Are Blockchain Domains Good Investments in 2022?

Are blockchain domains good investments in 2022? Like most people, you too may have heard about cryptocurrency. A lot of talks can be found about cryptocurrencies on the internet since the 1990s and it is believed that Bitcoin is the first and original cryptocurrency.

It was created by Satoshi Nakamoto, a pseudonymous person or a group of people, in the year 2008.

It was however released to the public a year later in 2009. Since it was launched in the market, a lot of enthusiastic followers of Bitcoin took interest in it and started mining and exchanging the coin.

However, today you will find thousands of different types of crypto coins out there with varied market caps which add up to a huge amount of $267 billion, and still counting.

This is mainly due to the significant rise of several aspects that are related to cryptocurrencies such as:

  • Competition among different blockchain projects
  • Reliable and fast payment processors
  • Trustworthy and functional crypto wallets
  • Several useful third-party platforms and
  • A lot of crypto exchanges or brokers.

Though all of these are the primary reasons for cryptocurrency still growing to become a powerful yet unregulated digital currency in the market, there is also another thing that should be taken note of for the rise of blockchain, Bitcoin, and cryptocurrencies.

This is the buying and selling of crypto or blockchain domains which are highly in demand now.

If you are totally ignorant about what these blockchain domains are and how they are useful in the crypto industry and its functioning today, you are in the right place, fortunately.

In this article you will come to know what it is and its importance, whether or not these are good options to invest in, and how to use them and benefit in the end.

Are Blockchain Domains Good Investments in 2022?

Are Blockchain Domains Good Investments

As you may know, each crypto project and business has its own unique domain name on the internet.

Some of these domain names are now valued at hundreds of thousands of dollars based on their popularity quotient.

A few of these popular domains related to crypto and according to their projected value are:

  • Ethereum.com – $10 million
  • Blockchain.us – $2.75 million
  • Eth.com – $2 million
  • BTC.com – $1 million
  • Bitcoin.tv – $350,000
  • CryptoRate.com – $99,888
  • Cryptopia.com – $65,000
  • CryptoHolder.com – $35,995
  • CryptoRex.com – $19,195
  • ChinaCrypto.com – $11,995

The prices that are attached to these blockchain or crypto domains rise according to the rise in popularity of the digital currencies.

This is in accordance with the basic principle of economics – the law of demand and supply.

This law states that when there is an increase in demand for a commodity, in this case the crypto domain, there will be a simultaneous increase in the price and quantity.

This may be at the same proportion or even more than the rate of increase in its popularity.

The converse is, however, also true. That is, when the demand falls, there is a subsequent decrease in the price and quantity.

This points to a significant factor which is: the rate at which the crypto coins are gaining in popularity consistently, it proves that the trend for the growing demand for domain names inclined with crypto is not going to slow down anytime soon.

This means that it will be good for all domain investors and hoarders to invest in crypto domains in 2022.

You will find one such blockchain domain easily if you are planning to invest in it because there are lots of crypto domains out there that are sold for a profit.

This seems just the right time for you to get a domain or a set of domains for yourself because crypto will continue to appreciate in value and therefore will not let go of the market.

However, be very cautious in selecting a crypto or blockchain domain name so that you do away with the risk in investing.

Simply invest in a blockchain domain in a market niche and you will be able to write an entirely different story.

Blockchain domains are good in today’s scenario because it allows expanding the access to Web 3.0 which will offer more options to the users.

Practically, this means that the users can literally access tens of thousands of decentralized websites and more than hundreds of thousands blockchain domain names.

The domain names are typically built on blockchain which makes each of them a NFT or Non-Fungible Token in the true sense.

These are usually stored inside the crypto wallet of a user and not within a conventional and centralized registrar.

The Domain Name System or DNS in its entirety is actually a set of smart contracts that reside on the blockchain.

This means that when a particular browser wants to go and decide on a website it will not need to go and ping the DNS servers.

Instead, the browser can go directly and read the blockchain.

This makes it much easier and faster to find the record. This is really a different and perhaps the most unique way in keeping with the ownership and custody.

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What is a Blockchain Domain?

In plain and simple words, a blockchain domain is pretty much like a website domain.

If you consider the benefits and functionality of a website domain it will be much easier for you to understand what blockchain domain is.

Ideally, a web domain allows the users to own the asset, the website, but they usually have no control over it.

Similarly, the blockchain domain allows the users to own the asset and it also allows the users to have total control over a named section of the blockchain network.

And this is where the two domains are different since in web domains you will need to pay some amount to the hosting companies to store your domain and it will also come with a monthly fee.

In the case of blockchain domains, you as the owner of the asset will have full control over everything.

Need for a Blockchain Domain

Now, you may ask at this point, why do you need, and if at all you need, a blockchain domain.

