It's okay, just if any little drops of spit get on there, be sure to wipe it off. And the correct way to handle a CD is simply to handle it on the edges rather than with a finger on either side.
I think you SHOULD rip them as mp3s, personally, and then keep them in the plastic. It's not impractical to have bought them; hard drives crash, CD-Rs get lost, data can go away eventually and it's good to have hard copies (which is to say, store-bought copies of the albums) so that you can recover your lost data easily. Wear-and-tear is gonna happen; through regular use, my LOVEppears album got HORRIBLY scratched, and I had to use Clear Plastic Restoration stuff for BOATS to fix it. Seriously. I held it properly, put it in the case, and it still got messed up. So I'd rip the mp3s if I were you. Even aside from scratching, the sides of the CDs do show noticeable... hmmm, i guess denting? Just from regular handling. After a few years, it's easy to see which cds are used most often by the edges of the disc.
And a "damp" cloth, mentioned above, means just that; ONLY water, no chemicals, and make sure it's not really very wet. Also do make sure it's dry before doing anything with it.
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