Alaska may be a faraway state from the rest of the US, but it doesn’t mean the people there aren’t interested in investing and using cryptocurrencies. The same is true for Polkadot (DOT) — the unique crypto that lets you transfer any type of data using its network, not just the actual DOT coin.
With that in mind, you need a guide that will help you learn how Polkadot functions, and more importantly, how and where you can buy it if you live or are currently based in Alaska.
Even though Alaskans are free to buy and use crypto like all other Americans, there are a few things that you need to know to facilitate the whole process. They will make buying and using Polkadot much more manageable, so keep reading.
Table of Contents
What Is Polkadot (DOT)?
Polkadot is not just a cryptocurrency but an entire protocol that works using decentralized technology, similarly to how other modern cryptocurrencies function, most notably Ethereum.
In other words, Polkadot is an open-source protocol that lets you transfer the official DOT token and any other asset, data, or information through the blockchain technology that powers this cryptocurrency.
This technology aims to create a fully decentralized web, which is undoubtedly an important and possibly even unattainable goal. However, that doesn’t negate the fact that Polkadot has the technical aspects, as the crypto is more like a smartphone or computer app. Whether or not the people are willing to use it is a whole different matter.
Developers and others can create almost any app on Polkadot, similar to what people do with Ethereum. Even though Ethereum is more popular, Polkadot has more power. It can process a lot more transactions than Bitcoin and Ethereum, so it has the potential to be the connecting power for various blockchains.
Some would go as far as to say that Polkadot could even be the crypto that helps the idea of Web 3.0 become more approachable to Internet users. Web 3.0 is a novel idea that’s still nothing more than talk. Still, many experts believe that we are headed in the right direction — an interconnected and fully decentralized Internet that works on the blockchain.
The token behind the Polkadot technology is the Polkadot or DOT token, which is the actual cryptocurrency based on this blockchain and the one you’re looking to buy as you’re reading this.
DOT has three purposes:
- Governance — Every Polkadot token holder governs the protocol. This makes it completely decentralized, and as a user, you get to participate in significant events like fixes and upgrades of the whole network.
- Staking — If you stake your tokens, you’ll get rewarded for your effort. However, you need to behave honestly to become the beneficiary of the rewards the Polkadot mechanism sends.
- Bonding — A type of proof of stake lets the network add new parachains to the Polkadot network and remove old or unused ones.
DOT is currently in 10th place of top cryptocurrencies globally, and it’s almost always in the top 20, which makes it one of the leading cryptos on the planet. It’s usually priced between $10 and $55, but like all other cryptos, it’s highly volatile, so there’s no telling where the price will go at any given moment.
The market cap of DOT is close to $20 billion, while the circulating supply of DOT coins is close to 1 billion coins. There is no max supply, so DOT miners are free to continue mining new tokens as much as they want.
Why Should I Buy Polkadot?
There are many reasons why more and more crypto investors are turning toward Polkadot. One of the main motivations behind their reasoning is the interactivity of the blockchain. Developers are free to use Polkadot to create new apps and new blockchains, which is not something you can easily do elsewhere.
Moreover, Polkadot is a strong token, one that’s been with us for more than half a decade. This is reason enough to show that it’s here to stay and that it can be a worthwhile investment to crypto investors looking to diversify their portfolios.
Naturally, you should keep in mind that the price is highly volatile and that the token isn’t backed by a tangible asset. Moreover, there’s always a tiny chance that Polkadot will be ruined by a new competitor that will end up overtaking it with similar and potentially better technology.
If you’re willing and ready to take these risks, you should certainly buy Polkadot, especially if you believe in what it’s trying to achieve.
Where Can I Buy Polkadot in Alaska?
As the case goes in most other states in the US, you can buy Polkadot on centralized cryptocurrency exchanges or buy it directly from a person who has DOT tokens and is willing to sell them.
Let’s cover both options, so you know what to expect.
Cryptocurrency exchanges, most notably the centralized ones, are marketplaces for buying various cryptocurrencies. They are also the most popular places for buying crypto, and Polkadot isn’t an exception.
It’s worth mentioning that there are also decentralized exchanges, but these are far fewer in number and popularity, and you’ll be hard-pressed to find one that works in Alaska and has Polkadot.
Even though centralized crypto exchanges aren’t always considered a good thing since crypto is supposed to be decentralized, that being said, they are still the only reasonable choice for buying coins on a marketplace.
If you want to buy Polkadot, the good news is that most notable exchanges, including Binance and Coinbase, offer the token. What’s more, both of these exchanges are fully operational and licensed to work for Alaskan residents.
If you decide to create an account, here are a few things you need to consider:
- Accessibility in Alaska — The main thing you need to check with every exchange is that it works in Alaska.
- Availability of DOT tokens — The other main thing to inspect is that DOT tokens are available for buying. It’s also important to see that there are enough of them, so you don’t have to wait for days or weeks to get your hands on the tokens. In other words, you need to check that the liquidity is good.
- Other cryptos and fiat currencies — The more of both options the exchange has, the more trading options you’ll have. Maybe you want to buy DOT with dollars, Bitcoin, or some entirely different cryptocurrency.
- Licensing — The exchange you will use must have a valid license to operate in the US and Alaska specifically.
- Safety — Most major exchanges are entirely secure, but it’s still good to do your own research, especially on past breaches and how the exchange has dealt with them.
- Payment methods — To buy DOT tokens, you need to have a way to deposit the currency you want to use for purchasing. That’s why the exchange must have enough supported payment methods.
- Fees — Fees are an inherent part of centralized exchanges. They are free to use, so fees are the only way these platforms earn money. However, some have lower transaction and withdrawal fees.
Buying Polkadot Directly From Someone
Buying from someone is a lot simpler than doing it on an exchange, at least if you want the absolute freedom of purchasing DOT tokens. However, you still need to find a willing seller and make a deal that benefits both of you.
This means that you have to do it with someone you trust, and if that’s not possible, make a safe trade to avoid getting scammed. It’s best to do it in person in a public place. If you can’t do it yourself, then consider finding a mediator or a way of trading that will ensure you get the assets you’re buying.
How to Buy Polkadot in Alaska — Step-By-Step Guide for Buying DOT Using an Exchange
Let’s take a look at each step you need to take to buy Polkadot at any crypto exchange:
- Get a Polkadot wallet — Get a crypto wallet that lets you store DOT tokens. Pick carefully for near-perfect security. Create an account and set it up, so it’s ready for use.
- Pick an exchange — Choose one from the many we recommend, or find one on your own based on the aspects we’ve described in the previous section.
- Create an account — Complete the registration and account verification process on the official website of the exchange you’ve picked.
- Make a deposit — Select one of the available payment methods, and deposit the amount you’ll use to buy DOT tokens. Make sure it’s enough and that it accounts for fees and exchange margins.
- Find the adequate pair — Find the USD to DOT pair or any other pair that covers the currency you’re selling and the DOT token. Each exchange makes this step relatively easy, as you only need to type in what you’re looking for.
- Buy the desired amount of DOT — The remaining step is to input the amount you want to buy and complete the transaction. Then you’ll be a proud owner of Polkadot and a part of the Polkadot network.
In summation, buying Polkadot in Alaska is pretty simple, as you’ve seen from this guide. The biggest part is deciding whether or not to buy the token and which exchange to use. Once you have that part covered, the rest is relatively easy.
When you purchase DOT tokens, you can store and keep them long-term, trade them for some other crypto, stake them, and even sell them to make a profit. The choice is entirely yours.