Generating Passive Income with Crypto Gaming
In today’s economic climate, more and more people are investigating ways to generate passive income streams. For some, passive income opportunities are viewed as long-term investment projects, while others may look to develop an immediate passive income to support their existing household earnings.
Whatever category you may find yourself in, you’ll be pleased to know that there’s a growing number of opportunities to generate passive income in the crypto gaming sector. Let’s take a closer look.
What is Passive Income?
Far from being a buzz term, passive income streams are a way to generate earnings without needing a substantial time or financial investment. Or, to quote Time Magazine, “passive income refers to money that flows to you without active effort”. Sounds like a dream, right? Well, the reality is passive income generation is possible. Still, you will need to part with minimal resources upfront, whether that’s an initial monetary stake or some of your time.
Most passive income streams fall into one of the following:
• Asset building – this can include affiliate marketing if you own a blog or website.
• Asset sharing – renting or selling your existing assets, including renting out a room in your house.
• Investing – generating returns on investments in savings accounts, bonds or the stock market.
The Crypto Gaming Sector
The crypto gaming sector, aka GameFi, has enjoyed unprecedented growth over the past couple of years, making it an increasingly viable prospect for passive income generation. From 2021 to 2022, GameFi achieved growth levels of 2000% and has attracted over $13 billion in investments, $3.5 billion of which was raised during the first half of 2022 alone. Furthermore, crypto and blockchain gaming now reaches approximately 800,000 players per day – a figure set to increase exponentially with each coming year.
One of the key attributes that make crypto gaming such a viable space for passive income generation, as well as other investment strategies, is how far-reaching its appeal is. The sector is incredibly diverse when it comes to gaming experiences, with projects being established in a wide range of genres, including RPG, strategy and even virtual pet games. For players who are new to GameFi, leading NFT projects like Axie Infinity have released free-to-play games that make the sector even more accessible.
Furthermore, there are increasing opportunities to play with cryptocurrencies or earn crypto tokens in the more traditional digital gaming space. Crypto gambling, for instance, is a burgeoning market in which gamers can play various casino card and table games using leading cryptocurrencies at platforms like Cafe Casino. Gamers can access the live casino games on this page and receive a higher welcome bonus when depositing and playing with Bitcoin on the platform.
Ways to Earn with Crypto Gaming
The GameFi sector is one of the more accessible blockchain sectors in which to generate passive income streams. Ongoing development means more gaming projects get released, creating further opportunities for individuals looking to gain a foothold in this exciting market. There are also several ways to generate passive income through crypto gaming: playing P2E games, staking NFTS, and investing in gaming coins.
Whatever method you choose, it’s important to be selective in the games you play or the investments you make. Given that crypto gaming is a current trend, there are tons of GameFi projects out there, many of which won’t provide you with the passive earnings you’re looking for. Much as you wouldn’t blindly invest in the stock market without being interested in the companies or products you’re backing, it pays to do some research before parting with your cash. Make use of existing resources like CoinMarketCap to analyse your options.
P2E Games
Crypto games follow the play-to-earn business model, which is centred on rewarding players for completing the game or achieving certain in-game tasks. Gamers are “paid” in digital assets, either in the form of in-game items or NFTs (non-fungible tokens). The ownership of these assets passes to the player, meaning they can trade or exchange their tokens for other decentralised or fiat currencies.
NFT Staking
Staking NFTs is a more complex strategy for passive income generation, but a good understanding of the process can lead to impressive results. Essentially, choosing to stake the NFTs you earn playing crypto games means you retain ownership of the assets, but by pledging them to a liquidity pool or blockchain network, you can earn passive income. When pledging your NFTs to a network or pool for a minimum period — the staking period — you’ll be rewarded in the form of crypto tokens, which you can then sell and convert into your preferred currencies.
Investing in Gaming Coins
If you’re not much of a gamer or don’t have the time to stake multiple NFTs, investing in gaming coins could be a wiser choice. GameFi may be a relatively new sector, but it has serious potential for mid and long-term growth. As with any other stock investment, when you choose to invest in a gaming coin like SAND (Sandbox), the market can rise and fall at any given moment. However, with such a high level of investment being made into the sector, GameFi has all the attributes needed for long-term success — and it may well generate higher returns than other crypto sectors.
