Novice investment domain name,be sure to avoid these 5 pits!

In the era of the digital economy, the value of domain names is steadily rising, attracting the attention of professional investors who are preparing to enter the market. However, for newcomers, the temptation to join in, especially when they see others making profits, can be strong. It is essential to exercise caution and avoid falling into pitfalls. Here, we provide five key tips for you to learn from:

1. Do Not Buy Stolen or Disputed Domains

Black rice, usually refers to stolen domains, has several characteristics. First, it is often sold by strangers. Second, due to the urgency to sell, the selling price is usually lower than the market price. Third, the WHOIS history is chaotic, with frequent changes in ownership or the use of newly created fake email addresses.

Dispute rice refers to domains that have been involved in lawsuits or disputes and have not been resolved. These domains do not have obvious characteristics and usually require consultation with multiple platforms or industry insiders. Do not be too greedy, do your research before buying, and use legitimate domain platforms (such as Namecheap) for intermediaries to avoid this pitfall.

2. Do Not Buy Blocked or Contaminated Domains

Blocked rice refers to domains that are blocked by the Great Firewall (GFW) and cannot be resolved or used normally and are irrecoverable. Similarly, domains with DNS pollution cannot be resolved or used normally. If you buy such domains, they are essentially useless and difficult to resell. Do thorough research before buying, especially for numeric domains. Make sure there are no issues before making a purchase to avoid this pitfall.

3. Do Not Use Leverage Lightly

Leverage has always been a double-edged sword. If you're lucky, it can make you financially free, but if you're unlucky, it can lead to significant losses. There are numerous examples from the stock market and cryptocurrency world. Like any other investment, domain investing should be done prudently. Do not use leverage lightly. Invest in domains you are familiar with, manage your positions appropriately, combine long-term and short-term strategies, and ensure you have cash flow for liquidity. This will help you avoid this pitfall.

4. Do Not Easily Trust the "Big Shots" to Lead You to Success

Like any other investment, domain investing requires the ability to make independent judgments. If you lack this ability, take the time to learn first. Do not rely on following the big players to succeed, as you might end up being taken advantage of. Often, when the big shots are calling for others to enter the market, it's the time when they start cashing out. There's only so much profit to go around, and if everyone has a piece of the pie, what's left for the big shots?

Start by learning and researching before entering the market. Begin with a small capital to test the waters, and gradually increase your investment as you gain experience. Do not expect overnight wealth; all wealth is accumulated through consistent and diligent efforts.

5. Avoid Acting Impulsively, Keep a Stable Mindset, Assess Comprehensive Factors, and Regret Less! Do Not Get Lost in Your Own World! Ultimately, Domain Names Must Serve a Purpose!

Please note that some of the terms in the original text may not have direct equivalents in English, so the translation provides the closest possible meanings. Additionally, it's always advisable to consult with a professional translator for precise translations if needed.