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How to Buy Polkadot Coins in 2022

How to Buy Polkadot Coins in 2022

Cryptocurrency is a global issue and many are now jumping into the community because of the many benefits that many people have. One of the most bought cryptocurrencies on the market is the Polkadot coin, also known as DOT.

This article explains how to buy your own polkadot coins. It also explores the world of cryptocurrency and provides an overview of certain details you should know before buying Polkadot. 

What is Polkadot (DOT)? 

Polkadot is a next-generation protocol that aims to unify blockchains into a single unified network. Polkadot is designed as a dream branch for a decentralized internet that gives users back control, with the goal of building a sustainable network where professional blockchains can connect to and communicate with each other on the Polkadot network.

This was the idea of ​​Gavin Wood, co-founder of the Ethereum network. In releasing the white paper in 2016, the Polkadot team turned their tails on Ethereum and established the web3 foundation in Zug, Switzerland, where the Polkadot code base was developed.

At the end of March 2017, Polkadot had collected close to ten thousand Ether, but some bugs in the Ethereum wallet software halted one-third of these Ether coins, making initial coin offerings (ICOs) inaccessible to date. held.

Despite these setbacks, the Polkadot team continued development and on October 26th, 2020, Gavin Wood announced the creation of Polkadot's Genesis block. This marks
the beginning of the Polkadot network. 

Why Buy Polkadot (DOT) Coin? 

Now the reason to buy cryptocurrency lies in the use case. The Polkadot network now aims to solve the difficulties faced by other individual blockchains.

It aims to solve problems and provide innovative solutions for scalability, interoperability, governance and updating blockchain code.

With these improvements, it's not new why Polkadot is known as the "Ethereum Killer". Sadly, the Polkadot coin is not the only coin mentioned by the same name.

Polkadot aims to create a decentralized web, web 3.0 is based on a connected blockchain. 

If the Polkadot network's mission to connect other blockchains to the network is successful, then we are looking at interconnected web-specialized blockchains that can exchange data with each other.

This leap will revolutionize the use of Defi and provide monumental advantages in the crypto space. If this eventually happens, the demand for Polkadot coin will break through the roof and the price will rise as well. 

Where to buy polka dot? 

DOT tokens are listed on several large cryptocurrency exchanges such as FTX, Kraken, Huobi and Bitfinex. You can also choose to purchase DOT tokens directly from your wallet, such as a trusted wallet where you make purchases using a third-party provider within your wallet.

There are also other decentralized exchanges (DEXs) where you can easily buy DOT tokens, such as Binance DEX or 1inch (via BSC only — Binance Smart Chain). 

How to protect DOT? 

The safest place to store cryptocurrencies like Polkadot is your personal wallet for self-storage. They are many available wallets that support polkadot. A list of supported wallets can be found on the Polkadot website. MetaMask has announced that they will soon add Polkadot to their list of supported cryptocurrencies.

Another wallet that can safely store Polkadot is the Trust wallet, which can store, send and receive DOT tokens. You may also decide to keep polkadot on a centralized exchange account.

Storing Polkadot here is very easy as it allows you to easily conduct transactions such as trading, sending and receiving assets.

When storing your assets on centralized exchanges, you should be aware of security risks as your assets may be exposed to third-party risks. If an exchange gets hacked, goes bankrupt or gets scammed, your assets can be lost forever. 

What does DOT cryptocurrency do? 

The functions of the DOT token can be divided into three categories classified by the web 3 foundation responsible for the development of polkadot. These categories are governance, staking and bonding. 

GOVERNANCE 

Governance is the process by which DOT token holders are free to vote on issues.
It's about the blockchain and how it is managed. Token holders can vote on a list of issues including, but not limited to, protocol upgrades and relay chain changes.

The votes each token holder gains are proportional to the amount of DOT tokens held by the holder.

stakeout 

The Polkadot network is natively integrated with a proof-of-stake mechanism.
Conditions allow DOT holders to lock their tokens, which helps keep them secure.
Receive rewards by staking DOT tokens simultaneously on the network.

There are two main ways to achieve this to have a stake in the Polkadot network.
Acts as a nominee or verifier. 

