Polkadot is a smart decentralized platform that allows collaboration among blockchains. Due to the scalability potential of Polkadot, many crypto enthusiasts have started asking questions like “how to buy Polkadot” and “where to buy Polkadot.”
If you want to buy DOT but don’t know where to start, you should read this article from start to finish. We’ll cover the fundamental steps of buying DOT, as well as some essential topics about the token.
Polkadot (DOT) Buying Guide
Step 1: Find An Exchange That Supports DOT
To start buying DOT, you must create an account in a compatible crypto exchange. Finding this exchange is easy because there are numerous active marketplaces that support DOT.
Cryptocurrency platforms may be similar in purposes but different in operation. Some crypto exchanges have seamless functionality while others have premium security with reasonable transaction fees.
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Registering to a crypto exchange will take only a few minutes. To start, you must enter your basic personal details like full name, email address, and password. The crypto exchange may also require you to add a home address and a phone number for verification.
You probably need to fill up a KYC (Know Your Customer) form before proceeding with any transaction. The KYC process is a security option implemented by heavily regulated exchanges and financial websites.
Step 2: Deposit Funds to Your Exchange Account
Before buying DOT, you must add funds to your new crypto account. Depositing funds is easy because most exchanges allow crypto-to-fiat transactions. Some of the popular examples of fiat currency are USD, CAD, AUD, and EUR. You can fund your account through debit cards, credit cards, bank transfers, and e-wallet transfers.
Crypto exchanges have different payment methods for transactions. These methods probably have higher fees than the ones you’re commonly using. So, before depositing funds to your crypto account, you should do your own research.
Step 3: How to Buy DOT Officially?
Learning how to buy DOT is not difficult. First, you must go to a crypto exchange’s search bar. Oftentimes, the search bar is located on top of the website page. Once you’ve located the search bar, start looking for the DOT ticker. You can also look directly for DOT trading pairs to save time. Afterwards, just enter the amount of the DOT tokens that you want to buy.
You must always double-check the transaction details to avoid errors or inconsistencies. Additionally, before the transaction, crypto exchanges might refer you to their exclusive wallet software. This wallet is essential for storing your cryptocurrencies, but it is optional since you can always create an individual software wallet. If you have money to spare, you can even purchase a hardware wallet with competitive security encryption.
Everything You Have to Know About Polkadot (DOT)
Polkadot is a groundbreaking platform that offers true interoperability among multiple blockchains. Instead of simply connecting apps and assets, Polkadot connects complex blockchains using a major component called Relay Chain. Imagine a giant ring that links to other smaller rings or set pieces – such is the operating framework of Polkadot.
Each blockchain linked to Polkadot is called a parachain. All of the linked parachains have their own tokens and assets, and they are optimized based on specific goals or functions. Parachains can collaborate with each other to accomplish joint projects and metaverses.
The Polkadot ecosystem has different roles taken by the platform’s members and participants:
- Validators – Secures the Relay Chain by staking DOTs and validating transaction proofs.
- Collators – Collects shard transactions from users and delivers proofs to validators.
- Nominators – Select validators based on reputation and computational power. Nominators can also stake DOTs.
- Fishermen – Monitors the network and reports bad behavior to validators. Collators and full-node parachains can also take the role.
- Council Members – Represent passive stakeholders by proposing or vetoing referenda.
- Technical Committee – Technical teams actively working on the continuous development of Polkadot.
Developers can build new blockchains in Polkadot within a few minutes. This rate of speed and efficiency is possible through the Substrate integration. For starters, the Substrate framework allows developers to build future-proof blockchains with multi-chain functionality.
How Does DOT Work?
DOT, the primary token of the Polkadot network, can be used for governance, staking, and parachain bonding. Whenever a parachain wants to connect to the Polkadot network, it must use a specific number of tokens as a bond. Other validators can remove an obsolete parachain’s bond and distribute the tokens to reputable validators in the network.
What Makes Polkadot (DOT) Unique?
The most unique factor about Polkadot is the network’s Relay Chain. The Relay Chain allows collaborative processing among blockchains or full-node parachains linked to the ecosystem. Every member of Polkadot fulfills a role to make the Relay Chain as effective as possible. If parachains aren’t reaching the standards set by the network, their bonds can be revoked and burned.
Under Polkadot’s framework, any blockchain has the chance to scale beyond expectations. Instead of doing multiple things at once, a blockchain/parachain can route the additional work to other parachains. This will make the entire workflow highly efficient and organized.
Who Are the Founders of Polkadot (DOT)?
