In Brief (TL;DR)
Enter the world of Play-to-Earn games and discover how to turn your passion for gaming into a source of income thanks to NFTs and blockchain.
In this guide, you’ll discover the fundamental concepts, the steps to get started, and strategies to turn your passion for video games into a source of income.
Discover the essential steps to start playing and earning in the world of blockchain games.
The devil is in the details. 👇 Keep reading to discover the critical steps and practical tips to avoid mistakes.
The world of video games is undergoing a monumental transformation, merging entertainment with real earning opportunities. At the heart of this revolution are NFT games and blockchain technology, which allow players to become the true owners of the virtual items they acquire. This model, known as Play-to-Earn (P2E), is opening new frontiers, turning a pastime into a potential source of income. In a context like Italy and Europe, where gaming culture is deeply rooted and digital innovation is advancing rapidly, understanding this phenomenon is crucial. This guide is designed for beginners, for anyone who wants to explore how to earn with NFT games from scratch.
Imagine owning not just your in-game skill, but also your character’s legendary sword, the virtual land where you’ve built a fortress, or the race car you won a championship with. Thanks to NFTs (Non-Fungible Tokens), these elements are no longer just pixels on a screen, but unique, certified, and tradable digital assets. The blockchain, a distributed and immutable digital ledger, guarantees the ownership and authenticity of these items, creating an in-game economy where users can sell, buy, or lend their assets. This blend of gaming tradition and technological innovation is capturing the attention of millions worldwide.
What Are NFT Games and How Do They Work
NFT games, or Play-to-Earn games, are video games built on blockchain technology that reward players with real-value digital assets. Unlike traditional games, where in-game purchases are confined to the platform, here the items you earn—like characters, weapons, or plots of land—are minted as NFTs. An NFT is a unique and non-replicable digital certificate of ownership. This means the player truly owns the item and can manage it as they wish: sell it on a marketplace, trade it with other players, or even rent it out.
The system is based on a decentralized economy. By playing, you complete missions, win battles, or create new items, receiving rewards in the form of the game’s cryptocurrency or NFTs. For example, in a game like Axie Infinity, players breed creatures called Axies (which are NFTs) and use them to battle, earning tokens that can be converted into fiat currency like the US dollar. This model transforms the time and skill invested in the game into tangible value, offering a more engaging and potentially profitable experience.
First Steps to Start Playing and Earning
Entering the world of NFT games can seem complex, but by following a few key steps, the process becomes more accessible. The first step is to create a cryptocurrency wallet, a digital portfolio needed to store, send, and receive cryptocurrencies and NFTs. Platforms like MetaMask are among the most popular and are compatible with most blockchain-based games, such as those on Ethereum. It is essential to keep your wallet’s recovery phrase (seed phrase) extremely secure, as it is the only key to access your funds if you run into problems.
Once your wallet is set up, the next step is to buy some cryptocurrency. Many games require a small initial investment to purchase the first characters or NFT items needed to start playing. Cryptocurrencies, like Ethereum (ETH) or other game-specific ones, can be bought on reliable exchange platforms (exchanges) and transferred to your wallet. Finally, it’s time to choose a game. It’s important to do thorough research, evaluating the project’s soundness, its community, and its earning mechanics. Reading the game’s white paper and learning about other users’ experiences can help you make an informed choice and minimize risks.
The Most Promising NFT Games
The NFT gaming landscape is constantly evolving, with titles spanning various genres, from strategy and collectible card games to virtual worlds. Among the pioneers and most established is Axie Infinity, a Pokémon-inspired game where players breed, battle, and trade digital creatures called Axies. Despite market fluctuations, it remains a benchmark in the P2E sector. Another giant is The Sandbox, a metaverse where users can buy virtual land (LAND), create gaming experiences, and monetize them. This virtual world offers enormous creative and economic possibilities, attracting interest even from major brands.
For fans of strategic card games, Gods Unchained is an interesting and free-to-play alternative, where players truly own their digital cards and can trade them freely. Other noteworthy titles include Decentraland, another vast decentralized virtual world, and Splinterlands, another collectible card game that has gained a solid user base. The choice largely depends on your interests and risk appetite, but exploring these ecosystems helps in understanding the different facets of GameFi (Gaming Finance).
Earnings, Risks, and Tax Considerations in the US
The earning opportunities in NFT games are diverse: you can get in-game tokens by completing missions, sell rare NFTs on dedicated marketplaces, or even “stake” your assets to generate passive income. However, it’s crucial to be aware of the risks. The value of NFTs and cryptocurrencies is extremely volatile and subject to sharp market fluctuations. Furthermore, the sector is still largely unregulated, exposing users to potential scams, such as “rug pull” projects (where developers disappear with the funds) or phishing. It is essential to approach with caution, investing only what you are willing to lose and doing your homework to recognize common scam apps.
