Polkadot, which started in 2020, is one of the latest cryptos. It initiated a variety of revolutionary technological features to help it achieve its lofty aim. Polkadot (DOT) is an Ethereum-based decentralized multichain that is open-source. Interested in knowing how to buy Polkadot? Keep reading this guide until you know.
Polkadot connects blockchain technology using oracle technology, allowing data to be exchanged across many projects and networks. Polkadot has the main network, the Relay chain, and Parachains, which are secondary blockchains.
Parachains may be customized for a range of uses and integrated into the main blockchain, guaranteeing that parachain transactions are as safe as main chain transactions.
The Polkadot network’s purpose is to enable blockchains to “connect” with one another, resulting in a genuinely decentralized network. Polkadot has become the world’s 9th most valuable cryptocurrency by market cap.
Buying Polkadot vs. Trading Polkadot
Buying Polkadot can be simple – depending on wallets and exchanges – but it’s not the same as purchasing foreign cash when traveling abroad. It does not, however, need much expertise. You will be required to select an appropriate wallet and the exchange and payment of crypto coins.
On the other hand, Polkadot trading is a more short-term process; Getting into the market, remaining in it for a few months, then exiting when the price reaches its peak. As a result, Polkadot traders have a reputation for being price sensitive and fleeing the market when it becomes unprofitable.
How To Buy Polkadot Online?
You need a crypto exchange account to buy Polkadot, which is easier than you ever think. Here are the 5 easy steps you’ll need to follow to buy Polkadot quickly and easily.
- Choose which exchange or brokerage you want to use to buy Polkadot.
- Create a user account.
- Carry out the required KYC checks.
- Deposit into your account.
- Purchase Polkadot and keep it in a wallet.
How To Trade Polkadot?
To invest in Polkadot, you do not need to buy it. You can exchange Polkadot instead if you prefer. Trading Polkadot is slightly different from buying it; follow the following procedures below.
- Search a broker.
- Create a user account.
- Carry out the necessary KYC checks.
- Decide on a strategy.
- Once you find out how you want to trade Polkadot, buy Polkadot coins using your account. You can use leverage to maximize your winnings but keep in mind that it also increases your risk of losses.
Different Ways To Buy Polkadot
How To Buy Polkadot Through Cryptocurrency Exchanges
Cryptocurrency exchanges are the best option to buy any cryptocurrency. Polkadot can be purchased with just a few clicks in exchange for local fiat currency (conventional money like the dollar, euro, or pound) or any other cryptocurrency, depending on the platform and services available in your country. If you are new to this, you should go for cryptocurrency exchanges when buying Polkadot.
Built-in wallets on cryptocurrency exchanges can support a variety of tokens, each with its address. Crypto exchanges offer many options for depositing fiat currency, which it will utilize to buy/trade cryptocurrencies on the platform, depending on the business area. Many regions have rules prohibiting residents from making deposits on cryptocurrency exchanges using debit or credit cards. However, they allow consumers to use third-party payment platforms like Cash App to make deposits.
How To Buy Polkadot With Debit Card
To buy Polkadot with a debit card, you have to enter the card details, and you’re ready to go. Remember that you must have funds in your bank account before purchasing Polkadot with a debit card.
How To Buy Polkadot With Credit Card
If you are looking to buy Polkadot with your credit card then it is the same as buying with a debit card which we explained above. This process is the same way as any other online transaction.
Just enter your credit card info and make the transaction on any crypto exchange.
On the other hand, buying Polkadot with a credit card is generally not a great idea because you must pay the processing fees. It is costly and involves the chance of fraud. Not every trading platform will allow you to buy Polkadot with a credit card.
How To Buy Polkadot Through Bank Transfer
You can buy Polkadot by sending money from your account to those who provide you with these coins. Go to the Binance website and use the stablecoins to buy Polkadot.
How To Buy Polkadot With Paypal
Buying Polkadot with PayPal is the most convenient way. There is an app called eToro that helps to buy Polkadot with PayPal. The eToro wallet is a cryptocurrency trading platform that allows you to purchase, store, and transmit cryptocurrencies through a contract for differences (CFD) trading platform.
Things To Consider Before Buying Polkadot
The deposit fees you pay will vary depending on the cryptocurrency exchange or brokerage. Although cryptocurrency transactions are usually cheaper, credit card and debit card fees are the most expensive. You’ll have to pay these fees every time you deposit or withdraw money from a cryptocurrency exchange.
