Cryptocurrencies are popular all over the US, and Alabama is no exception. At the moment, regulations defining cryptos are non-existent in AL, meaning the residents of the state are free to trade crypto — for now. This also includes Polkadot, an increasingly popular cryptocurrency that has attracted many investors worldwide.
If you’re looking to buy DOT easily on the internet while currently residing in Alabama, you’ve come to the right page.
This article will cover everything you need to know to purchase Polkadot from AL successfully. In the first part of the guide, we’ll focus on what Polkadot is and how its tokens work. After that, we’ll cover the specifics of buying DOT from Alabama. Read on.
Table of Contents
What Is Polkadot (DOT)?
Polkadot goes beyond being just a cryptocurrency. In the blockchain world, Polkadot is an entire protocol based on decentralized technology, similar to Ethereum. However, it goes one step beyond Ethereum, as its ultimate goal is to make different blockchains around the globe communicate.
In other words, it aims to bring the idea of Web 3.0 closer to the users by making it easy and convenient to transfer assets that are part of different blockchain networks.
This idea is not revolutionary, as several competitors work on the same solutions. However, Polkadot is one of the most prominent such projects. It has adopted a state-of-the-art approach that interested many investors in buying its native cryptocurrency — DOT.
The potential behind Polkadot as a platform is enormous, which is why many crypto and blockchain enthusiasts dare call it Ethereum killer. Even though Ethereum is currently more popular and accepted, there’s a reason to believe Polkadot could achieve such significance as well, thanks to its idea to connect blockchains. Increasing cross-chain capabilities means easy communication and transfers from different chains, which is the goal that everyone interested in blockchain dreams about.
So, what exactly makes Polkadot different from its competitors? One of the answers is the enormous processing power. Thanks to the unique underlying technology, Polkadot can process many transactions in a short period — much more than Bitcoin or Ethereum. Some projections state that Polkadot’s TPS will be 166,666, which is 2.5x as much compared to Visa, the fastest payment processor known at the moment.
In short, Polkadot has a great vision, has excellent processing power, and is easily scalable. On top of that, building custom blockchains has never been easier with Polkadot. That’s why so many people, including crypto enthusiasts from Alabama, have been eager to obtain DOT.
DOT has been one of the top 20 cryptocurrencies for a long time. Even though it’s not as popular as BTC or ETH, it definitely shares a fair number of investors. Its position often changes, and it’s currently the 11th most popular crypto.
The most important date for DOT was the middle of 2020, when it underwent redenomination, a rare instance where the overall worth of coins gets redefined. That’s why the price drastically varied throughout 2020 — from $6 to $55 within a year. Redenomination was mainly done due to technical issues, as the people behind Polkadot wanted to avoid dealing with small decimals. The total supply of DOT is north of one billion at the moment, with something less than a billion currently in circulation.
You can use DOT for trading, but owners also get a chance to stake it and govern the Polkadot platform, which uses the Proof-of-Stake method to achieve decentralization. Moreover, DOT is used for parachains bonding, something unique to Polkadot.
Why Buy Polkadot?
The primary reason to purchase DOT is the same as the reason for buying any other cryptocurrency — it’s highly volatile and offers a chance to make a quick profit if you engage in day trading. Thanks to the overall optimistic predictions about Polkadot, many investors want to play the long game and hodl the popular coin, waiting for its price to increase.
Finally, you can take some platform-specific actions as a DOT owner, which we mentioned earlier. The most important one is staking, meaning you can basically invest your DOT in Polkadot and get rewarded for doing so and taking part in the platform’s governance. Governing is easy, as you’re required to take part in some important decisions, and the power of your vote is directly related to the amount you staked.
By staking Polkadot, you’re paving the way for building a long-term income.
Where to Buy Polkadot in Alabama?
Those interested in buying DOT in Alabama have the same choices as in many other US states. They can either purchase it from an official cryptocurrency exchange or arrange a person-to-person exchange. This guide will focus on the former because the latter is insecure.
Centralized Cryptocurrency Exchanges
This type of exchange is pretty standard, as many such platforms are available to crypto enthusiasts in the US (and, subsequently, Alabama). Some of the most popular exchanges that offer DOT are Coinbase, Kraken, and Gemini, among others.
Centralized exchanges require users to open an account and verify their identity. There are several KYC procedures in place before you can start buying and selling Polkadot and other cryptocurrencies.
Of course, you can pick among several other crypto exchange platforms out there. If you choose to do so, you’ll have to pay attention to the following things (especially if you’re buying Polkadot in Alabama):
- Availability in Alabama — First of all, you need to check whether the exchange of your choice is available in your area.
- Accepted cryptos — Check whether the exchange accepts Polkadot and other cryptos you want to trade.
- User-friendliness — Check if you can easily navigate the platform and find the options you need.
- Security — The last thing you want is for the exchange of your choice to get hacked, so make sure to read more about the security protocols in place.
- Fees and commissions — All exchanges charge trading fees, but some are more expensive than others.
- Deposit and withdrawal options — Which fiat deposit and withdrawal methods could you use on the platform?
- Overall reputation — What are the others saying about the site? Is it reputable? Is it trustworthy?
- Trading limits — How much can you buy and sell over a certain period?
Buying Polkadot Directly in Alabama
Another way to purchase Polkadot is by finding someone willing to sell it and buying it directly from them, without using any third-party platform, such as a centralized crypto exchange. This method comes with no fees, and it’s up to your negotiation skills to arrange the price for the DOT you want to buy. However, this is a very insecure method, as you can easily get scammed.
Because of this, it’s essential to find people who you trust when buying DOT directly.
Step-by-Step Guide to Buying Polkadot in Alabama
Buying DOT isn’t any different from buying other cryptocurrencies. If you’re from Alabama, take a look at the following guide to purchase Polkadot quickly.
- Pick a crypto exchange — Select one of the exchanges you can access from Alabama without any restrictions.
- Get a Polkadot wallet — Before purchasing DOT, you need to find a suitable wallet to store your cryptocurrencies.
- Open an account — Become a member on the crypto exchange of your choice to buy DOT.
- Make a deposit — Use one of the accepted fiat payment options to transfer your fiat money to the exchange. You’ll use that money to buy DOT.
- Purchase DOT — Find an option to buy Polkadot, enter the amount you want to buy, and make the purchase.
- Withdraw Polkadot from the exchange to your wallet — After completing the purchase, DOT is stored in your exchange account. However, to make it 100% secure, we advise withdrawing it to your DOT wallet (unless you want to trade DOT further on the exchange).
Buying DOT in Alabama isn’t that difficult. Once you pick an exchange, you just need to open an account and deposit fiat funds before purchasing. What comes next is what matters, as you have to decide the best course of action with your newly acquired Polkadot coins. Are you going to hodl them or trade them further? Perhaps staking them is a better idea? It’s all up to you, so make your moves wisely.