How to earn in GameFi industry advice from our Crypto-Upvotes experts

Blockchain entertainment is not only fun, but also profitable. What options does play-to-earn open, and what are the prospects for the development of industry GameFi ?

GameFi are blockchain projects that allow profits for gaming experience: users earn profits for participating in game. All player items and rights become their property: characters, land, artifacts, clothing, and more.

Project developers choose the cryptocurrency for payments within the project. However, more often than not, each platform creates its own token. Some projects may require a small investment to start gaming activity, but mostly you just have to play.

There are other options for earning money at GameFi. NFT items can be sold. The price of game items will be higher the more popular a game is. You can also rent your virtual property. Or participate in tournaments or bet on the results of competitions. In some projects, you can put your earned coins in stacking.

Basic earning rules and how GameFi works

The main principle of earning in this industry is Play-to-Earn. Players are paid for what they play, which is either hours spent in the app or specific useful in-game actions. All schemes come down to a developer paying users to use their app. In this case, for the use of a project game. Depending on mechanics of these games, there may be slightly different ways of investing in such projects.

Our Crypto-Upvotes experts gave Axie Infinity as an example. In which to “multiply NFT characters” players need to spend in-game currency SLP. If player numbers continue to increase, it might be enough to buy such a token, in the hope that increased demand will drive up prices.

More critical investors can take part in gameplay. Then their earnings will come from the sale of game currency and newly obtained “characters”. There are many such games, but their principles are similar.

A recent trend on STEPN showed that projects actually create very different ‘something-to-Earn’ mechanics: run, jump, play, breathe and even have sex. But each project is unique in some way, and you have to study its history and perspective individually.

In some projects it is enough to buy control tokens. And somewhere the game will involve the investor in internal processes. For ordinary players everything is simple – they exchange their time for the developers’ money. One only needs to assess the risks if entering the game requires an initial investment to buy a starter set of tokens.

GameFi principles are not new, although the association of projects with blockchain has renewed interest in a whole industry. All principles of generating some profit existed before decentralization of games. In most cases, if a player gets something for free. Then money in this transaction is a player himself – his time, personal data, behavioral information, his attention, etc. All of this can be sold to analysts, advertisers, researchers, etc.

How to choose gaming projects to make a profit

First of all, it is better to pay attention to the major established projects with a large audience. For example: Axie Infinity, Alien WorldsCryptoBlades and many others. The tokens of these projects have the greatest liquidity, which will reduce risks from investing in them.

Another strategy could be to buy blockchain service tokens. In which most of the GameFi-projects are located. In addition to Ethereum and Binance Smart Chain, it is possible to buy more specific ones: WAX, EOS, KardiaChain, ThunderCore.

Our experts say that it is very dangerous to follow new projects without personal experience. Many of them are created for purposes of scams or financial pyramid scheme principles. Others may close due to bad business processes and external manipulation.

Our Crypto-Upvotes experts named promising projects where there is a strong gamer community with high involvement. This allows brands to integrate into gaming. Coins from game studios and native tokens from the top five most popular games are also worth considering.

Read More

Do-to-Earn crypto projects are becoming popular, what risks are associated with these projects explain our Crypto-Upvotes experts

Now there are many blockchain-based Do-to-Earn platforms offering earnings for activity. Experts at “Crypto-Upvotes” told what prospects such startups have. And what risks for investors exist.

Do-to-Earn projects are becoming popular they allow you to earn from some action, from participating in a game to walking and swimming. Play-to-Earn projects are blockchain-based games where users get tokens for completing tasks. Upgrade their characters or breed pets.

There are projects that pay for singing (Sing-to-Earn), working with documents (Write-to-Earn), and even sleeping (Sleep-to-Earn). Learn-to-Earn platforms offer users to earn money by learning a foreign language.

Interest in such applications, fueled by marketers, is growing every day. Experts from Crypto-Upvotes discussed the prospects of this industry. And he discussed about risks that an investor may face when working with tokens of such projects.

Easy money or good marketing work that hides high risks

Every year people fall for the promises of big profits that such projects offer. Do-to-earn projects came from the gaming space. People bought items in games for status or utility in a game world, our expert told us.

The very phenomenon of Do-to-earn captures gamblers and lovers of easy money. This explains the variety of subspecies of decentralized games. Some projects due to the great hype of their project allow investors and players to stay in profit. When the whole cryptocurrency market has been in a bearish trend for several months. And the number of such projects and their various subspecies is growing very fast. But among newcomers in market, a significant part of startups are inherently unprofitable or even scam.And yet our experts are confident that success of these projects has short-term potential. And it is related only as long as a project has good marketing.

Is it possible to profit from Do-to-Earn, opinion of our Crypto Upvotes experts

Is it possible to profit from Do-to-Earn, opinion of our Crypto Upvotes experts

The collapse of such projects is inevitable?

In 2021, this segment moved to a new stage – the promise of tokens for physical activity. For example, the most popular project is STEPN (an app where gameplay is built around digital sneakers in NFT form). Our expert asked some simple questions. “Why would a project pay for your physical activity? Why would it spend millions of dollars on advertising? Are project creators working at a loss to themselves. And dreaming that everyone in the world would improve their health?”.

The answers to these questions are very simple. As long as the project remains popular, users buy sneakers and tokens. And thousands of new people around the world pour their savings into the pyramid. But the collapse of such a project cannot be avoided. And whoever doesn’t manage to sell tokens at the right time will be at a huge loss.

Nevertheless, our expert thinks that you can make money on such a project and come out with a profit; the main thing is to sell in time. This is possible because millions of dollars are invested in the project, both retail investors and large players.

But the long-term perspective of such projects is doubtful. In his opinion, the profitability of such games is directly related to the liquidity of game tokens. Which, in turn, depends on adding new players to the project. Do-to-earn projects are very similar to classic “Ponzi schemes”. Although their profit distribution principle is different.

Such games continue to be profitable only as long as there is hype and media activity around them. They provide a sufficient influx of new users. But as soon as ATH is reached, a project can go down and never come back up again.

Read More