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Play to earn games often promise significant rewards in the form of tokens and NFTs. But to actually close the process to withdrawing cash, there may be several steps involved.
First, it’s important to check whether the game pays out directly in crypto tokens through a wallet, or has an in-game reward system. Some in-game tokens must be withdrawn based on the game’s schedule before they can be moved onto public blockchains.
Which Blockchain is Best for Cashing Out
Using tokens from games on the Ethereum blockchain comes with gas fees, which can be rather steep. The advantage of using this blockchain is that most exchanges accept the ERC-20 version of the token. The availability of trading pairs depends on the agreement between games and exchanges. For instance, Smooth Love Potion (SLP) can be sent to the Binance exchange without needing to bridge back to Ethereum, thus saving fees.
Make sure the version of the tokens you own corresponds to the type of token accepted on exchanges.
Swapping to Stablecoins
One tool to lock in gains and ensure they have a predictable value is to use stablecoins. Stablecoins can be exchanged for fiat on most crypto brokerages at any time, with the benefit of preserving their value.
Selling on a Crypto Brokerage
The final step of selling crypto assets requires the services of a brokerage with a money manager license. The key element is the ability of the exchange to send funds to a local bank, via wire transfer or SEPA transactions in the case of the Euro economic area.
Brokerages will usually require detailed information on the user, including a procedure to verify identities.
Coinbase works as a brokerage for US-based persons, while Bitpanda can service the EU area and international sellers. Limitations may apply to regions and jurisdictions.
Using Local Exchanges and Swaps
One possible tool as a last resort for swapping is to use a service like LocalBitcoins and find peers willing to swap cryptocurrency. If the assets from the game are exchanged for Bitcoin (BTC), it may be possible to find local buyers.
This tool is highly risky and prone to scams. Additionally, some local exchanges may still require some information transparency before swapping.
Another tool to cash out is to order one of the available cryptocurrency spending cards. However, owning a card by Crypto.com may require a significant upfront cost for staking a prerequisite amount of CRO.
Wirex is another service that allows the spending of up to 60 digital assets. The mechanism of work is that whenever the app or the card are used for spending, the exchange will be automated.
Fintech Apps with Cash Withdrawal
Another tool to cash out of games are fintech apps. Platforms like Robinhood have limited opportunities to swap between crypto and fiat. Others, like Advcash, offer withdrawals in fiat with outbound bank transactions.
How to Monetize or Cash Out of NFTs
NFT can seldom be sold directly on exchanges, and are one of the more difficult items to sell.
NFT can be listed on OpenSea and other platforms, including the game’s native marketplace. BSC-based NFT items can also be sent to Binance’s NFT marketplace.
The first step is to exchange the NFT for digital assets, whether ETH, BNB, SOL or another token. Afterward, the same steps apply as with cashing out of cryptocurrency. Selling NFTs also incurs listing fees, which must be taken into account before settling the final price. Not all NFT are liquid, and some may stay a long time with no real demand.
Cashing out of NFTs or crypto assets from games may incur tax liabilities with various regional repercussions. It is best to check with the local tax code after selling assets.