Play-to-Earn 101: The Three Easiest Ways to Make Money in P2E

Play-to-Earn or GameFi protocols go mainstream in Q3-Q4 2021 - and the ecstasy surrounding them continues.

Play-to-earn (blockchain games, decentralized games, etc.) is one of the weirdest technological developments of the Web3 era. It connects blockchain-based systems and online games and opens up impressive opportunities for passive income.

What is Play-to-Earn?

Play-to-Earn (P2E) should be called a type of on-chain protocol that integrates financial elements into gamification design. Most commonly, such games also utilize NFT tokens as ownership tools for in-game assets and territories.

To a large extent, the first-generation Play-to-Earn platform represents the original MMORPG or arcade; in addition, GameFi developers released some shooting games and emulators in 2021-2022.

While most Play-to-Earn (P2E) protocols represent novel designs and plots (like the specialty Axie Infinity and Decentraland), some of them enhance legendary Web2 games with blockchain-based tools: e.g. ERTHA GameFi’s Inspired by Heroes of Might and Magic.

Some of the most advanced Play-to-Earn protocols call themselves "Yuanyujie", suggesting an immersive experience that goes far beyond online play.

Why is the Play-to-Earn protocol popular?

First of all, some of them released truly amazing and engaging gameplay. The user experience of Play-to-Earn's flagship product is almost on par with mainstream mobile games.

Then, the Play-to-Earn protocol unlocks a lot of opportunities for passive or semi-passive income. They are especially important to citizens of emerging economies: "Play-to-Earn" communities (so-called gaming guilds) gather hundreds of thousands of people in the Philippines.

Last but not least, the rapid popularity of the Play-to-Earn segment should be attributed to the corporate-driven aggressive promotion of Yuanyujie.

Play-to-Earn 101: The Three Easiest Ways to Make Money in P2E

There are multiple ways to earn money in the Play-to-Earn ecosystem. People can choose the method that suits them best according to their skill level in blockchain, gaming and trading.

For Traders: Buy P2E Tokens Low, Sell High

Most Play-to-Earn games and gaming ecosystems issue native cryptocurrency tokens. These tokens are the backbone elements of their token economic structure as they are used as payment methods, governance tools, collateral, etc.

As we have already reported previously, some game tokens are up by 1000% or more. MANA, AXS, GALA, SAND, SLP are the best performers in this segment.

How to find P2E tokens? Check the corresponding category on Coinmarketcap.

For Gamers: Participate in Tournaments and Challenges

Many Web2 gamers are turning to the Play-to-Earn segment, attracted by high rewards and great prizes for participating in tournaments and competitions.

Sometimes this participation looks more like betting: To enter a tournament with a random outcome, one should bet on cryptocurrencies or buy an entry. The winner usually takes the competitor's bet.

For Blockchain Enthusiasts: Trading In-Game NFTs

The Play-to-Earn ecosystem tokenizes in-game equipment (tanks, weapons, cars, etc.) as well as plots of virtual land. These assets are available as NFTs; they are subject to rapid price fluctuations and thus can deliver a good ROI.

As we've covered before, the Axie Genesis Plot, a premium field in the Axie Infinity (AXS) gaming world, was sold for 550 ETH or $2,460,000 at the time of the transaction.

Weapons and armory for in-game battles cost 0.01-0.1 BNB, so there are plenty of opportunities for even low-budget investors.
Summarize

Built on the intersection of DeFi protocols and online gaming, the Play-to-Earn ecosystem unlocks previously unseen entertainment and revenue perspectives.

Axie Infinity, The Sandbox, Decentraland are the most popular GameFi protocols for experienced gamers and beginners alike.