The esports tournament is turning to cryptocurrency and digital assets for the prize pool. Kafu Games, for example, are hosting online esports tournaments with digital assets and crypto prizes among the rewards. While some well-known tournaments, such as Riyadh Master and the 2019 Fortnite World Cup finals, are among the esports championships with the largest money prize pool ever. Digital assets are changing the game as blockchain technology—which shapes cryptocurrency—boosts trust among players, given that all transactions are securely recorded, preventing potential manipulation from taking place. Also, cryptocurrency allows everyone to trade game-in assets, offering a unique experience in gaming.

However, the integration of cryptocurrency in gaming and esports still faces challenges, such as regulatory issues, given that all countries have various regulations related to cryptocurrency. Despite the secure transaction, cryptocurrency is also prone to hacking and fraud due to its volatile and decentralized nature.

The Current State of Crypto in Esports

Many esports tournaments have chosen cryptocurrency as a prize, either fully or partially. For example, the Play2Live CS: GO Tournament (2019) offered the top prize of $ 100,000. Interestingly, Play2Live awarded the prize in its crypto instead of using traditional cryptos like Bitcoin or Ethereum.

The first esports tournament with a crypto prize pool was StarCraft in 2011. The tournament gave 25 Bitcoins to runners-up, now worth $ 2.5 million thanks to Bitcoin’s rocketing price. In 2021, Counter-Strike: Global Offensive

(CS: GO) esports tournament organizer BLAST Premier signed a sponsorship deal with cryptocurrency exchange Coinbase. Thanks to crypto flexibility, the adoption of cryptocurrency in esports tournaments will likely continue to rise. Cooperation between esports organizers and cryptocurrency apps or exchanges has helped boost digital asset reputation, as everyone can have assets regardless of their bank accounts.

Types of Cryptocurrencies Being Adopted

Bitcoin and Ethereum have been the most common cryptocurrencies for prizes, thanks to their robust infrastructure and global liquidity. In addition to both coins, gaming-centered tokens such as Chiliz (CHZ) and Enjin (ENJ) have gained traction. Enjin’s ERC-1155 standard allows for in-game asset minting, and NFTs are used for fan tokens. The popularity of NFT prizes makes them the best choice for memorabilia or asset-backed digital items. Platform reviews like MEXC review often detail which cryptocurrencies have the best trading volumes for esports winnings, allowing fans to review the most liquid and cost-saving options.

Benefits for Professional Players

The adoption of cryptocurrency in esports also benefits players. Here’s why

• Financial advantages: If bank transactions often take time, cryptocurrency enables players to receive their prizes instantly with no hassles. Unlike conventional bank transactions, crypto transactions offer lower transfer fees than international wire Also, cryptocurrency has the same value, not affected by global uncertainties. For example, a Japanese player competes in the UK and wins 25 BTC. The value is not affected by the Japanese Yen or Pound sterling. Global crypto markets determine the value of 25 BTC.
• Accessibility and Inclusion: Cryptocurrency discriminates against no one. Everyone can have digital assets without having to own bank accounts. The presence of digital assets pushes financial inclusion for all people. Players from unbanked nations can benefit from the integration of crypto in gaming.
• Investment opportunities: Cryptocurrency can be the best alternative for investment. Players can actively compete and build their wealth in crypto as long as they know the investment strategy. Investment in crypto is often seen as risky due to its volatility. Cryptocurrencies such as Bitcoin and Ethereum have seen a surge in price compared to 2010. Bitcoin was worth less than $1 in 2010 before jumping to over $ 60,000 in recent years.

Tournament organizers’ perspective

Offering crypto as a prize in esports tournaments also benefits organizers. Here they are:

• Lower payment processing cost: Conventional international transfer involves a high transfer fee and a certain exchange rate. Crypto transfer streamlines everything with reduced transfer fees and no waiting. Transfers can be carried out swiftly, so players don’t have to wait for too long.
• Sponsorship and partnership opportunities: Sports are about business, and so is esports. Many crypto exchanges, such as MEXC and other blockchain gaming firms, are enthusiastic about entering the esports industry. By becoming a sponsor, young people will know more about the crypto exchanges and tournaments they sponsor.

Managing Crypto Earnings: A Player’s Guide

Investing in crypto requires thorough knowledge, understanding, and strategy. Here are useful guides for players who want to invest in crypto.

• Immediate considerations: Esports players who receive prizes in crypto must understand different crypto regulations among countries and their tax implications. Several countries, such as Algeria, China, and Egypt, ban crypto with harsh sanctions. Russia—which previously slapped a total ban on crypto in 2022—relaxed its regulation by allowing crypto mining (with some restrictions in certain regions).

Recording every transaction and conversion (including their crypto wallet) is vital to avoid complicated legal implications. Also, choosing a reputable exchange is crucial to secure transactions.

• Converting Crypto to Fiat Currency: Converting crypto to Fiat currency must consider the right timing due to the market volatility. Trading crypto at a bad time will decrease its value. Therefore, esports players must use reputable trading platforms with robust security measures and competitive
• Choose the right trading platform: The importance of choosing a reliable crypto exchange cannot be overstated. Players must consider factors such as a user-friendly interface, competitive trading fees, and security features that ease their conversion process.

Many pro players turn to detailed MEXC reviews to understand platform reliability before converting tournament winnings. MEXC reviews feature competitive trading fees and a user experience that matters for professional gamers. You can check MEXC reviews and competitor comparisons before making informed decisions. If you need a thorough analysis, check detailed MEXC reviews to get valuable insights into platform features and user experiences.

• Long-term financial planning: Finally, players must consider long-term financial planning. They can weigh the right time to convert and diversify their portfolio beyond gaming to increase their returns. Also, seeking a professional financial advisor is recommended for maximizing their crypto value.

Challenges and Considerations

Market volatility is one of the crucial challenges esports players face, given that the crypto value may sharply fluctuate between the competition time and conversion period. According to various MEXC reviews, timing conversions during market volatility requires understanding platform tools and market analysis features, helping players make informed decisions to protect their earnings.

In addition, not all countries legalize the use of crypto. Some regions uphold strict bans on cryptocurrency, while others restrict crypto reporting requirements. Tournament organizers may also have compliance procedures that players must follow. Therefore, players need to learn about cryptocurrency, from choosing trusted trading platforms to starting to invest in digital assets.

Future of Crypto in Competitive Gaming

The role of cryptocurrency in competitive gaming will continue to grow. Many tournaments are adopting cryptocurrency as a prize, enabling a smoother transaction with flexibility. As the industry evolves, reliable resources like MEXC reviews will become increasingly valuable for players learning about crypto, helping them choose secure platforms, understand market trends, and maximize the value of their tournament earnings. Check MEXC reviews for a comprehensive analysis on cryptocurrency so you are on the right track.