Polkadot was created in 2016 and has been one of the fastest-growing cryptocurrencies since. In fact, only six years later, Polkadot ranks 9th on the cryptocurrency network in the entire world. Some experts have recognized its great potential, and they even argue it might become the Ethereum killer. This is because its value and blockchain developer community are constantly rising.
Delawareans are free to own and trade with Polkadot, just like people from all around America. However, before embarking on this cryptocurrency journey, one should have the ground knowledge of what Polkadot exactly is, where you can buy it, and whether it’s a good investment or not.
Stay with us until the end of this review, as we’ve gathered all the necessary information — from what Polkadot (DOT) is to how you can become its proud owner.
What Is Polkadot (DOT)?
Polkadot is not just a typical cryptocurrency. It is an open-source multi-chain platform created by the Web3 Foundation. It connects multiple blockchains and facilitates data transfer between them.
Its creator, Dr. Gavin Wood, is a co-founder of the Ethereum blockchain. Actually, Polkadot does work like Ethereum in some ways — it facilitates the sharing of data and smart contracts between multiple parties in a highly secure environment.
While Ethereum processes all the transactions initiated on the platform by relying entirely on a single blockchain, Polkadot supports parachains (individual blockchains simultaneously running within the Polkadot network). As a result, Polkadot is more scalable, providing low-weight fees, zero delays, and faster transactions.
Polkadot aims at solving the problems that all the systems based on the blockchain experience. Its main goal is to develop a sophisticated user-driven governance system where the ultimate power lies in the hands of its users and everybody’s voice can be heard.
Moreover, it also strives to provide the users with an interoperability protocol. Namely, it allows any assets or data — not just tokens — to be transferred across the Polkadot network, and it gives the users the ability to interoperate with varieties of blockchains. This is one of the reasons why people are driven toward Polkadot.
Another significant feature it excels at is platform security. All interacting blockchains within the platform utilize security features that enable fast transaction exchange. However, every blockchain remains independent while running on its governance model.
Unlike Bitcoin and Ethereum platforms that have been split multiple times by using forks (their community has split many times over disagreements), Polkadot integrates new features, fixes bugs, and utilizes upgrades without hard forks, thus eradicating the need for them completely.
What Do Polkadot Numbers Say?
In 2017, Polkadot released 10 million DOT tokens into circulation. Unlike Bitcoin, Polkadot has no limit on its total supply, and new coins are constantly being released at the annual inflation rate of 10%.
In May 2020, the DOT coin peaked at $6.30 but then fluctuated between $4 and $5 for the rest of the year. Then, in November 2021, Polkadot’s token value increased, reaching an all-time high of $53.88. The current value of this token revolves around $20, with a market cap of over $20 billion. The total circulating supply of Polkadot coins at the moment is 987 million.
Another important event in Polkadot history happened on August 21, 2020, when this token underwent redenomination, going from 12 decimal places (DOT old) to 10 decimal places (DOT). The community of DOT holders voted for this, and this day is now known as Redenomination Day. The community opted to change the DOT denomination by a factor of 100, which increased the DOT balance of each holder.
Why Purchase Polkadot?
Whether you should invest in cryptocurrencies (Polkadot included) depends on your investment goals and financial needs. You should bear in mind that there are no clearly defined reasons for investing in a particular coin. It is difficult to predict their next move due to high volatility and many factors influencing their price action.
On the other hand, here is why one should invest in Polkadot.
- Even though it is a relatively new cryptocurrency, the crypto market is convinced it has a huge potential to grow and sustain the uptrend.
- Since Polkadot uses the proof-of-stake (POS) consensus mechanism, you can buy and stake DOT tokens with the potential of doubling your income by reaping interest from staked tokens and value appreciation from increased Polkadot value.
Where to Buy Polkadot in Delaware
When it comes to purchasing Polkadot and other cryptocurrencies, people from Delaware have the same options at their disposal — they can either buy them from a reliable cryptocurrency exchange platform or directly from another DOT owner. We’ll touch upon both ways further on in this guide.
