Over the past few years, cryptocurrency has grown in popularity and beyond its basic use as a decentralized financial tool. There are constantly new currencies being introduced to suit different consumers, from stablecoins to altcoins. Gaming cryptocurrencies, which integrate cryptocurrency with web3 and online gaming, are one well-known example.
You might have already encountered some of these currencies if you participate in gaming communities. For those who are new, however, this article will explain what gaming crypto coins are, some of the most well-known ones, and if investing in them is worthwhile.
What Are Gaming Crypto Coins?
Gaming coins called “cryptocurrencies” are exclusive to several gaming platforms.
These coins are used as the in-game money on the platform where they were created: Users may purchase them on their local gaming platform or well-known cryptocurrency exchanges like VirtuaCoin. You might also be able to earn coins while playing the game or buy them from other players, depending on the platform.
Some gaming coins may be highly valuable within the gaming platforms they are native to, but may not be as valuable outside. Others are a better overall investment since they have gained popularity and significant value on the cryptocurrency markets outside of their platforms.
Due to their lack of widespread adoption, even the most widely used gaming coins differ from major cryptocurrencies like Bitcoin and Ethereum. There isn’t much of a reason to hold these coins outside of their respective gaming platforms, and you’ll rarely find a merchant they were designed for that accepts them as payment.
How to Buy Gaming Crypto Coins?
You may still purchase gaming coins on the majority of significant cryptocurrency exchanges like Coinbase, VirtuaCoin, or Kraken, even though they are native to a certain platform.
If you don’t already have one, you must first create an account on a cryptocurrency exchange to purchase gaming coins. From there, you may choose your desired quantity of gaming coins and link your payment method. After making your purchases, you can add the coins to your digital wallet to hold or utilize on the gaming platform.
Should You Invest in Crypto Gaming?
Anyone, who participates in web3 and blockchain-based gaming platforms, is beneficial for gaming coins. And we are aware that some gaming coins have shown significant gains in recent years even when used outside of their original platforms. They could be a wise investment.
However, purchasing a gaming coin entails much greater risk than purchasing cryptocurrencies in general. The corresponding gaming platform is largely responsible for these coins’ success. Additionally, it makes sense that the gaming coin would fail if that platform failed.
Although game coins and blockchain platforms may not disappear, specific businesses might (and likely will). It’s entirely possible that after investing in one game platform, the value of its coin plummets.
Secondly, past performance does not ensure future results. Sadly, most investors don’t become aware of assets like cryptocurrencies until after they have experienced their most rapid development. It would take a lot of luck and research to choose the next big coin for you to experience the same growth.
Therefore, while investing in gaming coins and other cryptocurrencies might be beneficial, it is also very speculative. As a result, it is advised that you keep your investment in them to a modest portion of your portfolio if you do decide to do so to lower your overall risk.
Many blockchain-based gaming platforms use gaming tokens to enable user interaction with both the games and other players. Within these gaming platforms, you can purchase assets using gaming coins, and you can even use them to generate more coins.
Popular gaming coins include MANA, VirtuaCoin, SAND, AXS, and many others. Research the gaming coins that are the greatest fits for you and think about how they’ll fit into your overall investment portfolio and risk tolerance if you’re thinking about adding them to your portfolio. Also check the Best Play to Earn Crypto Games.