Rhode Island might be the smallest US state, but it’s home to many crypto enthusiasts looking to invest in virtual coins. One of the newest additions to the roster is Polkadot (DOT), an innovative blockchain-based protocol that allows you to make various transactions, not only in its native DOT token.
So, if you want to learn how to buy Polkadot in Rhode Island, read on. We’ll introduce you to the unique cryptocurrency and tell you how you can get some tokens.
What Is Polkadot (DOT)?
Polkadot is not your everyday cryptocurrency — it’s a complex protocol that uses blockchain technology for various operations. Based on its structure, Polkadot is the most similar to Ethereum, which is no surprise since ETH’s founder, Gavin Wood, took part in creating Polkadot.
Essentially, Polkadot is an open-source protocol that allows users to make diverse transactions besides those with the DOT token. You can send various data, information, or assets using the Polkadot network.
You can connect different chains to work within one network through the token. These so-called parachains have enormous processing power, allowing simultaneous transactions without compromising their safety or speed.
Polkadot’s primary goal is to create a fully decentralized web (Web3). At the moment, the idea is nothing short of a pipe dream, but Polkadot and its approach might help turn it into reality. Moreover, many industry experts believe we are on the right track and that running a decentralized web based on blockchain technology is closer than we think.
The token behind the entire Polkadot technology is called DOT. It serves three main purposes:
- Staking — If you choose to stake your DOT tokens, you’ll receive rewards. However, if you try to take advantage of this feature, you won’t get anything.
- Governance — Every person that possesses DOT is part of the network’s governance. The power you have directly depends on the amount of tokens you have. As such, you can participate in various events.
- Bonding — a unique proof-of-stake system allows Polkadot to add new blockchains to the network and remove the old, inactive ones.
DOT is among the most popular cryptocurrencies in the world. Its price varies between $10 and $55, with the current value floating around $20. The market cap is close to $20 billion, while the number of tokens in circulation will soon hit the one-billion mark. There’s no maximum supply of DOT.
Why Buy Polkadot?
A growing number of investors is switching to Polkadot — and for a good reason. One of the primary motivations is the interactivity of the blockchain network. Users can not only send crypto tokens via Polkadot but also create new blockchains.
Despite being younger than Bitcoin or Ethereum, Polkadot has been active for over five years, meaning it’s here to stay. This offers more stability and attracts crypto buffs to invest in DOT. Moreover, aside from performing basic DOT transactions, Polkadot also allows its users to use blockchain and transfer data and assets.
Of course, we have to mention that Polkadot is highly volatile, like any other cryptocurrency, meaning its value can change in a matter of moments. However, if you’re ready to take that risk, you should definitely invest in Polkadot.
Where Can I Buy Polkadot in Rhode Island?
Rhode Islanders looking to purchase DOT have two options at their disposal — they can do so via a centralized crypto exchange or through a direct purchase from a person willing to sell their tokens. The latter is quite unsafe, which is why we don’t recommend it.
The following paragraphs will focus on the only viable solution — centralized cryptocurrency exchange sites that offer complete protection and seamless DOT purchases to their users.
Centralized crypto exchanges are the only legal and most popular way to purchase all cryptocurrencies, including Polkadot. There are also decentralized exchange platforms, but they are quite rare and difficult to find. So, if you want to buy Polkadot, you should rely on licensed centralized sites.
The most common crypto exchanges used in Rhode Island are Coinbase, Binance, Kraken, and Gemini. They all hold licenses to operate in Rhode Island and are perfectly safe to use.
Therefore, if you decide to buy Polkadot via centralized exchange platforms, you should consider several elements listed below:
- Accessibility in Rhode Island — The first thing you should find out is whether the particular exchange operates in your state.
- DOT availability — Another vital thing to check is whether DOT is available for purchase. You should also see what its quantity is and ensure there are enough coins to buy.
- Fees and conversion costs — Fees are an unavoidable part of crypto exchanges. Since platforms are free to use, these fees are the only way for them to earn money and keep the business afloat. You might also experience additional costs when you’re converting USD to DOT.
- User interface — Explore the platform and see whether it’s easy to navigate.
- Payment methods — Before buying DOT, you’ll have to fund your account with USD. To do that, you have to rely on available payment methods, like credit/debit cards or e-wallets. Make sure your preferred one is featured on the exchange.
- Security — Most centralized exchange platforms are highly secure, but doing your own research can’t hurt. See whether there have been some security issues in the past and how the platform has dealt with them.
- Trading limits — Learn about the trading limits and see how much you can exchange over a certain period.
- Reputation — Find other users’ reviews and read more about the company’s online reputation. Better safe than sorry!
Buying Polkadot Directly From Someone
If you don’t want to use crypto exchanges for one reason or another, you can always buy Polkadot directly from a person willing to sell it. You can reach out to them, negotiate the price, and strike a deal that benefits both of you.
Another benefit of making a direct purchase is that you won’t have to pay any additional fees and transaction costs. However, this option is heavily frowned upon in the crypto world, mainly because it’s unsafe. People have been scammed before after making a deal with a person without performing the necessary security checks.
Therefore, if you don’t know anyone who wants to sell DOT, you should rethink the decision and try using a reputable and secure exchange.
How to Buy Polkadot in Rhode Island — Step-By-Step Guide for Buying DOT Using an Exchange
If you’ve never dealt with cryptocurrencies, you might feel overwhelmed by the entire concept. Luckily, we’re here to help — the guide below will walk you through the process of buying Polkadot using a licensed exchange. Here’s everything you’ll have to do:
- Get a Polkadot wallet — Choose a safe wallet that supports Polkadot. You’ll later use it to store your tokens. Create an account, and it will be ready for use.
- Find a suitable online crypto exchange — Explore the platforms we’ve recommended earlier and select the one you like the most. Make sure it supports both DOT and USD transactions.
- Create an account — Fill out the registration form to set up an account and complete the verification process to get started.
- Make a deposit — Choose one of the available banking options to make a deposit and transfer USD to your exchange balance. You can rely on various payment methods, including credit/debit cards, e-wallets, and other cryptocurrencies.
- Acquire Polkadot with USD — Once the money appears in your balance, you can opt to buy DOT — simply insert the amount you wish to buy and confirm the transaction.
- Send tokens from the exchange to your crypto wallet — Your DOT will be stored on the exchange. However, you can send it to your wallet for safekeeping, especially if you don’t want to make additional transactions.
Overall, buying Polkadot in Rhode Island is easy. Once you find a suitable crypto exchange, everything else will be a walk in the park. After you get some tokens, you can choose what to do with them — send them to your crypto wallet, stake them, or sell them for a secure and quick profit.