Where to Buy Polkadot Crypto in 2022
Polkadot's token is one of the hottest crypto assets. This innovative application takes cross-chain operations to an unprecedented level, as it solves one of the biggest problems — the lack of interoperability. Should you invest in DOT today, and how? Read on to find out.
What is Polkadot (DOT)
Despite the incredible diversity of blockchain networks, they still exist in isolation. This disconnectedness hinders crypto evolution, but Polkadot has a solution. It lets users transfer tokens and data across private and public blockchains.
The Polkadot network protocol was created by Gavin Wood (who also co-founded Ethereum), Robert Habermeier, and Peter Czaban. This system is being developed by Web3 Foundation based in Switzerland. It is referred to as "the internet of blockchains" and “killer of Ethereum.” Even its name reflects its breakthrough concept.
The 10,000+ blockchains existing today are like separate dots in the polka dot pattern. The new system can allow transactions from all chains at the same time. It includes “parachains” that are secured in a permissionless auction. The interconnectedness brought by Polkadot will support diverse operations. Here are some of the myriad possible scenarios:
- A smart contract event on ETA triggers a payment on the bitcoin blockchain.
- Users can swap LTC for XRP across chains directly via smart contracts.
- An oracle can send price data to several dozen blockchains at the same time.
The first version of the protocol called Kusama still runs alongside its successor. It is based on the same code and architecture, including Nominated Proof of Stake (NPoS). Kusama is more suitable for start-ups, while major enterprises build their apps on Polkadot.
Polkadot offers groundbreaking solutions for scalability, governance, and updates of blockchain code. It aims to create a decentralized Web 3.0 environment. If the company attracts enough blockchains, it will revolutionize decentralized finance and provide crypto enthusiasts with immense benefits. This is what DOT investors expect.
Polkadot provides a fast response with seamless processing. Its consensus-based relay chain can handle transactions, individual and chain blocks. Proponents of NFTs are excited about interoperability, while on-chain governance appeals to developers.
DOT, released in August 2020, has multiple uses: staking, governance, and bonding. As of this writing, one token costs $26.23, and the total market capitalization is just under $26 billion, according to CoinMarketCap. From December 14th, 2020, to December 14th, 2021, the price increased almost fivefold, and the asset has gained over 640% since its launch. So far, the highest value was observed on May 15, 2021 ($49.69).
How to Buy Polkadot
You can find the token on popular exchanges (e.g., Kraken, Huobi, and Bitfinex) and specialized platforms like CoinLoan. After purchase, you can use it like most other cryptocurrencies: keep in your wallet, trade, or deposit to earn passive income. Using DOT as collateral for a crypto loan on coinloan.io lets users get cash quickly without selling their crypto stash. Here are four ways to get the token:
Centralized Exchanges (CeFi)
Registration procedures on centralized platforms are largely similar. You need to open an account and complete the verification procedures (KYC), which takes a couple of minutes. You will be asked for basic personal information like full name and address, a copy of an official ID or passport, and proof of residence (for example, a utility bill.) Your account should become fully operational in 1-2 business days. Then, you can make a deposit and convert it to DOT.
Two-factor authorization is an absolute must, but you should also set other security barriers to protect your funds and data. For example, the platform may allow you to use delayed withdrawals. Even if the platform has not had any security breaches, prevention of authorized access is paramount.
Decentralized Exchanges (DEX)
Decentralized exchanges do not have to comply with KYC procedures. You can buy the token on Binance DEX or 1inch over Binance Smart Chain. The key difference between CeFi and DeFi is that the latter fully lies on technology (smart contracts) for verification.
You can purchase DOT directly into your crypto wallet. Such transactions are possible on the Trust Wallet app via a third-party provider.
What Payment Methods Are Available?
Depending on your platform, you may be able to buy DOT using your debit card, bank account, or wire transfer (SWIFT). CoinLoan also works with SEPA (for the EU) and AdvCash (worldwide except the US). You can make a fiat transfer to buy DOT and 23 other cryptocurrencies, including stablecoins.
After you enter the amount of DOT you wish to buy, the system will convert it to the currency of your balance and show any fee if applicable. Review the details of the purchase before finalizing it.
Here is how to buy the token on the CoinLoan Crypto Exchange. Choose DOT, enter the amount in the You Get field, and click the Exchange button. One of the biggest advantages of this platform is the absence of deposit or withdrawal fees. You can also earn a high-interest rate on DOT deposits (up to 7.2%.)
Buy Polkadot with Bank Transfer
Purchasing DOT via a bank transfer is not the fastest method. First, send a sufficient fiat amount to your account on the platform. Then, purchase the token using its exchange interface. The exact procedures on different platforms vary slightly, and you may also be charged a fee (this does not happen on CoinLoan.)
Like thousands of other cryptocurrencies, polkadot can be bought and sold for profit. Some of the best rates in the market are found on CoinLoan, which also offers attractive interest accounts and flexible loans. You can also trade DOT on Binance and other large exchanges.
Buy Polkadot with a Credit Card
Use your Visa or MasterCard to purchase DOT. Top up your account with fiat and convert it. Both debit and credit cards are supported. Fees may apply.
Buy and Sell DOT
Top-rated exchanges let users buy and sell assets, including DOT, through their websites and apps. You can do it on the go. Trading is available 24/7 and only requires a few taps or clicks. Polkadot experiences short-term fluctuations like other cryptocurrencies, but the overarching trend is positive.
