Blockchain Domain Flipping
A Guide To Making Money Flipping Blockchain Domains
What is a Blockchain Domain?
To best understand what a blockchain domain is, it is easiest to think of it in terms of a website domain. Just like a web domain a blockchain domain allows the user to own an asset that allows for control over a named portion of the network.
The two are different in the sense of who truly controls them. With web domains you have to pay hosting companies to store the domain and incur a monthly fee. With blockchain domains, the owner of the asset has complete control.
Why Would I Want a Blockchain Domain?
There are two main functions blockchain domains help to serve.
After you hear them you may just want to add them to your, ever so growing, bag of diversified assets.
The first function allows you to own a named part of the blockchain registry which points to the content stored there. Commonly, websites are associated with a blockchain domain, which give them the added benefit of censorship resistance and anonymity.
Traditionally website domains are rented and must be renewed each year. Purchasing a blockchain domain is a one time event that results in permanent ownership of the asset. The domain is stored in the individual’s wallet and therefore protected from censorship or from it being taken.
The second function allows you to use the blockchain domain as a cryptocurrency wallet. You benefit from smoother transactions by not having a long hexadecimal wallet address to enter in.
Imagine every time you transferred your Bitcoin from an exchange to your wallet all you had to do was enter the amount and yourname.crypto in for the recipient address. That sure does beat checking and re-checking your public key to make sure you didn't make an error while copying or transposing it.
Value of Blockchain Domains
I believe blockchain domains have the ability to fundamentally transform the decentralized finance sector by providing an easy way for its users to safely accept and store a wide variety of digital assets.
The long term value of these assets will ultimately rely on the size and popularity of the domain extension. As certain blockchain domains gain support they may develop a stigma similar to what's currently found with .com website domains.
The trick to profiting from the buying and selling of domains is to try and figure out which domain extension and names that may offer the biggest demand in the future. Take a look below at what Unstoppable Domains is considering premium blockchain domain names.
The platform however does not recognize the name of my current business, Crypto Capital Network, as a premium domain and it offers reasonable prices for the different domain extensions.
Flipping Blockchain Domains
To be completely honest flipping blockchain domains for profit is not the easiest thing to do. The goal here is not to spend thousands of dollars on “cool sounding” blockchain domains from a variety of different categories.
However, I do believe that with a systematic and methodical approach, investing in blockchain domains can bring some serious returns.
Step 1 - Specialize in One or Two Niches
By allowing yourself to stick to buying domains only within a certain category you are increasing your ability to understand the interests, needs, demands, problems, and other information associated with that niche. In doing so, you will have a better chance at estimating future demand for a particular blockchain domain.
For instance, you may notice that after researching and getting actively involved in the cooking community that people are looking for a way to share popular restaurant recipes that keep getting taken down off social media. You may then decide it’s a good idea to invest in recipes.crypto because you anticipated the need for a censorship resistant website within the community.
Step 2 - Get in Quick
Unstoppable domains offers pre-sales for new domain extensions that allow users to buy up all the popular names before others have the chance. It comes down to a race for what people perceive will be the highest valued domains in the future.
A good strategy is buying up all the 3 letter domains or going after domain names already associated with existing companies. The idea here is that there are many acronyms with 3 letters and therefore many companies and communities may find them desirable.
Going after existing businesses names only works if those companies eventually switch over to the decentralized web.
The point is “the early bird gets the worm” and that's never been more true then when trying to flip domains for profit.
Step 3 - SEO
This step will likely take the most time but is absolutely essential in determining the right domain names to buy. It will be your job to discover popular keywords within your niche that pay a high cost per click (CPC) with relatively low competition.
Essentially you want keywords that advertising agencies will pay you top dollar for while also keeping in mind how difficult it will be to rank for that keyword in a search engine. The less competition there is for a keyword the easier it will be for users to click into your site.
There is a lifetime worth of material and resources out there helping to educate people in the “art” of SEO. One valuable resource I often find myself gravitating toward is NielPatel.com. Here you are able to see what keywords other sites are using to rank. I generally try and look to see what my competition is ranking for and try to pick similar keywords that may be a little easier to rank for.
The skill of choosing the right keywords is a hard one to develop. There are so many factors included in Google's search ranking algorithm and its hard to determine how best to present your keywords, where to put them, and how often to use them. It’s a balancing act that is perfected over time.
Sites like Google Analytics help to track pages views and external traffic. It may be a good tool to use when adding new keywords and articles. You can see which ones preformed the best and attempt to replicate those results.
Step 4 - Master the Exit
When flipping blockchain domains its good to get an idea of when you plan to sell the domain. It is possible to buy a domain and sell it within the year for a profit. This type of short term play can work out if you are following new trends or communities.
Imagine after the release of the cyber truck some company sells accessories to put on the vehicle. People love that company and you could see them needing a blockchain website. Fortunately, you forsaw this demand and bought cybertruckaccesories.crypto for 40 dollars and sold it a year later at auction for 10,000 dollars.
This is the type of gains that short term domain flippers are after. If they can secure domains for up and coming trends they stand a chance at lucrative profits in the near future.
Another strategy involves just buying loads of cheap domains with popular keywords from your niche and then sitting on them for 5,10, and even up to 15 years.
The idea here is that after that amount of time many of the domains will already have been taken, making the ones you bought more valuable. Your $20 domains may be worth $50 to $1000. If you took your time picking the right domains this can result in a lucrative “Godaddy" side hustle down the road.
As always thanks to all my wonderful readers. I hope I have inspired you to open your horizons and expose yourself to this new digital asset class.
I look forward to putting in the research with you to find the world’s best blockchain domain names. I am looking forward to the release of .blockchain domain and plan on adding some more domain names into my wallet.
Until next time, Crypto Capital Network!
- Josef S Löffler
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