No matter what platform you choose to buy Polkadot, like maker-taker fees, trading fee is also charged on almost every platform. Most exchanges include a tiering model structure upon your monthly trading activity. As you trade more, your fee percentage drops.
Volatility is another thing to consider. It refers to the quick change in the price of cryptocurrency tokens. If you acquire Polkadot now at a specific price, it may be significantly higher or lower tomorrow.
There are many restrictions on buying Polkadot, depending on where you are and what type of crypto exchange you use. As a result, many crypto exchanges will request KYC and AML documentation from you.
Long-Term Holding (HODL)
A HODL investment lasts for at least six months. You’ll adopt this technique when predicting the price to rise over time.
Any investment you can hold for less than a year is considered short-term holding. The goal with Polkadot is to sell as soon as the value rises rather than wait.
Is it Safe To Buy Polkadot Online?
Buying Polkadot online is risk-free if you choose a crypto exchange with stringent security measures.
Before anything else, keep your coins separate from your exchange in a wallet. You may use the two-factor authentication (2FA) technique for your account if you want to make it more secure.
We advise you that you should use a hardware wallet to store your money when it comes to wallets. You’ll be able to keep them off the internet— and away from prospective hackers — in this manner.
If you use a peer-to-peer P2P exchange, it’s also worth remembering that you should communicate with sellers before buying. Other measures you can take to safeguard yourself include:
- Not disclosing your account password to anyone.
- Only use authorized forums and websites to seek advice.
- Before selecting an exchange, read customer reviews.
- Not buying Polkadot on public internet connections.
How To Store Polkadot?
After buying Polkadot, you need to keep your Polkadot coins secure by storing the coins in a wallet. Although some portals will store your coins for you, a few individuals prefer keeping them on their own to reduce the risk of having to lose them in a cyberattack. And this is understandable, it’s also important to note that most of the exchanges ensure their customers’ investments and regularly store the majority of their funds anonymously to prevent major theft. Furthermore, hacked exchanges always have recovered from any losses in the past.
If you wish to keep your cryptocurrency private, you may transfer it to one of two third-party wallets:
A hot wallet is a wallet that is linked to the internet. It may be accessed from a PC or a mobile device. Because such wallets are beneficial, crypto trading platforms frequently offer them for free. If you want to avoid the exchange, you can use your way to store your coins. Since hot wallets are indeed connected to the network, they claim to be a little more hackable.
Cold wallets, on the other hand, are gadgets that are not linked to the internet. They range in price from $50 to $200 depending on the kind, with even more costly possible options. You must be connected to the internet every time you want to access your Polkadot, because of this reason cold wallets are less flexible than hot wallets. These, on the other hand, are safe. When you wish to store a large number of coins or other cryptocurrencies, cold wallets make sense.
How To Sell Polkadot?
Selling Polkadot on a centralized crypto market operates the same way as buying it. To begin, select an exchange that offers Polkadot trading based in your jurisdiction and open an account with it. When opening an account you will be asked for your personal information which includes your DOB, home address, and a photo for verification.
After you’ve completed your setup, you’ll have to decide whether to sell your Polkadot for fiat currency (USD, EUR, JPY) or trade it for another cryptocurrency.
For your various crypto coins on the site, exchanges have dedicated wallets and addresses. Click on the sell or deposit button on the website.
If you’d rather sell your Polkadot directly to another person or entity, you can do it through a peer-to-peer (P2P) transaction, either in person or online through a platform. P2P platforms for cryptocurrencies are essentially online marketplaces where users may post and reply to offers. These platforms are used by sellers who offer different cryptocurrency coins along with data like the price of their own re and desired payment method.
Is It Worth Buying Polkadot Right Now?
The fact is that no one can predict whether it seems to be the ideal time to invest in Polkadot right now. The price of Polkadot like most of the other cryptocurrencies is extremely volatile and unpredictably fluctuate. Still, crypto professionals and business analysts believe the Polkadot coin price will soon rise from its present price, making it the ideal investment.
Polkadot is still in its development phase. If you enjoy taking chances, your investment may pay off well in the long term. It might, however, go bankrupt if a competitor comes out with newer, better technology and overtakes Polkadot.
Cryptocurrency is considered a high-risk investment. Before investing in it, you should perform your research and analyze the degree of risk you are willing to accept and check Polkadot price forecasts. You should avoid investing your money heavily into something you can’t afford to lose.