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  • What Are Play-to-Earn Games & How To Cash Out Crypto

17 May, 2022  •  10 min read

What Are Play-to-Earn Games & How To Cash Out Crypto

Until quite recently, computer games used to be just a leisure activity. However, with the emergence of the crypto industry, as well as the financial system’s trend towards online, there are now multiple opportunities to earn on the web that gamers will definitely love. Yes, we’re talking about play-to-earn games – a kind of entertainment that is closely connected with cryptocurrency.

However, not everyone knows a lot about such a way to spend time on the Internet joyfully and profitably. If you’re one of those newbies, we’ve got some great news for you – our detailed guide will give you the answers to all of your questions. Today, we’re going to tell you about the way play-to-earn games work, if it’s possible to make a good income playing such games, how to cash out from them, and much more. So read carefully, and let’s get to it!

Table of contents

What are play-to-earn games?

Let’s start with the basics – what actually are play-to-earn games?

As we’ve noted above, play-to-earn games are just a way to spend time on the Internet enjoyably and profitably at the same time – simply by playing a game, you’re able to create a good crypto income.

Actually, without going into technical details, everything looks straightforward: a player starts playing a game and performs various actions (for example, “upgrades” his/her character, expands his/her territory, etc.) as usual. However, in the case of play-to-earn games, they receive a reward for it – the tokens of the project. These tokens can be exchanged for real money on crypto exchanges in the future.

A great example of a play-to-earn game is Axie Infinity based on the Ethereum blockchain. This game includes both standard video game elements (for instance, adventure mode, PvP battles, and tournaments) and gameplay with the old blockchain game model. Axie Infinity is available for Windows, Android, Mac OS, and iOS.

How do play-to-earn games work?

Since play-to-earn games are a mix of gaming and finance, they automatically fall under the GameFi category – each game encourages players to play and progress with the help of money.

There are actually two main ways to earn money by playing P2E games:

  • Earning in-game cryptocurrencies. Going back to Axie Infinity – if you complete all the necessary missions, you can receive Axie Infinity’s Smooth Love Potion (SLP).
  • Earning or trading in-game NFTs. Each non-fungible token can be a valuable item of any collection, character, etc. in the game. It just depends on the game you’re playing – they can be simply cosmetic or serve a critical purpose there.

Here’s another great example of a play-to-earn game – the Hate Race project.

Hate Race is both a game and an NFT collection – it’s a sharp satire on the modern world and its puppeteers, presented in the form of a rat race. The characters in the game compete against each other in their true guise of ugly rats.

Hate Race differs greatly from other similar projects – its economy has been carefully designed. Regarding the profit and features, here’s what its team is really proud of:

  • Only 21 million coins. The project is to issue only 21 million coins to have a chance to actively control the free circulation and maintain the high value of the coin.
  • 5% burnt. 5% of the prize pools are burnt with every rat race – this reduces the free circulation.
  • You can do more than just play there. Hate Race also offers its customers an NFT collection that was created by a recognized artist, a master of satire – other common projects don’t pay so much attention to such detail, using primitive pixel art.

To get more detailed information about the project’s team and its specifics, you can visit its official website at HateRace.com.

How does a blockchain secure play-to-earn games?

Actually, P2E games aren’t a new development on the market. The main difference between crypto games and normal online games is that all the currencies and items of crypto games are located on a blockchain.

Blockchain has several qualities which make it easy to prove ownership, legitimacy, and rarity. Since it’s supported by a distributed network of computers (users) containing copies of the blockchain data, nobody can make any changes on the network – delete data, replicate it, or something else.

Thus, blockchain-based games provide their players with some guarantee that there won’t be any fraud or corruption. In addition, since it’s impossible to copy or paste on the blockchain, items are absolutely unique – such a feature makes it possible to create real value for in-game assets.

How much should you spend to get started?

We suggest you take a look at the example of the two most popular games – Axie Infinity and BlockChainRpg, where the first requires an investment, and the second one allows you to play for free.

