- GameFi brings decentralized finance into the gaming world, rewarding player engagement with NFTs or crypto rewards
- GameFi is split into three components – Play-to-Earn, True Asset Ownership and Rewards via DeFi
- In this article, we’ll explore how GameFi works and the different methods you can use to sell your gaming NFTs and cash out your crypto into fiat
Like playing games? Like earning money? Do both with GameFi and find out how you can use Binance to cash out your GameFi rewards.
GameFi is a new direction in the crypto world that merges the best parts of gaming and decentralized finance. The concept is simple; players engage with the game, and in return, receive NFT and cryptocurrency rewards they can cash out for profit. The more you play, the more rewards you get.
Over the past year, numerous GameFi projects and protocols have broken records and reached new market caps. Major crypto exchanges have also taken notice. Binance NFT recently launched its own gaming initiative, Initial Game Offering (IGO), which features core in-game assets from a wide range of top gaming projects.
In this article, we’ll explore how GameFi works and the different methods you can use to sell your gaming NFTs and cash out your crypto into fiat.
How Do GameFi Games Work?
GameFi is packed with mechanisms familiar to gamers, such as collecting resources, unlocking achievements and leveling up your character. In GameFi, players are rewarded with either NFTs or in-game cryptocurrencies that can be used to upgrade their avatars and assets, or sold and exchanged with other players. However, there are three basic concepts that all GameFi games rely on – Play-to-Earn, asset ownership and DeFi rewards.
Play-to-Earn is a novel way of bootstrapping player engagement that provides players an avenue to earn real money from unlocking achievements and creating content. If you want to learn more about play-to-earn, you can read our complete guide. Play-to-earn’s core concept empowers gamers and rewards them with NFTs or crypto for completing in-game activities.
You may have heard of Axie Infinity, the benchmark for Play-to-Earn games. Players battle in Adventure Mode or in the Arena to earn Smooth Love Potions (SLP) – an in-game reward that can be used to breed new Axies or traded as a cryptocurrency on exchanges like Binance.
True Asset Ownership
Unlike traditional gaming, players can unlock and hold 100% ownership over in-game NFT items. The use of NFTs make ownership rights immutable, meaning each item is unique and rare. Players can choose to sell their NFT items or even their NFT characters for crypto on secondary NFT marketplaces like Binance NFT.
Binance NFT’s gaming collections (Mystery Boxes) have fetched up to multiple times of their initial price on the secondary marketplace, and the weekly IGO collections have successfully sold out after launch, proving the popularity and demand for gaming NFTs.
Rewards Via DeFi
Some GameFi games also include DeFi reward mechanisms, such as yield farming, liquidity mining and staking, which can provide a passive income stream from playing games. For example, players can rent in-game NFTs to other players, or they can stake on the native blockchain in exchange for in-game crypto rewards.
How To Cash Out Earnings From NFT & GameFi Games
There are two ways to cash out from GameFi, cashing out in-game crypto rewards or selling your NFTs on Binance NFT and then cashing out afterwards.
Cashing Out Cryptocurrency Rewards From Games
Before you cash out your GameFi crypto, check if your exchange offers a suitable trading pair; you can always check our full list of supported tokens. If you’re ready, here is our step-by-step guide to cashing out on Binance:
Step 1: Let’s use AXS for this example. First you’ll need to deposit the crypto into your Binance account. If you’re using MetaMask or another crypto wallet, copy the deposit address into the sending wallet.
Step 2: Pick a suitable AXS trading pair on the Binance exchange. We recommend using AXS/BUSD, since it can be easily swapped into fiat currencies.
Step 3: Next, sell your AXS using the order type you would like – the market order, limit or stop-limit order.
Step 4: Your account will now hold BUSD, which can be converted to fiat on BUSD markets like EUR/BUSD. Please note, withdrawing cash from Binance will depend on where you live and the methods available.
Step 5: Pick the available fiat withdrawal channels by going to your Wallet > Fiat and Spot > Withdraw. Depending on your location, you will be able to choose different fiat withdrawal channels such as card withdrawal, bank transfers and third party wallets.
Selling In-game NFTs And Cashing Out Earnings
Selling in-game NFTs is not much different from selling any other digital assets. The only difference is you’ll need to sell your NFTs first and then convert your crypto into fiat.
Step 1: Open the NFT Asset page on the Binance NFT Marketplace. Make sure you look at the Collections section and click the NFT you would like to list. Click on List NFT to choose the listing options for your NFT sale.
Step 2: Select auction or set price.
- For auction, click the Highest Bid option and set the minimum bid for your sale. To the right, you can select the cryptocurrency you would like as payment.
- For instant sale, click on Set Price. There’s no bidding for this option, which means you’ll be setting the final price. To the right, you can select the cryptocurrency you would like as payment.
Step 3: Specify the date and time your Auction or Fixed Price sale will end, limited to no more than seven days from the time of listing.
Step 4: Click Submit. The Binance team will manually review every NFT listing to ensure it meets our standards. This process usually takes 4-8 hours.
P.s. Users who would like to deposit NFTs from external platforms like Ethereum can follow our step-by-step guide. Deposits are only possible for Binance NFT-approved smart contract addresses. Interested users can check the full list.
Step 5: You will receive either BUSD, BNB or ETH once your NFT is sold on Binance NFT Marketplace.
Step 6: You can trade your BUSD, BNB or ETH into available fiat pairs in order to cash out.
Step 7: After you have traded, you can immediately pick the available fiat withdrawal channels by going to your Wallet > Fiat and Spot > Withdraw to cash out on your earnings back into your bank accounts and etc.
Depending on your location, you will be able to choose different fiat withdrawal channels such as card withdrawal, bank transfers and third party wallets.
The Future of GameFi
With Facebook’s recent metaverse announcement, GameFi will only continue to grow in popularity and adoption. If you’re looking to get into GameFi, you can start by collecting in-game assets from Binance NFT’s weekly IGO launches. Use your in-game assets across different gaming platforms and cash out your GameFi rewards on Binance.