Blockchain gaming is on the rise! Ride that wave and turn your hundreds into thousands by investing in crypto gaming coins. We will guide you through your first steps into this fascinating industry.
In this article, you will find the essential tips to help you buy crypto gaming coins. You will learn about:
- The reasons you should invest in gaming coins;
- Key gaming coin metrics;
- 4 top gaming coins in 2022;
- Five tips for blockchain gaming investors.
Let’s get you that lambo!
Why you should invest in crypto gaming coins
According to Alex Becker, an American entrepreneur and a famous crypto figure, gaming coins are the safest crypto investment in times when confidence is low and prices are falling:
Image source: Twitter
Becker argues that “games are making billions rain or shine,” and if blockchain games you invested in are a hit with gamers, you will make serious money regardless of the market.
Take the pandemic, for instance – the gaming industry boomed during the lockdown, and its success continues afterward. In 2020, the video game industry grew by more than 20% to $180 billion in revenue!
And thanks to blockchain technology, this prevalent and lucrative video game industry can now evolve to a new level. Even being relatively new, crypto gaming has already attracted the attention of industry giants such as EA and Ubisoft, which openly embrace crypto gaming and are looking to incorporate the concept.
Another reason why blockchain games are so popular among investors and players is that, unlike traditional video games, they enable true ownership of the in-game assets, such as NFTs.
Tokens and coins earned through gameplay are valuable outside the crypto game’s realm—they can be traded, rented, or sold, driving the game’s economy and making big bucks for players and investors.
Key gaming coin metrics
Here’s a short list of main terms that will help you make an informed decision when analyzing crypto gaming coins (or any cryptocurrency, for that matter).
1. Market capitalization
Also known as market cap, market capitalization shows the total value of all company shares. In terms of crypto, it's the total value of all the coins that have been minted.
Image source: coinmarketcap.com
Market cap is calculated by multiplying the number of coins in circulation by the current market price of a single coin.
How to use it?
Market cap reveals the growth potential of a gaming coin and shows if it’s safe to invest in compared to other cryptocurrencies. The bigger the market cap, the more stable the coin is likely to be. But remember that gaming tokens are volatile, and their market cap can change dramatically.
You can check the market cap of various coins on coinmarketcap.com.
2. Volume (24h)
Volume measures how much crypto was traded during the last 24 hours.
How to use it?
Volume can help you to find early-stage gaming coins with a high chance of success. Cryptocurrencies with higher volume will likely have more stable prices. Use this metric to evaluate the health of the crypto gaming coins you’re interested in.
It’s also a good idea to check crypto’s monthly volumes. Daily volumes can sometimes be deceiving because of their volatility.
3. Circulating supply
Circulating supply in crypto shows how many coins are circulating in the market and are being used by the general public.
Not to be confused with other two related terms:
- Total supply – all the coins that exist either in circulation or locked.
- Max supply – the maximum number of coins that will ever exist.
How to use it?
Circulating supply is primarily used to calculate the market capitalization of a crypto coin (our #1 term on this list). It can also tell you how scarce a particular cryptocurrency is (the scarcer the coin, the more valuable and more expensive it’s likely to be).
For example, at the moment of writing this article, The Sandbox has a circulating supply of over 1,4 billion SAND, which makes it more scarce (and more expensive) than Decentraland with a circulating supply of over 1,8 billion MANA. So, judging from circulating supply alone, SAND may be a better investment opportunity. However, you should never make investment decisions based on a single metric!
And bear in mind that our tips are meant to give you a headstart in your NFT journey, but they aren’t financial advice. It is always recommended to consult a qualified financial advisor before participating in any token or NFT purchases.
4 top gaming coins to invest in 2022
Here are some of the most promising in-game currencies to get you off to a good start in your investing journey!
1. Tamadoge ($TAMA)
TAMA is one of the best gaming crypto coins at the moment. It’s the native cryptocurrency of Tamadoge, a blockchain game project that crowns itself “the future of Play-to-Earn.”
Image source: tamadoge.io
Even though it was launched relatively recently, Tamadoge already has the crypto market buzzing. It took less than eight weeks for the project to raise $19 million in funding, even during the less confident times in the crypto world. Tamadoge’s presale performance has even exceeded that of Ethereum!
Even more, the max supply of TAMA coins is capped at two billion, and 5% of the tokens used for in-game transactions will be burned, which will help boost the price of TAMA.
About the project
Tamadoge is a play-to-earn (P2E) crypto gaming platform where you can mint, care for, accessorize, train and battle your digital pets in the Tamaverse. You can also battle your NFTs to top the leaderboard monthly, earning rewards. In the future, the P2E possibilities will expand to include AR experiences.
2. Battle infinity ($IBAT)
Battle infinity is a fantasy sports P2E battling game offering one of the most promising coins under $1 at the moment – IBAT.
Image source: battleinfinity.io
Battle infinity has lots of people bullish about it. The game developers set out their pre-sale for three months, but it was sold out in just 24 days! After being listed on several major crypto exchanges, the game now has over a $10 million market cap. Investors should pay close attention to this coin!
About the project
Battle infinity offers multiple products within its ecosystem. Players can earn rewards while creating strategic teams and battling them out in the Battle Stake to make an annual percentage yield. The game also has its own decentralized exchange called Battle Swap, where players can buy IBAT and exchange rewards for other cryptos.
3. Enjin Coin ($ENJ)
Enjin Coin offers a different way of investing in crypto gaming platforms. Instead of being tied to one blockchain game, Enjin Coin ($ENJ) works with multiple games. Think of investing in it as investing in the EA games of crypto – your eggs won’t be in one basket.
Image source: Facebook
ENJ reached its historic high in January 2018 when its market cap got to a whopping $368 millions. While it may be naive to expect such growth in the future, multiple uses of the coin can still bring investors great returns.
