Technology development has brought us numerous innovations, among which blockchain stands out. While many believed that cryptocurrencies represented the peak of blockchain technology, the emergence of NFTs proved otherwise. An NFT (non-fungible token) refers to unique and indivisible tokens that represent digital assets on a blockchain network. The key difference between cryptocurrencies and these assets lies in their indivisibility and uniqueness. That means purchasing just a part of an NFT is impossible. Additionally, each token is one-of-a-kind and cannot be exchanged for another identical one. Today, we will talk about gaming NFTs and their potential.
Although NFTs first appeared in 2014, they only gained significant attention in 2017 with the launch of iconic projects like CryptoPunks and CryptoKitties. These projects today represent the pillars of the NFT world. The concept enables implementation across various sectors of the economy and has practical applications in the real world. Still, fear and lack of education about blockchain technology have led to NFTs being used mainly as “pictures whose value goes up or down.” The unregulated market led to the initial hype surrounding the technology fading. Still with crypto entering various ETFs of major investment banks, NFTs are making a comeback on the big stage.
While it’s true that implementing NFT technology in the real world and traditional economy will take considerable time, some markets recognized the potential of blockchain from the outset. Chief among them is the world of video games, where this type of token has brought about a true revolution. Gamers have gone from being mere consumers to becoming creators. This is why explaining the main aspects of Play-to-Earn games is essential, as today’s article focuses on gaming NFTs.
What Are Gaming NFTs?
We’ve already discussed the key characteristics of NFTs. Let’s now imagine the benefits they could bring to gaming. NFTs, along with crypto gaming tokens, have the potential to elevate the gaming world to an unprecedented level. They can do that by implementing features we couldn’t have imagined just a few years ago. Gaming NFTs are digital items recorded on the blockchain as unique tokens.
Take Fortnite as an example. Imagine you find a skin you like within the game. Now, visualize that the skin was produced in only 5,000 copies, and you can use VBucks to buy it. Once Epic Games sells all 5,000 units at the fixed initial price, the only way for others to obtain that skin is by buying it from you or one of the other 4,999 owners. This creates a trading market where players can earn money by playing the game. That specific skin would be represented by an NFT, which acts as a digital certificate of authenticity. It would be stored in your crypto wallet, and each time you connect the wallet to the game, you could use the character you purchased. Essentially, by trading an NFT containing a particular skin’s attributes, you’re trading the skin itself.
We hope this provides a clearer picture of how gaming NFTs can work in practice. Additionally, NFTs can represent higher-quality weapons in shooter games, land plots in building or war games, or cars in various racing games.
Advantages of Owning Gaming NFTs
Until recently, video games were designed purely for entertainment, with all profits going to the companies that created the content. However, this has begun to change with the arrival of blockchain, specifically in the form of gaming crypto tokens and NFTs. Players now have the opportunity to earn in multiple ways. When it comes to NFTs, this usually involves trading them. Of course, trading wouldn’t be possible if players weren’t the owners of the digital assets they purchase.
Another significant advantage of implementing NFTs in gaming is the exclusivity they offer. Many players enjoy showcasing items that few others possess, and NFTs make this possible. Each NFT is created in a specific series. The number of copies of a particular skin, weapon, car, or similar item indicates its rarity and exclusivity. These factors will undoubtedly affect its future value. Moreover, it’s common for players to become attached to certain items, even if they weren’t released in extremely limited quantities. So, if you manage to get your hands on one of those in time, it could offer you a chance for a solid profit down the line.
How to Buy a Gaming NFT
The core foundation of blockchain technology lies in crypto wallets. Without one, you won’t be able to access any Web3 game. That’s why the entire process of purchasing a gaming NFT starts with setting up a crypto wallet. Many wallet options are available. Still, the most essential thing to start with is knowing which blockchain the NFT you want to buy is on. If it’s on the Ethereum network, we recommend using the MetaMask wallet, while Phantom is a good choice for Solana. Setting up and installing a wallet is a straightforward process. If you encounter any difficulties, you can refer to our article on the topic by clicking HERE.
Once your wallet is set up, you must deposit some cryptocurrency, depending on the blockchain you’re using. If you already have an account on a centralized exchange like Binance, you can easily transfer ETH or SOL. If this is your first time opening a crypto wallet, don’t worry. There’s also an option to purchase crypto directly using a payment card.
