Happy New Year.
If you entered the cryptocurrency market in 2017, you were already late in the game.
What started several years ago as an operation to decentralize currency, has become an investment game of gargantuan proportions.
Cryptocurrencies and alt-coins are riding the blockchain madness as commodities to be traded and speculated upon. Billions of dollars are flowing, in a constant wave of liquidity, that can both make and break fortunes.
In a recent post, I shared some of my cryptocurrency positions, pointing out that what I do is not investment advice. The same position carries over this year, with the markets even more active than they were in 2017.
Domain investors can be enthusiastic about what they invest in. Whether it’s generic keywords, creative brands, or speculative ranges such as LLL/LLLL/NNNN domains, there is a market for everything.
Compared to the liquidity of cryptocurrencies, domain names appear to have become a secondary source of wealth for those seeking a quick flip. In other words, long term holders of domain names or cryptocurrencies retain their position, while domain flippers have most likely moved to crypto instead, weakening the domain flipping liquidity.
So what should one do, buy more domain names, or invest in more crypto?
It all depends on the goals one has, and the particular strategy they want to roll out for this year.
If you are attempting to ride the crypto wave and generate revenue from short holding and day-trading, there are opportunities that might lessen your focus on domain names. It doesn’t hurt taking a break from domain names, and liquidating domain assets, in order to invest in crypto.
If you have generated capital, from crypto or elsewhere, go for quality domain names. Long term, they will retain their intrinsic value regardless of financial market fluctuations, and currently, they seem to trade lower than in recent years.
Investing in domain names and cryptocurrency doesn’t have to be mutually exclusive. In my opinion, however, there is no real money in domain speculation focusing on keywords related to tokens, coins and ICOs of brands. These can also have potential trademark issues.
There are, however, plenty of blockchain companies that do seek to acquire generic domains that’d suit their brands. With more than 1,200 tokens and rising, there are plenty of such opportunities.
Good luck in 2018!
Obviously, I would say “Domains”. :p 😉 – There’s room for both domain investing and crypto investing. Besides, it’s generally not a good idea to put all your eggs in one basket. 🙂
Sell domains, buy crypto. 🙂
Domains are definitely where I continue to put most of my investment focus but it has been fun to play in the crypto space. I do think that a handful of cryptos backed by great technology and amazing people will do well…but most will probably crash and burn and there are a TON of scams, which I’m still learning (or trying to) how to avoid.
One thing is certain, 2018 is going to be an exciting time in the crypto space. While all cryptos could go to zero, I know domains aren’t going anywhere!
Both. They compliment each other. Please uni payout in btc or ltc. Pleeeease Frank.
The US government should legalize online gambling again … it would really save a lot of these speculators from themselves.
99% of people investing / posting about altcoins now can’t even name the differences between them and regurgitate white paper marketing documents as proof of claims.
It’s a bit scary and won’t end well for most people. Right now most people buy based on hype, price trends and fomo. Perfect conditions for bad things to happen.
Good to see different opinions, that’s what makes the markets move. Good luck to all!