Let’s start with Axie Infinity. To start playing the game, you will need to buy three Axies. On average, it will cost $700 – not a small amount. The payback is about two to three months, which is considered a long time by the standards of virtual currencies.

If you take a closer look at the Axies’ chart, you’ll see that the price, in general, is growing. As soon as the token appeared, its price was only $0.15, and then it peaked at $160 – early investors were able to make a considerable profit. Therefore, it’s always worth looking for alternative projects that are in the development stage.

By the way, here’s one interesting fact: the price of a piece of land sold in Axie Infinity was equal to the cost of a real villa, which amounts to several million dollars.

As for the game BlockChainRpg, there is no need to buy any tokens to get started – you just need to open a WAX wallet, which takes only a few minutes.

The idea of the game is pretty simple – you need to press only one button to let your character go into battle. Once the battle is over, you can receive $GOLD, which can be exchanged for stablecoins in the future.

As soon as the project was launched, one click of the button brought gamers up to $20. However, when the number of players significantly increased, the token rate dropped, because everyone wanted to exchange crypto for fiat currency.

In addition, we’d like to add a couple of words about the HateRace project. If you’re willing to try playing such a unique P2E game, here’s what you’ll need to make your first-ever attempt:

  1. Since it’s an auction, you need to buy an NFT first. You can use the well-known OpenSea platform – https://opensea.io/collection/hate-race-skins.
  2. Once you’ve bought the NFT, you’re ready to play – just drop your rat into the race and enjoy the game!

How much income can you make from play-to-earn games?

Actually, this is one of the most pressing questions, since users want to know how much money they can make by playing. Let’s take a look at the statistics.

In August 2021, about one million people were playing Axie Infinity. The monthly trade turnover of the gaming marketplace (the place where NFT tokens are bought and sold) reached up to $1 billion. The developers’ revenues, in turn, were about $21 million.

At first, the game functioned on the Ethereum blockchain, but later, it was transferred to the closed sidechain Ronin with cheaper transactions in order to save money.

However, gamers are not only making money, they are also spending money. After all, it takes about $200 to start playing, $700 to improve combat characteristics for greater military success, and $2,000 to build a team for a battle. If you need to multiply your characters, you will have to spend 4 AXS and anywhere from 150 to 3150 SLP tokens.

According to open data, active players who visit the virtual world every day can earn about $500 to $1,000 in real income per month. As a consequence, several stories began to appear about various people who have plunged into the gameplay and quit their jobs, completely switching to “working” in the game.

How to cash out from play-to-earn games

Nowadays, there are many ways to cash out from blockchain games. However, we’re going to tell you about the 3 main ones – just read carefully and follow all the instructions.

MetaMask

The first way to cash out is with the help of MetaMask, one of the most popular and reliable electronic wallets. MetaMask has been serving as a middleman for both Ronin and Binance, especially in the first months of the Ronin blockchain.

If you’re planning to use MetaMask as a way to cash out from your P2E game, you need to install the app – it’s possible to do this through its official website. In addition, make sure your seed phrase is secured well to avoid being hacked – you can write down your phrase on a piece of paper and hide it in a safe place.

Below, you’ll find a small step-by-step guide on how to complete the process of cashing out via MetaMask:

  1. MetaMask is on the Ethereum network by default. First of all, if your game is based on another blockchain (for instance, Binance Smart Chain), you need to change it – enter your Binance account to transfer your Axie Infinity’s SLP from MetaMask.
  2. Once you’ve done that, go to “Crypto Deposit” and find “SLP”.
  3. Then, choose “ETH Ethereum ERC20” (if your SLP is on the Ethereum blockchain) or “BSC Binance Smart Chain BEP20” (if it’s on the Binance Smart Chain).
  4. When you’ve chosen the required network, you’ll see the address – copy the whole address that starts with “0x”.
  5. After that, go back to your MetaMask and press “SLP”.
  6. Next , tap “Send”.
  7. Then, enter your Binance address in the required field and put in the amount you want to transfer.
  8. Once you’ve done that, press the “Next”.
  9. If there is enough money to complete the transaction, just wait a little bit, and the amount will be transferred to your Binance account successfully. That’s it!

