Polkadot (or simply DOT) is the Polkadot network’s native token. Created by Gavin Wood (an Ethereum co-founder), this blockchain platform is the closest rival to Ethereum and has some key features like high scalability and customization flexibility. With this in-store, the Polkadot network protocol provides interoperability that lets users work in multiple blockchains.
In this guide, we will delve deeper into what the Polkadot network is and how to buy Polkadot (DOT) tokens.
The Polkadot Network
Let’s take a closer look at the Polkadot blockchain platform to get an idea of what it is and how it operates.
To put it simply, Polkadot is a blockchain platform. It is pretty much like Ethereum. By design, the protocol is able to run dApps, a sort of independently operating applications, and doing this at high speeds. What sets Polkadot apart from other blockchains is that it actually is a network of multiple customizable chains that are connected to each other and communicate to form what is called the Polkadot network. Thus, Polkadot is not a single blockchain but a more sophisticated platform that provides interoperability for a number of other blockchains. The Polkadot team once described that their platform unites a multi-blockchain network into one ecosystem.
Why do you need Polkadot DOT tokens?
Like other blockchains, the Polkadot platform has its own cryptocurrency – it’s the DOT token. But what do you need it for? Basically, for three main purposes:
- Governance
- Staking
- Adding new chains
1) Governance
With DOT tokens, you can take an active part within the platform:
- you can vote on various proposals. For instance, on network fees & protocol upgrades or on adding new chains (parachains) – more information about it below.
2) Staking
The security basis of the Polkadot platform is the mechanism called staking. By staking DOT assets, you are able to support the platform and get rewarded in return. Or you can be punished using DOT tokens, as well.
3) Adding new chains
The system the forms Polkadot is comprised by the connection of multiple chains, also known as a para chain. Adding a new parachain takes locking up DOT tokens during the process of so-called “bonding.” Bonding is the process of adding funds to your account in the network.
DOT token statistics
- As of the spring of 2021, there are more than one billion DOT tokens circulating in the system.
- Inflation begins at the point of 10% for the first year. But its rate can be changed over time.
- Almost 60% of DOT token funds were used in token sales.
- 30% was transferred to Web3 Foundation.
- Approximately 12% are currently being kept for fundraising purposes in the future.
How to Buy Polkadot (DOT). A step-by-step guide
In this section, we will give you detailed step-by-step instructions on how to buy Polkadot (DOT) cryptocurrencies.
To buy Polkadot, you will have to follow three steps:
- Getting a cryptocurrency wallet that will support Polkadot
- Finding a DOT exchange
- Purchasing DOT assets and transferring them to your DOT-wallet
NOTE: Each step is comprised of several smaller steps that we will also explain to you.
Step one: Getting a Polkadot-wallet service
In order to be able to buy and store DOT cryptocurrency, you will need to get a suitable wallet service for the task. Despite Polkadot is becoming more popular still, not every wallet service supports DOT operations.
Among the most popular wallet services that you can use to buy, sell and store DOT assets are:
- Ledger
- Atomic Wallet
- Crypto.com wallet
- Exodus
Some of these bitcoin wallet services offer only software wallets. Some of them will offer hardware wallets. Some wallet services have both desktop and mobile solutions, and some are mobile-only.
a) Software wallets for Polkadot
Atomic Wallet is a trendy trading tool that lets users trade between different blockchain networks. With Atomic Wallet, crypto holders may also purchase cryptocurrencies within the app. With more than five hundred crypto coins supported, Atomi Wallet lets users buy, sell and stake DOT, as well. Atomic Wallet is an SPV-type wallet that offers desktop and mobile versions.
Exodus is a multi-blockchain wallet that offers customers a great trading experience. Users are able to execute buy orders in more than 100 cryptocurrencies, including Bitcoin, Litecoin, Ethereum, and DOT. Exodus is one of the leading desktop software wallets around, with more than four million downloads and a built-in exchange.
This wallet service offers desktop and mobile solutions to exchange and keep DOT assets (as well as 45 other cryptocurrencies). But there’s more – Guarda also offers a web wallet option if you use it on a desktop computer. The wallet supports Bitcoin, Ethereum, Trezos, and other popular coins. It has a built-in exchange and an option for customizing trading fees. Buying Bitcoin (or anything else) and DOT, you may use Visa/MasterCard as your payment method.
Finally, there’s the Polkadot-JS software wallet. Being Polkadot’s official web wallet, this wallet will not only let you exchange DOT assets. With Polkadot-JS, you will be able to participate in the Polkadot ecosystem through voting, staking, etc. As an additional feature, you may use Polkadot-JS to connect to your hardware wallet by Ledger via the Polkadot Ledger application.
b) Hardware wallets for Polkadot
When dealing with cryptocurrencies, security is what you must always think of. DOT is no exception to this rule. That is why our recommendation is to consider using hardware wallets for your crypto orders. With a hardware wallet, you secure your private key to exchange crypto coins by keeping it stored offline in a tiny piece of plastic device. A hardware wallet is a sure way to keep your crypto funds unreachable by bad actors, hackers, and scammers.
Ledger offline wallets support an insane amount of cryptocurrencies, including DOT. Ledger products are perfect for safe crypto exchanges. Today, the company offers two flagman models, which are Ledger Nano S and Ledger Nano X offline wallets.
