Why You Should Purchase an NFT Domain – Your Full Guide

Why You Should Purchase an NFT Domain - Your Full Guide

NFT domains have been booming over the past months, and it’s easy to see why they’re so popular. They’re not centralized, you don’t need to pay a third-party company to access it each year, and you own the domain rather than renting it.

But, there are many more reasons why you need an NFT domain. We understand that the concept of NFT domains may seem complicated for inexperienced users. That is why we’ve gathered everything you need to know in this ultimate guide.

Let’s go through all the details of buying one of these tokenized domains on the new web3.

What is an NFT Domain?

NFT domains have a similar principle to traditional ones like those ending in .com, .media, .net, etc. However, the available extensions on the market are currently limited with .coin and .x, to name only a few.

These domains are stored in a crypto wallet instead of a server, and they solely belong to the owner. Just like regular ones, NFT domains can be hosted on platforms like WordPress, and you can create a website.

Once a user buys an NFT domain, they will receive a smart contract to prove that it belongs to them, and no third-party company or individual can seize it.

Pros and Cons of NFT Domains

When mentioning NFT domains, we automatically compare them to traditional ones since they’ve been available to the public for decades. While NFT ones are much more recent, they are well worth it despite facing a few challenges when using them.

The advantages of purchasing and owning an NFT domain are many, and these are the most notable:

  • They can be transferred around the globe immediately,
  • They are stored in a crypto wallet, and owners have complete control over it,
  • There are no renewal fees on NFT domains as opposed to regular domains,
  • The purchaser fully owns the NFT domain, and no one can seize it,
  • They replace crypto addresses originally made up of random letters and numbers.

On the other hand, just like traditional domains, there are some downsides, and they include:

  • The domain extensions can often look less professional when compared to traditional ones,
  • Search engines do not index NFT domains which is an issue for local businesses,
  • NFT domains are based on a different blockchain – the wp3 – not all browsers support it.
  • Lastly, it’s essential to note that only two browsers can properly display websites with NFT domains: Brave and Opera.

7 Reasons to Buy an NFT Domain

Here are all the reasons why you need an NFT domain. Let’s compare these domains to traditional ones and all the associated benefits.

There Are No Renewal Fees

As opposed to regular domains, NFT domains are not rented. There are no monthly or yearly fees to pay like you would with a traditional domain.

This is one of the reasons why you should switch and purchase NFT domains – once you buy one, you own it, and there are no further associated fees. Of course, there’s a registration fee to be paid upon purchase on your chosen platform, such as Cloudname.

In plain words, after buying an NFT domain, it’s yours forever, and no one can request any renewal fees from you.

Your Crypto Transactions Will Be Simplified

If you’ve ever transferred cryptocurrency from one wallet to another, you know how frustrating crypto addresses can be.

While financial institutions and online payment platforms use normal-looking account numbers and email addresses, crypto wallets have a much less user-friendly system. In fact, a crypto wallet address is made up of a series of random numbers and letters like 1234ahgurj45678rucjcn82.

When owing an NFT domain, you can set it up as your crypto address, and it becomes much easier to process these transactions – whether you send or receive crypto. For example, if your NFT domain is abcd.crypto, your friends or clients could send you money to that address rather than copying lots of random numbers and letters.

They Support Endless Currencies and Tokens

Another advantage of purchasing an NFT domain is that many currencies are accepted and can receive tokens and coins.

Navigating crypto has never been that easy, and the blockchain network doesn’t really matter anymore. You can use most of them. Some of the most popular accepted cryptocurrencies and tokens are:

  1. ADA (Cardano)
  2. ATOM (Cosmos)
  3. BNB (Binance Coin)
  4. BTC (Bitcoin)
  5. DOGE (Dogecoin)
  6. DOT (Polkadot)
  7. LTC (Litecoin)
  8. POLY (Polymath)
  9. SOL (Solana)
  10. USDC (USD Coin)

Naturally, there are many more cryptocurrencies accepted and even more are accepted each month.

Your Website Won’t Be Centralized

One of the issues of regular domains is that they are centralized and generally controlled by one entity – such as a government. But, when it comes to NFT domains, they are decentralized, which means governments don’t have control over it.

This means your domain won’t be part of the state’s public system, as it would be if it were a regular domain like .com or .net.

That Domain is Yours and You Control it

As mentioned above, NFT domains are not centralized and, therefore, after purchasing them, they are yours for life. And since there are no renewal fees, you won’t be subject to rules.

Self-custody is one of the reasons why you’ll want to buy your NFT domain, and you can also control it fully without third parties dictating rules to you.

They Are Cheap Compared to Traditional Ones

Sure, this may sound like a controversy since some domains can cost hundreds of thousands of dollars. But, since you only pay once, the costs, in the long run, are much lower.

For example, if we were to buy the domain “hardware.wallet” it would cost us $20,000. On the other hand, “hardware.site” would cost us $3,125 and “hardware.store” $31,250. Note that these last websites are subject to renewal fees as opposed to “hardware.wallet” which is to be paid only once.

You Can Find Many Different Domain Extensions

There currently several domain extensions present on the market:

For example, if we were to buy the domain “hardware.wallet” it would cost us $20,000. On the other hand, “hardware.site” would cost us $3,125 and “hardware.store” $31,250. Note that these last websites are subject to renewal fees as opposed to “hardware.wallet” which is to be paid only once.

  • .x
  • .zil
  • .nft
  • .dao
  • .888
  • .coin
  • .wallet
  • .crypto
  • .bitcoin

There are more than 280 domain extensions on the centralised market, and some of them look more professional to the general public, and we agree. But they look more pro simply because we are used to them.

All in all, you’ll have different choices when it comes to your domain extension, and this is one of the reasons why you should go for one.

Now that you know all the reasons why you need one of these domains instead of regular ones, make sure to head over to Cloudname and get yours today.