The non-fungible token – also known as an NFT – is a unique digital asset that can be found in different formsȘ graphics, audio files, video clips, GIFs, or other formats. NFT characters can even be purchased and played within a game’s metaverse.
By converting a digital file into a cryptocurrency token, NFT trading cards can be created, which exist within a blockchain. NFTs are purchased by collectors either to display in their personal galleries or to sell on the secondary market with the chance to make money.
A blockchain records more than just the NFT: Each transaction involving that NFT is also recorded, allowing the creator of the NFT to earn royalties from sales.
In most cases, NFT trading cards are bought and sold with cryptocurrency online.
How do they work?
The utility of NFTs in trading cards varies. Collectors purchase them to show off or brag, just as people used to buy regular collectors’ cards at conventions. Also, some people collect NFT cards as investments, selling off those whose value increases.
TCGs, also known as trading card games based on NFT, are favored by RPG gamers. One example is the famous multiplayer online game Gods Unchained, which enables players to build decks of NFT trading cards in order to use them for battling opposing players.
Besides gaming, you can also purchase NFT trading cards on online marketplaces like NBA Top Shot, which sells NFTs of NBA players.
Here are some of the most popular marketplaces for NFT trading cards
- OpenSea – a versatile marketplace used mainly for gaming cards, sports cards, and many more.
- NBA Top Shot – a marketplace where users trade cards of NBA players and teams.
- Sorare Marketplace – similar to NBA Top Shot but for football fans.
- Waxstash – a popular marketplace that features asset exchanges like FarmersWorld, AlienWorlds, Splinterlands, and many more NFT trading cards collections.
Value of NFT trading cards
The key factor that affects the value of NFT trading cards is scarcity and demand. Rare precious materials are high priced because they are rare and, the same applies to NFTs.
The utility is also an important factor in the value of NTF cards. For example, some gaming cards may provide a unique set of skills or powers to the player, thus making them more valuable.
Some trading cards are certified by official sponsors, like football clubs, NBA clubs, or even sports organizations, which obviously makes the card more valuable.
Steps to buying NFT trading cards
If you wish to buy NFT trading cards and make your own collection, you should follow a few simple steps:
- Sign up for a marketplace;
- Set up your digital wallet;
- Put cryptocurrency into your wallet;
- Select an NFT trading card;
- Complete the purchase.
When you buy an NFT trading card, transaction fees are to be expected. Such transaction fees are called gas fees in the NFT world and are used to support the exchange of cryptocurrencies.
Potential risks from trading NFT cards
Keep in mind that the NFT world is largely unregulated, and online threats are always there.
Since NFTs are kept in digital wallets, some potential risks from online scams are always possible. This means the user has to make sure to keep the password safe and try to minimize the risk of being hacked. Most marketplaces don’t take responsibility if you fall victim to online scammers.
Here are some tips you should follow to keep hackers at bay:
- Always use legitimate marketplaces when trading NFTs.
- Look for verification labels, and avoid trading with unverified users.
- If something looks too good to be true, it’s probably a scam.