains.

This shift has prompted many to wonder, "How to invest in crypto gaming?" especially as it turns gaming, particularly within the Play-to-Earn model, from just a recreational activity into a potentially reliable source of income.

Besides, online crypto gaming democratizes the gaming economy. Players have true ownership of their in-game assets, allowing them to trade, sell, or use them across different games or even platforms, in some cases. This is a stark departure from traditional models where in-game assets, despite being purchased with real money, remain under the control of game developers or platforms.

All in all, as the broader world becomes more digitized and virtual, the blending of gaming, finance, and social interaction within crypto gaming platforms aligns seamlessly with the trajectory of modern digital consumption. In a sense, crypto gaming isn't just a trend; it's a glimpse into the future of interactive entertainment.

How Does Crypto Gaming Work?

You know what is crypto gaming, but how does it work, exactly? To answer this, one must delve into its intricate mechanics, reward systems, and the subtleties that differentiate it from traditional gaming.

At the heart of it, online crypto gaming relies on time-tested gameplay elements we're accustomed to: quests, battles, building, exploration, and more.The true distinction lies in the reward structure, and here's where some of the best gaming crypto experiences come to the forefront.

For those keen to enter this path, understanding how to invest in crypto gaming is essential. So, as you already know, unlike traditional games that offer points, crypto games grant rewards with external worth, like cryptocurrencies or NFTs. These rewards, found in the best gaming crypto titles, arise from activities like trading, exploration, or staking virtual assets.

The beauty of such rewards is their transcendence beyond the gaming ecosystem. They aren't mere points on a scoreboard but assets with real-world value. Players can trade them on cryptocurrency exchanges (like Binance or Kraken), list them on NFT marketplaces, or sometimes even convert them into traditional money, making the stakes and the allure of the game far more compelling.

So, to answer the question: “How does crypto gaming work?” shortly, it could be said that it works the same way traditional games do, apart from the fact that its rewards bring real-world value.

Now, it’s also worth noting that many think that the terms "blockchain gaming" and "crypto gaming" are the same, which is not entirely true. Blockchain gaming refers to games using blockchain for decentralization. This gives players transparency and true ownership of in-game assets, enabling them to verify rarity and value without a central authority^[2].

Conversely, the essence of online crypto gaming is the interplay of cryptocurrency within the gaming mechanics, which means that a traditional game can simply integrate crypto as a reward method and become a crypto game. Some of the best gaming crypto titles exemplify this approach.

While it's plausible for crypto games to utilize blockchain for their inherent crypto-based assets as well, the key is their focus on weaving real-world financial value into the gameplay.

So, in wrapping up our exploration of "What is crypto gaming?", one could assert that while all blockchain-based games might be crypto games, not every crypto game is fundamentally a blockchain game. The distinction, nuanced as it may be, is pivotal in understanding this dynamic and promising landscape.

Pros and Cons of Crypto Gaming

While we’ve discussed the definition of what is crypto gaming, it's vital to understand its advantages and potential pitfalls as well.

Pros

• Monetization opportunities. Players can potentially earn real money by playing crypto games. This is done through a variety of mechanisms, such as earning in-game tokens that can be traded for other cryptos, or winning tournaments with cash prizes.
• True ownership. In the world of crypto gaming, players genuinely own their in-game assets. This is because these assets are stored on a blockchain, which is a secure and decentralized ledger. This means that players can trade or sell their in-game assets to other players, or even take them with them to other games.
• Decentralization. Crypto games are not controlled by a central entity, such as a gaming company or a government. This gives players more freedom and control over their gaming experience.

Cons

• Market volatility. The value of gaming tokens can fluctuate rapidly. This means that players could potentially lose money if they sell their tokens at the wrong time.
• Complexity. Crypto gaming can be complex, especially for newcomers. This is because it requires players to understand how blockchain technology works, as well as the intricacies of cryptocurrency trading.
• Regulatory concerns. As a nascent industry, crypto gaming is still subject to a great deal of regulatory uncertainty. This could make it difficult for developers to launch and operate crypto games, and it could also create legal risks for players.