About the project
Enjin Coin was created by a Singapore-based company of the same name that offers software development kits. Game developers can use their technologies to create in-game items such as cryptocurrencies or other digital assets. Developers ensure that their creations have real-world value by locking Enjin Coin into a smart contract. Players can then store those in-game items of multiple games in Enjin’s wallet.
4. Wizardia ($WZRD)
Finally, you shouldn’t sleep on the $WZRD coin.
The $WZRD token is the core utility token and in-game currency of the Wizardia game and future metaverse. Tokens can be spent and earned or exchanged by every player inside and outside the game.
Remember, Alex Becker said that if a blockchain game is a hit with gamers, it will pump regardless of the market?
Well, Wizardia’s development team is focusing on building a great game that gamers and crypto enthusiasts will want to play rather than releasing a crypto project with game features, which tends to be the case too often.
Why is the “fun” aspect of blockchain gaming so important?
It’s plain and simple.
Web3 games that are fun to play will encourage gamers to spend hours upgrading their characters and progressing their gameplay, driving the game’s economy and boosting investors' returns.
About the project
Wizardia is an AAA-quality Play-to-Earn (P2E) online turn-based battler with RPG elements, with a crypto-economy and NFTs at its core. The game takes you to a post-apocalyptic world where you assume control of Wizards and battle it out with other players. The crypto community is bullish about the game – Wizardia already has a following of over 139K Twitter followers and over 66K members of Discord.
5 tips for investing in crypto gaming coins
Find the best gaming tokens to invest in by following these tips.
1. Look for crypto games with small-cap
The problem with big blockchain games like The Sandbox or Decentraland is that they’ve been in the market for a while, and it may be hard to get big returns from them.
While riskier, it might be better to look for blockchain games that are still under the radar but have the potential to become the next Sandbox. Their coins will likely have a small market cap – look for those under 10–15 million.
How to find such gaming cryptocurrency? Embrace social media. Google a list of trustworthy crypto entrepreneurs (check at least several different sources), and go through their Twitter accounts and YouTube channels.
For example, Alex Becker often asks his Twitter followers to share their favorite upcoming crypto projects and does his research based on their suggestions.
Image source: Twitter
Sure, you will have to scroll through some awful suggestions, but if you’re patient enough, you will find some potentially brilliant blockchain games that might be worth investing in.
It’s also a good idea to dive deep into crypto subreddits, like this one here or here. Reddit is a widely trusted place to seek genuine advice on various topics, and blockchain gaming is no exception.
Remember that small-cap gaming coins are considered a risky investment since they tend to be volatile. On the other hand, they also can give you incredible gains in their wake that you could only dream of with more established coins.
2. Go for coins with large-cap
You can also use a more conservative strategy and invest in coins with a higher market cap. Large-cap gaming crypto coins are generally thought to be safe investments since they tend to be less volatile than their small-cap counterparts.
However, you also need to be aware that sometimes the market cap might be misleading. For example, sharks could be holding onto much of the digital assets linked to the game and dump it onto the crypto market suddenly. You’ve probably seen it happening with Musk selling big chunks of his Bitcoin holdings and causing havoc. Even the biggest coins can face some uncertainty!
3. Choose something in the middle
If you don’t want to go the conservative way, but small-cap cryptos also seem too risky, go for mid-cap! They are likely less volatile than small-cap coins and have a bigger growth potential compared to large-cap assets since, with mid-cap coins, you still have a chance to identify the trend early enough.
Whatever market capitalization you choose, if you strongly believe in the blockchain game you invested in, the key is not to be discouraged too quickly by fear and uncertainty when the crypto market suddenly changes its course.
Plus, you don’t just evaluate coins based on their market cap. It’s also a good idea to look at their liquidity, monthly volumes, and the number of users on the network.
4. Evaluate liquidity
Liquidity in crypto shows how easily you can convert cryptos or tokens to cash or another digital asset without influencing the price and vice-versa.
Assessing a coin's liquidity will help you understand how much trading is actually going on in it. If there’s not much happening, it could mean that whales and sharks could dump their coins and cause a considerable price change by creating a drop in the market (again, think Musk and Bitcoin).
Image source: Twitter
Such drops can be tragic to smaller gaming cryptos.
So, when evaluating smaller gaming cryptos, check if a whale is holding on to too much of the coin. If they decide to drop their cryptos at once suddenly, the coin’s value will decrease dramatically, too.
Also, always check how many units of the gaming crypto aren’t in liquid circulation. For instance, a significant portion of crypto could be locked up or lost, leading to inaccurate market caps.
5. Look for launchpads
Launchpads are platforms that can help you find and interact with crypto gaming projects in their early stages. Blockchain game developers use launchpads to raise funds for their projects.
Some popular crypto gaming launchpads include:
- Seedify
- BinanceNFT
- GameFi
- Enjinstarter
By investing in blockchain games through launchpads, investors usually get early access to various in-game assets and NFTs. For instance, you can get a hold of rare weapons or characters that can later increase in value.
However, keep in mind that while launchpads allow you to invest at the lowest possible price, there’s also a risk that the game may not even be completed and launched publicly, burning all your money. You will also need to lock the game’s native token for a specified time.
FAQs
What is a gaming coin in crypto?
It’s an in-game cryptocurrency for a particular blockchain game. Gaming coins let players buy characters, weapons, and other in-game items.
What coins are used for gaming?
Usually, each blockchain game has its own in-game currency. Some popular gaming coins are $IBAT, $MANA, and $SAND.
Julija Paškevičienė
Julija is a freelance content marketer. Specialized in content writing, social media, and finding the best dog memes, she helps businesses get their message across and create content that sells.
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