Résumé

Play-to-earn games allow users to farm or collect cryptocurrencies and NFTs that can be sold on the market. By playing regularly, each player can earn more items or tokens to sell and thus generate income. Some players have even started to supplement or replace their salaries by playing these blockchain games. However, this activity comes with risks, as you usually need to make an initial investment to purchase characters and items to play the game.

Blockchain makes it possible to guarantee the collectible nature of these objects and to create functional digital economies. Blockchain technology and NFTs have enabled the creation of digital objects that are impossible to duplicate. This is how the concept of digital scarcity was born.

To make a withdrawal, you must deposit your NFTs or cryptocurrencies on an NFT marketplace or an exchange like Binance. It is unlikely that you will be able to convert NFTs directly to fiat, so it is better to convert them to stablecoins.

Once you sell your NFTs or tokens, you can convert the stablecoin to fiat and withdraw the funds using the gateways available in your country. Another option is to use the stablecoin with a crypto card like the Binance Visa Card.

Introduction

Blockchain gaming has come a long way from trading simple collectible non-fungible tokens (NFTs) like Cryptokitties. You now have the opportunity to earn money playing crypto games, even if you don't have the rarest NFTs in your wallet.

The idea seems appealing because video games rarely give players the opportunity to generate real-world income by selling digital assets. With this new Play to Earn gaming model, users are now able to earn money in the world of cryptocurrencies.

What are Play to Win NFT games?

The Play to Earn game allows players to generate a steady stream of cryptocurrency income simply by playing the game. The mechanics of each game can vary, but rewards generally come from staking, farming in-game currency, or creating of exchangeable NFT objects. In old blockchain games, users mainly relied on luck to make profits. In contrast, the “Play to Earn” approach has created gaming economies and business models in which players can work to earn money.

Axie Infinity on the Ethereum blockchain is a famous example. The game combined traditional video game elements and gaming with the old blockchain gaming model. For example, Axie Infinity features adventure mode, PvP battles and tournaments, which are usually seen in the traditional video game industry. The game is available for Windows, Android, Mac OS and iOS.

How do Play to Win games work?

With their mix of gaming and finance, Play to Win games fall into the GameFi category. Each game offers financial incentives to play and progress. As we mentioned, there is usually a repetitive aspect to repeating specific actions that allows users to generate income in two main ways:

1. Earn in-game cryptocurrencies. For example, Axie Infinity's Smooth Love Potion (SLP), is acquired by completing daily quests or fighting monsters and players.

2. Earn or trade in-game NFTs. Each NFT may represent an in-game item, character, or other collectible. Depending on the game, they may be purely cosmetic or fulfill an in-game use or purpose.

There is also a third alternative for generating income with Play to Win games, staking. Some NFT games allow users to lock NFTs or cryptocurrencies into smart contracts, which in turn generate rewards. For example, staking MBOX tokens rewards users with NFT MOMO mystery boxes. Each of them contains a random NFT of different rarities, which can then be sold on the secondary market. However, to earn great staking rewards, you will need a very large initial investment.

How does blockchain technology secure Play to Earn games?

The principle of Play to Win is not new. There are many online games (usually MMORPGs) that have auction rooms or secondary fiat currency markets run by gold farmers. For crypto games, the key difference is that these currencies and items exist on blockchains. A blockchain has several properties that make it easy to prove ownership, legitimacy, and scarcity.

You can think of a blockchain network as an immutable database. This is managed by a distributed network of computers (users), each of which holds a copy of the blockchain data. This means that it is virtually impossible for someone to modify, 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 hacking, and other exploits that are common in traditional games. The rarity of an item in the game is a vital part of its value. With blockchain, there is no copying and pasting. If an item is unique, it can never be reproduced. This helps create real value for in-game items.

How much revenue do users earn from playing games?

Gaming is generally not considered a source of income for the average user. It can be difficult to understand that regular players can generate income from a blockchain game. In fact, many people earn salaries from crypto games like Axie Infinity, especially in developing countries.

Farming can provide a more regular income stream, where your earnings are proportional to your skill and the time you spend playing. This farming method has proven popular in the Philippines, where Axie Infinity has even become an alternative to unemployment benefits. Players can earn between $200 and $1,000 per month by farming SLP, depending on market price and play time. Farming income is generally lower than the creature and creature trading alternative. 'NFT objects, 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 new Axie. As of October 2021, the most expensive Axie (Angel) was sold for $131,970 on November 7, 2020 and is now valued at 3,000 ETH. While these numbers seem tempting, it's difficult to predict an average income for someone selling NFTs from Play to Win games, especially due to their random nature.