The next step is connecting your wallet to an NFT marketplace. Buying and selling NFTs mostly occurs through established marketplaces, although some games have developed their own trading platforms. However, we recommend using those only if you’re sure the game is legitimate. To avoid any concern over the security of your wallet funds, we prefer using trusted trading sites. OpenSea and Magic Eden undoubtedly dominate in this space. While both platforms support all major blockchains, people still tend to stick with tradition. OpenSea is typically used for Ethereum NFTs, while Solana users tend to prefer Magic Eden.
After connecting your wallet to a marketplace and locating the NFT you want to purchase, click the “Buy” button, and the token will be added to your wallet within seconds.
How to Sell a Gaming NFT
The process of selling a gaming NFT is quite simple. Within just a few minutes, you’ll be able to list your token for sale. Let’s assume you already have the NFT in your wallet and are logged into a marketplace.
The first step is to decide on the price you want to sell it for. We recommend researching the market: check the floor price (the lowest listed price) of that collection, determine whether your token is considered rare, and then set a price you’d be satisfied with. When setting your price, remember that there are specific fees associated with it. Some go to the marketplace and others to the creators.
If someone purchases your NFT, you’ll receive a confirmation email. Naturally, the funds will be immediately transferred to your crypto wallet.
Factors to Pay Attention to When Trading NFTs
Although trading NFTs may seem simple and guaranteed to bring profit, this is not always the case. As a new market, crypto is prone to scams, the oldest of which is the creation of fake collections on marketplaces, where less experienced traders get “hooked” and buy counterfeit NFTs. For this reason, it is crucial always to use official links from the company that owns the game and creates the NFTs.
Additionally, a potential issue is the volatility of the crypto market. Even if the value of your NFT increases by 15%, that may not mean much if. For example, the price of Solana drops from $250 to $110, as it did earlier this year.
Another vital aspect to consider with gaming NFTs is the player rights that come with the purchase. Always carefully read what is stated on the game creator’s website about what you receive when buying their NFT.
Conclusion
Based on the information presented in this text, it is clear that blockchain technology has opened the door for online gaming to develop in previously unimaginable ways. When we consider all that crypto can bring to online games, it’s no surprise that an increasing number of Web3 gaming companies are emerging in the market, and that’s not all. Many reputable traditional game developers are exploring how to incorporate blockchain into their future titles, which indicates that crypto gaming has a promising future. Find a game you believe has the potential to one day become the Web3 equivalent of LOL or CS, research ways to invest in it, and start with gradual investing. Of course, the key is education and staying informed, and only when you’re confident you’ve found the right game should you dive in. In the meantime, enjoy playing. Good luck!
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FAQ
Which crypto wallet do I need to store gaming NFTs?
The answer depends on which network the game creators have chosen. If the game is built on the Ethereum network, the best option for storing tokens is the MetaMask wallet, while for the Solana ecosystem, the leading choice is Phantom. However, Solflare is also increasingly attracting the attention of Solana enthusiasts.
On which platforms can I buy and sell gaming NFTs?
Although the marketplace was divided in the past, with OpenSea used for the Ethereum network and Magic Eden for the Solana ecosystem, both have integrated all blockchains into their offerings over time. Additionally, some games have their own marketplaces integrated within the app, and whichever of these options you choose, you won’t go wrong.
Which Cryptocurrency do I need to trade gaming NFTs?
Similar to the previous answers, the key factor is the blockchain on which the NFT itself resides. Most often, these non-fungible tokens are on the Ethereum and Solana networks, but we are also witnessing increasing prominence of the Bitcoin and Sui ecosystems. Thus, these currencies are necessary for trading.
How can I make money by selling in-game NFT items?
The simplest way to earn money by selling in-game NFT items is through pure trading — buying the NFT at a lower price at the right moment and later selling it on the market at a higher price.
Can I return an NFT if I bought it by mistake?
Unfortunately, this is not possible with blockchain transfers since all transactions are irreversible. The only option available is to sell the purchased NFT if there is interest in it. Because of all this, it is essential to be careful and thoroughly research the project before investing in it.
