Polkadot (DOT) buying step by step is what you will learn in this post. If you wanna buy Polkadot (dot) crypto, then this article is for you. Just relax while we walk you through the process and all that you need to know.
How and Where to Buy IT?
An open-source multichain shared protocol facilitates the cross-chain transfer of not only tokens but any data or asset types as well, and thus it has a wide range of blockchains able to exchange information with each other. Polkadot’s native DOT token has three fine purposes which are to supply network governance, operations, and make parallel chains through bonding.
It has four core components:
- Relay Chain: It’s Polkadot’s “heart,” which helps to make consensus, interoperability, and even shares security across the network of various chains.
- Para-chains: These are independent chains that can have their tokens and can be tweaked for specific use.
- Para-thread: This is in a way similar to para-chains but offers flexible connectivity following an economical pay-as-you-go model.
- Bridges: This core component like ethereum, allows para-chains as well as para-threads to connect and communicate with external blockchains
Founders of Polkadot
Polkadot was founded by a Swiss foundation called the Web3 Foundation established to supply a totally functional and user-friendly decentralized web, all as an open-source project. The founders are Dr. Gavin Wood, Robert Habermeier, and Peter Czaban.
What Makes Polkadot Unique?
It is a shared network which means that it can process many transactions on several parallel chains i.e. para-chains. This parallel processing power is known to improve scalability.
Custom blockchains are not only quick and easy to develop through the substrate framework but can also be connected to Polkadot’s network within a span of a few minutes.
The network is also highly flexible and adaptive, working as an app on a smartphone, it shares information and functionality between participants. Polkadot can be automatically upgraded without any requirement of a fork to remove bugs.
How many Polkadot (DOT) Tokens are in Circulation?
Polkadot keeps an allocation of 1 billion DOT tokens, following the network’s redenomination in August of the year 2020, from an initial maximum supply of 10 million.
This was done purely to avoid the use of small decimals and make the calculation simpler and easier.
Polkadot’s first ICO i.e. initial coin offering was held in the October of 2017. At ICO the Polkadot price was $0.29, with 2.24 million tokens offered.
In July 2020, the second ICO was held with a Polkadot price per token of $1.25 and 342,080 DOT tokens sold.
How Is the Polkadot Network Secured?
Polkadot’s mass interoperability assists to secure multiple blockchains through a set of common validators and also provide them with the service to scale their transactions by spreading their data across many para-chains.
Validators, as well as nominators, are selected by utilizing the nominated proof-of-stake mechanism and it maximizes the chain security.
This unique scheme of validity allows chains to interact with each other securely, all while remaining independently governed.
Where Can You Purchase Polkadot (DOT)?
For Polkadot trading, the top exchanges as of now are Binance, Huobi Global, Coinbase, Bithumb, Gate.io, and many more.
To check the Polkadot price, live in the fiat currency of your choice, you can make use of the CoinMarketCap’s converter feature available on the Polkadot price page or the dedicated exchange rate converter page.
DOT first became tradable on the 19th of August, 2020. It has a total supply of 1,103,303,471.382,273. It has a market capitalization of $30,432,045,258.93 USD. It is ranked 9th among the top 100 cryptocurrencies on CoinMarketCap and Its current price is $27.58.
As compared to other main cryptocurrencies, DOT has been listed on several crypto exchanges. It cannot be bought directly with fiats money. However, one can easily purchase this coin by first buying Bitcoin from any fiat-to-crypto exchanges and then by simply transferring it to the exchange that offers to trade it.
Step-1: Registering on Fiat-to-Crypto Exchange
First off you’re going to have to buy one of the major cryptocurrencies which in this case is Bitcoin. Both exchanges, Uphold.com and Coinbase, have their fee policies.
It is better to try both of them and select the one you find to be the best fit. Another large crypto exchange that accepts fiat deposits is CoinBase.
Step-2: Buying BTC with fiat money
After completing the KYC process, you’ll be asked to feature a payment method. You can either select to pay by a card or through a bank transfer.
When using a card you’ll be able to make an instant purchase but you’ll be charged a higher fee. On the other hand, optioning for a bank transfer would be a cheaper but slower choice.
Some countries even go to the length of offering instant cash deposits with low fees, depending on your country of residency.
Now you are all ready, click the ‘Trade’ button at the top left. Next, select the Bitcoin option and confirm your transaction. There you go, you’ve made your first crypto purchase.
Step-3: Transferring BTC to an Altcoin Exchange
Select altcoin exchanges
As DOT is an altcoin, we need to transfer our BTC to an exchange where DOT can be traded. We will use Binance as our exchange which is a popular exchange to trade altcoins and it has quite a large number of tradable altcoin pairs.
