What are NFT trading cards?
Remember when you were 10 and used to collect cards of superheroes like Batman, pokemon, etc.? NFT trading cards are very similar except that they have been converted into digital assets. These are digital collectibles that use blockchain technology for their authenticity and transparent ownership. These trading cards could be inspired by art, sports, cartoons, and other concepts. Every card has a distinct personality attached with proof of authenticity which makes its game stronger.
NFT trading cards have taken the concept of collectibles to a level higher by making them as unique as possible. These cards unlike the physical trading cards can also possess audio recordings, videos, and images. Because of these features, these trading cards have become a popular form of collectible as we see that the field of digital art is growing.
The value of NFT trading cards depends on the rarity and demand of the cards. For example, cards with a video recording of a sportsperson would be rare to find which makes its value a lot higher than you’d expect it to be. Some of these trading cards have been sold for a million dollars while on the other hand, some have also been sold for a few hundred dollars. The valuation of these cards also depends on their historical value and their relevance.
These trading cards are one-of-a-kind tokens unlike traditional physical trading cards coming with a guarantee of authenticity and ownership. When a card is minted by the created, the information of it getting minted is recorded on the blockchain which guarantees originality.
NFT trading cards don’t have to be monotonous like the traditional ones. There are different kinds of trading cards that one can invest in. Animated Trading Cards are the ones that contain poses, short stories, actions, etc., to make them unique and increase their value, interactive Cards are the ones that engage the collector by introducing certain features like adding a QR code that the collector can scan and see a video message from a popular sports star and lastly, augmented reality cards that have videos, audios, and 3D images which make them different from the traditional trading cards.
These cards are proof of how the digital world is expanding, it has revolutionized the concept of collectibles with the introduction of NFT trading cards. These cards are all set to bring about a massive change in the traditional trading industry as their popularity has been soaring through the sky amongst young investors.
What has made NFT trading cards so popular?
The internet first saw the curiosity of investors in the NFT trading cards when the former president of the US, Mr. Donald Trump, released his first batch of NFT trading cards which hitched up to the value of $4.4 million, later on, the value of these cards did pacify but the question was, what had made these trading cards so alluring?
The assimilation of the digital world into the idea of trading cards has made these cards a lot more treasured than they used to be. Imagine a trading card of your favorite actor autographed by a video message, wouldn’t you invest a considerable amount of money in that card? The perfect example of this is the NBA Top Shot collection of NFT trading cards which is one of the most popular collections in the NFT Market, it has all the trading cards licensed from the organization of the NBA.
These trading cards contain NBA moments, they contain highlights or clips of the game and the fans can buy, sell, and invest in these. Would you like to invest in these more than just static images of your favorite NBA stars? Automation plays a big role in the popularization of NFT trading cards and in attracting a lot of new investors to it. NBA Top Shot has till now, sold trading cards worth $500 million which is a testament to its success in the field.
The collectors of these cards are also given certain privileges like using these cards in games and applications and gaining extra points or rewards, for example, an athlete can use these cards and gain an advantage in a sports video game.
Other popular collections of NFT trading cards include:-
- SoRare – This is a fantasy football field that has a unique way of making the fans interact with their favorite sport. SoRare is built on the Blockchain technology as well. It has thousands of trading cards of different soccer players and has an official license from about 100 football clubs all over the world. The fans can buy these cards and along with an investment they also get certain other benefits which include they would extra points and rewards based on the player’s actual performance in the field, which is very similar to the stock market but in the area of collectibles!
- Gods Unchained – This is an Ethereum-Blockchain-based free-to-play game. It is a turn-based game where each card in the game is a distinct NFT, giving all the items in the game a real NFT value. The players of this game have to make a deck of trading cards against their opponent to win the game. It also allows players to earn in-game cash where they can sell the items that they have bought during the game. This game has earned immense popularity among young investors and in the NFT game, with its sales surpassing $ 6 million.
