This guide about buying Polkadot cryptocurrency covers all basic aspects of their revolutionary tech. Also tips for buying on reliable exchanges.
Welcome to the ever-continuing story of decentralized networks and blockchains. For more than a decade now, since Bitcoin was being introduced to the market, blockchain technology is witnessing an impressive rise. Moreover, since Ethereum entered the market in 2015, by introducing decentralized smart contracts, the entire blockchain industry was taken to another level.
At the start of a new decade in 2020 more than 5000 cryptocurrencies exist and the numbers are counting. How to keep up to date with the latest developments in this highly competative industry? This is a very legit question to ask and for an outsider this could be a very tough job.
Therefore, with this guide, I’ll introduce you to the next ‘big thing’ in crypto which is called Polkadot. Firstly, I’ll introduce as simple as possible, all-important details according to this very promising cryptocurrency. Also, I’ll explain to you the best tips for buying Polkadot(DOT) at several reliable cryptocurrency exchanges.
Quick take: Exchanges to buy Polkadot cryptocurrency
What is Polkadot Cryptocurrency?
First of all, the Polkadot network is much more than just a single cryptocurrency. Additionally, it’s a network that uses a smart contract protocol just like Ethereum. On their website the team of Polkadot states about their cryptocurrency:
‘Polkadot is a shared multichain network, which means it can process many transactions on different chains in parallel, eliminating the bottlenecks that existed on older networks that processed transactions one by one.’
In general, the Polkadot Network can co-exist besides Ethereum and functions as a bridge between other blockchain networks. In light of being a brand new protocol, many blockchain developers have already started with building new projects on Polkadot.
Besides ‘techies’ trying and experimenting with this new technology, also many investors have jumped on the bandwagon. For example, Kelvin Koh member of The Spartan Group, says Polkadot has huge potential and is ready to challenge the top 3 of all cryptocurrencies in the world.
History behind Polkadot Cryptocurrency
Polkadot was launched with a mission to transform the internet into a better one called: Web3. Additionally, Web3 represents a fully decentralized web and censorship-resistant. Polkadot will be the center of future internet – digital world, internet of things, and web decentralization.
The Polkadot cryptocurrency made its birth out of an ICO sale back in 2017. At that time the ICO was very successful and within three days all tokens were sold were they raised $145 million in ETH. Furthermore, ICO investors were obligated to hold on to their DOT tokens for 2 years.
At the time of writing the total market cap of Polkadot cryptocurrency is $4 billion. As an illustration, an early ICO investor in 2017 should now made 30x on the investment while things are just getting started. Founders of this ambitious project are Gavin Wood, Robert Habermeier and Peter Czaban.
What is the Web3 Foundation?
Founded by dr Gavin Wood, Web3 foundation makes it its primary mission to decentralize the current internet. Therefore, Web3 foundation wants to make the internet a safer and more private place for the common user. In addition, they want the user to be in control of their own data, identity, and destiny. Also, the Polkadot network is being used as its first flagship project.
Why do we need Polkadot Cryptocurrency?
First of all, Polkadot will make blockchain experimentation possible the same way Ethereum enables experimenting with dApps(decentralized applications). Polkadot is designed to facilitate faster innovation cycles, particularly when experimenting with new state transition functions. There are many trade-offs to consider when building a blockchain.
Furthermore, it’s clear from the number and diversity of the various Web3 projects that nobody has a framework that encompasses all chains. Polkadot is a vehicle that can get us to a general framework faster. All in all, Polkadot ‘connects the dots’ between different blockchains, and when one innovates all others might benefit from it.
What is the Kusama Network?
Kusama Network can be seen as the development environment of the Polkadot network. In fact, development teams that want to experiment with new blockchains need to start building on Kusama first. Finally, when all developments being tested and finalized, it’s very easy to deploy on the Polkadot network.
Which blockchain network is better Cardano or Polkadot?
Cardano is also a decentralized network with its main focus on connectivity between all other blockchain networks in the industry. Similar to Polkadot, they have launched a foundation that is independent and takes care of future growth.
So which one is better? That is hard to say. Cardano has also a huge market cap of around $3 billion and is listed within the top 20 of all coins on Coinmarketcap. One way to compare both coins is the staking rates both networks are offering: Cardano or ADA staking gives 4% annually, while Polkadot or DOT gives 12%(!) passive income.
Cardano vs Polkadot: The differences
|Current amount in circulation||25.927.070.538 ADA||852.647.705 DOT|
|Founder||Charles Hoskinson||Gavin Wood|
|Price per coin||$0.09||$4.45|
|Market cap||$3 billion||$3.7 billion|
Best tips to buy Polkadot Cryptocurrency
Polkadot has been growing fast in 2020 in terms of liquidity and trading volume. In general, many of the bigger global cryptocurrency exchanges have listed the DOT token at the same time. What is the best way to buy Polkadot cryptocurrency?
Where can I buy DOT crypto
Polkadot(DOT) is considered a respectable cryptocurrency as it is listed within the top 10 of all cryptocurrencies in existence. In order to buy such a cryptocurrency, there are several options possible. Firstly, the most commonplace to buy DOT is at a centralized cryptocurrency exchange.
How to acquire DOT tokens the regular way?