Binance was established and initiated in China but on the other hand, it moved its headquarters to the crypto-friendly Island of Malta within the EU. Binance is quite popular for its crypto-to-crypto exchange services.
Binance gained its fame in the mania of 2017 and since then it has continued the legacy to become the top crypto exchange in the world.
Unfortunately, Binance does not allow US investors to participate, so it is our advice to you to sign up on other exchanges that we have recommended on this page.
After undergoing an identical process as we’ve done so before with Coinbase, you’ll be advised to begin a 2FA authentication as well. Finishing it would be a good idea as it makes your account extra secure.
Step-4: Depositing BTC to exchange
It all depends on the policies of the exchange that you might be required to undergo through another KYC process. This whole process usually spans from 30 minutes to a few days max. Once done, you’ll be able to access your exchange wallet easily.
This task might seem difficult but there’s nothing to worry about, it’s even simpler than making a bank transfer. At the box on the right, a string of random numbers saying ‘BTC address’ can be viewed.
This is a public address of your BTC wallet at Binance and to receive BTC, all you’ll have to do is to give this address to the person sending you the funds. Now, we are transferring our previously purchased BTC to this wallet. To do this, just click on ‘Copy Address’.
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Next, head back to the portfolio page on Coinbase and select the BTC option on your asset list, then just click ‘Send’.
Under the Recipient field, paste the wallet address. There is certain computer malware that would change the content in your clipboard into another wallet address and you will be sending funds to another person.
To proceed, simply click send. You’ll soon receive a confirmation email. Just one click on the confirmation link and your coins will be sent to Binance.
Now go back to Binance and head to your exchange wallets to check the BTC sent. You’ll soon receive a confirmation notification from Binance. You are now ready to purchase Polkadot (DOT)!
Step-5: Trading DOT
As shown within the pictures, within the right column there’s an inquiry bar, now confirm “BTC” is chosen as we are trading BTC to altcoin pair. Type “DOT” in the search bar, you should be able to see Polkadot (DOT) or BTC. Next, select that pair, and a price chart of DOT/BTC will pop up.
Below you’ll see an option “Buy DOT”. Inside the box, click on the “Market” tab. You can either select what portion of your deposit you’d like to spend on purchasing, by clicking on the available percentage buttons or you could simply type in your amount. Once confirmed, click “Buy DOT”. Congrats, you’re now the proud owner of a DOT.
Other than the exchanges mentioned above, there are quite a few, popular crypto exchanges where they have decent daily trading volumes and a huge user base.
This will make sure that you’ll be able to sell your coins at any time and the fee will be low on a usual basis. It is advised that you register on these exchanges since once Polkadot (DOT) gets listed there, it will attract a large number of trading volumes from the users which means you will be presented with some great trading opportunities.
Poloniex is actually a centralized, cryptocurrency exchange targeting both experienced also an amateur cryptocurrency traders.
It offers a wide range of crypto markets, types of advanced, margin trading, and even crypto lending, which makes it a convenient place for traders.
It is a popular exchange that consists of many attractive features such as very low trading fees, good customer support, an easy registration process, multiple cryptocurrencies, and so on.
US investors can trade here as Poloniex is a US-based cryptocurrency exchange. But no matter what the case, US investors should do their independent analysis of the problems that may arise from their state residency. Investors from New York are often restricted when it comes to trading at many cryptocurrency exchanges.
ProBit is a cryptocurrency exchange incorporated in Seychelles and South Korea that welcomes traders from around the globe. This exchange offers a vast selection of altcoins, Defi tokens, staking events, low-fee trading, and other popular crypto services that can be accessed quite easily and quickly.
All fiat traders are to verify their identity. This is not a requirement for international crypto-to-crypto traders though. Overall, the platform has a great design, laudable security measures, and a professional team making it stand out among the many altcoin exchanges in the world.
We have not been able to find any information about US investors not trading on this platform. As a US investor, you should assess whether your home state is impeding your foreign crypto trade.
Last-Step: Storing DOT securely in hardware wallets
If you are planning to keep your Polkadot (DOT) for a long time, you may want to explore your options for keeping it safe. Even though Binance is one of the safest cryptocurrency exchanges out there, there have been some unfortunate hacking incidents and funds have been lost.
The securest way of storing your coins up till now is putting them into a kind of “Cold Wallets” where the wallet will only have access to the blockchain or you can simply “go online”.
When funds are sent out, the chances of hacking incidents are reduced. A paper wallet on the other hand is a type of free cold wallet.
It is an offline-generated pair of public and private addresses that you will have the chance to keep in a written form somewhere. However, it is not durable and is at risk of various hazards.
