NFTs (Non-fungible tokens) have created a stir worldwide, and their popularity continues to grow. Non-fungible means “distinctive”, which cannot be replaced by anything else, leading to one-of-a-kind trading.
NFT games have generated $2.3 billion of trading volume in the third quarter of 2021, which represents 22% of the total. Gamers can earn money by investing in NFT games.
NFT games have been called “the future of the gaming industry.” By blending games with finance, these NFT games offer a good deal to players, which is why many are more than willing to invest in NFTs.
What are NFT games?
According to Forbes, an NFT is a digital representation of any real-world object. They are unique digital collectibles on the blockchain, making them appropriate to be used in games as characters, tradeable items, and consumables. People trade NFTs in online NFT marketplaces such as OpenSea.
The NFT games were introduced with the Crypto Kittiesuproar in 2017, but their recently gained popularity is unparalleled. They have become a sensation in the Game-fi world to generate profits.
Game-fi, as the name suggests, is the best of both the gaming and finance worlds, providing players opportunities to earn income as they play. This can happen through the trade of in-game NFTs with other players or even by experimenting with multiple gaming models. These NFT games offer a horizon of things, starting from NFT virtual game land, NFT game characters, virtual game add-ons and an exceptional opportunity to feature in the game as an NPC.
How do NFT games work?
An NFT game incorporates NFTs in player interactions, mechanisms, and rules; for example, a player’s avatar could be represented as an NFT in the game. A player then exchanges their NFT (a character or any digital item) with other players for a profit.
To contrive NFTs within the game and allow players to swap and create them, developers have created a ‘smart contract’ that makes up the rules for the NFTs used. These are automated pieces of code that are stored on the blockchain.
How do People Generate Income through NFT Games?
Players simply do this by playing play-to-earn NFT games, providing users a window to generate an income stream. A player is rewarded with tokens that represent possession of unique items, which are often needed as part of the NFTs crafting process.
An example of this is “Axie Infinity”, which has enabled many users to generate income. The players would have to buy at least three Axies to join the game. Users then prime them, team up with friends and initiate Axies battles in their kingdom. An Axie is an NFT; however, the tools used to build those NFTs can be sold to other players in exchange for a profit. The amount of money depends on how much cryptocurrency is merchandising for. This play-to-earn method has been highly popular amongst players in low-income countries, as this has helped many earn between $200-$1000 (USD).
NFT Games to Keep an Eye On:
It cannot be denied that investing in NFT games is an appeal for many. You may wonder what NFT games to invest in. This list provides the upcoming sensations of 2023, and the NFT games that you should be eyeing:
1. Battle of Guardians (BOG)
This progressive combat game based on the Solana Network revolves around users fighting each other in hunger for more rewards. Notonly can users profit from the blockchain, but they can also enjoy its unparalleled graphics. With the release of every new game, BOG creates a gaming metaverse with incredible graphics, unique NFTs and several opportunities to earn profits.
2. Idle Cyber
A contrast to the earlier one, this is a defence game which is based in 2088. Here, humans lead mutants and defeat massive enemies to preserve humanity. Investing in this NFT game would provide numerous opportunities for players to earn and generate profits.
3. Axie Infinity
This one is every player’s favourite and is one of the elite projects in cryptocurrency. It is Pokémonthemed and developed on the Ethereum blockchain. This game offers players a collection of stunning fantasy creatures with which they can collect, groom, and raise battles. It rewards users in the form of SLP (Smooth Love Potion), which players can trade and earn.
Some other NFT games that are worth investing in include:
- Splinter lands
- Kawaii Islands
- Mythical Beings
- Alien Worlds
What are the Risks?
The NFT games offer great earning opportunities; however, they also involve severe uncertainty and a risk factor. The hype and craze that these games have created could lead to over-speculation, and there is a major chance that many investments would collapse, resulting in losses. Many experts have equated the growth of NFT games to a huge bubble that can pop at any second resulting in an economic explosion.
Moreover, there are high chances of fraud in the digital market, which poses another risk factor, especially when anyone on the internet can create an NFT, resulting in many unworthy tokens that players might accidentally collect.
Other risks involve illiquidity, as every seller must find a buyer willing to pay a particular price for that item. All these combined may make you think twice before investing in NFT games.
Conclusion:
Investing in NFT games is worth it, especially if you have the time and money to finance and you are willing to try. You should not make any kind of rash decisions, such as investing a hefty amount or quitting a well-established job just to earn through this. NFT games are still new, they still have a lot to face, but they are here to make a mark.