Where the World Trades Polkadot
Polkadot is bought and sold on popular exchanges and specialized platforms, including CoinLoan. This European lending system is a crypto loan pioneer. It connects users from all around the world, including miners, private investors and investment funds. The advantages for Polkadot trading include:
- Security & Trustability
The company uses ten layers of security to give its users peace of mind. Their assets are protected by $100 million insurance from Lloyd's and stored in geographically distributed cold storage operated by BitGo. The company has taken pride in its zero-incident record since its launch in 2017. Its bug bounty program for ethical hacking rewards participants for identifying vulnerabilities so the company can quickly anticipate and fix potential issues.
- Speed and Simplicity
On CoinLoan, your Polkadot purchase is instant. The exchange interface ensures a simple and intuitive workflow. The company offers competitive exchange rates for 26 assets in total. Your personal dashboard will let you deposit or withdraw quickly.
CoinLoan is one of the biggest crypto platforms supporting a wide range of instruments. Enjoy high liquidity on stablecoins and popular crypto assets, including Monero. The system will find a counterparty for your trade without delay.
- No fees
All deposits and withdrawals are completely free with just one exception (depositing euros via MasterCard). You can transfer funds easily through the company’s mobile app (Android and iOS) or web platform. SEPA, SWIFT, and AdvCash are supported.
H2 What to Do After I Buy Polkadot?
As we have mentioned, DOT is a flexible asset. You can hold on to it, keep it in an interest account, sell it after a price hike, or use it for instant crypto loans.
- Store/Hold Polkadot
As the price outlook is optimistic, keeping DOT tokens in your wallet makes sense. However, this does not mean you cannot make them work! For example, users earn up to 7.2% APY with an interest account on CoinLoan.
The highest rate is provided to users who stake the CoinLoan token (CLT). Once you make a deposit, you start making a profit. The shortest period is one day, and interest accumulates daily. This is a flexible term agreement — keep the assets on the platform as long as you want.
Earning a profit this way requires just two things: registering on the platform and making a deposit. There are no lock-ups, so withdrawal is available at any time. You earn compound interest as long as the DOT funds are sitting in your account. This works like a savings account for crypto, but the return is higher than bank rates. As all deposits and withdrawals are free, commissions do not eat into your profits, whether you withdraw crypto or fiat.
Another opportunity to make DOT work without selling it is to get a loan. CoinLoan lets you pledge DOT assets as collateral to borrow in fiat or crypto. Currently, the system facilitates loans in EUR, GBP, BTC, WBTC, USDT, USDC, BUSD, TUSD, and PAX.
Note that the size of collateral must correspond to a particular share of the loan amount. On CoinLoan, LTV (loan to value ratio) varies between 50% and 70%. You do not relinquish ownership of the tokens — instead, they are simply locked until you repay the debt. This means that if DOT continues growing, this extra profit can cover or even exceed the interest rate.
- Trade Polkadot
Polkadot is included in different trading pairs, so you can exchange it to capitalize on various market trends. Choose reputable and secure platforms that offer instant execution and let you buy, sell, and swap the assets easily, preferably in one click/tap. Pay attention to deposit and withdrawal fees, too.
- Earn Polkadot Rewards
Polkadot enthusiasts can grow their assets passively by contributing to the network as nominators. To get a reward, you need to find validators for block verification. Currently, nominators get around 10% annually minus the commission rate of their validators.
Becoming a nominator requires staking at least 120 DOT. The number of nominators is capped at 22,500. Please note that it is vital to do your own research, as validators may misbehave. The Polkadot support site gives detailed instructions for nominators.
- Send Polkadot
While Binance Pay allows free DOT transfers between users, the easiest way to send your tokens is via Polkadot Gifts. Recipients do not need accounts or wallets, which helps the community attract new members. Share your assets with friends or relatives without the need for custodial service. After receiving the funds in a trustless way, they will be guided through account setup. No previous experience with blockchain is required.
- Spend Polkadot
You can use DOT for purchases via Binance Pay. The number of retailers and vendors is quite small, but it is growing. At the moment, the list includes 15 merchants, such as:
- Royalpass (video game top-up service);
- Uminers (crypto mining equipment);
- Uquid (e-store that sells clothes, accessories, electronics, and other goods);
- Travala (hotel bookings);
- Bitrefill (crypto gift cards).
What Do Most People Do After Buying Polkadot?
Users commonly trade DOT for stable coins, such as USDC and BUSD. They can also hold on to their assets or use them to pay for goods and services. Crypto loans with DOT as collateral are also increasingly popular. Considering the token's impressive growth since launch, keep in mind that hodling makes sense. But still, you will benefit more from deposits. Interest accounts let you earn compound interest in addition to the DOT's growth.
- Focus on investing for the long term and holding through short-term dips. The coin has gained over 630% since its launch, but it almost halved following its all-time high of $49.69 in May 2020.
- Do not put in more than you can afford to lose or use savings earmarked for other goals. Do not put your eggs in one basket, as Polkadot is volatile like other cryptocurrencies. It should not make up the bulk of your portfolio, only 5-10%.
- By expecting instant results, you will set yourself up for disappointment. Be prepared for dips and focus on the big picture. The cryptocurrency market is unpredictable.
- Do not buy DOT unless you are ready to commit to it for at least five years.
Polkadot is a revolutionary platform, and DOT is a promising token. It has already become one of the largest cryptocurrencies by market cap! Considering its rapid appreciation, we see that the appeal is undeniable. You can buy, sell, trade, spend, and earn DOT in various ways. When used as collateral, it lets users borrow cash and still capitalize on its growth. Thanks to Polkadot gifts, you can share your tokens with anyone.
At the same time, DOT is volatile like other crypto assets. Buyers should be patient and take a long view. A growing number of developers is adopting this system. As more blockchains join the Polkadot architecture, the token will reach new highs.