Decided Polkadot is a good investment? You can get Polkadot on Coinbase.
A limiting factor of cryptocurrency is that blockchains aren’t typically interoperable. You can’t send Bitcoin to an Ethereum address, nor can you send Dogecoin to a Bitcoin address. Polkadot (DOT) aims to solve this problem through technology can connect multiple blockchain networks. It can be used to transfer data, apps and tokens across multiple blockchains. Its goal is to further decentralize the web and make it easier to transfer items across different chains. This is interesting because it is helping to connect multiple blockchains and increase the efficiency of the crypto network. This technology can have a huge impact in a variety of situations.
What is Polkadot (DOT)?
Polkadot is a multichain network that can process transactions across parallel chains or parachains. Over 100 chains are linked to the network, allowing for up to 1,000,000 transactions to be processed per second. The network is verified through a proof-of-stake system. Those connected to the network can verify transactions to receive freshly minted tokens. Transactions are sent through the chain to be verified.
Most of the chains can still act independently, choosing to run the decentralized applications (dApps) and code they wish. DOT is a governance token, allowing users to vote on new protocols and the future of the technology. The amount of votes is based on the amount of token owned.
DOT Price
DOT has a market capitalization of around $20 billion with nearly 1 billion tokens in circulation. It saw highs of over $50 in late 2021 and lows of $10 in January 2021. With such a large market cap, Polkadot within the top 15 largest cryptocurrencies on the market.
Polkadot Competition
Polkadot faces serious competition, going head-to-head with crypto giants such as Cardano and Ethereum. All of these technologies are aiming to make crypto more efficient, connecting people from around the world. They are also focused on the environmental aspects of crypto. However, Polkadot has risen the crypto rankings at a much quicker speed than its competitors.
The crypto launched smart contract capabilities in May 2021, and already supports hundreds projects. This contrasts with Cardano and Etheruem, who did not find this amount of early success. Polkadot also allows developers to create new chains. Networks like Ethereum and Cardano rely on existing networks, limiting the decentralization the networks can have. While Polkadot faces some serious competition, it is quickly setting itself apart in the market.
How to Buy Polkadot (DOT)
Now that you understand the basics of Polkadot and its competitors, you may be interested in purchasing the asset. Fortunately, this is an easy process, involving just a few simple steps.
Step 1: Open an online account.
The first step in purchasing DOT is to open an account on a crypto exchange. This is very simple to do and usually only requires an email or phone number. While there are many exchanges to buy DOT, there are a few that stand out due to low fees, simple interface and speed of transactions. Checkout some cryptocurrency exchanges that support Polkadot below.
Commissions
Account Min
$0
1 Minute Review
Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.
Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.
Best For
- New cryptocurrency traders
- Cryptocurrency traders interested in major pairs
- Cryptocurrency traders interested in a simple platform
Pros
- Simple platform is easy to operate
- Comprehensive mobile app mirrors desktop functionality
- Coinbase Earn feature rewards you with crypto for learning about available coins
Cons
- Higher fees than competitors
Commissions
Account Min
$50 for US and Australia; $200 everywhere else
1 Minute Review
eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features
Best For
- U.S. based cryptocurrency traders
- Investors looking to CopyTrade other traders
- Simple user interface
Pros
- Several major cryptocurrencies and altcoins
- Expansive network of social trading features
- Large client base for new traders to imitate
Cons
- U.S. traders can only buy cryptocurrency
Commissions
FREE
Account Min
$10.00 USD
1 Minute Review
Voyager is a leading name in the sphere of cryptocurrency investing, giving you access to over 50 tokens and coins. Buy, sell and swap assets using Voyager Crypto’s simple mobile platform available as a free download for iOS and Android users.
When you invest through Voyager, you’ll pay nothing in commissions, which is a major benefit when compared to other cryptocurrency brokers. Voyager is also one of the only brokers we’ve seen that allows users to earn interest on their crypto investments.
Though the broker could do more to improve its customer service, it’s an excellent option for beginner investors and seasoned professionals alike.
Best For
- Cryptocurrency investors looking for a wide selection of supported projects.
- Investors who prefer mobile trading.
- Anyone interested in earning interest on their crypto investments.
Pros
- Simple, straightforward and intuitive mobile platform
- Wealth of investment opportunities
- Allows users to earn interest on select crypto investments
Cons
- Only available for mobile users — no desktop platform
- Limited routes to contact customer service team
Step 2: Buy a wallet (optional).
While exchanges serve as mediums of purchase and sell cryptocurrencies, wallets serve as a way to store cryptocurrency. Wallets can add another layer of protection to your crypto assets.
Best hardware wallet: Ledger
Ledger is a hardware wallet that is extremely easy to use and supports the sending and receiving of DOT. Once you have purchased a Trezor hardware wallet, you simply download their software onto your computer and create an account. You’ll be assigned a wallet address (typically a long string of letters and numbers) and then you can send and receive DOT through the wallet. Hardware wallets offer an extra level of security as opposed to software wallets. However, they cost money to attain, whereas software wallets are typically free.
ERC-20 tokens
Launched in 2014, Ledger has transformed into a fast-paced, growing company developing infrastructure and security solutions for cryptocurrencies as well as blockchain applications for companies and individuals. Born in Paris, the company has since expanded to more than 130 employees in France and San Francisco.
With 1,500,000 Ledger wallets already sold in 165 countries, the company aims at securing the new disruptive class of crypto assets. Ledger has developed a distinctive operating system called BOLOS, which it integrates to a secure chip for its line of wallets. So far, Ledger takes pride in being the only market player to provide this technology.
- ERC-20 tokens
- All experience levels
- Easy to set up and use
- Supports more than 1,500 different digital assets
- Tamper proof
- Portable
- Long-lasting battery
- Bluetooth connectivity features
- Can be quite pricey
Best software wallet: Coinbase Wallet
Coinbase provides a simple and easy approach to investing in cryptocurrency. It is also easy to send cryptocurrency across the blockchain. Some other options for exchanges are Gemini.com and Crypto.com. Unlike these other options, Coinbase offers a dedicated wallet service, Coinbase Wallet, to let you hold custody over your digital assets. After you create an account on an exchange, you can link your bank account and send funds to your account. Then, you use the funds to purchase Polkadot.
Step 3: Make your purchase.
On Coinbase or other supported exchange, head to your account. There, you will find a tab to link a bank account to your account. Enter in your bank details through a secure 3rd-party service and transfer the desired amount of funds into your account. From there, navigate to the trade tab. There, you can either scroll or search to find DOT. Once you have located the currency’s profile, you click trade and then purchase. Enter in the amount of DOT you wish to buy and the currency will then be in your profile.
Bonus Section
Keep an eye out for new projects on the Polkadot chain. These could involve social media or websites. News of these projects could have a profound impact on the price.
Current Crypto Prices
The start of 2022 has been generally bearish for both traditional equities and cryptocurrencies. While Bitcoin and most other cryptocurrencies are still trading well below their all-time highs, many long-term investors are still bullish on the asset class. Unlike the stock market, the cryptocurrency markets never close, and are accessible globally. For up-to-date pricing data, check out our table below.
Is Polkadot a Good Investment?
Polkadot is a unique asset that has quickly gained traction in the crypto sphere. It uses revolutionary technology to further decentralize the blockchain and allows you to create new chains. However, it has powerful competitors that may outcompete with Polkadot over the long run. But, Polkadot has distinguished itself by creating cross-chain features to connect different blockchains in a seamless fashion. Future projects and uses of Polkadot will ultimately determine the price.
Polkadot is a strong force in the crypto world and has limitless potential.
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