How to Get Started With GameFi

There are thousands of blockchain games, and they each follow their own economic model. Unlike traditional video games, play-to-earn games let players buy and then transfer the in-game assets they acquire to the outside of the game’s virtual world — they can sell their NFTs on a marketplace like OpenSea, or trade their crypto earnings for money on a crypto exchange like Coinbase. All of this is to say that, like every other facet of the burgeoning Web3 space, GameFi requires a crypto wallet. From there, it’s all about finding games that are secure and managing your finances responsibly.

Here’s a quick primer on how to get started:

1. SET UP A CRYPTO WALLET

Set up a crypto wallet that is compatible with whatever game you want to play. While they don’t exactly store money the way a traditional wallet does, crypto wallets house encryption keys associated with digital assets, allowing you to retrieve, send and receive cryptocurrency. There are all kinds of wallets and currencies out there, but most games require specific wallets to work. You’ll need to check the given game’s official website to figure out which wallets they support.

2. CONNECT YOUR CRYPTO WALLET TO THE GAME

This will be your means of logging into the game as well. Unlike traditional online games that make you set up a username and password or ask for your email address, blockchain games use your crypto wallet as an account. When you connect your wallet, make sure you are connecting to their official website and not a fake look-alike.

3. FAMILIARIZE YOURSELF WITH SPECIFIC GAME REQUIREMENTS

Many play-to-earn games require players to purchase their in-game cryptocurrency tokens or NFTs to get started. In general, it’s good to weigh the earning potential against the overall risks of a given game, including how long it takes to earn your initial investment back and start making profits. If you don’t have enough money to buy a token yourself, or don’t want to take on the financial risk, consider looking for an in-game scholarship program, which allows you to borrow NFTs from other players to get started. Granted, if you go that route, you will have to share your earnings with the NFT owners.

Bear in mind that, like anything else on the internet, GameFi has its fair share of scams, so be on the lookout for fake sites. Also, a good rule of thumb is to create a new crypto wallet for each individual game you play, that way you’re more likely to only lose funds that you can afford to lose.