Overall, crypto gaming offers a number of potential benefits, such as monetization opportunities, true ownership, and decentralization. However, there are also some risks associated with crypto gaming, such asmarket volatility, complexity, and regulatory uncertainty^[3].

As we familiarize ourselves with what crypto gaming is, it's important to weigh the pros and cons carefully before deciding whether to get into this terrain or not.

Cryptocurrency as In-Game Currency

To go even further in exploring what is crypto gaming, it's essential to acknowledge the transformative role of cryptocurrencies as in-game currency. This integration reshapes player interactions and redefines game-based profitability. Notably, these in-game crypto tokens extend beyond mere virtual transactions; they often possess tangible value.

Let's delve into a few notable examples of these crypto gaming coins:

Axie Infinity (AXS)

AXS is the native token of Axie Infinity, one of the most popular NFT gaming crypto projects. It has a variety of use cases, including being used as a governance token, a payment method, or an asset for staking.

It can be acquired when buying or selling Axies (in-game NFTs), breeding them, participating in PvP battles and in-game quests, or farming Smooth Love Potion tokens (SLP). The latter is another in-game asset, essentially used for Axie breeding.

ApeCoin (APE)

ApeCoin (APE) is both a utility and governance token designed to support the community of the APE ecosystem, which originated from the Bored Ape Yacht Club (BAYC). The BAYC is a renowned NFT collection featuring 10,000 distinct cartoon ape illustrations.

The APE token is used toincentivize those who engage with games, ventures, and other services of the BAYC ecosystem. Though, it can also be used as a gating token, a payment method, or a governance token.

The Sandbox (SAND)

An essential coin within The Sandbox ecosystem, SAND has a finite supply of 3 billion tokens. Built on the Ethereum blockchain, this ERC-20 utility token facilitates transactions and interactions within The Sandbox ecosystem.

Though beyond mere transactions, the token also has functionalities related to staking and governance, making it multifaceted in its application. Additionally, it's a gating token that's required for anyone who wants to access The Sandbox metaverse.

Decentraland (MANA)

This token powers a unique virtual reality platform named Decentraland. MANA allows users to dive deep into the world of virtual reality. Players can create, experience, and even monetize their content in this virtual space. The platform also offers a unique proposition wherein users can buy plots of virtual land, which they can then develop and monetize.

In essence, these coins are blurring the lines between virtual economies and real-world financial systems. As they continue to gain prominence, they're reshaping the landscape of both gaming and finance, further highlighting the importance of understanding what crypto gaming is.

Popular Crypto Games

Now that you know what is crypto gaming, how it works, as well as its pros and cons, you might also be interested in some of the most popular crypto games out there.

After all, it's the top gaming crypto titles themselves that illuminate the true potential and diverse experiences of this niche, including NFT gaming crypto experiences. So, let's delve into the best gaming crypto titles that have garnered significant attention from both crypto and gaming enthusiasts:

BitDegree's Web3 Exam and Missions

BitDegree's Web3 Exam and Missions might not be a crypto game per se, but it's a gamified learning experience that provides users with invaluable knowledge about the Web3 space. In addition to that, it offers some amazing prizes, including free NFT Certificates of Completion, Bits (in-game tokens), crypto tokens, subscription plans on various Web3 platforms, and whatnot. Due to its Learn-to-Earn approach, all you have to do to get these rewards is complete simple and fun tasks (and yes, it's entirely free to play).

Axie Infinity

Drawing inspiration from the beloved Pokémon series, Axie Infinity is one of the top gaming crypto hits. It essentially is a blockchain-driven game where players collect, breed, and raise endearing monster NFTs (Axies) and then trade or use them to battle with other players. The game encourages a Play-to-Earn approach, allowing players to earn AXS tokens, which I've mentioned before. It's more than just a game, though; it's a movement spawning scholarship programs, and academies.

The Sandbox

As an evolution from its mobile versions, The Sandbox brings to the forefront the essence of what crypto gaming is. It presents players with a virtual domain where they can design and claim ownership of their virtual endeavors. More than being a competitor to titans like Minecraft and Roblox, The Sandbox grants creators genuine rights to their designs, acknowledging their contributions to the digital world.