- Curio Cards – This is a set of 30 digital trading cards that contain art from seven different artists. They were one of the first NFT projects to be completed on Ethereum Blockchain. The value of Curio cards is high because of their rarity. Only 29,700 of them were created by the creators in the beginning out of which 400 got lost or destroyed. A set of cards was once sold for more than $1.2 million in 2021.
- Candy Digital – This is the NFT platform for Major League Baseball. It has officially licensed MLB NFTs. It not only sports trading cards but also contains sports memorabilia. It contains jerseys, plays of the day, and some personalized things such as the experience of throwing a pitch in your favorite team’s stadium.
These were some of the collections that have gained popularity in the NFT trading world. Other collections like Axie Infinity are based on pets, how you can sell, buy, raise, breed, and trade your pets and gain rewards, the players can give their pets additional abilities by using their trading cards. It has more than 130 trading cards in it.
Benefits of Investing in NFT Trading Cards
1. Growing market –
The NFT market is a developing world, with potential prospects of growth increasing each day. As the world is entering its digital realm, the NFT market for trading cards is set to expand too since the tech-savvy young generation will be more interested in buying digital trading cards with extra benefits rather than the traditional ones which have lost their value as compared to the digital ones.
2. The Uncommon NFT trading cards –
The reason for the higher value of the trading cards is the scarcity of them in the market which makes their value hitch to a high price. Each trading card guarantees limited availability in the market which makes its demand increase thereby making it more alluring for investors. The collectible world has been based on the principle of a rarity since the time of traditional trading cards i.e., the more a card is rare, the more the investors will be in a war to earn it.
3. Authenticity –
NFT trading cards unlike traditional trading cards cannot be duplicated to create a faux. Blockchain technology has majorly facilitated this. Most of these cards are made on Ethereum Blockchain which ensures the authenticity of the trading by storing the information of every card ever minted by a creator. It provides a traceability chain, directly from the smart contract that the collection is minted to secondary sales.
4. Assimilation of advanced technologies –
The NFT trading market has introduced several new technologies that have enhanced the experience of creating a trading card. With technologies like Augmented realities, you can create 3D videos and also personalize your NFT, and other technology like VR where the collector can walk through the gallery of their collected trading cards, etc. These features give an edge to the trading cards and make them a stage for the implementation of upcoming technologies as well.
5. Cross-Platform Engagement –
NFT trading cards have evolved to engage several platforms by making NFTs useful in other applications and games. For example, a lot of NFT trading cards have their digital games where they can be used to gain more rewards and every trading card is an in-game item that could be bought and used against your opponent.
6. Uniqueness –
Owning an NFT trading card means owning a unique piece of digital art. This property of the NFT trading cards makes them similar to the traditional ones where the competition was still to get the most unique cards to trade. The NFT trading cards also provide an engaging experience along with their uniqueness which makes these more attractive for the investors.
7. Personalization –
With the introduction of new technology, each NFT trading card has become a portal into a personalized world for the collector. The creators can use AR and VR technologies to make their trading cards as unique as possible while Blockchain technology protects their authenticity.
8. Liquidity of the NFT transactions –
Blockchain technology makes NFT trading cards seamlessly liquid for their owners. They can be easily bought, sold, and invested in since the originality is locked into the technology from the beginning so the collectors do not have to fear fraud in the case of authenticity. NFTs are also Interoperable which makes it easy for the owners to transform them from one platform to another making them not just static investments but a growing one through their use in different applications.
The advantages of investing in an NFT trading card are a plethora if you start looking into them, this is an ever-growing industry that is providing a new platform for investors to make their game stronger with the use of different technologies.
Challenges that you might face while investing in an NFT trading card
- Varying interests – You can buy an NFT trading card, wait for its value to increase, and then sell for a profit, it is that simple yet this is only possible if your interest lies in the field of collectibles. An investor can only know the value of a collectible if they are truly interested in trading cards and enhancing their knowledge of it. This is on the same lines as collecting unique and expensive art, you would only know the value of a piece of art if you’re an artist or have experience or knowledge of collecting art.