Whether you are a nominee or a validator, both of you are rewarded for participating in the staking process. You can wager rewards, lock tokens, and secure your network.
Currently, nominators are the most popular and common staking method on the Polkadot network as they are limited to the role of electing validators.

Validators, on the other hand, play an important role in network health. Validators are responsible for validating transactions on the network and running nodes 24/7 to ensure smooth operation.  

join 

DOT can be used to launch new blockchains on the network. This new blockchain is
called Parachain.

To successfully launch Parachain, you need to deposit DOT tokens through a process called bonding.

When Parachain is destroyed, the deposited DOT tokens will be returned. 

How does Polkadot coin work? 

The Polkadot network operates on a sharded model similar to ETH 2.0. These shards are individual blockchains connected to the Polkadot network, also known as parachains. The simultaneous operation of these Parachains allows transactions to be processed in parallel rather than sequentially.  

Parachain is an independent blockchain, each Polkadot network runs its own ledger, has its own state, adds transactions in blocks to its own blockchain, and also supports its own governance mechanisms and users.

If Parachain can compile the Web Assembly programming language and can follow the Relay Chain on Polkadot's own blockchain, it can connect to the Polkadot network.  

See also: How to Buy and Sell Cryptocurrencies in 2022 | full guide

How to Buy Polkadot Coins

If you want to buy a Polkadot as your first tie, there are certain steps you need to take to achieve this. You can buy your first Polkadot cryptocurrency with these simple steps.  

  • Level 1. Create an account on a cryptocurrency exchange
    You trade DOT 
  • Step 2. Deposit funds into your account 
  • Step 3. Buy DOT 

Level 1. Create a cryptocurrency exchange account that allows DOT trading 

Before buying Polkadot (DOT), you need to compare exchanges.
You should check if the exchange that supports DOT also supports the local fiat currencies, Bitcoin (BTC) or Ethereum (ETH).

After choosing the exchange that suits you best, all you have to do is register with the exchange using your email address and then create a password for your account.

Most exchanges require you to perform KYC before accessing certain features. We also recommend setting up two-factor authentication to ensure:
Your account is adequately protected. 

Step 2. Deposit funds into your account 

Some cryptocurrency exchanges do not offer a way to trade in fiat currencies like USD, EUR or NGN, they only allow cryptocurrency trading between each other.

However, if you register on one of these exchanges, you must first purchase BTC or ETH before you can start trading.

Once you have deposited BTC or ETH into your account on the exchange, you are good to go. However, if you are on an exchange that uses fiat to trade, you can deposit your preferred fiat to the exchange using a bank transfer or card.
Deposit. 

Deposit processes for cryptocurrencies or fiat currencies are
currently in use by exchanges. 

Step 3. Buy DOT 

This is the last step. Basically, all you need to do is trade your current cryptocurrency or fiat currency with DOT to get polkadot cryptocurrency.

This step will also depend on the exchange you choose to perform that particular step on, but in most cases, you will need to go to the Markets section and search for "DOT" to see which pairs are available for this particular trade or purchase. cryptocurrency.

From there, you just need to fill in the amount you want to buy based on available fiat or cryptocurrencies and successfully purchase Polkadot (DOT). 

See also: How to Earn Free Bitcoins Daily without Investment in 2022

Frequently Asked Questions on How to Buy Polkadot Coin

Can I buy DOT with fiat currency? 

Yes, but this depends on the exchange you choose and whether that exchange supports your local fiat currency where you can buy DOT directly.

When should I buy DOT? 

Attempting to time the market, especially in highly volatile sectors like cryptocurrencies, can be very risky and nearly impossible. The best time to buy an asset is when you are ready. One useful strategy for those concerned about market timing is dollar-cost averaging. 

How to sell DOT 

To sell DOT tokens on a centralized exchange, you need to select your preferred Polkadot (DOT) stable coin or fiat pair and then go to the sell option of the selected exchange pair. Next, enter the quantity of DOT you want to sell and the price you want to sell.  

conclusion 

Purchasing Polkadot is very easy if you follow the steps above. You can also get details about the important Polkadot network before you consider investing in this cryptocurrency.

Cryptocurrency is a very volatile investment, so be careful when investing.  

We hope you got value from this article on how to buy polkadot coin. Please contact us again in the comments section.

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