Upland

Upland is a real estate simulation where players mint and own properties reflecting real-world sites. Offering NFT collecting, treasure hunts, and the ability to claim iconic buildings and trade these digital assets. It redefines traditional Play-to-Earn games, setting its players on a course to potentially earn millions.

Gods Unchained

Venturing into the realm of online card games, Gods Unchained mirrors traditional trading card games, but with a top gaming crypto advantage. Players don't just buy and play; they can earn the native GODS token. What sets it apart is the real-world value of its rare cards, which can be sold for GODS and converted to fiat. This game guarantees players full control over the valuable assets they amass.

DeFi Kingdoms

Embarking on a medieval adventure, DeFi Kingdoms integrates DeFi Play-to-Earn mechanics with an RPG environment. Players guide pixelated characters through a world of taverns, banks, and more, summoning Heroes (NFTs) along the way. These Heroes aren't just for show; they're utility-driven, earning resources and battling foes, giving players the leverage to earn real money.

So, in the ever-evolving crypto gaming landscape, these titles are a few of those that stand out the most, combining traditional gaming mechanics with the innovative potentials of blockchain and cryptocurrency.

Find more crypto games in this "Best Crypto Games" article.

How to Get Started with Crypto Gaming?

As the digital age ushers in new frontiers of entertainment, many are captivated by the enthralling confluence of gaming and cryptocurrency. "What is crypto gaming and how to get started?" is a refrain often heard in online forums, gaming communities, and amongst tech enthusiasts. It signifies not just a mere query but an eagerness to participate in this emerging trend.

So, here's your guide to diving into this world, ensuring you're equipped and informed for the adventures ahead.

Step 1: Choose the Right Game

Embarking on your crypto gaming journey begins with selecting the appropriate game. Remember, the joy of playing should be your foundation. If it feels more like a chore than entertainment, reconsider your choice. Ponder these queries as you explore:

• Is this game genuinely enjoyable for you?
• Does it demand an initial investment to play?
• Can you afford this initial cost if it exists?
• Is a trial or free version available?
• Are you familiar with the game's mechanics and the developers' revenue model?
• Do you comprehend the in-game token's economic structure?

Starting with a game recognized as a top gaming crypto project on various reviews can be a good strategy, especially for newcomers. Also, opting for a free game (like BitDegree's Web3 Exam and Missions, for example) enables you to become familiar with the dynamics of the crypto gaming ecosystem without investing any money in it. But, at the end of the day, it’s most important to pick a game you'll enjoy playing.

Step 2: Buy a Required Cryptocurrency (If Needed)

Now, entering the terrain of cryptocurrencies, especially when considering what crypto gaming is, requires understanding the purchasing procedures. After all, not every crypto game is free; some of them require owning a certain crypto asset to get started. Now, to purchase the said asset, you must opt for reliable crypto exchange platforms like Binance, KuCoin or Kraken.

Then, once you successfully buy the required crypto, you’ll have to think about storage. To delve into Play-to-Earn games, a software crypto wallet, like Binance wallet (yes, it also has a built-in wallet) orMetamask, is indispensable.

However, while an online wallet connects you to games and facilitates NFT purchases, consider having a hardware wallet as well, such as Ledger Nano X or Ledger Nano S Plus, for enhanced security. They store your keys offline, ensuring optimal safety.

I get it, beginning your online crypto gaming journey, given the emerging prominence of what crypto gaming is, might seem intricate. But with proper research and the right tools, it can be both profitable and entertaining. So, embrace the evolving gaming realm, ensure security, and let your journey be as thrilling as the games themselves.

How to Invest in Crypto Gaming?

The fusion of gaming with blockchain technology has profoundly revolutionized the video game industry. Gamers now possess true ownership of their in-game assets and can earn tangible rewards. That’s why those who already know what is crypto gaming, often wonder how to invest in crypto gaming or, to be more precise, how to earn from it.

Well, here are some ideas:

Earning In-Game Tokens

Many blockchain games come with their unique in-game tokens. For instance, as mentioned before, Gods Unchained players can earn GODS, which can be used for crafting new in-game NFTs, participating in governance, or as a payment method.

Breeding

Beyond the usual gameplay, certain blockchain games offer the option of breeding, which essentially is minting new in-game assets (usually NFTs). This feature is found in Axie Infinity, for example, where players can breed two Axies to produce a new one, which can then be sold on an NFT gaming crypto marketplace.

