Cryptocurrencies have been at the center of many discussions and debates on the state and federal levels in the United States. As a result, several state governments have proposed and passed laws and regulations concerning blockchain technology and cryptocurrencies.
Colorado is among some US states that hold a crypto-friendly stance. In 2019, Jared Polis, the state’s governor, signed the Colorado Digital Tokens Act into law. This means blockchain-based cryptocurrencies, including Polkadot, became exempt from the state’s securities regulations.
However, if you’re thinking about collecting DOT coins, you should understand how it works and what the process entails. The following article will guide you through all the Polkadot intricacies and explain how to purchase DOT in the Centennial State. Let’s dive in.
What Is Polkadot (DOT)?
Polkadot isn’t your typical cryptocurrency. Although it relies on blockchain technology, Polkadot aims to serve a higher purpose — to create a bridge between various cryptocurrencies and give users more control over transactions.
So, even though it’s not unique in its nature, Polkadot introduces new possibilities to crypto buffs all over the world. Thanks to various benefits and an innovative approach, Polkadot and its native currency, DOT, have become a focal point of discussions with investors looking to purchase it.
Polkadot is often referred to as “Ethereum killer” due to its potential and steadily-growing popularity. Moreover, these two cryptocurrencies share many similarities, probably because Ethereum’s creator, Gavin Wood, played an instrumental role in creating Polkadot.
However, they are different in one critical aspect — Ethereum relies on a closed system, while Polkadot focuses on the Web3 adaptation and cross-chain application.
Polkadot has been around since 2017 and is currently among the top ten cryptocurrencies globally, which speaks volumes about its ever-growing popularity and unique purpose.
Besides Gavin Wood, two people played a pivotal role in Polkadot’s creation — Robert Habermeier and Peter Czaban. Habermeier has a background in blockchain, cryptography, and distributed systems research and development, while Czaban is the Technology Director of the Web3 Foundation.
With their expertise in the field, the trio aims to create an entirely decentralized Polkadot network and give complete control to the users. While other cryptocurrencies have failed to achieve it, Polkadot has been successful thanks to its parachains (parallel chains). Apart from processing various transactions and chains simultaneously, this feature also allows users to create custom blockchains and connect them to the main Polkadot framework.
Last but not least, Polkadot supports different transaction types — from DOT coins to data or assets. That’s why we can say that Polkadot is more than just a cryptocurrency — it’s an open network that gives its users plenty of opportunities.
What Do Polkadot Numbers Say
We previously touched upon the fact that Polkadot is currently among the ten most popular cryptocurrencies in the world. However, it’s gone through ups and downs like any other cryptocurrency, its price ranging between $3.9 in August 2020 and $53.8 in April 2021.
Currently, the DOT price floats around $22 while the market cap exceeds $22 billion. As for the circulating supply, DOT coins will soon hit the one billion mark. In August 2020, Polkadot went through redenomination that increased the number of coins every investor had by a factor of 100. To avoid using small decimals, the redomination occurred, and all investors profited nicely from the change.
Why Purchase Polkadot?
Polkadot is highly volatile due to its nature. However, DOT’s price can change incredibly fast, mainly because it’s a new crypto network and has yet to establish steadier growth. If you’re interested in making a larger profit, you should invest in it and hold the coins for a while, just to see how the price changes.
Another reason why Polkadot is attracting attention is because of its unique business model. Besides making simple DOT transactions, users can also transfer various data and assets via parachains.
What’s more, those who own and stake DOT can cast their vote and help implement Polkadot network upgrades and changes. Each vote is proportional to the amount of DOT coins they stake.
Finally, Polkadot was created by people with strong reputations in the crypto world. Even though it’s impossible to predict the future of this cryptocurrency, having such big names operating behind the scenes offers a sense of security, which not many crypto coins can offer.
Where to Buy Polkadot in Colorado?
Thanks to a regulated CO cryptocurrency market, users don’t have to sneak around to buy Polkadot — they can do it through proper channels. Currently, those who want to purchase DOT have two options — established crypto exchange platforms or direct transactions between the seller and buyer. Let’s look at both options in greater detail.
Centralized Cryptocurrency Exchanges
These exchange platforms are standard in the crypto world, as they offer secure and fast ways to purchase or sell crypto coins. Most of them support dozens of different tokens, including DOT.
If you’re in Colorado and considering buying DOT via exchange platforms, you should check out the most popular ones, like Coinbase, Kraken, Gemini, and Binance.
However, the number of options might make it challenging to find the right one, especially if you’re a beginner. Looking into the following aspects will help you decide which crypto platform is the right one:
- Coin availability — The first thing you should do is see whether DOT is among the available coins. Choosing a platform that supports various crypto coins usually means it’s a safe and trustworthy site.
- Presence in Colorado — Colorado residents might not have access to some exchange platforms. Make sure the one you’ve got your eye on is accessible from the Centennial State.
- Security — Before you even begin the registration process, you must ensure the exchange employs proper security and privacy measures. It’s good to check out whether the platform has faced security breaches or problems in the past.
- User interface — If you’re a newbie, you’d want easy access and intuitive design to make the entire process simple and hassle-free.
- Fees — Regardless of the platform you choose, you’ll experience conversion or transaction fees. So, even though you can’t avoid them, you should opt for an exchange that doesn’t impose staggering charges.
- Limits — Most exchange platforms set limits on how much you deposit, withdraw, buy, or sell. Make sure you have that information before deciding which platform to use for the DOT purchase.
- Payment options — Since exchanges allow you to convert fiat currency into crypto coins, they support various banking options. The most common choices include e-wallets, like PayPal, bank transfers, and credit/debit cards.
- Reputation — Do a deep dive into the platform’s online reputation, scroll through forums, and read users’ feedback. That way, you’ll understand what to expect from the exchange.
Acquiring Polkadot Directly
Apart from buying DOT on exchange platforms, you can choose another option — purchasing directly from a person willing to sell. It’s a lot simpler and easier than finding a reputable exchange platform, but it’s also more dangerous.
Although you can strike a fantastic deal, you can also run into a scammer and lose everything. So, it’s a good idea to buy DOT from someone you know and trust. If that’s not an option, try to do the transaction in a public place.
Step-by-Step Guide to Buying Polkadot in Colorado
The best and safest way to buy Polkadot in Colorado is through exchange platforms. Although they vary in design and interface, these platforms serve the same purpose, meaning the process of buying DOT is usually the same.
Here’s a rundown of the necessary steps you’ll have to complete:
- Choose a platform based on your needs and preferences.
- Register an account by completing the form with the required information.
- Find a suitable crypto wallet where you’ll store DOT coins.
- Make a deposit using one of the available payment methods and pay close attention to the transaction and conversion fees.
- Purchase the desired number of DOT coins and wait for the transaction to be complete.
- That’s it!
There you have it — a complete guide to buying Polkadot in Colorado. As you can see, getting ahold of DOT tokens isn’t difficult for the residents of the Centennial State. However, this was just a simple introductory guide to point you in the right direction.
If you’re serious about investing in Polkadot, you’ll have to do a lot more reading and understand how the market works. That’s the hard part — once you cover that, it’s smooth sailing. Before you know it, you’ll be a proud owner of DOT coins.