How to Use the Cryptocurrency You Win in On-chain Games? Trading, Storing, or Staking?
The emergence of blockchain games has not only brought new interactive experiences to players, but also created a new way to collect digital assets. By participating in GameFi projects on platforms such as Cardano, Solana, BNB Chain, etc., players can not only enjoy the immersive gaming process, but also earn tokens and NFT assets in a real way. However, after you get these cryptocurrencies from the game, what should you do next? How do you manage and utilize these digital assets effectively, and even keep them generating income for you?
In order for tokens to generate additional income, you can also consider transferring them to a crypto staking platform , which allows users to lock their crypto holdings for a certain period of time to earn interest or reward tokens, making it a common means of asset growth for many players.
The first and most common thing that most people would consider is exchanging the tokens and NFTs earned in the game for cash or other cryptocurrencies to circulate freely. For example, COPI tokens or land NFTs earned in the Cardano game Cornucopias can be sold on decentralized exchanges such as JPG Store or MuesliSwap, where they can be traded with other players or investors.
JPG Store, for example, is currently one of the largest NFT marketplaces on Cardano, supporting a wide range of NFT assets from game characters to land plots to gear. The platform offers easy wallet connectivity, such as connecting to the Nami or Eternl wallets, allows you to list assets for sale with a single click, and even set rarity and reserve prices.
For tokens, users can exchange them for ADA via DEX platforms like Minswap and SundaeSwap, and then transfer them to a centralized exchange that supports fiat withdrawals, like Binance or Coinbase, to complete the money-in-the-bag action.
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Storing Your Tokens? Wallet and Security Considerations
While instant trading can yield quick profits, if you are confident in the future development of a particular game, or believe that the project will introduce more usability and rewards in the future, choosing to “hold tokens” is not a bad strategy.
There are two ways to store tokens, namely directly in the online environment via a hot wallet (e.g. Nami, MetaMask) for easy scheduling and trading, and using a cold wallet (e.g. Ledger, Trezor) to transfer assets to an offline device for increased security against theft.
Cardano wallet options vary widely, such as Daedalus for experienced players, which offers full block synchronization, and Yoroi, a lightweight wallet that allows users to operate quickly and supports hardware wallet integration.
Regardless of which method is used, players are advised to ensure that they save the mnemonic key and backup key to avoid losing assets due to lost devices or browser crashes.
Using the Pledge Platform to Generate Passive Income from Tokens
If you are not in a rush to sell your tokens, you can also consider ‘collateralizing’ your tokens to earn extra income. This is very common on Cardano, as its native consensus mechanism is PoS (Proof of Stake), which inherently encourages users to collateralize ADA into various Stake Pools to earn annualized returns.
For example, if you earn COPI tokens on Cornucopias, you have the option to collateralize those tokens to the official platform Stake Pool, which can generate annual returns ranging from 6% to 12%, depending on supply and demand and the progress of the project.
Games like Drunken Dragon and AdaQuest also introduce exclusive pledging mechanisms, such as pledging NFT character cards to unlock special in-game missions or access to limited resources. This GameFi logic combines financial incentives with gameplay extensions so that users are no longer just players, but also part of the platform economy.
Circulation in the GameFi Ecosystem: Upgrades, Minting, and Secondary Markets
In addition to the basic methods mentioned above, there are also more strategic options – reinvesting tokens into the game to upgrade or participate in other economic activities.
In Cardano Warriors, for example, players can use tokens to upgrade their NFT characters’ attributes or purchase new equipment to further strengthen their competitiveness in the game. These upgraded NFTs can also command higher premiums on the secondary market due to their increased ability value.
This cycle of “token consumption → asset appreciation → market transaction” makes GameFi games not just a game, but also a set of closed-loop systems with financial logic. Players can even multiply their digital assets in a short time if they understand the pulse of the market and the rate of appreciation.
Cross-Chain Usage and Future Development Potential
While many GameFi tokens are still confined to their native platforms, such as those on Cardano, which mostly circulate within their own chains, a growing number of projects are actively working with cross-chain bridging protocols to allow players to move their assets to other blockchains in the future.
In the case of Cornucopias, for example, the team has announced plans to launch versions of the token that are compatible with Ethereum and BNB Chain, which will further expand its liquidity and user base. With the token available across chains, players will be able to freely trade their assets on major DEXs like Uniswap and PancakeSwap, which also means richer DeFi application scenarios and investment strategies.
In the future, we may even see platforms like Balancer or Aave launching proprietary financial products or lending tools for GameFi assets, integrating gaming revenue with traditional DeFi revenue to form new hybrid investment models.
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Well, that's our discussion this time about how to use cryptocurrency. Hopefully it's useful!
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