What are NFT Trading Cards? What they are used for? Are you ready to know? If yes, read this comprehensive guide here.
Table of contents
To understand how NFTs work you need to understand what is an NFT.
NFT Trading Cards – I am sure you have been hearing about Bitcoin, cryptocurrencies, and NFTs these past 2 years. Many people may not know that NFTs have been around for many years already.
In 2014 Digital Artist Kevin Mccoy made his first NFT “Quantum” on the Namecoin blockchain. Quantum is a digital image.
What is fungible?– “Fungible only applies to a group of items. A group of items is fungible if every member in a group is identical.
If every member of this is identical members can be traded without any issue. Examples of things that are fungible? Fiat Money like USD, Bitcoin, Ethereum, etc.
What is Non-fungible? – A group of items where each member is unique and not identical.
But now collectible items have moved into digital space in the form of NFT or non-fungible tokens. These are different in the sense they can not be duplicated. each item is only one.
What exactly are NFTs?
NFTs known as “NFTs” by insiders are a type of digital asset. Ownership of these tokens is recorded on a blockchain, a digital ledger using similar technology.
To the networks that underpin Bitcoin and other cryptocurrencies.
But unlike currencies, where every token is of equal value and could be swapped for any other.NFTs have unique qualities
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Difference between NFT and Cryptocurrencies –
They have information coded in the blockchain. Nfts are cryptocurrencies but unlike fungible tokens cryptocurrencies like bitcoin.
They are completely unique. They exist as a string of numbers and letters stored on a blockchain Ledger.
This information can contain who owns the digital asset and who sold and when it was sold. This information is also encrypted ensuring NFT’s authenticity and scarcity.
In doing so they fix a difficult problem for the digital creators on the internet. How to make your creations scarce and therefore more valuable.
Digital Scarcity –
So with NFTs, you wind up having scarcity because they are non-fungible assets there is only one of these tokens than can exist.
It can’t be traded for anything similar because there is nothing similar exists. And so you wind up getting that scarcity and limitation which helps drive up some of the prices.
One of the early applications of creating digital scarcity was the digital collectible game Crypto Kitties. which emerged in 2017.
Users were able to buy, trade, and breed digital cat collectibles. Each new cat was an NFT that certified its originality and ownership.
Since then NFTs are applicable to video games, digital art, and sports memorabilia. One example NBA Top Shot.
Which allows users to procure a collection of digital basketball highlights like a video clip of a posterizing dunk. All highlights are NFT and have become big business.
By mid-March NBA Top Shot had clocked in over $338 million in sales since it went live in October 2020.
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Do NFTs have Potential?
They are making their way into the mainstream art world as well. Auction house Christie’s opened bidding for its first purely digital art NFT.
Bids rocketed into the millions of dollars.
People are really excited about NFTs because unlike the blockchain underlying Bitcoin, you can do a lot more complex things with it.
You can wind up setting terms within it, such as you know, the original creator upon each resale of this asset will get x-amount.
Or you can take it and you can have an NFT that itself mints other NFTs. And it winds up all of these really untested applications.
The surface is scratched for its potential. Along with all the hype around NFTs experts have raised some concerns :
One issue is that not all NFTs verify the person selling a digital art piece, is actually the original creator.
This is difficult, particularly in online marketplaces.
One of the concerns is that anyone can essentially go on a lot of these marketplaces and say “I am the person who created this token”.
And it can be really hard to verify that especially if you don’t know who they actually are or they are saying someone that they are not.
Some people are skeptical that ownership alone makes digital assets valuable. When it comes to digital art a buyer knows the original digital painting.
But the person can’t keep others from copying the image and sharing or changing it online. You have had a lot of scams in cryptocurrencies just historically.
And so the concern is that you know people are hyping these up.
They are saying like “Go buy NFTs.It’s great“-
But in reality, you know there is always gotta be a buyer for there to be a seller and people might decide all of a sudden, you know “Let me cash in my profits”.and someone’s going to be stuck holding the bag.
Proponents are bullish on the potential for NFTs, but critics are wary that it may be a digital bubble in the making.
What is NFT Trading ?
Although NFTs date back to 2012, they only reached a wider, public level of popularity in Mar. 2021, when Beeple sold artwork for a groundbreaking $69 million.
Since then, the market has been on an uptrend. However, many cryptocurrency enthusiasts still consider NFTs a new concept.
