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There are 5 badge levels and 1 foil badge per game, cards needed for games depend on how many the developers set per badge.
All it does it level your Steam profile level, which gives you more showcases and increases your friends list. Personally I've only crafted badges for games I like to level one and for games I love, I craft to level 5 and even do the foil badge. Basically to show my support, is it a waste of money? Sure. But as far as I know, some of the card percentages go to the developers of the games as well.
It can get expensive if you buy the cards (especially foil cards), so I usually just sell my other cards on the market or make gems with them to make booster packs for games that sell for high prices. And I also usually buy a lot of games during the sales which give you event sale cards, which I sell.
You can also sell them, but you get so little money.
For the ''how they work'': You can get half the cards you need for a colection by just playing the game. You need to get the others from trades, buying them or winning an expansion pack (3 random cards from a game) but that thing is really rare with low steam lvl. Once you have all that the game has you can make a collection, what will remove the cards from your inventory and give you Exp for the Steam lvls, one background, one emoticon and one coupon for another game. You can make 5 collections for each game.
Oh right! Forgot about getting all these
And even though the cards mostly sell for around 8 cents on average, if you bank a bunch just from playing, it will add up to buy some cheap games during sales. I actually recently made about $2 from selling some Nier cards on the market.
I never really bothered with cards stuff, so I don't know how they work.
All that sodium is bad for you! Here have some sugar instead (sorry that I took a bite)
"Don't be salty, be spicy!"
I like that! So then you would need this
It was $0.04 cents on the market, the better one was really expensive. Search on the market for "Spicy" to see the pricey one which seemed to have Power Within equipped (edit, well I mean active*).