- The role of Regulatory Bodies – The regulatory bodies have now caught up with the speed of the NFT trading cards and in no time will be completely invested in this trade which could change how the NFTs are bought, sold, and traded.
- Scalability – The current NFT trading sites have faced issues in scalability and transaction costs, these issues will have to be fixed by the NFT sites so that they can reduce the disadvantages for a collector who is genuinely interested and is investing in an NFT trading card.
- Sustainability of the Environment – As society is moving towards a more sustainable environment, unfortunately, Ethereum isn’t. It has been thrashed for its energy usage which is not the one to be counted as sustainable. Ethereum has to move towards sustainability in its usage of energy so that the new users can put their trust in the site completely since most of them would have the idea of sustainable energy before they enter into the digital world.
These were some of the challenges that you might face while investing in NFT trading but most of them are a minor hiccup in the evolution of a digital world of collectibles.
How do you showcase your NFT trading cards?
Just like any other product, NFT trading cards also need showcasing to come into the eye of the public, you can use certain methods to promote your NFT trading cards.
- You can use social media platforms like Instagram, Twitter, etc., to promote your trading cards.
- A lot of trading card collections give you the facility to showcase your NFT trading cards in digital galleries.
- You can set up personal websites wherein you can explain how the card came about, and give it a sense of personalization for the viewer interested in investing in it.
- Collaborating with other creators can give you a diverse audience and you can promote your NFTs through joint efforts.
Wrapping it up!
The world of NFT trading cards has proved the fact that digitization of the world can improve every aspect and make it into something that is engaging as well as unique enough for people to invest large sums of the amount in. NFT trading cards have taken the world of collectibles to a higher level, it has transformed trading cards so much so that the collectors or investors can have a one-on-one unique immersive experience like never before. If you are someone who has an interest in collectibles and knows the correct target, the digital world awaits you with opportunities that will engage the trading card enthusiast in you as well as be a financial resource for you!
What is an NFT trading card?
An NFT trading card is made by converting a digital file into a cryptocurrency token that can be made on Blockchain technology. These trading cards can be based on sports, art, cartoons, and other concepts. Their value depends on their rarity and demand.
What is the most valuable NFT trading card?
One of the most valuable NFT trading cards is from the NBA collection which sells moments from the NBA game. It has sold trading cards worth more than $500 million. The most valuable one from this was the one with LeBron James dunk against the Houston Rockets which was sold for $387,600.
What is NFT trading?
NFTs are non-fungible tokens that can be exchanged for certain sums of money that depend on the value of the NFTs in the market and the value placed upon them by their owners.
Is NFT trading risky?
Like every other kind of trading NFT trading comes with its risks. If you are planning to invest in NFTs, you should be aware of various kinds of risks in the form of regulatory bodies, intellectual property, and more.
Is NFT trading profitable?
The profitability of an NFT depends on what kind of NFT you decide to trade in. It also depends on its rarity, its market demand, and the value placed on it by the owner. NFT trading is more profitable in a bull market than it is in a bear market but it does come with its own set of risks.
This is an NFT collection that has been made by a Random Character Collective NFT ecosystem which also created the Garbage Friends NFT collection. It was designed by Markus Magnusson and has attracted quite a lot of attention in the NFT world.
He has drawn as well as animated 5,000 non-fungible tokens. They also have their 3D versions which Magnusson created along with Nguyen Nhut.
Each Invisible Friend in this collection has its backstory, personality, and traits. The unique factor about these characters is that they are invisible and only their clothes and accessories can be seen.
This characteristic has made this collection a little more engaging and interesting for investors since it has added a bit of mystery and intrigue to the collection. And like the other collections mentioned, Invisible Friends also gives certain privileges to the people who buy it like giving access to events and experiences not available for the public.
