Ohio is a very interesting state in crypto regulation, as it was the first to allow tax payments in cryptocurrencies. On top of that, there are laws regarding the use of blockchain for government purposes, making the Buckeye State one of the early adopters of crypto.
How does it apply to Polkadot? Can you buy DOT legally in Ohio? As it turns out, there aren’t any specific regulations regarding crypto trading, but the state does apply its standard laws. Namely, according to Ohio Rev. Code § 1315.01(G), money transmission’s definition also encompasses virtual currencies. That’s why it’s recommended to obtain a money transmission license before starting to trade cryptocurrencies.
Now that the legal part’s out of the way let’s check what Polkadot is and how you can obtain it if you’re located in Ohio. Read on.
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What Is Polkadot (DOT)?
Polkadot isn’t just a cryptocurrency but an entire platform, similar to Ethereum. However, Polkadot’s goals are a bit different, as it aims to achieve blockchain interoperability.
At their current state, blockchain networks are all a world of their own, with no communication with other blockchain networks. It’s impossible to move assets from Bitcoin to Ethereum blockchain and the other way around. That’s exactly what Polkadot aims to solve with its project.
We’ll not go into detail about how it plans to do it. What matters is that companies could host a blockchain of their own on Polkadot, which would connect to all other blockchains on the network. At the same time, it would still retain all the features of a stand-alone chain, such as security, anonymity, transparency, and more.
These Polkadot chains are called parachains, and they are all independent yet interconnected via Polkadot’s main chain, called the Relay Chain.
Polkadot (DOT) Token Features
The name of Polkadot’s native currency is also Polkadot, and it uses the ticker symbol DOT. Like any other crypto, you can buy it and sell it to make a profit. However, DOT is a utility token, meaning you can use it for more than just crypto trading.
In addition to trading, you can stake it to the Polkadot network and earn passive income as a result. Let’s take a closer look at that.
Polkadot is based on the Proof-of-Stake consensus mechanism, which means that those taking part in running the network are the people who stake their DOT, locking it as collateral. However, things aren’t identical as in Bitcoin, where each miner is a validator. In Polkadot, stakeholders can hold several roles depending on their involvement in running the network. Here’s a short overview.
- Validators — Validators are much like miners in Bitcoin. They need to validate transactions and add new blocks to the chain. To become a validator, you need to invest a sizeable amount of DOT. On top of that, it’s necessary to understanding how the Polkadot network works and how blockchain technology works in general.
- Nominators — Nominators’ main role is to provide security to the relay chain. They do that by selecting the validators and delegating their DOT to them. Because of that, validators need to do a good job and get rewarded, a process in which nominators get rewards too. In other words, nominators need to choose which validators they support.
- Collators — Collators have a job to collect the overall performance data of parachains and add it to the blocks in the relay chain.
- Fishermen — The role of fishermen is to monitor the Polkadot network and ensure its maximum security. They need to report if they see any kind of breach and make sure validators know about that. You can think of them as the Polkadot network police ensuring everything is in order.
Where to Buy Polkadot In Ohio?
Essentially, buying DOT in Ohio comes down to two possibilities — buying in centralized cryptocurrency exchange and buying DOT directly from someone. A centralized crypto exchange is a platform specializing in crypto trading, while direct buying means finding someone who already owns DOT and making a purchase without any middlemen. Let’s explain both ways, focusing on centralized crypto exchanges as the most popular way for buying DOT.
Centralized Cryptocurrency Exchanges
A centralized crypto exchange is an online platform where you can buy and sell cryptocurrencies. You’ll also find decentralized exchanges, but they work slightly differently and do not accept fiat money (such as the dollar, euro, pound, and more). Because of that, we decided to stick to centralized exchanges as the main option for buying Polkadot in Ohio.
Several great centralized exchanges are available to Ohio residents, and it’s up to you to pick the one that meets your needs. We created a short overview of what it’s important to pay attention to when choosing an exchange for buying Polkadot.
- Availability in Ohio — Not all online crypto exchanges will be available in your area, and you want to pick the one where you’ll not be limited in any way. In most cases, if an exchange isn’t available in Ohio, you cannot load the site or register on it.
- Polkadot supported — If you’re going to buy Polkadot in Ohio, you need to check whether DOT is one of the accepted cryptocurrencies, and you can buy it using fiat money. If you want to trade DOT with other cryptos, check which cryptocurrencies are available and what crypto trading pairs are supported.
- Overall reputation — Before joining an exchange, it’s a good idea to see what others are saying about it. Plenty of exchanges out there have a terrible reputation among users due to various reasons, such as inadequate customer support, lack of adequate security, history of successful cyberattacks, and more.
- Security — A centralized crypto exchange needs to have top-notch security. After all, you’ll be entrusting it with your funds, and you don’t want them to get stolen. Therefore, make sure to read more about the security protocols of every exchange you decide to use.
- Ease of use — It’s no secret that some exchanges will be easier to use than others. Some are more beginner-friendly than others, and you need to pick the one that suits your trading level.
- Privacy — Some online crypto exchanges will have stricter KYC procedures than others. In most cases, your trading will be very limited unless you verify your identity. However, you still need to ensure whether your sensitive data will remain private once you submit it.
- Fees and commissions — Almost every transaction done via crypto exchanges comes with certain costs, including fiat money deposits and withdrawals, crypto trading, etc. Closely examine the exchange fees of your choice and compare them to the fees of other similar platforms to learn more.
- Payment methods — Check which fiat payment methods are supported on the platform of your choice to make quick deposits and withdrawals of fiat money.
Buying Polkadot Directly in Ohio
To buy DOT directly, you need to find someone willing to sell directly from their wallet to yours in exchange for fiat money or another cryptocurrency. However, this is a highly unsafe method, and you should only proceed with it if you trust the other person 100%.
Step-by-Step Tutorial on How to Buy Polkadot in Ohio
Here’s a short guide on buying Polkadot in Ohio using a centralized cryptocurrency exchange.
- Get a Polkadot wallet — First of all, you need to pick a software or hardware crypto wallet accepting DOT to store the crypto.
- Select an exchange — Use our guide above to pick the best online crypto exchange for you in Ohio.
- Open an account — Go through the registration process to become a member of an exchange and be able to buy cryptocurrencies.
- Deposit fiat money — Use one of the available payment options to deposit your funds to the exchange.
- Buy Polkadot — Enter the amount of DOT you’d like to purchase.
- Withdraw DOT to your wallet — Withdraw Polkadot from your exchange balance to your cryptocurrency wallet.
Buying Polkadot in Ohio shouldn’t be too much trouble. Once you pick the right exchange, all it takes is to open an account, make a deposit, and buy DOT. Once you have Polkadot, you can trade it further, hodl it, or use it for staking on the platform and earn passive income.