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What Are Premium Blockchain Domains?

16 April 2022 | 0 comments | Posted by Claire Wouters in Geek Chic

How premium NFT domains work

A premium domain name is a powerful branding and marketing for any personality or business. Depending on the name you use, it can make a big difference in increasing your chances of finding a quality web address; that's why selecting a domain that is easy to understand is so important. It helps avoid confusion with other brands or driving misspellings when your domain name is easy to remember and understand.

Premium domains are typically concise, easy-to-remember URLs that can give you a leg up in terms of branding. While they aren't always the cheapest domains available, the upfront cost can be mute as they can help you establish a memorable brand identity and even lead to better search engine rankings.

Buying and selling domains

Now you may want to buy an NFT domain for your personal brand, for a client, your business, or to speculate on reselling in the future. Regardless of your motivations buying and selling domain names is an exciting adventure that, for some, seems to conjure up images of finding hidden pirate treasure. You could be building a brand that someone finds valuable or simply having a domain name a brand badly wants to own.

There have been several success stories abound domains that were purchased for $8 dollars several years ago and are being sold today for millions. Of course, that leads to many wondering if we can replicate that success.

While million-dollar domain sales may not be the norm, selling domains for a few thousand dollars can still be a lucrative way to speculate, especially with new TLDs coming out and the emergence of cryptocurrency domains like .eth and .zil domains

What are premium NFT domains?

A premium domain is often a short, catchy keyword which is normally a high volume search keyword or a recognisable brand term. These easy to understand or popular keywords used in combination with the various blockchain TLDs available create multiple pairs for each keyword.

For exmaple:

  • nichemarket.crypto
  • nichemarket.nft
  • nichemarket.dao

The keyword and the TLD in combination can be the reason why a certain crypto domain name has many suitors and why they are willing to bid to own this term as a domain name.

To give you an understanding of the value thrown at premium cryptocurrency-based domains, we can look at the record sale. In March 2021, Unstoppable Domains announced the sale of a premium domain "win.crypto" which sold for a record $100,000. The sale, which occurred on March 3, 2021, currently holds the record for the most expensive domain name NFT ever recorded.

Premium domains on unstoppable domains

Premium domains selling on Unstoppable Domains

What makes a premium domain valuable?

It takes several factors to influence the value of the domain, each with its own weighting on value, but to give a general sense, here are the core markers that indicate a domain name is or could be a premium purchase.

Trustworthy TLD

The top-level domain (TLD) is the string of characters at the end of a domain. To be worth anything at all, a domain name needs to have a good TLD that doesn't compromise its ability to reach potential customers. In general, premium domain names will usually use the .crypto TLD or relevant to your product like NFT or DAO.

Let's say you purchase Nike. NFT and Nike starts an NFT project; they'll want that domain and could offer you a handsome fee to part with it.

Brevity

Overly long domain names can be harder to remember. Likewise, domains with hyphens or other punctuation can be less successful due to this complexity. Any domain name needs to be concise in a practical sense that makes it more memorable. As a result, premium domain names usually consist of one to two words or two to four individual characters.

Generic value

Many of the most valuable domain sales of all time dealt with domain names that had deeply generic names. For instance, if we look at domains like CarInsurance.com, which sold for nearly $50 million, while Voice.com sold for $20 million. This sort of generic value dramatically increases demand thanks to industry-wide appeal, and it serves to amplify value in the process.

Contains keywords and high domain authority

SEO is one of the keys to running a successful web presence in the modern-day, and domain names can help. While Google and other search engines do not index decentralised crypto domains now, they may support it in the future.

Brandability

For the most part, you can understand premium domain names via the concept of brandable. When a domain name is easier to build a brand around, it's more recognisable and, therefore, more valuable. Premium domain names are expensive for the simple reason of the ease with which customers can remember them.

Domain age and history

As there are so many scams out there, finding trustworthy indicators are important; if you've purchased a blockchain domain, those who want to see the history can see it through a block explorer. If they see a domain has been around for a while and has several transactions, users may feel a lot safer when interacting with your domain and attached wallet addresses for purchases and domains.

The fact that your domain has that trust, history and transactions can make it more valuable to possible buyers.

On the flip side, if your domain is associated with blacklisted transactions, spam practices or exit scams, even if it's a premium by other factors, this could taint the value of the domain.

Why purchase and trade premium NFT domains?

Trading domain names or squatting on domains is a business as old as the internet and is a practice that is only amplified with the down of blockchain domains. Since domain speculators can purchase a crypto domain and mint it and hold it in their wallet by only paying the minting and transfer fees, it makes it even harder for them to let go of a domain.

As in the case of traditional domains, you have a running expense in renewing the domain, while crypto domains its a once-off purchase. So you can sit and wait for the best price before letting go of that domain.

In addition, the down of NFT marketplaces makes it even easier to sell and promote your collection of blockchain domains and attract prospective buyers.

Reserving your domain

Now that you know how decentralised domain registration works, will you be getting one? Do you own one already? If not you can purchase one today at Unstoppable Domains.

If you have any questions, let us know in the comment section down below.

Contact us

If you're having trouble getting started with purchasing the right domain then feel free to contact us and let's see how we can help you get a domain to get started.

Are you looking to promote your business?

South African Business owners can create their free business listing on nichemarket. The more information you provide about your business, the easier it will be for your customers to find you online. Registering with nichemarket is easy; all you will need to do is head over to our sign up form and follow the instructions.

If you require a more detailed guide on how to create your profile or your listing, then we highly recommend you check out the following articles. 

Recommended reading

If you enjoyed this post and have a little extra time to dive deeper down the rabbit hole, why not check out the following posts about website domains.

Tags: NFT, Blockchain, Cryptocurrency

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