Minting In-Game Items

In metaverse games, creativity is the key. Players can craft in-game objects, wearable items, or unique collectibles. Once these items are sold, creators earn royalties from subsequent sales, creating a continual revenue stream.

Staking Tokens

Staking happens when players lock up their tokens, making them accessible for other gamers to transact. In return, they earn rewards, making it a passive income stream. The longer you stake, the higher returns you receive.

Trading NFTs

The buy-and-sell model is age-old, and it applies here too, as you can trade in-game NFTs with others. Though, while trading NFTs can be lucrative, note that it demands thorough research, patience, and sometimes an initial investment.

Participating in Tournaments and Events

Some games hold events or tournaments with enticing rewards. While there might be an entry fee, the thrill of competition and potential rewards can be lucrative. For instance, players might join forces in a game to defeat a formidable boss and earn exclusive items.

Mining

One of the types of crypto games is miner games. Mining is a more technical approach that involves using hardware to validate transactions and create new tokens. Though note that while mining can be profitable, it demands significant resources, including advanced and expensive hardware as well as a consistent power supply.

Overall, investing in crypto gaming might seem overwhelming, but by understanding these avenues, particularly within the NFT gaming crypto landscape, one can strategically navigate this lucrative terrain. Of course,remember to always do your own research and never invest more than you're willing to lose.

Recommendations for Players

Successfully navigating this landscape requires more than enthusiasm or a simple understanding of what crypto gaming is; it calls for a strategy. So, here are some tailored recommendations to guide players in this realm:

• Select the best game. Your preference, proficiency, and the game's potential for profitability matter. Delve into gameplay mechanics, potential token value, community sentiment, and overarching market trends.
• Decode game tokenomics. This refers to the rules governing the distribution and creation of value for digital assets within the game. Deepen your knowledge of this to discern worthy in-game investments.
• Stay active and learn. Playing consistently not only improves your chances of in-game rewards but also helps you perfect necessary skills for specific games.
• Network and Engage. Engage in forums, social media groups, and community platforms that provide a wealth of shared knowledge and can be an avenue for forming profitable collaborations.

Now, note thatit's also essential to set your goals. Outline what you hope to achieve – whether it's financial milestones or personal growth within the game. Once you do that, you have to strategize. Draw a roadmap that specifies your methods to meet your goals – from game choices to risk management.

Then, you have to periodically review your progress and adapt to any shifts in the market or personal goals.Besides that, make sure to stay updated. In a rapidly changing landscape, your edge surely lies in staying informed about industry shifts and emerging trends.

On top of that, once you get the hang of crypto gaming, make sure to engage with more than one game. After all, in a volatile crypto world, diversifying is paramount. If one game ceases to bring you profits or fun overall, you can always turn to another game.

All in all, the Play-to-Earn space offers vast opportunities for both entertainment and financial gain. Thus, it's crucial to approach it with a blend of enthusiasm, education, and strategic planning.

Conclusions

Blockchain's entry into gaming heralds a unique era. When pondering what is crypto gaming, it's clear that it transcends mere enjoyment to offer genuine economic opportunities. Tools like Ledger crypto wallets, paired with exchanges like Binance, Kraken or KuCoin, only underpin this transformation.

In crypto games, players can truly own and earn from their in-game items. But it's not just about excitement. Success demands a good strategy, as well as an understanding of game mechanics and market trends.Knowledge of how to invest, including diversifying holdings, is crucial for maximizing rewards and reducing risks.

That said, I suggest starting with BitDegree's Web3 Exam and Missions – you'll not only learn about Web3 in-depth but will also get some amazing rewards and have an easy headstart to crypto gaming. It's not just about playing anymore – it's about playing smart and thriving.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. J. Fairfield: ‘Tokenized: The Law of Non-Fungible Tokens and Unique Digital Property’;

2. T. Min, H. Wang, Y. Guo, W. Cai, et al.: ‘Blockchain Games: A Survey’;

3. J. Barreiro-Gomez, H. Tembine: ‘Blockchain Token Economics: A Mean-Field-Type Game Perspective’.