Another fundamental aspect to consider in the US is taxation. Earnings from crypto-assets, including those generated from NFT games, are generally considered taxable income. According to IRS guidelines, capital gains from selling crypto-assets are subject to taxes, and income earned from gaming can also be taxable. It is therefore mandatory to track all transactions and report the proceeds correctly on your tax return. For proper tax management, it’s helpful to consult our tax guide for app earnings, which offers specific guidance for staying compliant.
The Global Market: Tradition Meets Innovation
The NFT gaming market is showing steady growth globally, with a rising interest in digital collectibles and blockchain-based gaming solutions. This phenomenon fits into a cultural context where community and a sense of belonging are central values. NFT games, with their active guilds and communities, digitize this trend, creating new social spaces. It’s a bridge between the tradition of collecting—think trading cards or coins—and the innovation of digital ownership certified by the blockchain. The idea of owning a unique piece and showing it off to your community is a concept that resonates perfectly with modern culture.
On the regulatory front, governments worldwide are working to create clear legal frameworks, such as the EU’s MiCA (Markets in Crypto-Assets) regulation, which aims to protect investors and ensure market stability. In the US, agencies like the SEC and CFTC are actively defining their roles. This move towards greater regulation, though still evolving, is a sign of the sector’s maturity and offers greater protection. For those entering this world, it’s further confirmation that, with due caution, they are moving into a field that institutions are recognizing and trying to regulate. In this scenario, learning how to earn crypto by playing on your smartphone becomes a step toward an increasingly digital and interconnected future.
Conclusion
NFT games and the Play-to-Earn model undoubtedly represent one of the most fascinating and innovative frontiers in the digital world. They combine the pleasure of gaming with concrete economic possibilities, transforming players from mere users into true protagonists of a virtual economy. As we’ve seen, getting started requires a few technical steps, like creating a wallet and buying cryptocurrency, but the path is accessible even for beginners. The market offers a variety of games, from strategic ones to explorable virtual worlds, capable of satisfying different tastes.
However, it is essential to proceed with awareness and caution. Market volatility, the risk of scams, and tax obligations are aspects that cannot be ignored. An informed approach, combined with prudent management of your investment, is the key to exploring this sector safely and sustainably. The blend of gaming tradition and blockchain innovation is reshaping the concept of entertainment and digital ownership, opening up scenarios that were unthinkable just a few years ago. The future of gaming is already here, and it offers everyone a chance to be a part of it.
Frequently Asked Questions
Earnings from NFT games vary enormously and are never guaranteed. Some players earn small amounts, comparable to a hobby, while a minority of highly skilled and lucky users have achieved significant earnings. The potential depends on factors like the chosen game, time invested, strategy adopted, and the volatility of the cryptocurrency market. It’s crucial to view this as an opportunity with potential rewards, not a secure salary.
Not always. Although some famous games require the purchase of NFTs that can be costly, there are several alternatives to get started. Many projects offer a *free-to-play* mode that allows you to earn without an initial outlay. Additionally, “scholarship” programs are common, where one user lends their assets to another player in exchange for a percentage of the profits. Therefore, it’s possible to start with a very limited or even zero budget.
The Play-to-Earn (P2E) sector has both legitimate projects and real risks. The blockchain technology itself is secure, but the market is exposed to scams, fraudulent projects (known as *rug pulls*), and cyber-attacks. Before investing time or money, it’s essential to conduct thorough research: analyze the development team, read reviews, and check the community’s activity. It’s also crucial to always protect your digital wallet’s access keys.
For a beginner, it’s advisable to start with games that have a low barrier to entry, a strong community, and easy-to-understand mechanics. Titles like *Sorare*, based on fantasy soccer with digital NFT cards, are very popular for their familiarity with the world of sports. Other globally known examples include *Axie Infinity* and *The Sandbox*. The best strategy is to try the free versions to understand the dynamics before making any purchases.
Yes, in the US, earnings from cryptocurrencies and NFTs are generally subject to taxation and must be reported. If capital gains exceed certain thresholds, or if you earn crypto as income, it is taxable. The regulations can be complex and are constantly evolving, especially regarding the distinction between different types of income. Therefore, it is highly recommended to consult a tax professional specializing in digital assets to properly fulfill your tax obligations.
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