The hardware wallet is a way better option in the case of cold wallets. They are usually USB-enabled devices that store the key information related to your wallet in a more durable way.
They are built with military-level security and their firmware is constantly managed and taken care of. Ledger Nano S and Ledger Nano X are some of the most popular options in the above-mentioned category. These wallets cost around $50 to $100, based on the features.
Other useful tools for trading Polkadot (DOT)
Encrypted Secure Connection
Due to the very nature of cryptocurrency – decentralized, this means that users are completely responsible for securely handling their assets.
While the utilization of the hardware wallet allows you to store your cryptos in a safe place, making use of an encrypted VPN connection while you trade makes it difficult for hackers to intercept, interfere, or eavesdrop on your sensitive information.
It offers a military-grade encrypted connection and you can also opt for the service to block malicious websites and ads using their CyberSec feature.
You can choose to connect to more than 5000 servers in 60+ countries based on your current location. There are no bandwidth or data limits. It is also among the cheapest VPN services out there which cost only $3.49 per month.
Surfshark is a much cheaper substitute if you are looking for a secure VPN connection. Other than its VPN feature, it also has some other attractive features including CleanWeb™, which blocks ads, trackers, malware, and phishing attempts all while you are surfing on your browser.
Surfshark does not have any device limit, currently, so you have the option to use it on as many devices as you want and even share the service with your loved ones.
After experiencing a lack of top-notch service within the free VPNs field, IT nomads created Atlas VPN. It was designed for everyone to have free access to unrestricted content.
It turned out to be the first trustworthy free VPN armed with top-notch technology. Some of the highlight features are mentioned below.
- A strong encryption
- The tracker-blocker feature blocks dangerous websites stop third-party cookies from tracking your browsing habits and prevents any advertising on a behavioral basis.
- The data breach monitor tells you whether your data is secure or not.
- SafeSwap servers let you have many rotating IP addresses by connecting to a single server.
- The best prices on the VPN market are only $1.39 per month.
- It has a no-log policy to keep your privacy safe and sound.
- There is an automatic kill switch to block your device or apps from accessing the internet if the connection fails
- There are unlimited simultaneous connections.
- Existence of P2P support.
Crypto ultimatum is a detailed training system that shows you how to go from no money to making a fortune with the help of Cryptocurrencies.
The system that was utilized took $100 and turned this into $1006 but the system works so well that they then took this $1006 and converted it into a huge amount of $257,000 all with the Bitcoin and Cryptocurrencies.
The great thing about the training is that you don’t even need a great amount of money and can start with an amount much less than $100 as wished.
It even explains some of the scams one can encounter so you can avoid them. It tells you in detail about where to go for trading and how you can make money in as little as 24 hours. You can develop into an individual who purchases and sells smaller types of “altcoins” too.
Polkadot (DOT) Frequently Asked Questions
Can I buy Polkadot (DOT) with Cash?
There is no such direct way to purchase NUBTC with cash. However, you can use marketplaces like Local Bitcoins to first buy BTC and complete the rest of the steps by transferring your BTC to respective AltCoin exchanges.
Purchase Bitcoin from local sellers
Local Bitcoins is a Bitcoin exchange where users can purchase and sell Bitcoins to and from each other. Traders, create advertisements with the price and the payment method that they want to offer.
You can opt to purchase from sellers from a nearby region on the platform which is a good place to go buy Bitcoins when you can’t find your desired payment methods anywhere else. But prices are found to be higher on this platform, and you have to be careful not to get scammed.
Any swift or quick ways to buy DOT in Europe?
Yes, Europe is one of the easiest places to buy cryptos in general. There are even online banks in which you can simply open an account and transfer cash to exchanges like Coinbase and Uphold.
Are there any alternative platforms to buy DOT or Bitcoin with credit cards?
Yes, it is also a very easy-to-use platform for purchasing Bitcoin through credit cards. It is an instant cryptocurrency exchange that provides the service to exchange crypto quickly as well as buy it with a bank card. Its user interface is very simple to use while the buying steps are understandable.
Polkadot (DOT) Price Prediction and Price Movement
Over the past three months, some downward price movements have been observed as Polkadot (DOT) has dropped 8.43 percent. DOT might be in the middle of a long price consolidation phase due to its relatively large market capitalization.
When it comes to strong fundamentals, it would be likely that DOT may bounce back and continue its next phase of an upward movement.
Therefore, it is advised that traders should put in some extra effort in researching Polkadot (DOT)’s fundamentals and be careful while trading this coin.
Please note that this analysis is purely based on the past price actions of Polkadot (DOT) and is not financial advice whatsoever. Traders should always do proper research and be extra cautious when investing in cryptocurrencies.