Ethereum Name Service (ENS) is an Ethereum-based open-source, distributed, and extendable naming system, which can convert human-readable crypto addresses, such as a dot.eth domain, into machine-readable alphanumeric code. It is powered by the ERC-20 token ENS, the protocol’s utility and governance token. The ENS token has risen over 2.3x in value since finding a bottom of $11.8 in February 2022.
ENS aims to play a central role in Web3 – if it can, it has the potential to reach new all-time highs in the near future.
In this article, we will discuss how to buy ENS domains!
As of May 2022, more than one million ENS domains have been registered. The ENS first started in May 2017, and now has grown in popularity as NFTs and cryptocurrencies have become more mainstream. ENS domains are also tradeable as NFTs, with domains such as google.eth, apple.eth, and wallet.eth selling for more than 50 ETH.
Before we go through the process of buying ENS domains, let’s look at the benefits of an ENS Domain.
In Web2, businesses purchase Domain Name Systems (DNS), which are the ".com" domains they use for their company websites. ENS is the web3 version of this, and it is equally important to the branding of individuals and projects alike. When sending a transaction to a wallet with an ENS domain, users can feel more confident that they are sending to the correct address than trying to confirm 42 separate random characters.
In some cases, the owner of an ENS can further utilize their domain through the use of subdomains, bringing a community together through a common domain. Subdomains recently have been popularized by Purrnelope's Country Club, as the team has used subdomains as a way to expand their brand on Twitter and Discord. The subdomains can connect your NFT to that project on the blockchain forever.
How to Buy an ENS Domain
Step 1: Create an eToro Account: Visit eToro.com and complete the signup process. That just takes a few minutes – enter your email, personal details, and upload a few ID documents to verify your account.
Step 2: Deposit funds: Once you have completed the KYC process, you can invest in ENS by making a minimum deposit of $10 or more. On eToro you can deposit via debit/credit card, PayPal, Skrill, Neteller, or bank transfer.
Step 3: Search for ENS: In the eToro navigation menu, type ENS. Select it, then hit ‘Trade’.
Step 4: Buy ENS: To buy ENS tokens, enter amount of money you want to invest and press ‘Open Trade.’
Where to Buy ENS Token
eToro: eToro is a good place to start if you’re new to investing. This crypto platform is simple to use and may be accessed via a browser or a mobile app. It is the industry-leading social trading platform that allows beginners to imitate the trades of experienced investors – some of those pro traders will be trading ENS too.
Crypto.com: Founded in 2016, Crypto.com now has over 10 million users in 90 countries, this platform has come out as a one-stop solution for crypto enthusiasts without getting too complicated for newcomers. With its emphasis on security, user-friendliness, and reasonable price, Crypto.com is one of the most popular crypto trading platforms. The exchange-listed ENS on its platform in November 2021, and users can buy ENS at actual cost using USD, EUR, GBP, and 20+ fiat currencies.
Coinbase: Coinbase is often used by beginners for its one-click style and simple UI allowing users to buy crypto without needing to look at a price chart. Having a user base of more than 70 million customers worldwide, Coinbase listed ENS token in November 2021, and in total supports over 100 cryptos. Being SEC-compliant to operate in the United States, the KYC documents required can be more than on other crypto exchanges – for example a selfie is also required.
Binance: Binance is the world’s largest crypto exchange by trading volume and listed ENS in November 2021. Binance now supports over 600 different cryptocurrencies. It provides a variety of trading platforms to accommodate traders with varying levels of experience – both spot trading, and futures trading. Users can switch between a classic view and an advanced view with more indicators. Tradingview indicators are integrated to use for free. Users can earn rewards by staking crypto, including over 100 locked staking products, as well as obtain fast loans backed by their crypto assets.
Buying an ENS domain is not for everyone. People who interact with the Ethereum blockchain often may want to consider buying a domain to connect to their main wallet. Others who want to play the game of flipping domains for profit may want to search for names that could create future demand, such as beer.eth being eventually purchased by Budweiser.
Thus, other blockchains such as Solana have created domain services for their own blockchains as well. There could be more opportunities for savvy participants to get into those blockchains before the demand increases on the respective blockchain.