How to start playing Play to Win games

Each Play to Win game will have different requirements for new players. At a minimum, you will need a crypto wallet like MetaMask or Binance Chain Wallet to store your cryptos and connect it to the game.

You may also need to make an initial investment to play, such as creating a team of characters or purchasing in-game items. Entering a digital crypto-economy is generally not free.

As of October 2021, Axie Infinity requires an initial investment of approximately $600 to purchase three Axies. While this can be refunded after a few months of playing, it still creates a barrier to entry.

Another option is to look for "Exchanges", where you can essentially borrow Axies from another player for free and then split the income you get with that player (called a manager). In other words, a personalized percentage of your income is allocated to the player providing the purse. Once you've created your starting team and completed daily tasks and challenges, you'll start regularly earning SLP, an ERC-20 token tradable on Binance and other cryptocurrency exchanges.

How to withdraw money from Play to Win games?

When playing NFT games, we mentioned that there are two main options for making money: finding NFTs to sell or playing regularly to build a stream of in-game cryptocurrencies.

These activities will allow you to generate NFTs, tokens, or both to sell on the secondary market. Depending on the cryptocurrencies and items you own, you can sell your NFTs and tokens on Binance. Ethereum and Binance Smart Chain (BSC) non-fungible tokens can be easily added to the Binance NFT marketplace, but you will need to check if the non-fungible tokens you want to sell are listed by Binance for your country. You will also need to verify your account by following the KYC procedure.

Withdraw cryptocurrencies from Play to Win games.

To cash out a token like SLP or SAND, you will need an exchange that offers the currency in a trading pair. If you want to use your earnings in real life, you will also need to consider whether you can trade the tokens for fiat currency (like US dollars and euros) and transfer them to your bank account. Another option is to use a crypto card to spend your cryptocurrency (e.g. Binance Visa Card).

You can also convert your earnings to stablecoins, but converting them to fiat will require an additional step. Your funds will be more stable in a currency like BUSD than in a volatile crypto like SLP, SAND, or Bitcoin (BTC). Let's take an example.

By playing The Sandbox, you managed to earn SAND which you now want to sell. To cash out your SAND, you must first deposit it into your Binance account.

1. If you are using MetaMask or another crypto wallet, copy the deposit address to the sending wallet to transfer the tokens. Remember that you will need cryptocurrencies to pay your fees, such as BNB for Binance Smart Chain and ETH for Ethereum.

2. Next, on the Exchange view, choose a suitable SAND pair to trade. SAND/BUSD is a good choice because BUSD is easily exchangeable for fiat currencies and can be used to secure your winnings.

3. Next, sell your SAND using the order type you want. We used a Market order here, but you can also use a Limit or Stop-limit order.

4. You will now have BUSD, which can be converted to fiat on BUSD pairs like EUR/BUSD. Once you sell for fiat, withdrawing your money from Binance changes depending on the country you live in and the methods available. You can find more information in our FAQ.

Withdraw NFTs from play-to-earn games.

If you have won NFT items and in-game collectibles in your game to win, you will need to trade them on an NFT exchange to cash out your capital gains. Binance's NFT marketplace has a custodial feature, allowing you to sell your NFTs directly on Binance. You can also use decentralized exchanges as long as your NFT is compatible with them.

1. To sell your NFTs on Binance, create or log in to your Binance account. You will need to make sure your NFT is in a Connect compatible wallet like Metamask. You will also need to complete KYC checks.

2. Next, go to the Binance NFT homepage, click [User Center], then click [Deposit].

3. Select BSC or ETH, depending on the network your NFT is on. You will then see the address you need to send your NFT to.

For more detailed instructions, see How to deposit an NFT to Binance. Once you upload your NFT, you can sell it through an auction or fixed price format for different cryptocurrencies. You should choose BUSD when setting up your trade because it has low volatility and can be easily converted to fiat. Check out How to Sell an NFT on Binance NFT Marketplace to find the method that's right for you.

Implications fiscales

If you decide to use Binance to cash out your capital gains, you have several options to choose from depending on your country and local regulations. However, it is always important to check the tax implications of any trades you use to withdraw your capital gains. You may also be in a jurisdiction that affects the legality of cryptocurrencies, so you should still do your due diligence.

To conclude

Play to win games are a new thing when it comes to making money with cryptocurrencies. With most new projects and ideas, you usually need to be among the first. However, Play to Win has allowed players to earn money. However, you should always be careful as many games can be high risk, unsustainable due to an unsustainable business model or even scams.

If you want to explore GameFi and play to earn more, head over to the Binance NFT page. NFT mystery boxes are regularly launched by companies like MOBOX and My Neighbor Alice. They all contain NFTs usable in the gaming world that can help you get started.