How to Buy Polkadot?
Polkadot (DOT) is one of the most popular projects in the blockchain space. Aiming to create a global network of blockchains all built upon one platform, Polkadot is working towards growing the...
Polkadot (DOT) is one of the most popular projects in the blockchain space. Aiming to create a global network of blockchains all built upon one platform, Polkadot is working towards growing the blockchain ecosystem. With its network protocol, data could be transferred across different blockchains—connecting those that are now separate like islands and facilitating interoperability. All of this is not impossible with traditional blockchains, but it would slow them down significantly. Polkadot, on the other hand, creates a network of separate, sharded blockchains and distributes the workload across them.
The DOT coin is what powers the whole ecosystem. Any holder of DOT is part of the governance mechanism—you can become a council member, vote for council members, propose a public referendum, give priority to certain public referenda, and vote on all active referenda. You can stake the coin to get returns, meaning if you participate in the network, it can give back a certain return on a near-constant basis.
How to Buy Polkadot in 2021
The popularity of the project means it is pretty easy to find an exchange that lists it. However, that doesn’t make it any easier to find reputable exchanges that fit in with your experience level, expected fees, and are also offered in your geographical area. This is why we have assembled a list of five of the best exchanges to buy DOT in 2021.
Gate.io. This exchange is an excellent choice for experienced investors with altcoin portfolios. Aside from the usual spot trading, it also offers leverage, margin lending or borrowing funds, and a myriad of other advanced trading opportunities. Gate.io is available almost globally, with only a few exceptions. The fees are also on the lower end, with a 0.2% trading fee and varying amounts for withdrawals (while deposits are free). The trading fee is also subject to discounts if you’re a loyal customer. When it comes to trading DOT, you can find USDT and BTC pairs, but also a USDT futures trading pair on the platform.
Bitfinex. Even though Bitfinex offers services best suited for veteran traders, their interface is intuitive enough even for complete newcomers. However, everything aside from spot trading is, as usual, best left to those who are aware of the inherent risks and are willing to take them. Bitfinex fees are relatively low and going down as long as your trading volume goes up. The exchange is very secure, with 99.5% of clients’ funds stored in cold storage. If you want to trade DOT, BTC and USDT are your crypto options, but you can also trade it against USD—the fiat version.
Poloniex. If you’re looking for more privacy, Poloniex lets you decide whether you want to go through with the KYC process—otherwise, all you need to open an account is a valid email address. This exchange is equally accessible to traders of all experience levels, so you can get started here even if you don’t know much about cryptocurrency trading. Fees are among the lowest in the market, and no mandatory KYC means you can start trading within minutes once you sign up. As is the case with our previous examples, you can buy DOT with USDT or BTC at Poloniex.
Bittrex. Bittrex may have an extensive KYC process, but it offers an even wider array of professional trading tools than most other cryptocurrency exchanges. Their set of APIs even allow you to set up your own bot trader to automate the process (although this is something that needs both a lot of technical knowhow and a thorough understanding of the market). Also similar to our previous examples are fees, the highest of which are 0.2% and going down when your trading volume increases as an incentive to institutional and other large scale investors. You can buy DOT with BTC, USDT, and ETH, but also with fiat currencies like USD and EUR.
Kraken. Very beginner-friendly, but even experienced traders will not lose out if they opt for Kraken—with a wide range of different trading options, everyone can find something they’re comfortable with. The exchange is very easy to use, plus they offer guidance if you need it. Plus, fees are among the lowest in the industry, so you will not have to pay out of your nose for the pleasure of trading there. Its biggest advantage among others on our list is that it offers more DOT trading pairs: aside from the usual ones, you can also trade the asset against KSM, and fiat examples like EUR, AUD, and GBP. This may not seem like much, but it can also save you some money in conversion fees.
Buying Polkadot (DOT) coins can be very easy when you know where to start. Knowing your own experience level and comfort with using advanced trading tools also helps immensely, as it can narrow down your choice of exchange. Most of all, you need to be aware that you should never invest more than you can afford to lose, as the cryptocurrency space can see significant price swings.
Interested in purchasing more altcoins? Check out our other guides. In the meantime, check back with Cryptonews often to stay abreast of all important events in the crypto industry.