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What is GameFi and How it Works?

GameFi is the combination of two words i.e.“Gaming” and “finance”. It means play-to-earn blockchain games and it provides economic incentives for players. It allows gamers to earn digital assets like crypto currency and NFT for playing games. While in traditional games, it allow players to trade digital assets but they can lose their investment at anytime, in case the publisher shut down the game and closes their business. But in GameFi, it stores your digital assets on blockchain network, so there is no risk involved in your digital assets. In this article, you will learn about GameFi and its working.

How GameFi Works?

In GameFi, you can earn reward through different ways like cryptocurrencies or in-game assets such as virtual land, avatars and costumes. Generally, the in-game assets are NFTs which are running on the blockchain, so that you can trade on NFT marketplaces and if the in-game assets are not NFT, then you have to first convert it into NFT before you trade or sell them. The players can earn more rewards from the in-game assets by completing tasks, by battling with other players, or by building plot of land. It also helps the players to earn passive income without playing the game just by staking or lending their game assets to other players. In this players have full control over their digital assets with verifiable ownership. Gamers can generate revenue by charging other players for visiting their land and by renting their land to other players. GameFi also provides DeFi applications like staking, liquidity, mining and yield farming, so that you can earn rewards.

How To Start Playing GameFi Game?

There are various blockchain games and each work differently. Hence, you should be aware of scam games and fake websites because if you connect your wallet or download games from fake websites, then it will be dangerous. It is advised you should create a new crypto wallet and use funds which you can afford to lose. Follow the below steps to get started with GameFi Games.

  1. Get a Crypto Wallet: Your wallet keeps your crypto currency and NFTs coins and it allows you to do transaction. Keep in mind your crypto currency wallet should be compatible with the GameFi games, as with all crypto wallets you cannot play GameFi games. This means before you play, you should check the compatibility of the wallet. After checking the compatibility, you should connect your wallet.
  2. Connect your Wallet to the Game: If you want to play a blockchain game, then you should connect your wallet. You should ensure it is connected to the official website. Go to the game’s website and then connect your crypto wallet. Generally, blockchain games use your wallet as a gaming account, so it might ask you to sign a message on your wallet before you connect to the game.
  3. Check Requirements to Play: Normally, GameFi projects will ask you to buy their cryptocurrency or NFTs to start playing the game. It is advised before you play you must see the earning and risks involved. Also, check how long you will get back your investment back and start earning profits.
  4. Fund your Wallet: It is very important that the players should fund their wallet if they want to play genuinely.
  5. Buy Beginner Items: If the player has downloaded the GameFi games free of charge, then they cannot play all games, till they invest in the world. They can purchase a character or an upgrade and these items are not expensive.

    It is estimated that GameFi games, will continue to grow in the coming years at a rapid pace. And also you get the ownership of the digital assets and can earn profit from GameFi games. To know more about GameFi, read our other blogs.
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Cryptoowiki © 2022. All rights reserved.

Cryptoowiki © 2022. All rights reserved.