Cryptocurrencies are regulated in Florida, which means they are recognized and defined. Therefore, using them for money laundering is a criminal act. To trade Polkadot or any other crypto in Florida, you must be registered and go through various KYC processes as an anti-money laundering precaution.
If you’re planning on buying Polkadot in Florida, make sure to learn more about the legal aspect of it.
In this guide, we’ll cover all you need to know on how to buy DOT in Florida. First, we’ll explain what Polka dot is and how it works. Then, we’ll focus on available options for purchasing the popular cryptocurrency.
What Is Polkadot (DOT)?
Polkadot is much more than a mere cryptocurrency. It’s an entire blockchain-based protocol with one major goal — to connect different blockchains worldwide and make the transfer of any type of data or assets easy and convenient. It’s definitely not the only platform working on the cross-transfer protocol, but it’s among the most successful ones. Furthermore, its cutting-edge approach has made many investors interested in buying the protocol’s native currency — DOT.
There’s lots of potential in what Polkadot is doing. One of the reasons why it’s called the Ethereum killer is because it has a huge potential to become just as popular as Ethereum. Many blockchain and crypto enthusiasts compare Polkadot to Etheruem. Still, the latter is a pretty closed system, whereas Polkadot aims to bring us closer to Web3 adoption with its cross-chain capabilities.
Apart from connecting different blockchains, Polkadot has huge parallel processing power, which means it can process many transactions at several different chains simultaneously, thus improving the protocol’s scalability. It’s also what makes Polkadot a great choice for building a custom blockchain — it can be done very quickly, and it takes minutes to connect it to the main Polkadot network.
All in all, Polkadot is a pretty powerful protocol, and there’s a good reason why many people are interested in buying it. It’s no secret that to understand how Polkadot works; you need to do in-depth research and have some technical knowledge. However, what matters in the grand scheme of things is that Polkadot aims to reshape and upgrade the blockchain space and bring us one step closer to Web3.
Polkadot has been one of the top 10 cryptocurrencies based on market cap for some time now. To be precise, it’s in 10th place based on popularity, but make sure to check the exact position if you decide to buy this popular cryptocurrency.
The token has reported an overall price increase, as many investors are interested in buying it. Mind you, it’s still nowhere as popular as Bitcoin or Ethereum, but it may prove to be a good investment in the long run.
The token’s price range has been drastically changing this past year — from $6 to $55. One of the important changes that took place in mid-2020 was the redenomination of the coin, which is something that doesn’t often happen. The main reason for redenomination was mainly technical to avoid small decimals.
Why Buy Polkadot?
First of all, Polkadot is highly volatile, like many other cryptocurrencies. Therefore, if you buy it and sell it at the right time, you can make a nice profit. If you’re more interested in the long game, you can hodl Polkadot and wait for a couple of years before selling it. If all goes well, Polkadot’s price should go up, but then again, it’s the crypto sphere, and nothing is really certain.
Another reason why people are interested in buying Polkadot is staking. Since the network runs on a proof-of-stake consensus algorithm, you can stake your DOT and get a chance to govern the protocol. In return, you’ll get rewarded with more DOT that you can later sell for other crypto and fiat money. Governing Polkadot isn’t really a full-time job, and you should focus on investing your DOT to gain almost-passive income instead.
Where to Buy Polkadot in Florida?
If you’re in Florida, you have one option — buying DOT at centralized cryptocurrency exchanges. Another way is to buy DOT directly from another person, but that’s not a common practice.
Centralized Cryptocurrency Exchanges
Centralized crypto exchanges are the most common way to buy Polkadot in Florida. Some of the more popular options available at the moment are Gemini, Kraken, Coinbase, and more.
To use these exchanges, you need to become a registered member, verify your identity, and deposit funds into your exchange balance. In other words, you need to go through a KYC process before you can buy Polkadot or any other cryptocurrency.
Suppose you decide to pick a cryptocurrency exchange on your own. It’s important to know what to look for.
Here are some of the major things to pay attention to when choosing the best exchange platform for you:
Availability in Florida — Before anything else, it’s important to check whether the exchange you’re reviewing is available and operates legally in Florida. Even though there are exchanges that operate in the US, some aren’t available in every state.
Accepted cryptocurrencies — Every exchange has a unique cryptocurrency portfolio. If you want to trade Polkadot for other cryptos (or buy DOT with another cryptocurrency), it’s important to explore all accepted digital currencies on the platform of your choice.
Ease of use — It’s no secret that some cryptocurrency exchanges are more difficult to use than others. If you’re a novice crypto buyer, aim for beginner-friendly ones. If you’re an experienced and active trader, feel free to go for the more complex ones.
Security — Every top-notch crypto exchange uses the latest security protocols to protect your money and sensitive information. Make sure to check security levels before opening an account.
Fees — All cryptocurrency exchanges charge fees when using their services. Some are more expensive than others, and it’s your job to find the best price-quality ratio.
Accepted payment options — If you’re buying Polkadot for the first time, you might need to deposit fiat money to your exchange balance to make the purchase. In that case, check out the payment methods you can use to fund your account.
Reputation — Make sure to check Reddit, crypto forums, and social media to learn more about the Polkadot exchange of your choice before joining it.
Limits — Each cryptocurrency exchange imposes limits on how much you can deposit, withdraw, and trade. This is also determined by your overall status as a user (for example, non-verified users often have very unfavorable trading limits).
Buying Polkadot Directly in Florida
This method includes finding someone willing to sell DOT and buying directly from them, thus avoiding formal exchanges. However, you must trust the other person 100% and be willing to take a risk if you choose this method, as scams are frequent with direct purchases.
Step-by-Step Guide to Buying Polkadot in Florida
Buying Polkadot in a crypto exchange is no different from buying any other cryptocurrency. If you have no prior experience, take a look at our short step-by-step guide.
- Select a cryptocurrency exchange — Pick one of the available platforms in Florida that accept Polkadot.
- Obtain a Polkadot wallet — Get a wallet where you’ll be able to store your DOT once you purchase it.
- Register — Go through the registration process on the platform of your choice.
- Deposit funds — Use one of the available deposit methods to deposit your fiat funds to your balance.
- Purchase Polkadot — Find the option to buy Polkadot, enter the amount you’d like to buy, and confirm your purchase.
- Withdraw DOT to your wallet — Once the purchase is completed, you need to withdraw your DOT to your crypto wallet unless you want to continue trading it.
Buying Polkadot isn’t that difficult for Florida residents. All it takes is finding the right exchange, registering, and making the purchase. You only need to make sure that the exchange of your choice is available and legal in FL. Once you obtain DOT, you can choose to trade it further, stake it, or hodl it.