Polkadot is one of the top 20 cryptocurrencies by market capitalization, and it has been gaining in popularity lately.DOT is the native token of the Polkadot network. The Polkadot network allows the exchange of data, money, and assets across multiple blockchain networks. Polkadot is distinguished from other networks like Ethereum by employing a variety of blockchains rather than smart contracts, allowing developers to take a more detailed approach to development.
Polkadot is a blockchain protocol by Gavin Wood, the co-founder of Ethereum (ETH), with the goal of connecting various blockchains. Polkadot’s blockchain solves several important issues with blockchain technology: interoperability and scalability. It enables other blockchains, such as public and private ones, and decentralized apps (dApps) to interact with each other.
In the era before the Internet, computers were isolated from each other. Groups of computers joined together in a network are possible only for military, government, or IT companies who had the technology, and logistics to connect the computers.
Different networks were not connected as each had different communication protocols. It was only when the need for a decentralized network with a unifying protocol was suggested, that the true Internet was born.
Polkadot is connected with the Web 3.0 project; this makes it fast and scalable, capable of conducting over 1,000 transactions per second (TPS). That is remarkable when you consider that Bitcoin can only do about seven transactions per second, and Ethereum can only handle roughly 30.
How to buy Polkadot coin guide has been made easy with stepwise details and particular exchanges.
Where to Buy Polkadot
Several large crypto exchanges such as Binance, FTX, Kraken, Uphold, Huobi, and Nexo have listed the DOT token. But, as DOT is not running on the Ethereum blockchain, large DeFi exchanges such as Uniswap or SushiSwap don’t support DOT swaps yet. If you think blockchains need to be more interoperable and scalable, DOT, the crypto asset that drives Polkadot, is a smart investment.
You can also buy DOT tokens in a wallet instead. For example, Trust Wallet enables transactions using third-party providers to purchase DOT within the app.
Customers can trade DOT with USD Coin (USDC), a leading stablecoin, on cryptocurrency trading platforms. The following exchanges allow investors to buy and sell DOT and USDC:
- KuCoin
- Kraken
To open an account with one of these exchanges, you must first create an account and identify yourself. The procedure is simple and comparable to that of a web brokerage firm. You will be asked to provide your name, address, a government-issued official public document (passport), and proof of address (utility bill).
Most of the time, this procedure takes only a few minutes. Once you’ve submitted the paperwork, your account will be verified and fully functional in 1 to 2 business days. When creating a new account, make sure that 2-factor authentication and other security features (such as delayed withdrawals) are enabled. Another important advantage of creating a new account is that it helps to prevent unauthorized access to your account and funds.
Binance
Binance is a major cryptocurrency exchange that is well-known across the world. The lower costs and increased liquidity of purchasing Polkadot on Binance make it easier to buy and sell at the moment when market-moving news is announced. In addition to this, the fees that you may pay, get even lower if you have an allocation of the Binance Coin (BNB). They also have a wide variety of tools and technologies available specifically for cryptocurrencies, which makes them a suitable option for highly experienced crypto traders.
Advantages of buying Polkadot on Binance are an advanced charting platform with numerous technical indicators, very low commissions, support fiat currency deposits, low fees, additional discounts for using BNB, and security measures that are very tight and proven to be among the best in the industry. However, the disadvantage is that Binance charges up to 2% on credit /debit card deposits, and also customer service responses can be delayed at times.
KuCoin
KuCoin is a well-known cryptocurrency exchange that offers competitive fees and trading costs. The cryptocurrency exchange has expanded vastly since it began. It has recently expanded into a wide variety of services, including peer-to-peer currency trading and the buying of Bitcoins with credit or debit cards. KuCoin also has a mobile app for both Android and iOS devices, which makes it possible to trade on the go.
Polkadot (DOT) may now be bought on KuCoin, and over 300 other popular currencies are also available for trading. It is frequently the first to provide chances to acquire new cryptocurrencies.