The answer is, yes, you do since these domains will serve two main functions.

Ownership and censorship:

The first function of blockchain domains is that it will allow you to own a named portion of a blockchain registry.

It will point to the content stored in it. Usually, all crypto websites are linked with a blockchain domain.

This gives them the additional benefit of anonymity and censorship.

The good thing about the blockchain domains is that purchasing them is a one-time event.

This means that you will gain permanent ownership of the asset without needing to pay any monthly rent and renew it every year as is the case with the traditional website domains.

This blockchain domain cannot be taken away since it is stored in the wallet of the individual users thereby protecting it from censorship.

Smoother and faster transaction:

The second important function of the blockchain domain is that it will allow you to use it as a crypto wallet.

This will offer additional benefits such as smoother and faster transactions since you will not need those complex hexadecimal wallet addresses any longer to enter for logging in every time when you want to transfer your crypto coins from an exchange to your wallet.

All you will need to do is enter the amount and the domain name in the recipient address. It will be faster and easier.

Also, there will be no need to check and re-check your public key in order to make sure that you have not made any typo while copying the address.

Therefore, after hearing the functions, you surely now know the need to add the blockchain domain in your wallet which is ever growing with diversified assets.

How Does It Work?

The blockchain domains are usually a decipherable set of smart contracts or software programs written on the public blockchain.

These domains can work both as a naming registry for the address of a crypto wallet and these can also point to a website or any other content hosted on that particular blockchain.

This means that the blockchain domains typically work as your username for crypto.

These are actually akin to a long string of random alphanumeric characters of a wallet address.

Just like a website domain address on the web can take a user to a particular site and see the content, a blockchain domain address can host content as well.

These addresses can also be used for making payments working inside multiple crypto exchanges and wallets.

The blockchain domain names actually make the technology involved in decentralization much easier to use.

It is a powerful technology but it is not as difficult to remember as a traditional wallet address that includes nearly 50 random characters and IPFS hashes.

The technology behind it makes it work just like the internet and there is a huge potential for it to go mainstream.

The Domain Name Systems runs the web and resolves and revolutionizes the search.

It replaces the long IP addresses with complex alphanumeric characters with a common .com name that most of the people are familiar with today and find it easy to remember.

The browsers seem to have embraced this alternative system quite well and it is seen as an adoption of a decentralized web and alternate DNS system.

This does not need long approval like the traditional DNS systems or rely on different committees and regulatory bodies.

By using the blockchain domains anybody can literally launch anything.

You do not have to worry about the validity of these domains because the browsers can resolve these domains as easily as traditional domain names.

And, though the browsers are the access points for decentralized sites, it would not be accessible to just about any person under the sky.

There is no trust involved in this solution and it makes a lot of sense to use these names because it will grant access only to those who hold the private keys.

It is for this reason the browsers are so crucial for the overall success of the decentralized web format.

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The Centralization Issue

However, at this point, you should also be aware of the issues related with centralization, or the lack thereof.

This means that the resolutions about a domain cannot be made arbitrarily by any single body.

Moreover, there is no need for a continual subscription because once you own them you own it forever and it cannot be taken away.

However, the centralized domain name service providers seem to struggle with, if not being unable to resolve, those issues.

There are lots of instances wherein several domains were targeted by the malicious actors.

They use social engineering techniques to trick employees and force them to transfer ownership control over the domains to these fraudsters.

Apart from that, the hackers are also successful in redirecting a chunk of the traffic intended for a lot of different crypto platforms.

They can modify the DNS records which, in turn, allow them to take control of a large number of internal email accounts.

This also allows the malicious actors to compromise the infrastructure, partially or fully, and gain easy admittance to document storage.

However, from the perspectives of experts, the blockchain domains as of now benefit from two big areas in native support which are the IPFS or InterPlanetary File System sites and the wallets.

The crypto domains will point to these sites that are not very easy to access.

This is because these IPFS sites use a long and complex string of characters that the users find very difficult to memorize and therefore fail to gain access to these sites.

The use of blockchain domains gives the users an easy way to have incontrovertible IPFS content.

This means that you will be allowed to change the content in the website on IPFS without needing to remember the long and hard address.

The same benefit is enjoyed when you need to transfer money from your wallet to the wallet of someone else.

Once again, you do not have to remember the long and complex address string of the receiver but simply type the domain name which is very easy to remember.

It will therefore eliminate the chances of any human error.

The Value

The value of the blockchain domains in the current scenario is immense since these have the potential to basically renovate the decentralized finance sector.

These domains will provide an easy way to the users to receive a wide variety of crypto coins and store them safely as well.

However, the long term value of these blockchain domains will depend ultimately on the popularity as well as the size of the extensions of the domains.

