Beginner’s Guide to Buying DOT Cryptocurrency Coins on Polkadot Networks

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Anyone who has been following cryptocurrencies and blockchain for a long time is certainly familiar with the Polkadot network. The network has the potential to bring revolution in the already revolutionary blockchain technology.

The Polkadot network was founded by Gavin Wood, co-founder and former CTO of the Ethereum blockchain network.

In a nutshell, the Polkadot blockchain network has created an interoperable blockchain system. The network consists of a primary relay chain which obtains the security layer and normalizes all connected networks through its Parachains. These Parachains can modify their consensus mechanism, which is currently Proof of Stakes by default.

Parachains can also run decentralization applications on their own, create new tokens, and are also capable of creating their own network rules. More importantly, the number of Prachains is limited and they can only be distributed by auction.

Talking about the utility cryptocurrency used by the Polkadot network is DOT. It holds the capabilities of being a governance token and is also used for various public services on the network such as payments, exchange, value transfer, etc.

DOT is considered an inflationary cryptocurrency because there is said to be an unlimited supply of coins. However, there are currently around 1.1 billion DOT coins, of which over 987 million are in circulation everywhere.

The DOT coin has seen immense growth over the past couple of years. The reasons were the popularity of the Polkadot network and its problem-solving revolutions bringing blockchain technology. DOT was trading at its lowest price of $2.69 in August 2020, which showed exceptional growth and reached as high as $55 through November 2021.

At the time of writing, the current price DOT is trading on is $18.5.

Do this to buy DOT coins from Polkadot networks

Since cryptocurrencies are not real money, they are in digital form. Although crypto is decentralized and not under the control of any intermediary authority, you still need an exchange or trading platform to buy them.

Benefit from an adapted exchange platform

When you fully decide to enter the Polkadot network, you need to purchase its native DOT cryptocurrency. To buy or trade DOT coins, you need a trading platform. You can choose the exchange of your choice from the many options available; consider some factors when choosing for yourself.

The exchange must be secure after all, and it will manage your capital; it should be easy to use, keep in mind trading fees on the platform, availability in your region, etc.

Although Polkadot is available and listed on almost all major cryptocurrency exchanges be it Binance, Coinbase, Bitfinex, FTX, Kraken and many more. You have a variety of exchanges to choose from and do it according to your convenience.

Create your account on the trading platform

When you are done with the selection of the exchange platform, now is the time for you to make an official presence there. The process may vary for different exchanges, but more or less it is the same.

For this, you need to register and create your account by providing personal information, in some cases KYC formalities, adding bank details so that the exchange directly deducts the amount each time you make a cryptocurrency purchase.

Everything has been set up for you to buy DOT parts

Now, when you create an account on the exchange platform and add your bank details, be it a bank account directly, a debit or credit card, whatever, you are ready to make purchases in your favorite cryptocurrency.

When you buy DOT coins, you can get different options from the assets in exchange if you want to get Polkadot coins. If you are new to crypto and only have a fiat currency such as US dollars, you can easily choose the option and continue.

Once the process is complete, the amount from your bank account will be deducted and DOT coins of the exact amount will be added to your exchange account. Now, if you want to keep it with you for added security and, of course, your authority, you can opt for crypto wallets that allow you to keep your cryptocurrency just like you keep your money in your wallet.

Warning

The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only, and they do not constitute financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.

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