How To Buy Polkadot (DOT)
- Real Vision
- November 9, 2021
- 12:13 PM
As one of the top cryptocurrencies in market capitalization, Polkadot’s token, DOT, can be purchased at various places where cryptoassets are sold or traded. Several large crypto exchanges such as Binance, FTX, Kraken, Huobi and Bitfinex have listed the DOT token. But, as DOT is not running on the Ethereum blockchain, large DeFi exchanges such as Uniswap or SushiSwap don’t support DOT swaps yet.
Why buy Polkadot (DOT)?
Here’s a quick breakdown of what Polkadot aims to do. It has set out to solve difficulties faced by isolated blockchains. These solutions include innovative concepts for scalability, interoperability, governance, and blockchain code updates. These improvements over traditional blockchains have earned Polkadot the nickname the “Ethereum killer.” Of course, Polkadot is not the only coin touted as such. But Polkadot is aiming to create a decentralized web, Web 3.0, and its network of connected blockchains is the key for it.
Should Polkadot be successful in attracting blockchains to connect to their network and thereby creating an interconnected web of specialized blockchains capable of exchanging data with each other, it could revolutionize the way DeFi is used and provide massive benefits to the crypto space. Such success would likely lead to a strong demand in DOT tokens and eventually in a substantial increase in the DOT price.
Read the guide: What is Polkadot?
Where to buy Polkadot?
The DOT token is listed on several large crypto exchanges such as FTX, Kraken, Huobi and Bitfinex.
To open an account with one of these exchanges, you’ll need to sign up and identify yourself. The process is straightforward and similar to that of an online brokerage. You will be asked to provide information such as your name, address, an official public document (passport), and a proof of address (utility bill). Usually, this process takes only a couple of minutes.
Once you have the documents submitted, it will take 1 to 2 business days for your account to be verified and fully operational. Be sure to enable 2-factor authorization and other safety features (such as delayed withdrawals) when opening the account. This ensures that unauthorized access to your account and funds is significantly more difficult.
As an alternative, you can buy DOT tokens directly in a wallet. For example, Trust Wallet allows for DOT purchases within the app through a third-party provider.
You can also buy DOT tokens over decentralized exchanges (DEX) such as Binance DEX or 1inch (only over BSC — Binance Smart Chain).
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How to secure your DOT?
As with all cryptoassets, the safest way to store them is in your own wallet for self-custody. Officially supported wallets are listed on Polkadot’s webpage. MetaMask has announced it will soon add support for the Polkadot network as well. Other wallet providers, such as Trust Wallet, allow storage, sending, and receiving of DOT too. Several more wallet services are expected to follow suit.
Alternatively, you can keep the DOT token on a centralized exchange. This is certainly the easiest way, as no extra transaction to a wallet is necessary. But be aware: Storing your cryptoassets on centralized exchanges exposes you to third-party risk. Should the exchange be hacked, go bankrupt, or be fraudulent, the tokens could be lost beyond recovery.
And Finally...
As for now, the majority of DeFi services are designed to support ERC-20 and ERC-721 tokens running on the Ethereum blockchain. As DOT is running on the Polkadot blockchain, most of these services are not yet compatible with the DOT token. As interoperability between blockchains is a crucial next step for the DeFi space, this is hopefully subject to change soon.
Interested in learning more? Polkadot co-founder Gavin Wood has been interviewed on Real Vision Crypto, the world’s premier crypto and digital assets video channel.
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