Blockchain technology is designed to ensure trustless, secure, and decentralized transactions. However, despite the breakthrough that blockchain has brought to a lot of industries, it remains largely fragmented. For instance, it is difficult to transfer assets between the Ethereum blockchain and Bitcoin blockchain. As the blockchain space grows, there is a need to create a system of communication and interaction of assets between blockchains.
To build a bridge of communication between blockchains, the Polkadot platform was created. Polkadot is a multi-chain network joining other networks together and acting as a framework for other blockchains to opt-in. To carry out transactions in the Polkadot blockchain, DOT, its native token, is used. In this guide, we will be showing you how to buy Polkadot, what's the best wallet to hold DOT, and the best exchanges to buy with ease.
Where to Buy Polkadot – Top 5 Exchanges
The price of DOT has risen to an ATH of $25.53 by February 2021 after its All-time low of $2.70 0n August 20, 2020. One of the least asked questions when buying a token is—Why are you buying the token? Most people, buy a token because they believe in the project; for others, it is strictly for-profit/investment purposes, while for some, they aim to stake such tokens. However, regardless of the reason you want to buy a token, you have to go through an exchange. Crypto exchanges provide you with the ease of gaining access to buy and sell a token of your choice. When choosing a wallet to buy a token, you have to put into consideration certain factors such as the currency to buy with and the crypto pairs supported on the exchange.
Step-by-Step Guide to Buying Polkadot
The past few months have been an exciting one for DOT as the price has grown and its community as well. Moving from a downward position in August 2020 and hitting an all-time high of $30 in February 2021. Although at the time of writing, the market was experiencing downtime with major currency in the red.
However, DOT has shown over time that it has potential for growth. For instance, its price on 20 August 2020 was $2.94, and then on 03 January 2021, the price had moved to $9.22. The price of DOT experienced another significant growth on 17 January 2021, the price had doubled its position to $18.28, and then by 13 February 2021, a new ATH was born at $30.04. With the astronomical growth DOT has experienced, this guide will show you how to buy Polkadot.
How to Buy Polkadot on Huobi
Step 1: Create an account on Huobi Global and verify your account and do your KYC
Step 2: Click on “Balances” at the top of the Huobi page and then scroll to “Exchange Account” to deposit your USD. Convert your USD to BTC
Step 3: Search for DOT and click on the DOT/BTC pair.
Step 4: Check your balance first to ensure that you have made your USD or BTC deposit, then input the amount of DOT you want to buy and then click on buy.
NOTE You can either use market order or limit order to buy your DOT. You can also use the stop-loss order if you decide to trade on a short-term basis to prevent a loss.
How to Buy Polkadot on OKEx
Step 1: DOT was listed on OKEx on July 17, 2020. To buy DOT, First, create an account on OKEx website and complete the registration process.
Step 2: Next, select the method to buy or sell with; there are three methods to select from, Quick Trade, P2P Trade, and Block Trade. To buy using USD, select the Quick Trade method as it is the quickest method.
Step 3: Navigate to “Spot Trading,” which is at the top center of the page search for DOT/BTC, select the right pair, and type the amount you want to buy. Ensure your BTC has been bought successfully before you continue.
Step 4: You can also deposit DOT directly to OKEx or transfer your DOT from OKEx to the wallet of your choice.
Best Wallets to Hold Polkadot
One of the factors that influenced the growth of the price of DOT is its token redenomination that occurred in August 2020. Polkadot had to undergo a redenomination from its original sale. Polkadot redistributed the tokens they had earlier sent to their investors, and the new DOT that was distributed ensured that investors got more DOT. This means that the DOT balance will be 100x higher, and the price per DOT will be 100x lower (10,000,000 DOT will become 1,000,000,000).
For long-term holders, it is safer to hold your tokens in a wallet. The percentage of the DOT you own relative to the total supply will remain unchanged. Since most Mobile and Desktop wallets are free and available on Windows, macOS, and Linux, Android and iOS, most crypto users prefer them. However, in this ‘How to buy Polkadot’ Guide, we will look at some of the best hard wallets to store your DOT.
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More Information About Polkadot [FAQS]
What is Polkadot?
Polkadot is a blockchain protocol that focuses on simplifying interoperability and cross-chain communication between multiple blockchains by connecting them in one network. The Polkadot network is made up of essential parts that enable its interoperability. They include Relay Chain, Parachains, Parathreads, and Bridges. Individual networks on the Polkadot network are called Parachains, and they are dependent on the Relay chain, which is the backbone of the network.
It is the communication hub between Parachains. On the other hand, Parathreads enable networks to purchase slots available for auction before purchasing an expensive Parachain slot. However, a Bridge connects already existing blockchains like BTC or ETH into the Polkadot network enabling the transfer of assets between the Polkadot network and other blockchains.
Is Polkadot a Good Investment?
The year 2020 was a pretty slow year for DOT experiencing downtimes for a long period of time. However, DOT has experienced unprecedented growth and has even gained new all-time highs. When it comes to determining if a coin is a good investment, many factors come into play as the market can be quite volatile. However, Polkadot has a great team with a link to Web3 and Ethereum, and its road map and partnerships show great promise. Investors should, however, do their own research before buying a coin.
About Polkadot (DOT) Token
As of the time of writing, the price of Polkadot is $29.53 with a 24-hour trading volume of $5,134,540,893. On Binance alone, DOT/BTC has a trading volume of $791,128,313. It's currently ranked as #5 on the coin market cap with a market cap of $26,874,224,732 and a circulating supply of 908,579,386 DOT coins. However, it's max. Supply is not available.
Polkadot is an open-source project founded by Gavin Wood, Robert Habermeier, and Peter Czaban and supported by the Web3 Foundation. The Web3 Foundation is a Swiss Foundation founded to facilitate a fully functional decentralized web. To ensure the full functionality of Polkadot, Web3 Foundation has commissioned five teams and over 100 developers to build Polkadot. However, its three founders are
Gavin Wood is also the president of the Web3 Foundation, Ethereum co-founder, Parity Technologies founder, and the creator of the smart contract coding language Solidity. His knowledge of the crypto and blockchain industry has helped in building Polkadot.
Robert Habermeier is an accomplished crypto and blockchain developer and researcher and also a Thiel Fellow.
Peter Czaban is the Web3 Foundation’s Technology Director, and he is currently helping to develop a new generation of distributed technology with PlantingSpace.
Polkadot is a very attractive project with a great team behind it. Its focus on solving the interoperability issues with blockchains has endeared it to many in the space. However, it continues to make an improvement to its network. It is still a relatively young project, but its price has grown, and it seems to have the potential for more growth. It is an open-source project and has created a platform of connectivity for future present and past blockchain projects.