Domain investors often search for the next large trend. If you are new to the domain industry, some areas could be considered high risk investments. The potential in this risk is transforming a $8 domain into a 3 to 4 figure sale, and repeating this process if you discover the next big niche. Take note of the following when investing: Don’t invest in domains with money that should be used for essential living expenses for the foreseeable future. It’s often best to see this as luxury or hobbyist spending until you’ve found that you can produce a regular return on your domains. Many domains have little to no liquidity. Don’t register a domain until you know about its specific trend, niche, and history. Don’t take a successful domainer’s word on making particular purchases until you've done your own due diligence. Other investors registering domains in bulk does not conclusively point to a trend. You should perform your own research and analysis and come up with your own deductions. Arm yourself with the knowledge of a community in tandem with carrying out your own research by reading in the Domain Beginners section.