The founder of the Polkadot network is Gavin Wood – one of the original co-founders of the Ethereum blockchain. Wood’s experience in building Ethereum was crucial to the development of the Polkadot network. Right at the beginning, Gavin Wood envisioned that the Polkadot network is scalable and adaptive enough to work with the Ethereum blockchain. And as experts believe, Wood is right!
What Are the Use Cases of Polkadot (DOT)?
Polkadot has numerous use cases related to blockchain interoperability, innovation, scalability, and user-driven governance. Understanding Polkadot’s use cases will help you realize the effectiveness of the token.
Here are the use cases of DOT:
- Speculative trading
- Long-term investment through staking
- Payments for services
- Creating systems and apps
- Smart contract integration
Who Builds on Polkadot (DOT)?
Polkadot is a large collaborative network designed to accommodate the needs of project developers and blockchain creators. With the help of Polkadot, blockchains developers can fuse their ideas and build a wonderful project. Anyone can build projects in Polkadot, and there are almost no restrictions.
Official website: https://polkadot.network/
Essential Points of the Polkadot (DOT) Whitepaper
The Polkadot (DOT) Whitepaper explained the mechanism of the Polkadot Relay Chain and its underlying relationship with all linked parachains. The paper also highlighted the long-term benefits of using the Polkadot interoperable platform.
These are the strong points of the Polkadot (DOT) Whitepaper:
- The Polkadot heterogenous sharding system
- Components of a parachain
- Polkadot nominators and validators
- Polkadot governance roles
- Multi-chain interoperability
- DOT staking and parachain bonding
- Blockchain networking
- Parachain routing methods
- Parachain messaging
The Best Cryptocurrency Wallet for DOT
After knowing how to buy DOT, you should think about the security of your cryptos next. Fortunately, you can always choose from dozens of available crypto wallets. You should pick a crypto wallet based on your trading habits and security preferences.
You will likely begin your crypto journey with hot storage wallets. These digital wallets are connected online, allowing easy access whenever you want. Hot storage wallets are also cheaper than cold storage wallets. However, one downside of a hot wallet is its vulnerability to online theft. You may need to use additional security measures to keep your hot storage wallet safe.
On the other hand, cold storage wallets are physical hardware wallets. Since cold wallets are tangible, their security level is better than digital wallets. You can put a physical storage wallet in a separate deposit box for premium protection.
What Factors Affect My Choice of Crypto Wallet for DOT?
At first, you might get confused with the diverse choices of crypto wallets in the market today. Knowing the common buying factors for crypto wallets will help you make the right decision.
Check out the important factors affecting your choice of DOT wallet:
- Are you a regular trader? If so, then a hot storage wallet is the best choice for you. A hot wallet allows a quick and easy log-in method to your chosen platform. In less than a minute, the integrated hot wallet will let you trade DOT right away.
- Not all wallets support a wide range of cryptocurrencies. The best crypto wallets are those that will let you trade hundreds of cryptocurrencies without limitations.
- When it comes to security, a physical cold storage wallet is better than a hot wallet. You can simply store your cold wallet in a private safe deposit at home or the bank. Just make sure that your private seed phrase is safe and secured.
- Setting up a digital wallet is free. On the other hand, getting a cold storage wallet requires money because you need to buy the physical hardware.
- Do you want to see detailed technical analytics? In that case, you can never go wrong with hot wallets. In most cases, hot wallets generate technical analytics and semi-accurate market insights to help you make a trading decision. Cold wallets also have analytics capabilities that you can tweak freely.
Ledger vs. Trezor – The Best Crypto Wallet for Traders and Investors
Now that you already know how to buy DOT, you must protect your investment by choosing a cold storage wallet. As mentioned above, cold wallets offer better security levels than hot wallets.
When it comes to cold storage wallets, it’s best to start with Ledger or Trezor products.
Ledger is a popular cold wallet brand because of its reliable security features. The Ledger interface, for example, will only let you send cryptos if you’re connected to a personal computer or device.
If Ledger excels in security functions, Trezor wins in terms of intuitiveness and compatibility. Trezor’s interface is beginner-friendly, allowing fast and efficient trades once the device is ready. Trezor products are also compact and appealing to the eyes.
General Market Overview for Polkadot (DOT)
Do you want to learn more about Polkadot (DOT) and other crypto coins? Check out our crypto blog and expand your knowledge about cryptocurrencies!
Additionally, here are some important topics in our blog:
- Trading speculation about Polkadot (DOT)
- The current market prices of cryptos
- Detailed price charts with comprehensive histories
- Whitepaper summaries of cryptos
- Founder profiles and their related works
- Up-to-date cryptocurrency news and developments