Polkadot Crypto: DOT Price Analysis and Review
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TRYTurkish LiraPolkadot (DOT) is an altcoin that appears in the portfolio of many traders and investors in 2024. This is a promising token that is actively traded on all popular platforms and occupies a worthy position in the crypto market.
Today we will examine the main ways to buy Polkadot in 2024.
What is Polkadot
Polkadot (DOT) is the native token of the Polkadot blockchain platform created in 2017. Its author is Gavin Wood, co-founder and CTO of the Ethereum network. Other members of the team include Peter Chaban, CTO of the Web3 Foundation, and Robert Habermeyer, a renowned blockchain developer.
Polkadot competes with Ethereum to some extent. Wood’s second project is also designed to run decentralized applications (dApps). However, the Polkadot ecosystem is highly scalable and customizable compared to Ethereum. And in general, its aim is to unite all blockchains into a common network, allowing them to easily interact with each other.
Thus, network users can easily create their own blockchains within the ecosystem or connect existing ones to it, as well as run cross-registries and calculations. In this way, data can be transferred through public blockchains that do not require permission and through private blockchains, combining them with each other.
Polkadot’s native multi-platform token has the designation DOT and gives its holders the following features.
Firstly, any user with DOTs can become a member of the Polkadot Council. The council consists of 6 to 24 people who propose new network updates to the community, select members of the technical committee, and perform other managing functions.
Secondly, there is an option to become a member of the Polkadot community, which consists of DOT cryptocurrency holders. All members of the community can make proposals on the work and development of the crypto platform, nominate members of the council committee, vote in referendums, etc.
Thirdly, DOT tokens can be used to earn money on crypto trading or considered as a promising tool for longer-term investments. So, let’s go directly to where and how to buy DOT cryptocurrency.
The best place to buy Polkadot
DOT cryptocurrency can be bought in several ways: on a crypto exchange, payment systems, international banking systems such as Relovut, etc.
Thirdly, it offers a large number of purchasing options, such as bank transfer, credit card, direct P2P exchange, and so on. In addition, it provides the possibility to buy cryptocurrency for fiat money (dollars, euros, etc.).
Let’s look at how to buy and sell DOT, using the popular crypto exchange OKX as an example.
Polkadot Buying Instructions
To find a profitable option for buying Polkadot, you need to follow certain rules. Step-by-step instruction for buying Polkadot awaits you below.
Choose the level of risk
One of the basic rules of investing is understanding the risks. And when it comes to buying cryptocurrency, the risks grow exponentially. Profits can be large, just as losses, and no one knows for sure what result will bring investments.
The following rules will help to reduce the level of risk:
- Diversify investments. It means distribute your money between different assets and even asset classes;
- Do not buy cryptocurrency for the last money (especially do not take a loan for this purpose);
- Don’t invest money that you can’t afford to lose, otherwise losing it will have a huge impact on your standard of living.
Choose a crypto exchange
As we noted above, the best and easiest way to buy DOT is a cryptocurrency exchange. In addition to reliability, such trading platforms provide high liquidity and a variety of available assets, allow you to use fiat and pay for purchases with a credit card, bank transfer and other convenient methods.
But the exchanges are different from each other, and choosing where to buy DOT, you should pay attention to the following parameters: the year of creation, regulatory approval, fees, trading volumes, team authority, reviews, etc.
Register an account
Using the example of the popular crypto exchange OKX we will move step-by-step to make a new account.
- Go to the official website of the exchange and click Sign up in the upper right corner;
The start of registration on OKX - Fill out the form by choosing the registration method: by email or by phone number. Enter the data and password and click Sign up;
Email registration page - Confirm the registration by entering the 6-digit code received by email or phone number.
The next step is identity verification, which is a prerequisite for working with OKX.
You will find more detailed instructions on registration and verification on the exchange in the OKX review from our experts.
Deposit money
After the account on the exchange is created, we proceed to replenish it.
To replenish a deposit:
- Log in your personal account, select Assets → My assets;
- Choose the currency for replenishment and the network → Сontinue;
Deposit replenishment on OKX - The BTC address line displays the wallet address for replenishment: copy it or scan the QR code;
- Send bitcoins to this address.
After BTC will be enrolled to the exchange account, we use Bitcoins to buy DOT.
Buy Polkadot (DOT)
Go to the page of the trading terminal to make a purchase. Select Trade → Basic Trading.
On the trading terminal page:
- Select the DOT/BTC trading pair in the upper left corner;
Trading pair selection - For creating an application for the purchase of DOT, fill the form, which is located under the chart;
- Specify the order type from 6 presented on the exchange: Limit, Market, Stop, Traling Stop, Trigger, Advanced Limit;
- Depending on the selected order, fill in the fields (for example, Price (price) and Amount (quantity) for Limit;
- Click Buy DOT.
How to sell Polkadot
You may also use a terminal for selling DOT. The algorithm of actions is the same as for buying, but we have to choose a sell order for the trading pair. The steps are:
- Select an order;
- Enter the data;
- Press Sell DOT button.
Where to store DOT
There is a question appears after buying DOT: what is the best place to store coins? The method of storage directly depends on what you plan to do with the purchased assets.
The fact is that the “hot” type of storage (such storage means that the wallet is constantly connected to the Internet), is not the safest one, because your assets can become the prey of cybercriminals. On the other hand, hot storage allows you instantly to buy or to sell coins, without the need to take additional steps. Therefore, if you decide to use them, then take care of security: set up two-factor verification, save the recovery password from the wallet, etc.
If you do not plan to actively trade and use crypto in the near future, then better move is to withdraw assets to a “cold” wallet. In this case, the user’s private keys are in a vault that is not connected to the Internet, which eliminates the possibility of a potential hacker attack.
How to withdraw Polkadot to wallet?
You can store Polkadot in any crypto wallet that supports this cryptocurrency. For example, Trust Wallet is considered reliable among hot vaults. It allows you not only to store, but also buy, sell and exchange DOT coins.
First you need to install the wallet on your Android or iOS device.
After installation:
- Enter the app and tap Receive;
Getting DOT. Step 1 - Select Polkadot from the list of supported currencies;
Getting DOT. Step 2 - Tap on the token icon and go to the page with a receiving address: copy it or scan the QR-code;
Getting DOT. Step 3 - Insert copied address into the interface of the exchange and withdraw DOT from the exchange to the wallet.
FAQ
Conclusion
The Polkadot project was created and developed with a focus on web decentralization, allowing different blockchains to interact with each other. The platform is used to develop interoperable blockchains, connecting existing ones, and for allowing DeFi applications to operate beyond their own network.
The platform’s native token is designated DOT. Those who have it can become members of the community or even join the Polkadot council, where major decisions about the development of the ecosystem are made.
DOT is also used to make money on crypto trading. Token is considered as a promising asset for investment. The coin can be easily bought on the exchange, through payment systems, etc. The most reliable way to buy is an exchange, which offers security, high liquidity, a wide variety of supported currencies and payment methods. Some exchanges also allow you to use fiat to buy cryptocurrency.
We have shown how to buy and sell DOT, using the OKX exchange as an example, You have also met with possible storage methods and have been shown how to withdraw coins to Trust Wallet. Anyway, we leave to you all the responsibility for any investment decision whether you are going to buy DOT or not. Only you can make the right decision for yourself.
