If you are considering investing in the Polkadot (DOT) cryptocurrency, it is worth learning more about this project. Polkadot is an innovative cryptocurrency that focuses on creating conditions for communication between different blockchain networks. In this text we present fundamental information about Polkadot and describe how you can purchase DOT tokens.
What is worth knowing about Polkadot?
Polkadot is one of the top cryptocurrencies in terms of market capitalization. It is a project that was created as a blockchain platform to provide interoperability between different blockchains. It is a unique project because it solves the problem of scalability and communication between different blockchain networks.
Polkadot is a secure, scalable and decentralized multi-chain network, which was developed by Gavin Wood, who is a co-founder of Ethereum, among others. Later, Wood was joined by several other key people who contributed heavily to the creation of Polkadot (including Robert Habermeier and Peter Czaban). Ultimately, Polkadot is the product behind a non-profit organization called Web3 Foundation.
As a result, a whitepaper was released in 2016, and an ICO fundraiser was launched a year later, raising more than $140 million.
Polkadot provides protocols that enable communication between different blockchains. Polkadot uses so-called sharading and has a built-in mechanism of “bridges” (from English “bridges”) which enables efficient exchange of data and transactions between different blockchain networks. What’s more, Polkadot allows you to create your own blocks (parachains), which are independent blockchains and can be tailored to your specific needs (e.g. for building decentralized IoT or DeFi solutions).
The currency of the Polkadot network is the DOT. However, the smallest unit of DOT is the Planck. The DOT cryptocurrency is used to pay transaction fees and enable network management. It is worth noting that the supply of DOT is unlimited, and this in turn causes an inflation phenomenon of about 10% per year.
To coordinate the Polkadot network, an innovative Nominated Proof-of-Stake (NPoS) consensus mechanism is used, which combines features of Proof of Stake (PoS) and Delegated Proof of Stake (DPoS). This means that the network is secured by staking performed by validators similarly to PoS. In contrast, the specifics of Polkadot mean that validation is performed within the Relay Chain and within parachains. In addition to validating transactions, the consensus allows for community participation in network management.
It is worth noting that Polkadot is not a direct competitor to Ethereum in terms of providing smart contracts. Nevertheless, it too provides infrastructure for decentralized application (dApp) developers. De-Fi applications and digital collectibles (NFTs) are being developed based on Polkadot.
Polkadot is considered one of the most important platforms in the cryptocurrency ecosystem. It is a technology that combines various cryptocurrencies and blockchain networks into one cohesive ecosystem, so according to some opinions, the development of Polkadot could significantly affect the future of the blockchain industry.
“Polkadot how to buy” are buzzwords that are often searched for by people planning to buy DOT tokens. To meet this in the following text we present where to buy polkadot.
How to buy Polkadot (DOT) cryptocurrency on the Bybit exchange?
You can buy Polkadot cryptocurrency on many different cryptocurrency exchanges. Among them, on the Bybit exchange. In order to purchase DOT, it is necessary to create an account. To do this, just click the “Sign Up” button in the upper right corner of the page and fill out the registration form.
After successful registration, you can make a deposit. To do this, click on the top “Buy Crypto” and choose a convenient form of payment. You can choose from “One-Click Buy”, P2P Trading, deposit in cryptocurrencies and deposit in fiat currencies. Choosing a deposit in fiat currencies, the payment intermediary is ZEN. On the other hand, by clicking on the options called “One-Click Buy” we have a choice of various intermediaries (including Google Pay, Revolut, Wise, etc.) and credit card.
For example, by choosing One-Click Buy options, we can directly buy Polkadot cryptocurrency (DOT) for zlotys (PLN) from our credit card.
How to buy Polkadot (DOT) cryptocurrency on OKX exchange?
How to buy Polkadot on the OKX exchange? Buying DOT on the OKX exchange is just as intuitive as on the Bybit exchange. Here, too, you need to register first. The main difference is that at the end you have to enter the verification code sent to the email address or phone number you provided in the form. In addition, your identity is also verified on the basis of an identity document.
After successful registration and verification, click “Buy cryptocurrency” in the top menu and choose a convenient payment method. The options to choose from are payment by credit card or payment through third-party payment intermediaries. As an additional alternative, you can buy funds from other users within the P2P platform.
For example, by choosing to pay with a credit card, you can buy DOT cryptocurrency directly with zlotys (PLN).
Thus, on both Bybit and OKX you only need a credit card to purchase DOT. Besides, in addition, both these platforms provide the possibility to purchase funds using various payment intermediaries.
What are the other ways to buy Polkadot cryptocurrency (DOT)?
You can buy Polkadot cryptocurrency on various cryptocurrency exchanges. Besides, an alternative way can be to buy DOT at some cryptocurrency exchange offices. Besides, there are entities that sell cryptocurrencies, including on various messengers. However, it is always necessary beforehand, if possible, to check the authenticity of the entity from which you are buying currency.
How to buy Polkadot cryptocurrency without going through the KYC procedure?
Some cryptocurrency exchanges do not require going through the KYC procedure. An example is the previously mentioned Bybit platform, which allows you to trade cryptocurrencies without verification (provided that the withdrawal value does not exceed a certain value – so far it has been the equivalent of 2 BTC).
In addition to exchanges that do not require KYC, the solution is some bitomates and cryptocurrency exchanges, which sometimes do not require going through the KYC procedure. However, this is not a rule, as more and more such places impose mandatory verification. Besides, it is important to remember that not having to go through KYC is almost always possible only up to a certain amount (in the case of bitomats, as a rule, it is only a few thousand zlotys). Therefore, before using devices of this type, it is worth checking first what the current policy of the bitomat/cantor operator is regarding KYC verification.
Where to hold Polkadot cryptocurrency after purchase?
Some people choose to store funds on an exchange. However, it should be noted that according to well-known recommendations, a more recommended strategy is to keep long-term funds on so-called cold wallets. We are talking about portfolios based on the blockchain network, which do not need constant access to the Internet to operate. Such a solution makes the wallet much less vulnerable to possible hacking attacks. Popular cold wallets include Ledger or Trezor, for example.
