Polkadot (DOT) is an open-source sharding multi-chain network that operates on the Ethereum network. It utilizes oracle technology for connecting blockchains together. It helps in information sharing among multiple networks and projects. By allowing blockchains to communicate with each other, Polkadot (DOT) wants to create a truly decentralized web.
Currently (as of April 29, 2021), Polkadot is the 8th largest cryptocurrency in terms of market capitalization. It is trading at US$33.79 with a market cap of US$31,624,960,058. DOT price has increased by 307% YTD (year-to-date) in 2021. If you are interested to buy this cryptocurrency, how to do that? Let’s explore.
How to Buy Polkadot (DOT)?
Step 1: Open an Online Account with an Exchange
If you want to buy and sell Polkadot, the best way in which you can do is through a cryptocurrency broker. It is the broker who will allow you to convert your fiat currency or any other digital currency into Polkadot online with just a few clicks.
You have to select a broker that will allow you to buy or sell DOT easily and that’s too in a secure way.
How to Select a Polkadot Crypto Broker/Exchange?
Almost all the crypto brokers offer DOT for purchase. To choose any one of them, you have to look for certain characteristic features such as:
- The range of cryptocurrencies that you are able to buy from the platform. More the better.
- A reliable and easy-to-use platform of the broker is preferred. If you are a beginner, you may want to use a more intuitive broker such as Coinbase. However, if you are an advanced trader/investor, you may want more charts to make the next move. In that case, you may choose Coinbase Pro.
- The assets offered by the broker are another important feature you should look into. While some brokers offer only cryptocurrencies, others provide a combination of both cryptos and stock accounts.
- Fees structure should be looked into. It includes both commissions and maintenance fees.
- Availability of two-factor authentication, encryption, and security features must also be there.
Top 2 Best Exchanges to Buy Polkadot (DOT)
If you are not sure which exchange to choose, here are two of the best cryptocurrency brokers/exchanges from where you can buy or sell DOT easily and securely:
It is one of the most popular digital currency exchanges. Kraken offers you access to both major projects as well as small and new offerings.
What’s so Special?
The majority of the digital coins are held by this exchange in offline cold storage. The servers of Kraken remain under constant, military-grade surveillance. Any possibility of hacking or malware attack gets reduced significantly with this commitment to safety.
This cryptocurrency exchange has a maker-taker fee schedule, which is based on the level of activity of the user. The fees are lowest for the traders and investors who are most active. If you are an investor or trader who invests/trades frequently, Kraken is definitely one of the best choices.
Small Minimum Order Size
The minimum order size of DOT in Kraken is 1 DOT. This means that you can start investing in Polkadot at just US$34 (the current price as of April 29, 2021).
In addition to these, the other benefits include the availability of a complete suite of tokens as well as round-the-clock customer service.
iTrustCapital is a self-directed IRA provider, which enables you to invest in a wide range of assets (including cryptos, gold, and solver) through your retirement account.
What’s so Special?
Simple to Use Interface
iTrustCapital provides traders and investors with a platform that is easy to understand and also straightforward. If you are a beginner in trading major assets, this platform enables you to trade easily.
Availability of Choice
Once you reach retirement age, this platform enables you to select what you want do with your retirement fund. You can either invest the fund in assets (such as DOT, BTC, gold, silver, etc.) or disburse the retirement fund in cash.
When compared with the behemoth Coinbase, the crypto offering is limited in iTrustCapital. However, in terms of structure and unique IRA offerings, this digital coin broker is a great place to trade and invest.
How to Open an Account with an Exchange?
Once a brokerage/exchange is selected, open an account. It would ask for certain personal information while opening an account. Most exchanges ask for the following information about the user:
- Full Legal Name
- Phone Number
- Email Address
- Government-issued photo ID’s copy (such as passport, driver’s license, or military ID)
It takes just a few minutes to open an account. However, verification of the user identity may take a longer time in some cases.
Step 2: Buy a Wallet to Store Polkadot (DOT)
Once you have opened a brokerage account with a cryptocurrency exchange, it is now time to make arrangements for securely storing the DOT coins you have purchased. If you are holding Polkadot for a longer period of time then hardware wallets are preferred. This is because they are offline storage options and a physical device is involved in storing the keys.
You can either go for a cold wallet (including hardware wallet) or a hot wallet (including mobile/desktop wallet). It is not recommended to keep DOT on your exchange because you may lose all your funds in case of a hack.
Wallets safely store your coins with a private set of keys. Cold wallets, especially the hardware ones, are the best because they provide you the highest possible level of security. You can purchase hard wallets from anywhere, even from sites such as Amazon. These wallets work like a flash drive that allows you to connect to a computer or laptop for transferring coins into a securer wallet. The best part is that you can store coins offline, ensuring you’ve access to the coins all the time.
Top 2 Best Cold Wallets to Store Polkadot (DOT)
This is the most affordable cold wallet available. It costs less than US$30 and also offers high security. You can store all the ERC-20 tokens (including Polkadot) and other major cryptos such as BTC, ETH, LTC, and others. It is simple and straightforward to use. You simply need to connect it to your computer by using a USB.
Trezor Model T
It is the most popular cold storage option available. It provides you with top-of-the-line security as well as an easy setup process. Even a beginner can use it easily. You simply need to connect Trezor T to your mobile device or computer either with the help of USB or Bluetooth. The device gets ready for use in just a few minutes so that you can transfer investments to your wallet quickly.
This Model T of Trezor comes with a full-color LCD touchscreen that helps in managing cryptos more effectively. It is a great choice as it provides the highest degree of security coupled with a wide range of compatible digital coins and tokens, availability of large storage size, and simple process of setup. No matter whether you are a seasoned professional or a newbie, everyone can use Trezor T with ease.
Step 3: Fund Your Account
Once an account is opened, you have to link a funding or payment method so that you can transfer the money from your source of payment to the concerned brokerage account.
Most brokers provide direct bank transfers and credit/debit cards as payment methods. Depending upon the broker or payment method, it may take anywhere from a few hours to few days for linking the payment source with the account.
Step 5: Buy Polkadot
You can place orders for buying Polkadot (DOT) through your account with the exchange. You can place an order of 1 DOT coin. Check the current price and place an order. To purchase Polkadot, you can place a wide array of orders such as Market Orders, Limit orders, Recurring orders, Stop-limit orders, and others.
Step 6: Transfer DOT to a Wallet
Once an order is fulfilled, the Polkadot is transferred to your account. If you want to hold, you can secure the coins in a wallet by using your private keys. For long-term holding, storing DOT on a hardware wallet is recommended.
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