Uphold
Uphold is a digital money platform where you can buy, hold, convert and transact in 26 different fiat currencies and 5 cryptocurrencies including Polkadot. Uphold also offers dynamic currency conversion which allows members to hold funds in multiple currencies and convert them on demand at the best real-time conversion rate.
Uphold’s Tradingview interface is highly user-friendly, and it includes a desktop and mobile device. The trading view may be adjusted to your liking, with the assets you trade the most, and it has a modern look on both desktop and mobile platforms. It is a popular and appropriate option, especially for new traders.
The Uphold trading platform not only looks good, but it is also very user-friendly. You may trade right away from your deposit method after just a few clicks, even before funds have cleared your account. It’s another feature from a firm that places a high value on the simplicity of its platform. Uphold also enables the placing of limit orders. They also provide a number of advantages, including the option to stake for DOT.
How to buy Polkadot in Binance
1. Sign up for a Binance account
To buy Polkadot on Binance, you’ll first need account creation on Binance. Once you’ve done so, make sure to enable 2-factor authentication (2FA) for added security.
2. Verify your account
In order to deposit fiat currency, or to trade with higher limits, you will need to verify your Binance account. You’ll need to submit a photo ID and proof of residence. The process is straightforward and only takes a few minutes and also choose a payment method.
3. Deposit funds into your account
After you’ve verified your account, you can deposit funds. Binance supports a variety of deposit methods, including credit/debit cards, wire transfers, and crypto transfers. Deposits are typically credited to your account within minutes.
4. Buy DOT
Once you have deposited funds into your account, you’re ready to buy Polkadot online. Go to the “Exchange” page and search for “DOT/USDT” in the “Market” search bar. Select this pair, and then click “Buy DOT”.
5. Enter your order
On the “Order Form” page, enter the amount of DOT you’d like to buy. You may also set a limit price if desired. Then click “Buy DOT”.
Your order will be filled at the best available price. If you set a limit price, your order will only be filled if the DOT price reaches that level.
6. Store your Polkadot
After you have bought Polkadot, it is important to store your DOT in a secure wallet. Binance offers a free crypto wallet for all supported cryptocurrencies, which you may use to store your DOT. Just click on “Funds” and then “Wallets” at the top of the page, and then find DOT in the list of supported cryptocurrencies. There are several options you can safely store your Polkadot tokens.
Hard Wallet: A hard wallet looks like a flash drive or a USB drive. It’s a tiny, physical gadget that connects to your computer or laptop and holds your private keys and personal crypto assets keys. When they’re not in use, they’re considered “cold” because they aren’t linked to the internet or a network.
Paper Wallet: Although this form of storage is less popular than it once was, it may be a viable storage option. You write down keys or applications on a paper wallet in order to obtain a QR code. If you lose it, you can recover your cryptocurrencies.
Software Wallet: These wallets are applications or programs that you may download to keep track of your cryptocurrencies on your own. Because they’re linked to the internet and networks, they’re less secure, but they make it simple to trade your assets.
How to buy Polkadot with KuCoin
1. Sign up for a KuCoin account
First, download the KuCoin App and create an account. Be sure to enable 2-factor authentication (2FA) for added security. To execute transactions, you’ll need your photo ID and proof of residency, so keep it on you. KuCoin will check to verify your identification.
2. Deposit cryptocurrencies
The most convenient cryptocurrencies to deposit are Bitcoin (BTC) and Ethereum (ETH). They both have trading pairs with the vast majority of digital assets listed on KuCoin and therefore give you the greatest amount of flexibility. Both BTC and ETH can be traded for DOT on KuCoin.
In order to make your deposit, go to the navigation bar at the top of the website and click Assets > Deposit.
A search bar should appear on your screen. Enter the ticker (BTC for Bitcoin, ETH for Ethereum) for the cryptocurrency you wish to deposit and choose it from the drop-down menu.
