Risks in Crypto Gaming and how to avoid getting scammed! Is it safe?
The popularity of crypto gaming continues to expand by the day. Due to a few additional advantages over fiat currency, cryptocurrency is becoming a viable alternative for many players. However, keep in mind that the crypto space is not perfect and every user should be aware of this.
Nevertheless, blockchain technology and video games have a bright future ahead of them. That is why many people are still brave enough to dip their toes into the ocean and test the waters.
Before diving into this topic, you may need to understand more about crypto gaming first. If you intend to engage in crypto gaming, continue reading to learn how to analyze specific risks and safeguard your finances and personal information.
Risks to watch out for in crypto gaming
Before rushing into crypto gaming, players should take the time to understand its risks. Remember that regardless of the positive trends and growth that have occurred thus far, cryptocurrency is still considered to be a new frontier in many aspects. Check out some of the risks to watch out for when it comes to crypto gaming below:
Volatility in the stock market
The extreme value changes that cryptocurrencies endure are an evident risk associated with their use. Bitcoin is the most illustrative example available. In early 2021, the asset reached an all-time high price of more than $63,000, setting a new record. In less than a month, it had lost nearly half of its worth. Then, a few weeks later, it began to peak once more.
Digital tokens and assets do not have a fixed value and this is something that crypto gamers must grasp from the beginning. They react to numerous market trends, gaining and losing value as a result of the events that cause them to do so. Fiat currencies, of course, fluctuate as well, but cryptocurrency is more volatile.
For instance, a few negative thoughts about a certain token or cryptocurrency can cause its value to plummet by a large amount. When playing crypto games, a price increase would increase your bankroll, but the greatest risk is a decrease in value.
Alternatively, you could win a large prize only to discover that it is essentially useless because the value of your chosen coin has dropped significantly.
Loss of funds
Cryptocurrencies and digital tokens, like fiat currency, is vulnerable to a variety of theft attempts. One example is hacking. There have been numerous reports of games being targeted and gamers losing their money. Some crypto projects, particularly unregulated ones, may go out of business or fail to reimburse their customers.
Another scenario in which you could lose money is if you misplaced the password to your crypto wallet. Losing it would result in you being locked out of the coin storage and being unable to reclaim your funds from the wallet. Sending money to the incorrect address can also result in the loss of your gambling funds.
Bear in mind that all transactions within the blockchain are irreversible. As a result, if you make a mistake with the address of a recipient, your money is lost forever.
How the crypto gaming industry solves its challenges
Blockchain and cryptocurrencies are the ideal innovations for solving the difficulties facing the gaming business while also providing players with a more comprehensive and free gaming experience. Take a look at how the gaming industry manages to solve the challenges it faces below:
Increasing the efficiency of payment processing
It is possible to access the gaming business from anywhere in the world. Despite the fact that players have the opportunity to leverage fiat currency, they are not cost-effective in terms of efficiency.
With crypto gaming, players will no longer need to use their debit or credit cards. It doesn’t matter how tiny the payment is since blockchain technology provides a decentralized means for processing them all.
Keeping fraudulent activity to a minimum
The crypto gaming business is the one that takes the most blow when it comes to online fraud. This is why the industry is continually on the lookout for solutions that help prevent income losses. Thus, there is little to no way for a scammer to steal information or manipulate the market in this environment.
Ensuring the safety and security of the storage facility
It appears that gaming businesses are taking a risk by storing data online. As a result, hackers are continuously posing a threat to the security of in-game assets. Fortunately, blockchain encryption has been shown to be a long-term solution.
Blockchain encryption makes it nearly impossible for hackers to access data stored on the blockchain. In order to breach, this technology requires the necessary nodes to be present at the correct time. As a result, game items are protected by two layers of security, which prevents them from being compromised.
Providing more effective supervision over the gaming economy
The government has the authority to impose restrictions or regulate the economy of industries. Harsh laws encourage the development of illegal markets, which is detrimental to any industry. This has also been a challenge for gaming companies in recent years. Game makers are losing their ability to exert control over the industry. As a result, they will be unable to generate the greatest amount of money.
