What is GameFi
GameFi (Game Finance) refers to gamified finance. It combines the concept of gaming, decentralized finance (DeFi) and non-fungible tokens (NFT), enabling players to earn rare NFT rewards in the game. NFT can give ownership rights that guarantee the value of GameFi in-game items, and players can make money by trading NFT on the DeFi platform.
What Is the Relationship Between GameFi and DeFi?
GameFi can be counted as a subset of DeFi, as both are in the financial sector.
Today's most popular game is AXIE, mainly because gamers can make money while playing, i.e. Play to earn. Players can earn a profit by investing early and playing the game daily.
Essentially, this is no different from DeFi's liquidity mining. In liquidity mining, users earn rewards by staking. While for “Play-to-Earn” (P2E) games, players buy various NFTs early on and then spend a certain amount of time on the game daily to earn rewards. This is similar to the APY (Annual percentage yields) in liquidity mining.
How Is GameFi Different From Traditional Games?
- P2E (Play-to-Earn)
Play-to-Earn is the core element in GameFi, which is the most significant difference from traditional games. Traditional in-game assets can only be used in the same game and cannot be exchanged for profit in most cases unless you sell your account. While in P2E, players can trade their collected assets or NFT in the market into cryptocurrencies and then exchange them for cash or as an investment. A game that allows the player to earn will attract more players to join and play, thereby increasing the value of GameFi.
- Game Assets Traded Without Borders
The in-game items collected and obtained in the GameFi world can be made into NFT for sale. After turning it into NFT, players have the ownership rights to it. Players can sell the collected NFT in the game marketplace or trade them into Ether for profit or as a long-term investment on NFT platforms. GameFi's assets can bring long-term profit value as compared to traditional games.
- Earn Interest by Staking
Since NFT is an asset with a value, the NFT in-game items can be staked on other DeFi platforms. This allows players to stake their NFT assets for lending and borrowing or earn interest by staking their NFT assets or game tokens on other Dapp applications.
How To Get Started With GameFi?
GameFi has not only changed the traditional gaming world but also brought new playing ways and opportunities to DeFi, which has not shown any innovation for a long time. GameFi enables the player to make a profit through methods, such as liquidity mining, and by bringing it into the secondary market without sacrificing the fun and interactive nature of the games. So how do ordinary users get started with GameFi?
- Play GameFi Games
First, you can participate in GameFi projects. The gameplay of these NFT games is designed differently to allow players to obtain the corresponding token rewards, staking rewards, or NFT in-game items.
- Invest in GameFi Cryptocurrency
Different projects usually issue their own tokens used in their games. You can invest in some of their tokens according to your value judgment and interest. In addition to the blockchain game projects, you can also pay attention to organizations or teams for GameFi and analyze whether the tokens are worthy of investment based on their development and prospects.
The popularity of GameFi is perhaps the inevitable product of DeFi and NFT development. It makes the next generation of crypto assets integrate financial attributes with fun, and turn them into a trend, bringing a whole new imagination space for blockchain games and even the Metaverse. You can invest in GameFi cryptocurrency via the Bing X [Buy/Sell - Spot - Metaverse] or by clicking https://bingx.com/en-us/market/spot/. After you purchase cryptocurrencies and top up your wallet, you can play GameFi games to earn rewards. BingX has filtered and listed many high-quality GameFi cryptocurrencies for you to choose from. Join us at BingX to learn more.