The cryptocurrency selected will be sent to a deposit address on the website. The address will be a sequence of numbers and letters, both lowercase and uppercase (both lowercase and uppercase). Copy the address in its entirety and open your wallet software. Make a deposit by sending the amount you wish to deposit to the address you copied. It might take up to half an hour for the transaction to complete, so don’t anticipate your funds to be available right away.
If the deposit has already been processed, the coin and amount will be shown on the list. You may use the search bar if you have multiple cryptocurrencies.
3. Place a buy order for Polkadot
Now that you’ve deposited cryptocurrency, it’s time to place a buy order for DOT. To do this, go to the navigation bar and click Markets. A search bar will appear on your screen. Enter DOT in the search bar and select the DOT/ETH trading pair from the drop-down menu. You’ll be taken to the DOT/ETH trading page.
On the DOT/ETH trading page, you will see three boxes in the center of the screen. The first box is for buy orders, the second box is for orders to sell Polkadot. We want to place a buy order, so we’ll focus on the first box.
In the “Buy DOT” box, you’ll see two input fields. The first field is for the price per DOT in ETH and the second is for the amount of DOT you want to buy.
Advantages of Buying Polkadot
The Polkadot blockchain is extremely scalable, with the ability to process 1,000 transactions per second (TPS). This is incredible when you consider that Bitcoin and Ethereum can only process seven and 30 transactions per second, respectively. With these advantages, Polkadot has the potential to improve the use of certain cryptocurrencies.
- Polkadot’s decentralized applications (dApps) have recorded larger numbers than those offered by its competitors, resulting in a higher overall price. The Polkaswap (PSWAP) is a non-custodial AMM decentralized exchange (DEX) developed particularly for the network.
- Like many other cryptocurrencies, Polkadot is based on supply and demand speculation. Furthermore, it expects the price of its blockchain’s smart contracts to rise.
- The Polkadot blockchain is also very versatile. Individuals who possess Polkdots may provide input on the future of the protocol and use it as a governance token. With Polkadot, you can stake in order to authenticate transactions and create new DOT tokens.
- Furthermore, Polkadot has made successive partnerships after partnering with the Celer Network, REN, and OCEAN Protocol are a few of these efforts. CELR’s integration with Polkadot’s ecosystem was announced on January 19, 2021. Polkadot’s most significant goal in this partnership is to enable creativity by connecting data resources across blockchains.
Disadvantages of Buying Polkadot
Despite all of the advantages of Polkadot, there are also some disadvantages to consider. Competition from other smart contract blockchain projects is a major concern, particularly, Ethereum, Tron, the Binance Smart Chain, and Cardano, in terms of decentralized apps.
Other networks are considered more popular than Polkadot, although the latter was the first mover in terms of interoperability. Forks on smart contract chains may be used to improve their platforms and add new features. If this happens, Polkadot might face increased competition in the realm of blockchain interoperability.
Should you buy Polkadot?
Polkadot blockchain is scalable as it supports multiple chains, including those with different properties. It also allows for the development of dApps. Polkadot’s price has increased significantly since it was first introduced but it still has a long way to go before reaching its all-time high.
Polkadot purchasing is worth in 2022 as per the price forecasts of analysts. However, you should do independent research before making any investment decisions as the cryptocurrency market is highly volatile.
Given the aforementioned applications and services, we can conclude that Polkadot is in the third place when it comes to developer activity, after Uniswap and Solana.
A slew of decentralized finance protocols and applications for lending, exchange, yield aggregators, and autonomous organizations could soon flood the DOTs Network.
The DOT cryptocurrency is a digital coin that shareholders may buy to have a stake in the Polkadot network. Polkadot trading indicates that you are speculating on the price of Polkadot.
The majority of DeFi services today are designed to operate on the Ethereum network and utilize ERC-20 and ERC-721 tokens. Because DOT is based on the Polkadot platform, most of these services are not yet compatible with the DOT token. Interoperability between blockchains will be a major step forward for DeFi, therefore it’s reasonable to expect that this may change soon in the crypto space.