There are different types of NFTs Art
Just as everyone got to grips with blockchain hype, NFT trading swooped in and added fuel to the already confusing fire.
NFTS come in many shapes and provide profitable opportunities for collectors and creators alike.
You may be wondering how lucrative NFT trading could really be if that gif of a pop art cat from 10 years ago is worth a mention.
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Pros of NFT trading
d.Improved artist royalties
e. Reduced third-party costs
Cons of NFT trading
a. Environmental concerns
b. Digital wallet required
c. Young technology
NFT Trading –
The simplest and most obvious way with NFT TRADING is to simply buy and sell NFTS.
To find an NFT for sale you need to visit a dedicated marketplace or an App. There are many marketplaces available online, most with slightly different benefits.
A digital wallet like Metamask makes the transactions. Not all wallets can support NFTs, so ensure you find one that does.
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Once set up it is filled with cryptocurrency.
At that point, you buy any NFT any NFT using the wallet. The sale is permanently on the blockchain.
And the NFT will appear in your wallet once the sale is verified.
NFT Marketplaces –
If you just wish to invest in the NFT marketplace without getting involved directly then trading NFT marketplace tokens or cryptocurrencies is the way to go.
If the marketplace grows the value of tokens used to make transactions rises. Some of the larger marketplaces, such as FLOW, are traded on cryptocurrency exchanges.
Trading Crypto –
Similarly, you can trade the cryptos used for NFT trading, like Ethereum. As ETH is more for both NFTs and regular purchases.
its value rises and it profits from reselling tokens. Actually, this is a digital platform slightly obscure way to trade NFTs that lies within the virtual reality world called Decentraland.
This is a digital platform that is similar to those seen in sci-fi films like Ready Player One. The world is formed of parcels of land, each of which is an NFT that you purchase, giving you ownership.
Parcels are sold or rented out for other creators to place their content there facilitating a range of NFT trading options.
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NFT Trading Cards –Trading Platforms
It is an NFT trading platform offering the largest digital marketplace. Clients can create a range of NFTs from arts and collectibles to domain names. Seller transaction fees Fees are around 2.5%
OpeSea accepts a decent range of payment methods, including Ethereum. Overall it’s a good option for investors who are new to NFT because this platform offers a user-friendly interface.
The mixed marketplace includes gaming trading cards, sports, blockchain gaming NFTs, and more.
Nifty Gateway – It is a centralized marketplace based on the US Dollar. You can buy and sell fine art collectibles called “Nifties”. For individuals dealing in USD, in particular, Nifty Gateway is a good option.
Rarible – It is another popular NFT trading platform connecting buyers with sellers. Available on the user-friendly platform is an impressive portfolio of digital artwork and memes.
Rarible also offers its own digital currency, RARI which along with Ethereum, facilitates trading.
One perk of owning RARI is that clients can vote on changes to the platform and get a say on the artwork sold.
This NFT trading platform has also teamed up with Open Sea and takes a 2.5% fee on each transaction.
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NBA Top Shot
The NBA Top Shot is a product of a partnership between the NBA and a blockchain-based firm in Vancouver called Dapper Labs.
This platform offers videos and 3D spatial design of gameplay snippets bought through ‘packs’ . Prices for the Top Shot packs start at $9 but climb to $999 with rare and legendary categories.
For basketball fans, NBA Top Shot is the clear choice when it comes to NFT trading platforms.
One big attraction towards NFT trading is the possibility of better recognition and payment for creators. NFT trading not only verifies all artwork and ties it back to the creator.
But also offers special royalty possibilities.
NFTs allow artists to directly profit from all sales of the NFT, no matter how far down the line.
When an NFT is created, it is tagged with a value that sends a specified portion of any sale to its original creator.
This means that a piece of art that originally sells for $10 before rocketing.
NFT Trading Cards– What Are They?
NFT trading cards digital trading cards exist on a blockchain network. Thanks to blockchain technology people can verify the authenticity and ownership of NFT trading cards.
NFT trading cards are redefining how collectors trade and collect trading cards.
Trading Card Games –
Long before NFT collectibles existed, trading cards and card games have been popular since the 90s.
The popularity of physical playing cards and the rise of blockchain technology are now moving these terms into the digital realm.