This is because the experts say that most of these blockchain domains tend to develop a stigma as they gain support, much similar to the tendency of the .com website domains.

If you really want to own a crypto domain that may grow in value you should aim for those particular blockchain domain names and extensions that will have a high demand in the future.

This will ensure that you profit from buying and selling blockchain domains.

Steps to Flip Blockchain Domain

Flipping blockchain domains is a possibility to make profits but it is certainly not an easy thing to do, mind you.

Your primary objective of this specific endeavor should be avoiding those blockchain domains that sound really cool and save you from spending thousands of dollars on a domain that will have little or no value in reality and in the future as well.

Therefore, you will be better off if you follow a particular guide to choose our blockchain domains from a variety of different categories.

This will allow you to follow a very methodical and systematic approach while investing in blockchain domains and make some serious profits while flipping the blockchain domains thereby providing high returns on your investment.

Step 1

You should not consider trying your luck on everything that is available to you.

Instead, you should try and specialize in one or a couple of niches and stick to that specific category while buying blockchain domains.

The good thing about this approach is that it will allow you to grow your interests with much better understanding of the subject matter.

This will increase your overall ability, your needs and demands.

You will also know about the problems or issues that you may face down the lane because you will have all necessary information related to that particular niche with you.

All these will ensure that you can estimate the future demand for the specific blockchain domain in a much better way.

Step 2

If you really want to have one of the most popular blockchain domain names you will need to get into the action pretty quick.

This is important because sometimes pre-sales offers are made for new blockchain domain extensions.

If you get to it first, you will be able to buy up all of the popular domain names before someone else gets the chance to do so.

This means that if you can predict things well, you will win the race with a significant advantage over the others.

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All you need to do is perceive rightly as to which crypto domains will have the highest value in the future.

When and if you get in quick, you should follow the best buying strategy which is to buy up all those domains available that come with 3 letters.

The basic idea behind this is that there will be a lot of acronyms of companies with a minimum of three letters that you may find desirable just as many crypto communities would.

You may also go for those crypto domain names that are already connected somehow with some existing crypto companies.

Once again this will put you in a better position if and when the existing companies move over to a decentralized web eventually.

It is according to the saying, ‘the early bird gets the worm.’

Step 3

You must have some knowledge about Search Engine Optimization, which is more commonly known as SEO.

This is important nowadays to top the Search Engine Result Pages or SERPs. This is an utterly indispensable step to follow even though it will take the most time.

This will help you to determine the right crypto domain names to buy.

The way to go about it is to find out the most popular keywords that fall within your specialized niche.

The best way to do so is to find those keywords that pay a high CPC or Cost per Click but have comparatively low competition.

You will need to make sure that you choose those keywords essentially for which you will be paid top dollar value by the ad agencies.

However, at the same time, you will also need to evaluate the difficulty of the particular keyword or keywords to rank at the top of the SERP.

The main idea behind it is that if a keyword has less competition it is more likely that the users will click to a site with that particular keyword.

Well, this involves mastering the art of SEO, which, if you do not know, is nothing to worry about.

There are a plethora of sites available on the internet that will educate you about it.

Remember, you should not skip this additional setup because it is quite difficult to develop the skill to find out the right keyword.

There are several factors considered by the ranking algorithms of Google and other search engines to evaluate a site which is usually determined on the basis of how best the keywords are presented.

It also involves how exactly these keywords are used and put and how often these are used so that these keywords are not ‘stuffed.’ Typically, this is a balancing act and it can only be perfected with knowledge, practice and over time.

You can also use specific tools like Google Analytics to learn more about the external traffic to a website and the number of views.

This tool will also help you to add new articles and keywords and see which of them have performed the best.

This will be much easier for you if you want to imitate those results.

Step 4

Finally, if you want to flip blockchain domains successfully and profitably, it will be a much better idea to master your exit.

This means that you should know the right time to sell the blockchain domains.

You must know that you are allowed to buy a domain and sell it for a profit within a year.

This is a very effective and useful short term play that you can engage in if you wish to follow new communities or trends.

Ideally, most domain flippers look for such gains in the short term because if and when they secure a crypto domain for up and future trends they stand a much better chance to earn more profits in the near future.

However, you may also try another strategy. This involves buying a lot of cheap blockchain domains simply by using the most popular keywords from your specialized niche.

All you need to do then is to sit on them for a long time, which may be as long as 5, 10, or even up to 15 years.

The main idea behind this approach is that most of these randomly selected domains will already have been taken within such a long time.

This will make the crypto domains that you have already acquired more valuable.

Conclusion

If you want to open an entirely new horizon in the new digital asset class and expose yourself to it, this article will inspire you to do so and help you to find the best blockchain domain names of the world to add in the wallet. Happy hunting!