The number of crypto users keeps going up every day. It is quickly becoming a popular choice for many players due to its advantages compared to fiat currency. Still, it’s important to remember that the crypto space isn’t risk-free. Here is a list of some of the dangers of crypto gaming:
Market volatility
There are a lot of risks that come with using cryptocurrencies. One of these risks is the wild price swings that they are subject to. Bitcoin is the best example we have at the moment to show the point. At the start of 2021, the asset’s value hit an all-time high. It was worth more than $63,000, which set a new record. In a little over a month, it had lost almost half of its value.
Crypto gamers need to know that the value of their digital tokens and assets is not set in stone from the moment they start playing. They move in response to different market trends, and their value can fluctuate depending on what causes them to move. Even though market swings can happen with fiat currencies as well, cryptocurrencies are much more volatile.
Loss of funds
Just like traditional currencies, cryptocurrencies and digital tokens can be hacked or stolen in a lot of different ways. People have had their money stolen from them more than once while playing games that have been targeted. Some cryptocurrency projects, especially those that aren’t regulated, might not be able to reimburse their players.
Losing your password to your crypto wallet is another way you could lose money. If you lost it, you wouldn’t be able to get any of the money in your wallet. Sending crypto to the wrong address can also result in a permanent loss of your coins. Remember that once a transaction is done in the blockchain, it can’t be taken back.
How the crypto gaming sector solves its challenges
Blockchain technology and cryptocurrency are the best ways to solve the problems that the gaming industry is facing right now. At the same time, they give players a more immersive and free gaming experience. Take a look at the following examples to see how the gaming industry deals with its problems:
Making payment processing more efficient
Access to the gaming industry is available worldwide. But although players have the option to use fiat currency, doing so is not cost-effective and efficient. In crypto gaming, players won’t have to use their debit or credit cards anymore. The transaction will also be faster, and the fees will be cheaper since there will be no middlemen or intermediaries such as banks required.
Ensuring the security of the funds
When it comes to online fraud, the cryptocurrency gaming industry is the one that gets hit the most. Because of this, companies in this field are always looking for new ways to protect their income streams. Thanks to blockchain, it is very hard, if not impossible, for hackers to steal information or manipulate the market.
How to avoid being hacked and protect yourself from possible dangers when playing crypto games
Now that you know the risks of crypto gaming and the ways that game developers counter them, it is time for you to do your part and make certain that your account and data are protected from any potential breaches that may occur. Below you can find a list of suggestions to avoid potential dangers when participating in crypto gaming:
Be wary of scammers and fake links on Discord
Hacking into Discord accounts is one of the most common ways that NFTs are used for fraud. They often happen when hackers get into a Discord server’s admin console and post a fake link to a cryptocurrency mining platform in the server’s announcements channel.
Often, the message looks like it came from a project organizer and offers a deal that seems too good to be true, like “Due to popular demand, we’re releasing 1,000 more NFTs.”
Remember that project teams will never send you a direct message first. Respectable projects will also put all official links in a separate channel, and they won’t let any mining happen through sketchy links. So, unless you have proof to the contrary, it is a good idea to assume that everyone is trying to trick you.
Protect your private keys
Even though there is already something strange about a fake Discord link, the situation is much more dangerous if the hacker asks for your seed phrase. A seed phrase is a string of secret phrases that can be used to get into a cryptocurrency wallet.
Remember that you should be the only one who has access to your private key. No one else should ever be able to use it. Investing in hardware wallets, which are usually thought to be safer than online wallets, is one way to keep your digital assets safe. When you use a hardware wallet, you’ll never have to worry about entering your private seed words into a web browser again.
Find out as much as you can about the airdrops
Be wary of airdrops since they can have malicious code. After you go to the website to claim your “free tokens,” it’s possible that malicious hackers will make these tokens worthless since everything can be programmed.
When you get an airdrop from a malicious project, you will probably be locked out and have to give the hackers access to your money. If they can get to that information, they will steal your money. The best thing to do with airdrops is to either ignore them completely or make it a point to check if they are real by going to the project’s official website and social media accounts.
Question everything about the project
Before you play a crypto game, be sure to look for credible team members who can openly identify themselves. This way, you will be able to figure out who should be held responsible if something bad or questionable happens to the project.
Make sure you know what the people behind the project have done in the past before you work with them. Do your research and find out how well-known they are in the crypto business and if they have had any other successful business ventures.
It would be best if you didn’t put too much faith in someone right away. Before you move on, make sure to take your time and carefully check and triple-check everything. Even if a well-known person is listed on a project’s website as a member of the team, that doesn’t mean that person has anything to do with the project. So, it’s important to really question everything.
Also, keep in mind that the number of shares or likes a project gets on social media isn’t always a good indicator of how valuable it is. Communities come together for a common goal, and if that goal is to buy the NFT and then sell it for a profit, then you don’t really have a community.
You can buy followers, just like you can buy endorsements from celebrities. So, the fact that a famous person is helping to promote or start a project is not enough proof that it will be successful.
Conclusion
Cryptocurrency market started around 2009 and still has lots of things to improve on. Some crypto enthusiasts have the tendency to take advantage of the underprivileged people that’s why it is so vital to know the risks of crypto gaming and how to avoid them.
Jump into your crypto gaming journey now by being a crypto gamer or an investor!
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