The process of buying cryptocurrency at a common exchange could vary, but the basic principles of buying remain the same:
- Register at an exchange which sells DOT(*See table above*)
- Complete KYC/AML checks if any
- Chose the preferred method for a deposit(Wire transfer/credit card/crypto)
- Make the deposit in any currency(USD/EUR/GBP etc)
- Buy Polkadot with these funds
Next in this guide, I’ll mention the cryptocurrency exchanges with the highest liquidity and trading volume-based(24 hours) globally. Additionally, as these exchanges are very popular among crypto traders it will give you the best chance to buy DOT cryptocurrency.
Binance is founded by Changpeng Zhao and is a well-known blockchain industry expert and expert in setting up trading systems. In the past, he also founded BijieTech and was head of development at Blockchain.info. Binance can be considered as the best altcoin trading platform if you consider the trading volume and the number of coins listed on the exchange.
Binance which is originally a company from China, recently moved it’s headquarters to Malta because the China government banned cryptocurrency trading. Despite this ban, this crypto platform managed to grow to the biggest altcoin trading platform as it is today.
If you are a USA resident, then I have to warn you. Recently, the main trading platform at Binance didn’t allow US residents at their platform anymore. This due to regulations by the USA government. But don’t worry too much about that, within no time the trading company opened doors to Binance.us.
Trading at this domain is allowed for US customers because it meets US regulations and compliance standards based on its Digital Asset Risk Assessment Framework.
For buying and trading the DOT cryptocurrency the following trading pairs are available:
BitFinex has been around for many years in the cryptocurrency space and is one of the exchanges with the highest daily trading volumes. To start trading at this exchange you have to sing up and go to a regular KYC/AML procedure first.
Besides, this online trading company is based in Hong Kong and has been operational since 2014. It gives its users the option to trade more than 100 cryptocurrencies/pairs in exchange for USD, EUR, ETH, or BTC. Depositing EURO or USD to this is exchange is currently only available by wire transfer.
Firstly, Bitfinex is very popular among professional traders because of its high trading volumes and the possibilities to go Long or Short. Therefore to start trading at this platform a minimal deposit of $10.000(!) is needed to get an account there. Unfortunately, since 2018, users from the USA aren’t allowed anymore because of the strict regulations of the USA government.
Following are the supported pairs on Bitfinex exchange for Polkadot:
Kraken is a US-based cryptocurrency exchange with a proven track record of security and data protection privileges. Established in 2011, Kraken provides unmatched cryptocurrency trading services built on transparency and accountability through a public Proof-of-Reserves audit scheme.
Buy Polkadot cryptocurrency with Euro
If you are an EU resident maybe it’s wise to start buying Polkadot cryptocurrency here as this would be the quickest way to acquire DOT. Furthermore, Kraken claims to have the highest Euro volume of bitcoin and crypto trading on any exchange. In particular, SEPA transfers on Kraken are available for users living within the European Economic Area. Deposits are completely free while withdrawals incur a fee of €0.09.
Following are the supported pairs on the Kraken exchange for Polkadot:
Compared with the centralized exchanges above, Kucoin is probably a modern platform for trading any cryptocurrency. This platform founded by a group of cryptocurrency enthusiasts from Asia aims to offer comfort and security of your mighty assets. Kucoin which was launched in May 2017, has its headquarters in China despite the difficult climate towards cryptocurrencies performed by the local government.
This difficult climate towards cryptocurrency exchanges doesn’t affect the business model of KuCoin much because they’re aiming at foreign markets. Back in 2013, the founders started with setting up the foundation by making a technical implementation of the trading platform.
Later on, in 2017, the founders finished this work and made the platform available for the public. As of writing the platform ranks at position 25 on the list of exchanges which is based on trading volume for the past 24 hours.
Buying Polkadot can be really fast on Kucoin
One of the remarkable policies this centralized trading platform has is its liberal sign up policy for new users. Signing up at this platform can be done with just e-mail and mobile phone which speeds up the process of buying Polkadot cryptocurrency in a fast way.
What pairs of DOT has this cryptocurrency exchange to offer? Check the pairs below:
Finally, there is Okex, a trading platform specialized in cryptocurrencies, and has its headquarters in Beijing. Besides delivering service for Bitcoin exchanges and trades, the platform is also a payroller and lending app for retailers. Okex is part of the bigger Okcoin consortium specialized in online futures trading. In 2018, Okcoin migrated its futures platform with cryptocurrencies which resulted in the Okex platform. One of the big benefits of this Okcoin migration is that Okex has strong liquidity in BTC/USD and LTC/USD trading pairs.
Okcoin maintains two leading entities, whereby one has its focus on the Chinese internal market. In addition, the other entity has a broader focus aimed at the global market and has its headquarters in Hong Kong. Okex and Okcoin together are one of the bigger cryptocurrency exchanges in the world. For instance, if you take a look at their trading volume which exceeds 2.8 billion US dollars in just 24 hours.
Following are the supported pairs on the OKEX exchange for Polkadot:
To enumerate, Polkadot cryptocurrency is a blockchain project with huge ambition. As they are trying to rebuild the web in a better-decentralized version. Remember, the entire cryptocurrency market is very young and small compared to more traditional markets like stocks or commodities.
On the other hand, there is a lot of upside to gain in the coming years and the future is looking bright for blockchain technology in general. With this guide, I hope I have made clear what this promising project is all about. Also, some decent tips to buy Polkadot cryptocurrency on the most reliable exchanges in the world.
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