How to play and monetize Play-to-Earn games? A pragmatic getting started note

The term Play-to-Earn (P2E) became popular in 2021 and 2022, and Axie Infinity once attracted millions of players. Later, the market calmed down, and the token economy of many early projects could not sustain it. NFT trading volume shrank significantly after 2022, and it was not until the end of 2024 to 2025 that it partially recovered. By 2026, the new generation of chain games will place more emphasis on playability, free admission, and a more resilient economic model, but sustainable token design is still an unresolved problem.

This article does not brag about profits, but only explains how P2E works, where the money comes from, how to withdraw cash, and what pitfalls you need to keep an eye on.

What is the difference between P2E and ordinary games?

In traditional games, the ownership of the equipment and skins you buy is in the hands of the developer. They can change the value, ban the account, or even shut down the server at any time. Blockchain games write item ownership on the chain and are executed by smart contracts. No centralized party can delete it directly from your wallet.

This brings up a key point: for the first time, in-game items have “on-chain verifiable scarcity.” If the game says that only 1,000 of a certain item will be released, then this upper limit is locked in the contract code, not a verbal promise from the company. Rare items may therefore fetch high prices on the secondary market.

But don’t get me wrong, being on the chain does not mean being safe. Smart contract vulnerabilities, phishing attacks, and rug pulls (developers drain liquidity and run away) have all happened in GameFi. Before playing, check the team background, contract audit report, and community reputation. These three things cannot be omitted.

Where does the income come from?

The rewards of most P2E games are divided into two categories, and some projects have a third category:

Game Tokens: Complete tasks, win battles, and complete daily goals to get exclusive game tokens. Some tokens can be traded on exchanges, while others can only be circulated in the game.

NFT Items: Characters, lands, weapons, etc. exist in NFT form. You can type it out, or you can reproduce or synthesize new ones, and then sell them on the NFT market.

NFT Staking: Lock tokens or NFTs into smart contracts and get extra rewards based on time.

The level of income depends entirely on the market demand for tokens and items, and can fluctuate greatly. Earning the equivalent of $50 in tokens today may shrink to far less than that next month once demand drops.

What to prepare before getting started

You need a crypto wallet that supports the chain the game is on. Common options include wallets compatible with Ethereum, BNB Smart Chain, Polygon, Immutable X or Ronin (Axie Infinity uses Ronin). Connect your wallet to the game and the assets are under your control.

Some games require you to buy initial characters or props before you can start making money. The cost ranges from a few dollars to thousands of dollars, depending on the game and market conditions. Check the official website and community forums to check current requirements as prices can change quickly.

The "scholarship" model was popular in the old games from 2021 to 2022: old players lent their assets to newcomers, and the newcomers earned a share after making gold. Such arrangements are much rarer now than they were back then, but some communities are still doing similar things.

In a word: start with a small amount and only use money you can afford to lose. The stakes are high in this field, and the outcome is no guarantee.

How to turn game assets into cash

Token Liquidation

Transfer the game tokens to an exchange that supports the token trading pair and exchange them for stablecoins to lock the earnings first, and then use the fiat currency withdrawal channel. Different exchanges and different countries have different withdrawal methods.

Not all game tokens are listed on major exchanges. Check the liquidity and trading volume before taking action - if you want to sell low-liquidity tokens in large quantities, it is easy to drive down the price, and the actual amount obtained is far less than the book number.

NFT Realization

Selling NFT earned in the game requires an NFT market that supports the corresponding chain. You can list a fixed price or auction. After the transaction is completed, it is usually settled in cryptocurrency and then converted into legal currency.

Calculate clearly before placing an order: market handling fees, on-chain gas fees, and the current demand for this type of NFT. NFT prices fluctuate greatly and are directly linked to the number of active players in the game.

Tax

Many jurisdictions count P2E gains as taxable income, and generating profits from selling NFTs or tokens may also trigger capital gains taxes. Rules vary greatly from country to country, so check it out yourself or ask a professional who is familiar with digital asset taxation.

Handling fees, VIP and rebates: the real costs that should be noted when cashing out

From the time you earn money to the time it goes into your bank card, costs are deducted at every level in between. The rates for spot orders and takers on the exchange are different. The higher the VIP level, the lower the rate. However, upgrades usually depend on trading volume or positions. If you use BNB to deduct handling fees, you can save even more, but the deduction ratio and applicable rules vary from platform to platform, so you have to check it yourself.

The rebate mechanism is also worth studying: you can get part of the handling fee back by registering through a rebate link or inviting others yourself. This part of the money saved is not a small amount when you make frequent transactions or make large withdrawals.

The specific rates and rebate ratios are different for each platform and each account level, and will be adjusted, so I won’t write down the numbers here. What you should do is: confirm your actual rate on the exchange’s rate page, check the on-chain withdrawal fees and fiat channel fees before withdrawing money, add up these items, and then judge whether the cash out is worthwhile.

Risk list

High upfront cost: Many games require you to buy NFT before you can start making money. This money may be wasted.

Token Fluctuation: Game tokens usually fluctuate violently, and the profits are lost.

Token economy is unsustainable: Some projects rely on new players’ entry funds to pay old players’ income, and will collapse as soon as player growth stops. Many games from 2021 to 2022 suffered from this, and later some projects also encountered similar situations.

Scams and Runaways: Some projects themselves are scams, or the team simply gives up after they go online. Do your homework before investing money (DYOR).

Tax Liability: Gains may be subject to income tax or capital gains tax, depending on where you are. Ask a qualified tax professional.

FAQ

**What is P2E? ** A model in which players earn tokens or NFTs through in-game activities, and these assets can be traded or sold on the secondary market, potentially generating real-world value.

**Can P2E make money? ** Earnings vary widely, depending on the game, current token price, time invested, and upfront costs. Some have made money, but losses are also common, especially when the token price drops. Results are uncertain and not guaranteed.

**How ​​to start playing? ** Typically requiring a compatible wallet, a bit of cryptocurrency to pay for gas, and sometimes buying the initial NFT first. Each game has different requirements, see the official documentation.

**What is the biggest risk? ** Token price fluctuations, high upfront investment, unsustainable token economics, exploited smart contracts, project abandonment or rug pull. The batch of P2E games from 2021 to 2022 experienced a sharp decline in revenue after the token price collapsed, and later some projects also faced similar challenges.

A few final words

P2E does provide a new way for players to participate in the game economy. On-chain ownership and tradability cannot be achieved in traditional games. But the space has also experienced wild swings, project failures and cases of fraud. The market has evolved from the initial hype cycle to the present. New projects value playability and economic sustainability more, but no P2E model has truly solved the problem of long-term viability of the token economy.

If you want to participate, do your research thoroughly, start with a small amount, and have a clear understanding of the risks. Think of potential earnings as uncertain, not as certainties.

Reference: Binance Academy "What Is Play-to-Earn and How to Cash Out?" https://academy.binance.com/en/articles/what-is-play-to-earn-and-how-to-cash-out

This article is provided for general information and educational purposes only and does not constitute financial, legal or other professional advice, nor does it recommend the purchase of any specific product or service. Digital asset prices fluctuate greatly, and the value of your investment may rise or fall, and you may not be able to get your principal back. Investment decisions are your sole responsibility.

Transaction fees, VIP levels and rebate conditions may change, please refer to the exchange account page and CoinRebate's latest rate page. This article is for educational purposes only and does not constitute investment advice.