There is no need to set policies when using blockchain technology. A developer can get royalties from every game ecosystem on an ongoing basis, allowing them to grow their business. Furthermore, blockchain enables a game developer to start and stop selling assets at any time without any restrictions.
Lowering the cost of gaming-related things
The high cost of gaming items makes it difficult for developers to reach a large number of players. Similarly, this is one of the reasons why gamers search for cracked or stolen video games.
Blockchain provides advantages for low-cost microtransactions. Thus, developers may be able to sell their power-ups at a low cost while still making a profit in this manner.
How to avoid risks in crypto gaming and avoid being hacked
Now that you know what are the risks in crypto gaming and how game developers counter these challenges. It’s time to do your part and ensure that your account and data are safe from possible exploitation. Take a look at some tips on how to avoid risks in crypto gaming below:
Be wary of fake links and fraudsters on Discord
Fake links on Discord, an online network of chatroom servers, maybe just as tempting and chaotic as they were in the past.
Discord hacks are one of the most frequent NFT scams out there. They happen when hackers are able to get access to a Discord server’s administration console and upload a bogus minting link in the announcements channel.
The message will typically appear to be from a project organizer and will offer a deal that appears too good to be true — something along the lines of “Due to popular demand, we’re releasing 1,000 extra NFTs.”
Once a community member says they’re having trouble with something and innocently asks for help on a hacked Discord, they will immediately get DMs from scammers.
Keep in mind that project teams will never DM you first. So, until proven otherwise, it is excellent practice to presume that everyone is a fraudster.
Moreover, legitimate projects will place all official links in a separate, designated channel and will not allow minting to take place through sketchy-looking URLs. So make sure to rely only on the information given by the project’s main website or official social media accounts.
Maintain the secrecy of your private keys
Even though a fake Discord link is disturbing enough, an even more serious problem arises if the hacker requests your seed phrase, which is a series of confidential words used to gain access to a crypto wallet.
Keep in mind that no one should ever have access to your private key except for you. To protect your digital assets, purchase hardware wallets which are arguably more secure than online alternatives. A hardware wallet allows you to avoid ever having to type your private seed phrases into a browser.
Using two-factor authentication wherever possible, as well as employing complicated passwords, is also a good idea.
Investigate airdrops closely
Airdrops themselves can include dangerous codes, which is why they should be avoided. Once you visited the website to receive the “free tokens”, hackers will make these tokens unsellable, which is possible because everything is programable.
Airdrops from malicious projects essentially involve locking you and forcing you to grant the hackers access to your funds, after which they take your money. The most effective course of action is to simply ignore the airdrops or make sure to prove their validity by visiting the official website and social media accounts of the project.
Question everything and everyone
Before getting involved in any project or playing any crypto game, make sure to seek out credible persons who can publicly identify themselves. This way, you will know who should be held accountable, if in case something suspicious or bad happened in the project.
When it comes to the game developers or project funders, ensure that you take a look at their previous experiences. Research about their reputation in the crypto industry and find out if they have other successful endeavors under their belts
Don’t easily put your faith in anyone. Make sure to take your time in verifying and triple-checking everything. Even a reputable individual listed as a team member on a project’s website won’t imply that they are affiliated with the project. Thus, it is vital to constantly ask questions.
In addition to that, remember that social media numbers aren’t always indicative of a project’s worth. Communities come together for a common purpose, and if that common purpose is to purchase the NFT and flip it, that’s not really a community.
Followers can be purchased, just as celebrity endorsements can. Thus, just because a celebrity promotes or launches a project does not guarantee that it will succeed.
The possibility of being scammed in crypto gaming is based on the risk you accept by participating in this relatively new industry. The system is safe in many ways, but you can’t prevent someone from trying to con you out of your money.
Since the crypto space is a completely open system with no safeguards in place, it is still in the early stages of development and growth. Remember that those who are looking to exploit crypto projects and games will more likely to take advantage of those with less education. Thus, it is important that you know the risks of venturing into crypto gaming and how to manage them.
Now that you have a greater understanding of the risks of getting involved in crypto gaming and learned how to avoid them, you might want to find out how to start with crypto gaming.
Bearing all those information in mind, you can now have a great chance of venturing safely within the crypto industry? Be a part of the Play It Forward DAO Guild to start your crypto journey!
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