Centralized Cryptocurrency Exchanges
Cryptocurrency exchanges allow you to buy, sell, and trade cryptocurrencies. There are many things you need to consider when choosing the one that suits you best. Different exchanges employ different security measures and build their network and user experience in various ways.
Some of the most popular exchanges offering DOT coins are Coinbase, Kraken, Binance, and Gemini. If you reside in Delaware, we recommend checking these out.
Each exchange platform requires its users to register and verify their accounts before they are allowed to buy or sell their assets, which is a standard KYC procedure. You can also sign up at different exchanges to compare them and see which one suits you best.
To help you separate the wheat from the chaff, we’ve made a list of the crucial things to consider before opting for one crypto exchange platform.
- Availability in Delaware: People from Delaware may not have access to certain exchanges. Make sure that the exchange you’ve opted for is available in your area.
- Security and safety: This is by far the most crucial factor. The exchange has to be able to deal with any kind of malware or hacker’s attack and utilize state-of-the-art firewalls.
- Supported tokens: It is essential that the exchange you choose support Polkadot tokens.
- Method of purchase: Payment methods vary from exchange to exchange. They usually feature bank deposits, Paypal, credit and debit cards, and cryptocurrencies. You should also check how long the purchases take to complete.
- Fees: Most cryptocurrency exchanges impose two types of fees — payment fees and trading fees. The latter depend on the amount of cryptocurrency being traded and decrease with the rise in volume. Naturally, fees may differ among exchanges.
- User interface: The interface should be easy to navigate both on a desktop and a mobile device.
- Liquidity: Liquidity is vital, as it enables faster transactions without dealing with price volatility. Additionally, you should check if locked-in pricing is available, as it gives you a guarantee that the price at the time of your transaction will remain the same. Also, look for the exchanges with higher trading volumes, as liquidity varies among different trading pairs.
- Limits: Exchanges impose limits on how much you can sell and buy over a certain period. Make sure to check that before opening an account.
- Reputation: Conduct thorough research on a certain exchange, read other people’s feedback, and make sure that it hasn’t experienced any security breaches in the past. Only then will you know what to expect.
Acquiring Polkadot Directly
Another way to buy DOT coins is directly from a Polkadot owner. However, this can be way too risky, and you can easily get scammed. But in the event of an exchange like this, you might want to pay attention to a few things, just to be on the safe side.
For example, buy DOT coins from a person you trust, and do your homework by educating yourself on the value of DOT tokens. Also, finalize the transaction in a public place.
Step-By-Step Guide to Buying Polkadot in Delaware
If you want to become a DOT owner, we’ve made a short step-by-step guide that will help you achieve that.
- Get a Polkadot wallet: You need a wallet to store your DOT tokens and keep them secured. The safest way is to head to the official website of this token and choose one of the supported wallets.
- Pick a reliable crypto exchange: Pick one of the exchanges we’ve talked about earlier, or find the one that suits you best. Just make sure it covers all the important aspects we’ve mentioned previously.
- Create an account: Identify yourself by providing all the necessary documents, including your name, an official public document, and proof of address.
- Make a deposit: Choose one of the available options to deposit funds, and enter the desired amount. Pay attention to conversion and transaction fees as well.
- Buy Polkadot: Find the option to buy Polkadot, click on the Buy button, and purchase the desired amount of coins.
- Withdraw DOT tokens from the exchange platform to your wallet: The purchased amount of Polkadot tokens is now stored in your exchange account. You can withdraw them to your wallet (for the extra layer of security) or leave them there, depending on what you plan to do with them.
Although nothing is certain — especially due to the volatility factor — there is no doubt that this DOT token is gaining prominence as a digital currency in the crypto world. It offers excellent features, and it has performed exceptionally well so far.
We hope this guide has helped you understand what Polkadot is and how you can buy it. Now, you have to do your own research and decide whether it is a good investment or not.