While Nano S is a cheaper and more lightweight device in terms of functionality, the Nano X model is a feature-rich full-blown hardware wallet flagman equipped with Bluetooth connectivity which lets a user remotely control the wallet without having to plug it into a computer.
In order to be able to buy Polkadot DOT assets with a Ledger wallet, you will need to install a Polkadot Ledger app. Supported by the official Polkadot-JS software wallet we mentioned above, this app will make DOT exchanges easier, quicker, and 100% secure.
To know more about Ledger wallets, browse for customer reviews online and follow the link to see what we have to say about the Ledger Nano X hardware wallet.
с) DOT address
When you have chosen your DOT wallet and set it up for operations, you will need a new DOT address. The address will look like a random line of digits and letters starting with 1. Here, take a look at the example address: 1FRMM8KEiWXYax7rpS6X4XZX1aAAxSWx1CrKTyrVYhV24fx
Step two: Choosing Crypto Exchanges for DOT trading
There are three main cryptocurrency trading platforms where you can buy Polkadot DOT assets:
- Kraken
- CEX.io
- Binance
Each of these trading platforms has different payment methods (according to supported fiat currencies), trading fees, and order size limitations.
How to buy Polkadot through Kraken
We’ll begin this part of our guide with Kraken – one of the oldest crypto exchange services where you can buy Polkadot DOT assets.
Kraken has really been around for ages and now is one of the most reputable and secure platforms to buy, sell, and trade cryptocurrency coins. Operating since 2011, today Kraken supports trading Bitcoin, Ripple, Litecoin, Cardano, Ethereum, etc. And, of course, through Kraken, you can buy Polkadot assets.
Kraken payment options include SWIFT, SEPA, and Wire. You can also buy DOT via a Paypal transaction. Kraken also offers the lowest trading fees for buying DOT and is one of the safest crypto exchanges out there. As for buying limitations, on Kraken, you are able to buy up to 2,100 DOT and even more. The minimum number of DOT you can buy on Kraken is 0.5 DOT.
- Follow the link to learn more about crypto trading on Kraken.
How to buy DOT assets through CEX.io
Operating since 2013, CEX.io crypto broker accepts a huge number of payment options, including bank transfers, Visa/Mastercard payments, ACH, SEPA, wire, etc. If you want to buy DOT through CEX.io, you can choose one of the options or simply use your credit or debit card. Prest asset limitations are 5,4 DOT minimum. But as a customer, you can set your own limits with a 3 DOT mandatory minimum.
- To find out more about the CEX.io crypto trading experience, follow the link.
How to buy DOT assets through Binance
Binance is a huge crypto broker (one of the biggest ones, in fact) providing exchange services for Bitcoin, Ethereum, Litecoin, and many more crypto coins. If you want to buy Dot through Binance, you have two options:
- Buying any of the supported crypto coins and then exchange them for DOT
- Purchasing DOT directly via a credit/debit card. A bank card DOT purchase features higher trading fees.
To know more about the Binance crypto treading experience, follow the link.
Step three: DOT asset withdrawing
Step three includes three smaller substeps:
- Go to your DOT account on a trading platform
- Select the “withdraw” option
- Copy your wallet address and then paste it into the address field of your withdrawal
When that is done, your DOT assets will be 100% safe in your software or hardware wallet.
A Quick Recap
Let’s do a quick recap on how to buy DOT:
- Find a software/hardware wallet that is compatible with DOT
- Locate your DOT address
- Enter your account on one of the brokers like Binance, Kraken, or CEX.io
- If needed, perform account verification (using email, phone number, etc.)
- If you’re buying DOT from a non-English speaking country, make sure to change the system language for more convenience.
- Purchase DOT using one of the supported payment options
- When the purchase is complete, withdraw your DOT funds
Wrap-up
While Ethereum is going through hard times with high traffic and increasing fees, Polkadot is becoming more and more popular. Today, this network rightfully rests on the fourth position of the top cryptocurrency platforms by market cap. So it’s just about time you go online and buy some DOT.
FAQs
Is Polkadot a good buy?
“Should I buy Polkadot?” is one of the most popular investment advice inquiries these days. And the answer is yes. Buying some DOT assets is excellent investment advice. The reason being that Polkadot is growing rapidly and is the closest rival to Ethereum (with the latter having some harsh times).
Where can I buy Polkadot?
The best three bitcoin exchanges to buy DOT are CEX.io, Binance, and Kraken. The choice between the three depends on a number of aspects like payment options, fees, and purchase limits but eventually, each of these three crypto brokers is perfectly fine.
To buy DOT through CEX.io, Binance, or Kraken, you will need to create an account on either of these platforms, verify your customer account and then proceed with purchasing DOTs.
Each of these sites has multiple-language interfaces, so it would not be a problem to buy DOT from anywhere in the world.
Where can I buy Polkadot in the UK?
The best place to buy DOT in this country is through Binance using GBP, with the alternative option being Kraken. If you get confused choosing between these two brokers, here are some tips. When depositing on Binance, you do it for free via a UK bank transfer. And then, you are able to buy DOT with a trading fee of 0.1%. When buying DOT on Kraken, fees can rise up to 0.26%.
Before proceeding with buying DOT on Binance or Kraken in the UK, make sure you have your DOT-compatible wallet set for the action.
Can you buy Polkadot on Coinbase?
Unfortunately, you can’t buy Polkadot on Coinbase. But still, you can add this crypto token to your Coinbase watchlist and follow this cryptocurrency info via your Coinbase account.