Ronin

Another option to cash out from your play-to-earn game is Ronin.

A Ronin wallet allows you to store the following tokens: SLP, AXS, WETH, BUSD, and RON. Previously, you were able to make 100 free transactions per day, but now, each wallet gets only 20 free transactions – once you’ve used them, you’ll be charged with RON as gas fees.

Binance NFT marketplace and P2P

The Binance NFT marketplace is well-known and one of the most fast-paced platforms among its competitors. It was launched in 2017, and nowadays, it has the largest volume of trades worldwide.

There are actually two ways to cash out through Binance: Peer-to-Peer (P2P) trading and withdrawing XRP. Let’s take a closer look at each one:

  • Peer-to-Peer (P2P)
  1. First of all, you need to proceed to “Wallet” and then press “Fiat and Spot”.
  2. Once you’ve done that, if you want to convert SLP to USDT, tap “Convert”; if you want to sell your SLP directly to P2P, tap “Transfer”.
  3. After that, transfer your SLP from “Spot” to “Funding”.
  4. Now, you can sell your SLP on P2P and get the payment either through Gcash or to your bank account. To go to P2P, switch to “Trade” and then press “P2P”.
  5. Finally, when you’re ready to sell your SLP or USDT in P2P, tap “Sell” and after that, choose the cryptocurrency you’re using. And that’s it! Binance will notify you as soon as the seller sends the payment.

  • Withdrawing XRP
  1. If you choose this option, remember that you need a Coins.ph account to make a transaction. Suppose you already have your SLP in the Spot wallet in Binance – first, choose “Trade” at the top of the website and then press “Convert”.
  2. After that, select SLP and XRP as the currency and enter the amount you’d like to convert.
  3. Once you’ve done the previous step, confirm the quotation.
  4. Then, to receive the XRP address, log in to your Coins.ph account.
  5. Select XRP on your wallet and find your address.
  6. After that, go back to your Binance account.
  7. Next, go to “Withdraw” and choose XRP. Enter your XRP address in the first field.
  8. Then, confirm the pop-up window.
  9. Use your tag from Coins.ph to MEMO. After that, enter the amount you’d like to withdraw.
  10. Finally, enter your 2-Factor Authentication (2FA), submit, and wait a little bit until your XRP is deposited in your Coins.ph account. Congratulations!

Bottom line: How profitable are play-to-earn NFT games?

When it comes to crypto earnings, play-to-earn games are something new on the market, and if you want to take advantage of such an innovative project, it’s always better to be among the first to try it.

It’s not a secret for anyone that P2E games allow people to make a good income – as we’ve mentioned in our article, many people have changed their jobs, choosing a much more enjoyable and profitable option. However, bear in mind one crucial thing: take care of your safety, as no one is guaranteed protection from bad tokenomics or even scams.

We sincerely hope that our guide helped you to get a full understanding of play-to-earn games, as well as the way to cash out your earnings. Remember that you can always come back to this article and refresh your memory with all the most important info. So enjoy the game, play wisely, and thank you for reading!

FAQs

Still have some questions? If so, here’s a list of FAQs – there, you’ll definitely find the answers to all of your outstanding issues.

Are play-to-earn games real?

Of course! Play-to-earn games are almost the same as standard ones – the main difference is that you’re able to earn money by playing any P2E game.

Are play-to-earn crypto games legit?

Absolutely! By playing crypto games, you can actually earn digital assets and make an additional real income.

How is an NFT worth money?

Any NFT (non-fungible token) is absolutely unique – you cannot replace it with something else. Here’s a great example: even though you’re able to make a copy of a Picasso painting, the original is still unique and irreplaceable.

What is the best game to earn crypto?

Each of us chooses our own favorite. However, we’d like to draw your attention to the Hate Race game one more time. As we’ve told you above, thanks to its multiple features, such as a user-friendly interface, exciting animation, and original concept, you’ll definitely love this game, as well as its outstanding NFT collection of rat characters.