How to Buy Polkadot - a Beginner’s Guide
In this handy guide, we’ll detail how to purchase Polkadot and provide some additional perspective on this fascinating project that interlinks different blockchain projects. Polkadot (DOT) is a multichain platform that allows transfers between multiple blockchains to share information, assets, and tokens across blockchains like the Ethereum network and Binance Smart Chain. This method of allowing distinct projects to communicate and share data seems promising as new blockchains continue to emerge.
Connecting blockchain projects will be important to avoid isolated silos of information. With different blockchains performing unique functions, the prospect of combining their functionality and performance should produce stronger, more interconnected systems. Polkadot offers a popular and well-funded product that accomplishes this goal.
5 Steps to Buy Polkadot Instantly!
1Visit our recommended platform to buy Polkadot by clicking the button below.
2Enter your details in the required fields to create a new account.
3Fund your account using your preferred payment method and confirm your new balance.
4Choose Polkadot and select a "Instant/Market Order” to buy it instantly.
5Enter the amount you want to buy (you’ll see the equivalent in DOT) and confirm your order!
5 Quick Steps to Buy Polkadot
1. Sign up to a broker or exchange
On a broker or exchange, you can register an account by clicking the 'Join Now' button (or something similar) and begin entering some basic information such as your first and last names, email address, phone number, chosen username, and password. You may also speed up the process by logging in with an existing Facebook or Google account.
2. Fill out the questionnaire
Whenever signing up for a new exchange, you’ll be required to provide some personal details and answer a few questions. You may also need to present a form of identification like a passport or driver’s license.
3. Navigate to ‘Deposit’
Before purchasing any cryptocurrency, you’ll need to fund your account with fiat currency or cryptocurrency. This can be accomplished by navigating to the ‘Deposit’ section of your exchange or broker. On this page, you’ll be able to fund your account and prepare to purchase DOT.
4. Follow the simple steps to link your payment
Just like any other online retailer, you’ll need to enter the details of your payment method into the broker or exchange. After this step, it’ll be easy to purchase Polkadot or any other crypto with your fiat currency. In order to purchase Polkadot, you’ll need to pick your preferred method of payment. Most major payment methods like debit and credit cards will be accepted. Other forms of payment like PayPal may be accepted on occasion.
5. Buy Polkadot
You’ll want to find Polkadot using the search function of your exchange or broker. There should be a ‘Buy’ button you can select from Polkadot’s page. When purchasing Polkadot outright, you’ll receive the amount of DOT proportional to your amount of deposit. Remember to only invest what you can afford to lose as cryptocurrency can be volatile and unpredictable.
Where to buy Polkadot
Polkadot is available on most major exchanges and brokers. The following platforms offer ease-of-use for first-time cryptocurrency buyers and a variety of features to help you buy, trade and sell.
Payment methods you can use to buy Polkadot
As it stands, Polkadot can be purchased on a number of different exchanges that we’ve listed above. Here are payment methods you can use to fund your account to purchase DOT.
Debit/Credit: Debit cards are one of the most commonly used forms of payment when buying cryptocurrencies because they're easy to use and come with low fees. Credit cards are equally convenient but it's important to check the fees because these can be high. Just about all reputable crypto exchanges and brokers will accept a credit or debit card for processing your initial conversion of fiat currency into cryptocurrency.
PayPal: PayPal is a secure online payment system that allows you to pay for products online and send and receive money. You may use PayPal to make purchases online with participating platforms once you link your bank account, credit card, or debit card to your PayPal account. A few major cryptocurrency exchanges accept PayPal as a means of funding your account.
Bank Transfers: Most exchanges offer a bank transfer option, offering deposits in all major currencies. This process may take several days to finalise in comparison to other methods.
Other Cryptocurrencies: DOT is available on some token swapping platforms. Major exchanges occasionally offer the ability to swap between tokens and cryptos as well. There are two ways to swap cryptocurrencies, the first being within a broker or exchange. The second is through a decentralised exchange that allows users to swap one token e.g Ethereum for Polkadot.
Buying vs. Trading Polkadot
Buying and trading Polkadot are different practices and it’s important to consider how to approach each respectively. Buying and holding for the long-term is a relatively simple task that requires some patience, while trading is more focused on the short-term and necessitates a deeper understanding of how crypto markets work.
When buying cryptocurrencies, your main concern is the fundamental strength of the project and its prospects for long term success, whereas with trading it's more important to get your head around technical analysis and track short-term price movements. Keep reading and we'll take you through what to consider.
How to Trade Polkadot
Trading Polkadot will require more planning than simply holding it. This process is called technical analysis or TA for short. But you don’t need to be a computer scientist or cryptocurrency expert to conduct some basic TA when considering how to trade Polkadot.
