How To Buy Polkadot (DOT)
DOT is the cryptocurrency token of the Polkadot blockchain.
Polkadot is an innovative blockchain project developing an ecosystem of blockchains, known as parachains, that work together to make transactions faster and cheaper than other chains.
Step 1:Choose An Exchange Or Wallet
DOT can be purchased either through an exchange or through a wallet application that supports Polkadot assets.
Step 2: Decide On The Amount You Want To Purchase
Once you’ve signed up to your exchange of choice, decide how much DOT you would like to purchase. Fund your account using a credit card, bank account, or other wallet, and complete your purchase.
Step 3: Store, Transfer, Or Use Your DOT
Once you have secured some DOT, you can keep it in the exchange wallet for safekeeping, transfer it to your own non-custodial wallet, or use DOT for trading, staking, or anything else on the Polkadot blockchain.
Where To Buy DOT
DOT is a well-supported cryptocurrency and can be purchased through a variety of exchanges:
4.6
Pros
- Wide range of features like crypto trading, stock trading and staking all on one platform
- Offers 8% cashback with Crypto.com's debit cards
- Available in the U.S.
Cons
- High withdrawal fees
- Have to hold $CRO for high rewards
- Sports betting on the NFL and NBA 🏈
- Crypto baskets to easily diversify your portfolio 🧺
- Stock trading straight from Crypto.com account 💲
Available globally, Crypto.com is a crypto exchange that also offers a range of products including (but not limited to)crypto debit cards, stock trading, and staking.
4.5
Pros
- Wide range of features like trading, staking, NFT marketplaces on one platform
- Lower trading fees than most exchanges
Cons
- Not available in the US
- OKX Wallet: Offers a non-custodial wallet that supports Ethereum, Solana and BNB Chain.
- OKX Earn: Fixed-term savings accounts to earn passive income on crypto holdings.
- Integrated TradingView:Professional-grade charting tools within the platform.
Available worldwide (except for the U.S.), OKX bridges the gap between centralized exchanges and the DeFi world with its multi-chain Web3 wallet.
4.3
Pros
- Earn up to 12% APY on crypto and fiat savings
- Offers credit card that gives you cashback in $BTC
Cons
- Not available in the US or Canada
- High interest rates often require staking $NEXO tokens
- Nexo Credit Card:Rewards of up to 2% in $NEXO or 0.5% in $BTC
- High-Yield Savings Accounts:Daily interest payouts with no lock-in period.
Nexo is a top choice for borrowing and lending, offering high-yield savings and instant crypto-backed loans with the convenience of its Nexo Card.
Honorable mentions:
DOT Crypto Overview
| DOT | Polkadot | Robert Habermeier Gavin Wood Peter Czaban | Robert Habermeier Gavin Wood Peter Czaban Björn Wagner | 2016 | Apollo Capital Management BlockAsset Ventures MetaStone Group Polychain Capital + more |
Why Does Anyone Buy DOT?
DOT derives its value from the innovative Polkadot blockchain. In addition to powering the Polkadot blockchain, DOT is considered a reliable store of value. DOT benefits include:
- DOT is one of the top 20 cryptocurrencies by market-cap.
- The Polkadot blockchain was created by Gavin Wood who is also the co-founder of the Ethereum blockchain.
- Polkadot is one of the first blockchains to achieve significant interoperability between individual chains.
- Polkadot has one of the largest developer communities of any blockchain. This further contributes to the value of DOT.
- Compared to Ethereum, Polkadot transactions are much faster and cheaper, leading some to call Polkadot the “Ethereum killer.”
Is DOT Being Used?
Daily trading volume for DOT: $398 million (as of 01/2023)
A large part of the confidence in the DOT token comes from the adoption of the Polkadot blockchain and the large developer community. Polkadot powers an ecosystem of blockchains known as “parachains.” Developers have to compete to win an auction in order to be able to build their apps using a parachain.
- You can stake DOT and receive staking rewards up to 18%.
- DOT is used to settle transaction fees on the Polkadot blockchain.
- Lend DOT for up to 18% annual percentage yield.
- In 2022, Polkadot had close to 15,000 developer contributions in just one month — making it one of the most active blockchains.
- The Polkadot community treasury has put over $10 million to work funding projects for their blockchain.
Key Events For DOT
- November 2022: Web3 Foundation Announces Polkadot Blockchain’s Native Token (DOT) Has Morphed and Is Software, Not a Security.
- October 2022: Polkadot Co-Founder Gavin Wood Steps Down From CEO Role at Blockchain's Builder.
- October 2022: Polkadot Hits All-Time High in Development Activity in Q3 Amid Plans to Become World’s Fastest Blockchain.
- August 2022: Polkadot-Based Acala USD: Yet Another Algorithmic Stablecoin Disaster.
Discover Similar Tokens
- Cosmos (ATOM): Cosmos is a crypto protocol building a network of interoperable blockchains with a vision similar to that of Polkadot.
- Avalanche (AVAX): Avalanche is another innovative multi-chain project that scales protocols through their Avalanche “subnets”.
- Osmosis (OSMO): Osmosis is a decentralized exchange built using the Cosmos blockchain. While its DeFi use-case is different from that of Polkadot, Osmosis is similar to Polkadot in that both protocols allow financial asset swaps between blockchains that would otherwise be incompatible.
Frequently Asked Questions
DOT reached an all-time high of $55.13 on November 3rd, 2021.
The price peaked in large part due to the broader bull market at the time, but also because there was demand for DOT leading up to Polkadot’s first parachain auction on November 11th.
Yes, the exchanges that support DOT, such as Uphold.com, eToro, Coinbase, and others, allow you to fund your account with a credit card.
After funding your account, you can buy any cryptocurrency that the exchange supports, including DOT.
Polkadot does not have special restrictions in the USA. Exchanges that support DOT, such as Uphold.com, eToro, Coinbase, and others, allow US residents to freely purchase the token.
No, DOT is not supported by PayPal.
At this time, PayPal only supports Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Polkadot has been dubbed the “Ethereum killer” by some optimistic investors.
The parachain nature of the Polkadot blockchain allows for faster and cheaper transactions than Ethereum. Polkadot was also co-founded by Gavin Wood, who helped create Ethereum.
While Polkadot is an innovative chain, there is a lot of room to go before it overtakes Ethereum, but, in crypto, anything is possible.
Polkadot has a strong developer community which indicates that many apps will rely on the chain in the future.
As one of the largest cryptocurrencies by market cap, Polkadot is considered a reliable investment by many investors. However, there is no way to tell if Polkadot will be a good investment longterm.
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