Axie Infinity, the first game based on NFTs and coins that can be sold for real money, is drawing people’s attention. The novelty is considered disruptive by gamers used to conventional games because it is the first that allows real earnings, a concept known as “play-to-earn”-there are reports of players who raise around R$ 6 thousand monthly, according to InfoMoney.
Like Pokémon, the game created on the Ethereum blockchain mixes the concepts of cards use and strategy. In this way, the player can improve their characters (which are NFTs) and earn tokens (cryptocurrencies that can be traded) by completing missions in the game. These coins are called Smooth Love Potions (SLPs), currently valued at around US$ 0.24.
How to play Axie Infinity?
Before starting, it is worth remembering that the game is not an investment recommendation, and there are risks, including total loss of the amount used in the game. The game exists in a digital universe, in which players can collect, train, create and fight the characters (axies), quite similar to Pokémon. However, to play it you need to set up a digital wallet and purchase the first three axies in the game marketplace – and the amounts start at US$ 400.
Of course, the cheapest axies are the weakest ones, which provide players with lower rewards and require more effort (and time) to strengthen. However, there are alternatives to buying the initial three characters, such as renting them from third parties and receiving a percentage of the income. Typically, the team owner (made up of three axies) keeps 40%, and the player holds 60%. There are already specific groups on social networks where it is possible to find owners looking for players. To start playing, follow our step-by-step instructions.
1.Download the cryptocurrency wallet
To do this, access the official website of the MetaMask cryptocurrency wallet, which is also available as an extension in major browsers (Google Chrome, Firefox, Brave, and Microsoft Edge).
Install the extension and configure it. A basic precaution is to write down the password (a string of words), as it will be essential for exchanging the coins for money – in this case, for ether (ETH), which is the means of payment to buy the axies.
2.Download Ronin Wallet
Creating a wallet in Ronin Wallet is also necessary, an extension available for Chrome and Firefox. Just download and install.
You need to be careful and download the extension only from the official address. As the game has gone viral, several fake applications have emerged.
3.Download Axie Infinity
Finally, it is time to download the game from its official page. Open the Mavis Hub (the installed program) and click “Create New Account” when you are done. Then follow the instructions and open a new account. Your browser will open a screen with the option “Login with Ronin Wallet”, which must be confirmed.
Create the username and then log out. Then “Login with MetaMask” by clicking in the lower right corner of the screen. A pop-up will open and show your newly created account. When you log in, you will be able to see your username, along with a signature.
After this step, you need to log in with Ronin Wallet again. To do this, go back to the dashboard and select “Set up email & password”. Next, enter your email address and create a password. You will receive a confirmation code to ensure security.
4.Set up and start playing
Return to Mavis Hub, log in with the registered email and password, and click “Install” to start installing the game. When it’s finished, click “play,” and Axie Infinity will open.
You need at least a trio of axies purchased with ETH in the game’s marketplace to start playing. It is worth noting that it is the NFT technology that ensures that each character is unique. With the initial axies you can start the game, gaining experience (XP), which makes characters stronger, and get rewards of up to 100 daily SLPs.
But, as we explained before, it is possible to “rent” the team (trio) of the characters from other players who acquired them, a modality called scholarships.
Is there taxation on Axie Infinity?
According to the accountant specialized in cryptocurrencies Ana Paula Rabello, the payment of taxes arising from gambling income depends on the gains. “If monthly your divestments (considering sales and swaps/trades) are higher than R$ 35 thousand, you must pay taxes. If they are not, considering the earnings of a typical player, around R$ 6 thousand, there is no taxation. He will be exempt according to the capital gains table”, she explains on her webpage Declarando Bitcoin.
She also points out that there are no reasons not to declare gains with the game, even if they are less than R$ 35.000,00. “In contrast, it helps to have an income, even if exempt, declared in your income tax, for future acquisitions of goods, such as a car or a motorcycle”, she says. She also warns that the IRS does not receive information from Metamask and Ronin Wallet because they are foreign, but it does have the banking and asset acquisition information. “In other words, whoever doesn’t declare will have no way to certify the origin of the resources”, said Ana Paula.