A Beginners Guide to Buying Polkadot

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In the cryptocurrency space, coins with good use cases usually do well. Why? People are drawn to projects that have a bright future. Polkadot is one of those projects. It has gathered a large fan base due to its amazing cross-chain utility. In fact, the Polkadot ecosystem has a key role to play in Web3. How? By enabling interoperability between different blockchains, i.e; it allows users to transition easily from one blockchain platform to another. However, the easiest way for you to benefit from Polkadot is to buy its coin, DOT, from an exchange. See a list of exchanges you can begin with below.

Where to buy Polkadot: Best Exchanges

Polkadot appears with the ticker ‘DOT’ on many exchanges. To check if you can buy Polkadot on a particular exchange, search the word ‘DOT’. But, you don’t need to do that. We already did all the hard work for you. You can buy Polkadot on any of these exchanges:

1. Coinbase

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Coinbase

5/5
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  • A large number of cryptocurrencies and trading pairs
  • Beginner-friendly interface and easy purchase process
  • Supports over 100 cryptocurrencies and crypto pairs
  • Also offers advanced trading platforms in addition to its beginner-friendly platform
  • Lower fees with Coinbase Pro

FUNDING METHODS

Debit & Credit Bank, PayPal, ACH, Bank Transfer

CRYPTOCURRENCIES

40+

COUNTRIES

100+

2. Kraken

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Kraken

5/5
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  • In all operating jurisdictions, Kraken is fully licensed and able to operate legally, including the US and UK
  • Industry-leading security
  • All personal information, such as Know Your Customer protocol information is securely encrypted and stored
  • A large range of cryptocurrencies to choose from

FUNDING METHODS

Wire Transfer, ACH

CRYPTOCURRENCIES

20+

COUNTRIES

300+

3. Crypto.com

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Crypto.com

5/5
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  • Supports over 250 crypto coins
  • Wide variety of payment methods
  • A Short verification process for fast trading
  • Relatively low fees

FUNDING METHODS

Crypto, Credit Card, Bank Transfer, Debit Card

CRYPTOCURRENCIES

200+

COUNTRIES

80+

4. Prime XBT

Prime XBT

Prime XBT

5/5
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  • It offers lower fees, maximum leverage, competitive trading conditions, and competitive trading fees
  • Offers 100x leverage of up to 1:100
  • Robust technical analysis tools and charting
  • Trades can be executed instantly since the platform uses the latest liquidity resources
  • Novel covesting feature and turbo trade

FUNDING METHODS

Crypto, Credit Card

CRYPTOCURRENCIES

7

5. Binance

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Binance

5/5
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  • Relatively lower fees in comparison to other exchanges
  • Wide range of cryptocurrencies with over 300 different assets to choose on
  • Advanced trading tools for advanced traders
  • Crypto-to-crypto or fiat-to-crypto trading

FUNDING METHODS

Wire Transfer, ACH, Credit Card, Debit Card

CRYPTOCURRENCIES

175+

COUNTRIES

100+

Does Polkadot have any Advantages? Or Disadvantages

Pros

  • The Polkadot ecosystem is quite robust. Hundreds of projects are currently building on it which makes Polkadot very valuable.
  • Governance in Polkadot is quite open. This gives users more power to make decisions on the blockchain.
  • Developers find it easy to build and scale their products on Polkadot.
  • Polkadot was created by a well-known team which reduces its chances of being a scam.

Cons

  • Polkadot’s functions are created for developers and builders and not buyers/holders.
  • Newer projects may miss out on building on the network as positions are limited and auctioned.
  • The Polkadot chain has undergone major hacks twice, which could point to a weak security system.

Polkadot and How it Works

Polkadot is a blockchain that aims to improve interoperability: the way blockchains communicate with each other. Other blockchains can exchange data and share a security system using Polkadot as an intermediary. Interestingly, this blockchain was founded by Gavin Wood, who also doubles as a co-founder of Ethereum. In November 2021, Polkadot skyrocketed to an all-time high of $52. Does Polkadot have major use cases? Absolutely! See the next section.

Major Use Cases of Polkadot

Apart from the on-chain interoperability it is lauded for, Polkadot has other important uses. Some of these are:

  • Inter Blockchain communication.
  • Connection to real-world databases.
  • Data and token exchange between numerous blockchains.
  • Seamless value transmission across blockchains.

What is tagged as a Polkadot wallet?

A Polkadot wallet is basically a cryptocurrency wallet that allows you to store your Polkadot coins (DOT). By default, you get a Polkadot wallet when you sign up for any decentralised exchange. However, if you need a dedicated Polkadot wallet, you would need to install the Polkadot.js extension on your computer.

A typical Polkadot transaction; How does it Work?

A transaction on the Polkadot network is a bit complicated, but here is a simplified version. Let’s say two blockchains need to communicate with each other but cannot because they are built on different systems. Polkadot helps them interact by acting as a kind of relay chain. A relay chain just passes the information, data or whatever is being transmitted from the sending blockchain to the receiving blockchain and vice versa. A full transaction is when sending or receiving is complete.

How to buy Polkadot?

You can buy Polkadot from any of the exchanges we listed above. You will need to set up an account, have a valid means of identification for registration, and some cash handy (preferably > $10).

Conclusion

If you are looking to buy some Polkadot, then this guide gives you more than enough reason to! Polkadot can be considered a good investment, especially with its current utility. A look at the coin’s price history indicates a massive potential for growth, so you can start buying DOT today. Please note that this guide is not financial advice.

Frequently Asked Questions

Yes. Polkadot is legal like other cryptocurrencies. However, you need to check if cryptocurrency is banned in your region before buying Polkadot.
The DOT coin is the native token of the Polkadot blockchain. It is the currency that developers and builders use to carry out transactions within the ecosystem. On the other hand, you can stake DOT or hold some to participate in governance.
Experts in the crypto space firmly believe that. Polkadot will work. In fact, Polkadot is already connecting blockchains with lightning speed.

Polkadot, just like other cryptocurrencies, rises in price whenever it is in high demand. Good news about collaborations with other networks could cause a price pump too. Additionally, Polkadot’s price could also rise when projects want to build on the ecosystem and need to buy some DOT for transactions.