First, you’ll want to review the recent price action of DOT over several time intervals. How has it performed in the last week, month, or year? These indicators will give you a sense of both the long-term and short-term price action of DOT. But given the volatility of price action in crypto markets, short-term price action can be misleading. Just because a coin has pumped for a week straight doesn’t mean it will continue into the following week.
This is where the concepts of support and resistance come into play. In technical analysis, ‘support’ is when a downward price action appears to have levelled off and found consistency over a period of time. ‘Resistance’ is an upward price target that an asset struggles to break. Consider these factors and others when devising a strategy to trade Polkadot.
What to consider before buying Polkadot
As with any investment decision, you should consider Polkadot's fundamental strengths and future prospects before buying DOT. By assessing the project's key features and analysing its potential for future growth, you can get a clear view on whether it's something in which you want to invest your money.
Given the numerous blockchain projects available today and with countless others in development, cross-chain projects like Polkadot seem poised for success in the future. That’s because while each chain serves its own function, it will be necessary for them to connect with one another, share data, and interact in various ways.
While it’s still early days for this project, Polkadot could become a major player in the cryptocurrency space for years to come due to this functionality.
What Features Does Polkadot Have?
Polkadot has several intriguing features that help it link securely to other blockchains. We’ve highlighted the most innovative of these below.
Scalability and Security: Polkadot enables scalability by allowing numerous blockchains to be secured with a single group of validators. Polkadot scales these transactions by distributing them across numerous parallel blockchains. This allows blockchains to maintain their own security and independence while still sharing data across Polkadot.
Custom Blockchains: Users can also create their own custom blockchains using the Polkadot network. Polkadot’s uses a blockchain-building service called Substrate, which enables developers to quickly and easily build blockchains optimized for any use case.
User Governance: Polkadot can also be upgraded without requiring a hard fork in order to add new features or repair bugs. Additionally, Polkadot has a user-driven governance record that allows holders to vote on proposals for changes to the network.
Will Buying Polkadot Make Me Money?
Ideally, we'd all like to make money from investing in cryptocurrency whether it’s Polkadot or another coin. While it’s impossible to predict just how high the price of DOT will go, this project certainly has promising fundamentals that make it stand out from the competition. As discussed throughout this article, cross-chain compatibility will likely grow with popularity over time, with Polkadot already being an industry leader in that space.
It’s important to conduct your own research when considering purchasing Polkadot. Due to volatility within the cryptocurrency market, even successful projects can experience a sharp reduction in price over a short period of time.
Should I Buy Polkadot?
We recommend conducting detailed research before purchasing Polkadot or any cryptocurrency. As discussed above, gain a strong understanding of the recent price actions, technical fundamentals, and features of DOT so you can buy with confidence.
Polkadot seems to be a reasonably safe project compared to the many available on exchanges today. Due to its cross-chain capabilities, security measures and the solid team behind it, DOT could be a mainstay in crypto for years to come. Remember the cryptocurrency marks can be volatile and unpredictable, therefore it’s important to you only invest what you can afford to lose or risk.
Frequently Asked Questions
Polkadot’s team estimates the platform works across dozens of blockchains and will expand to hundreds. With Polkadot’s scalability function, there should be no firm limit on how many blockchains it can interact with.
Polkadot was developed by Parity Technologies funded by the Web3 Foundation. Co-Founder of Ethereum Dr. Gavin Wood joined with a team of developers and peers in the blockchain space to develop Polkadot in 2016. As an open-source platform, anyone is free to contribute to the development of Polkadot.
In order to use Polkadot's proof of stake and security, blockchains can link to Polkadot as “parachains" and work in parallel. Proof of stake is a process required for the validation of new blocks on a blockchain. It involves users ‘staking’ their token in order to earn rewards for the mining of a new block. Parachains are essentially side-chains which multiple chains can connect to and feed data to Polkadot’s primary Relay Chain.
User-driven governance means token holders have a direct say in the direction a crypto project. In this instance, the Polkadot protocol is controlled by DOT token holders. All capabilities typically reserved for miners on other platforms are granted to Relay Chain participants (DOT holders), including the ability to manage protocol upgrades and bug fixes.
In order for blockchains to communicate seamlessly with one another, intermediaries like Polkadot will be essential. This is important so they can share data, information, and communicate despite their different protocols. Combined technical efforts across multiple blockchains will deliver amazing decentralised applications in the future. As blockchain technology continues to evolve and develop, it’s inevitable that different platforms like Ethereum and Binance Smart Chain will serve different purposes. While that’s all well and good, interoperability is preferable to avoid closed systems of information. By allowing distinct blockchains to communicate with each other, Polkadot connects the universe of blockchain allowing them to share data and information.