The online world has been gaining recognition and momentum rapidly in the last few years. This is not only because more companies are becoming a part of this industry but more facilities are being available as well. One such industry that would not have existed without the online community is cryptocurrency.
With each passing day, the cryptocurrency community is becoming more popular. However, even with such acclaim, the peak of this industry is yet to arrive. Over the last few years, Bitcoin, known to be one of the most popular cryptocurrencies, has been quite unstable when it comes to its price.
While there was a steep rise in its price at the beginning of the year, the graph kept gradually declining with time. The main reason for the drop in value was a tweet from the mogul Elon Musk, which said that Bitcoin mining is unethical.
For that matter, any online factor or global event can affect the prices of cryptocurrencies. In addition to that, cryptocurrency can also influence the price of domain names, surprising isn’t it? It’s true! Cryptocurrencies can have an impact on the domain names in the secondary market as well, where individuals sell and buy domain names.
This article highlights the relationship between the price of cryptocurrencies and domain name markets.
Understanding the connection between the price rise of domain names and cryptocurrencies is quite easy. Initially, you have to understand that this applies in two possible ways:
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Buying Domain Names With Cryptocurrencies
Most of the users on the internet who invest in the growth of cryptography and cryptocurrencies in general also invest in domain names. This transaction is mainly done using cryptocurrencies.
Purchasing domain names using cryptocurrency means that the user is risking practically nothing. In other words, they are playing with the ‘house’s money’ and are often ready to pay a lot more than the other buyers.
At this point, spending even one Bitcoin is considered to be thousands of dollars, while it was merely a few hundred a few years ago. Hence, with this transaction, the price does not seem expensive to the buyer.
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Buying Domain Names For Business
The second reason a fluctuation in the exchange rate of cryptocurrencies can affect the prices and sale of the domain name is the method of purchasing. Several companies and businesses, including those associated with cryptography, often buy business domain names with currency.
How To Invest In Crypto Domains?
Now that you know the two main reasons why and how the prices of cryptocurrency can affect the domain name prices, let’s understand how to invest in crypto domains.
Even if you have no experience or you have not purchased any cryptocurrency in the past, you can always start anew and invest the cryptocurrency in domain names. The first and foremost thing you need to start with is finding a trading platform.
You can also experiment with a few combinations, which you can register as extensions.COM, .CO, or .IO and many others. You can also consider purchasing other Bitcoin products or domain names on these websites. However, you should note that it might be a bit costly in the preliminary stages.
The fluctuation of the value of cryptocurrencies is nothing new. And with that, the value of crypto-related domain names can also change. However, if you think and believe that it might be profitable shortly, you should not wait for the prices to decrease.
Related: Why Should You Register Multiple Domain Name Extensions?
Types Of Crypto Domain Names
There are many different kinds of crypto-related domain names, each has its value, here is a clear insight:
Exchange Terms
This is one of the most commonly chosen domain names in the industry. Any domain name with the letter x seldom sells a lot since there are not many words in the English language that use this letter.
However, in the industry, the letter x means exchange, and the right domain names ending with this letter have a larger value.
Along with that, domain names that have DEX in them are quite famous as well. DEX is mainly short for decentralized exchange. One of the most recent sales of DEX-related domain was NFTDEX.com which was sold for a whopping $25,000.
Coin Abbreviations & ETH
The costliest of the lot! Coin abbreviations in domain names are quite appreciated in the industry. This not only makes your website easier to find but also easier to remember.
This type of domain name is typically high priced and includes the names of popular cryptocurrencies. The cryptocurrency for Ethereum Blockchain, Ether, can be shortened to ETH to fit a domain name. For the last few months, domain names, including this abbreviation, have been consistently increasing in price.
NFTs
NFT is the abbreviation for non-fungible tokens; these are the newest and the most popular domain names. Domain names, including NFT, are quite well-observed in the industry and often high priced as well. However, these domain names are the least predictable, meaning their prices can vary a lot in short time periods.
These are mainly unique assets on a particular blockchain, for example, a piece of digital art.
In addition to that, collectors are now snapping up NBA top shots, which can be referred to as basketball cards in the digital world. Donuts is a domain registry that mainly manages several top-level domains like MONEY and GURU. They recently reported a surge in domain registrations which included the letter NFT in it.
While last year, every month saw about a dozen domains getting registered on average, this year is different. Only in March, there were 1600 domains registered that consisted of NFT. Some examples include NFT.app at $50000, NFTDEX.com at $25000, and BuyNFT.com at $10598. NFTs are usually artwork-related domain names so you might want to take a look at domains that consist of .ART.
Generic Words
While it is common for any crypto-related company to buy domains related to crypto terms, that is not always the case. These domain names are often made up of random words from the English dictionary and can also save the company the ordeal of buying the domain name at a huge price.
Most of the companies buy domain names without having any of the previously mentioned abbreviations mainly because it saves money, however, that is not the only reason. This also helps the companies to make their mark in the industry, making it easier for users to find them.
Conclusion
This article highlights some of the most crucial aspects if you are planning to set foot in the cryptocurrency-related domain names industry. In addition, if you are planning to buy domain names with cryptocurrencies, you should not wait for long for the prices to change. Cryptocurrency prices are not very predictable. While it might look like they will rise, there might be a decrease and vice versa.
