There’s considerable interest in buying Polkadot in the US, including Connecticut. If you’re currently in the Constitution State and you’re looking for a way to purchase DOT quickly and easily, you have landed on the right page.
CT is specific as it recognizes cryptocurrencies as virtual currency, similar to fiat currencies. Therefore, the crypto sphere is well regulated, meaning you can buy and sell cryptos, just like you would exchange money. Because of that, you will need to acquire a money transmitter license.
In this guide, we’ll explain what Polkadot is and compare it to other similar projects. Moreover, we’ll analyze DOT and how it ranks among other cryptocurrencies and explore ways to purchase the virtual currency in CT.
What Is Polkadot?
Polkadot is, above all, a platform similar to Ethereum. It is often called the Ethereum killer because of the functionalities it offers. Namely, its primary aim is to bridge the gap between different blockchains, which would allow everyone to trade blockchain-based assets, such as cryptocurrencies, more efficiently. In other words, it’s an interoperability protocol that bridges the blockchain gap.
Why is this important? Well, if you’re on Ethereum and using one of the ERC-20 tokens, you’re able to swap them easily with other Ethereum-based cryptocurrencies, but it’s more difficult to exchange them for Bitcoin.
But the blockchain world has gotten much bigger, as there aren’t only Ethereum and Bitcoin blockchain networks — there are hundreds of them, and they all need to communicate with each other.
Therefore, you can think of Polkadot as the platform that aims to make a network of blockchains, essentially creating the basis for Web 3.0 — a decentralized internet.
If you’re interested in investing in Polkadot, you probably understand the potential it creates. Even though it’s still essentially a young platform, it has turned many investors’ heads with its primary goal.
The essential part of the Polkadot ecosystem is its native cryptocurrency, also called Polkadot but using the DOT ticker symbol (which is how many investors distinguish between the platform and its crypto).
Apart from trading, there are several other things DOT can help you with.
First, you can take part in governing the Polkadot network as a DOT owner, but you’ll need to stake it first. This leads us to the second benefit — being rewarded for staking DOT and participating in the platform’s governance. Finally, Polkadot can assist you when creating new blockchains on the network.
How Does Polkadot Rank?
Let’s focus on the Polkadot as a cryptocurrency to understand how it ranks better.
Right now, Polkadot is the 11th most popular cryptocurrency in the world, according to CoinMarketCap. However, the crypto world is rapidly changing, so DOT’s position may shift a couple of places up or down by the time you read this article. What matters is that the crypto has been on the top 20 list for quite some time, and there’s an increasing number of people interested in joining team Polkadot.
Since December 2020, DOT’s price has been shifting a lot, meaning the token is affected by the overall volatility of the crypto sphere. The recorded all-time high is $55, which DOT managed to reach on November 4, 2021.
As of February 2022, there is more than 1.1 trillion DOT in total, with around $987 million in circulation.
Why You Should Buy Polkadot
There are several reasons why you should consider purchasing DOT in Connecticut.
First, it’s a popular cryptocurrency affected by volatility, much like BTC or ETH. Therefore, you can make a quick profit if you buy low and sell high.
Next, Polkadot has a very attractive business model and big goals for the future. So far, the team behind DOT has proved to be dedicated and successful, meaning they have already established a reputation, which is why many people around the globe want to invest in DOT.
Finally, you can be part of the Polkadot family by staking the coin and taking part in governing the platform, which will, in return, result in rewards. In a way, you’ll be able to achieve passive income, although some activity will be required from you (such as voting in polls, for example).
Where to Buy Polkadot in Connecticut?
Since the crypto sphere is already regulated in Connecticut, you’ll have to stick to centralized cryptocurrency exchanges to purchase your DOT. Alternatively, you can also consider buying DOT directly from someone, although we advise avoiding that. Let’s check out the two methods in closer detail.
Centralized Cryptocurrency Exchanges
Centralized exchanges are the most popular way to buy cryptocurrencies in the US, including Connecticut. These are online platforms where you can place orders, trade cryptos with others, and even make direct purchases. There are many such exchanges, but not all are licensed in the US and available in Connecticut. Some of the most popular crypto exchanges available in CT are Coinbase and Kraken.
There are many exchanges out there, and if you set to pick the best one for you, pay attention to the following things:
- Connecticut availability — First of all, you need to check whether the platform is available and whether you can join it legally. Remember that the crypto industry is regulated in CT.
- Availability of Polkadot — Is Polkadot available on the platform of your choice? Can you trade it with other cryptocurrencies? What other cryptos, besides DOT, are available on the platform? These are critical questions to ask when reviewing available cryptos on an exchange.
- Fees and commissions — Exchanges charge fees for pretty much any trade you make, and it’s crucial to find one that offers reasonable fees and decent service.
- Security, privacy, and trustworthiness — The last thing you want is your funds to be compromised. Therefore, it’s vital to pick a Polkadot exchange that uses the latest security protocols and has a successful history of fending off cyberattacks.
- Payment options — To buy DOT, you’ll first have to deposit your fiat money, so check what deposit options there are before opening an account.
- Limits — See how much and how little you can deposit, trade, and withdraw on the crypto exchange of your choice.
- Liquidity — Make sure that you can buy and swap coins easily, meaning enough traders are using the exchange so that you don’t have to wait long after placing an order.
The other option you have is buying DOT directly from a person willing to sell it. According to Connecticut law, you still need to have your license for doing that.
Overall, we wouldn’t advise buying DOT directly from someone, as there’s a considerable chance of being scammed and never actually getting the DOT you paid for. Therefore, we suggest sticking to centralized crypto exchanges.
Step-by-Step Guide to Buying DOT in Connecticut
Purchasing Polkadot isn’t rocket science. Here’s a step-by-step approach that should help you obtain your first DOT using a centralized crypto exchange. Please remember that each exchange is unique, so the entire process might look a bit different. Still, the guide below should cover most of the steps you need to take.
- Obtain a cryptocurrency wallet — Get a wallet where you’ll store your Polkadot crypto after buying it.
- Chose a crypto exchange — Select one of the available centralized cryptocurrency exchanges that are available in CT and accept DOT.
- Open an account — Go through the registration process to become a member of the cryptocurrency exchange of your choice.
- Deposit fiat money — Use one of the accepted payment methods to deposit your dollars to the platform.
- Purchase Polkadot — Find an option to buy DOT directly, enter the amount you’d like to purchase, and proceed.
- Cash out your DOT to your crypto wallet — Once you buy DOT, it is in your exchange balance. However, to be able to use it for staking and increase its security, you need to withdraw it to your Polkadot wallet.
To sum up, buying Polkadot in Connecticut is not a complex process, but you still need to take care of a couple of things before starting your trading journey. First, you need to obtain a money transmitter license, which is obligatory in Connecticut, and to find the best online cryptocurrency exchange for you.