Are taking on a new life with unique assets traded and stored on the blockchain. The decentralized networks mean collectors can now trade in-game items on third-party platforms.
And marketplaces changing how we perceive ownership in the digital era.
Examples of popular NFT Trading card collections are Solare, Axie Infinity, NBA TopShot, and Candy Digital.
How To Get Started?
similar to real-life trading cards, NFT trading cards are valued depending on their rarity, utility, and certification.
Many collectors buy them to show off, just like hobbyists do with physical cards at conventions.
Others collect NFT cards as investments, selling off those that appreciate in value.
With time trading cards became digital and were incorporated into video games where the players can buy the virtual version of these players and use them in games.
But like with traditional cards, the value of NFT trading cards can fluctuate by the second. New NFTs and collections are released all the time, and trends may change.
Especially gaming trends. That is why you should always do your own research before deciding on what NFT cards you want to invest in.
How are NFTs changing the Collectible Card Industry?
With the growing popularity of NFTs, an increasing number of mainstream artists, celebrities and major sports organizations are joining the NFT space. As a new way to reach audiences.
This leads to an increased variety of trading card games and collectibles released on NFT marketplaces. This leads to the hassle-free authentication process.
Previously trading card collectors would have to verify the authenticity of their physical cards through a lengthy process. where they send their cards to a professional authentication.
And grading service. However, with NFT trading cars, the entire history of a digital asset is easily viewable.
. And authenticated on a blockchain ledger.
On February 1st, 2022, the NFT playing cards system recorded a new whooping transaction.
When someone bought the NFT card of Erling Haaland, a Norwegian footballer, for $600k – currently the most expensive NFT card.
Anyone can see when the asset was created, who created it, and how many editions there are.
This eliminates the possibility of passing a counterfeit asset as authentic and shortens the lengthy authentication process.
Besides the exclusivity element of owning a rare collectible, some NFT trading cards also offer holders perks like playability in NFT games.
And exclusive access to sporting events, and much more. Physical trading cards are prone to creases, stains, and scratches.
No matter how well you care for them.
They will inevitably go through general wear and tear over time. which reduces their value.
Because NFT cards are digital, they are resistant to general wear and tear.
This effectively eliminates the risk of damage, as well as loss and theft.
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Where can You purchase it?
You can purchase NFT trading cards on Crypto Exchanges or NFT trading platforms. For example Binance NFT Marketplace.
If you are feeling adventurous, you can go for one of the exclusives such as the latest X World Games.
NFT Trading Cards -Issues?
At present many people don’t understand the complexities of NFTs, their token standards, or their minting process. Even blockchain networks, buying MATIC to buy a Phantom, and so on.
Intangibility of NFT Cards- Unlike physical cards, NFT cards are not tangible. You can’t touch and see them in real life.
Some believe NFTs are only valuable on the blockchain and thus have no value in real time.
More focus on Money -making than Cards – Some people feel that NFT Card collectors are more after money than the importance of the cards to them.
Some NFT traders who are collecting cards are purportedly there to flip them without considering any emotional attachments.
NFT trading is growing fast, bouncing off the successes of the game of cards in the NBA and sports. Plus the growing interest in digital art to reach an investing volume of $420 million as of 2021.
The support industry is also growing, with NFT trading markets.
Platforms, apps, and sites pop up left right, and center to facilitate the growing excitement.
But are all NFT Cards related?
No, only that the game cards are more pronounced.
For example, there are also NFT birthday cards and NFT greeting cards.
No one can predict the future of NFTs trading with some suggesting
it is a bubble that will crash.
And others believe it will continue to grow exponentially.
It seems likely that NFTs are here to stay.
The most expensive NFT sold is a piece of digital artwork entitled ‘Every day’. The first 5000 Days ‘, sold for the equivalent of $70 million.
NFTs can be almost anything. While most of the hype is on digital artwork and trading cards, NFTs are used to digitally represent physical objects.
NFTs are based on the same blockchain as many cryptocurrencies, most often Ethereum. To buy an NFT, a transaction is logged on the blockchain, without cryptocurrency.
All NFTs are available for all, though to see only those for sale, at a special marketplace.
There are many marketplaces around all of which are accessible via the internet.
Bitcoin is a cryptocurrency, which is a known fungible token. This means every Bitcoin is worth the same amount. NFTs are non-fungible tokens, meaning they are all unique in form and value.