Kentucky currently holds the second spot in the country concerning crypto mining. After Governor Andy Beshear signed two bills that incentivized crypto miners in March 2021, many started their mining operations.
However, miners are not the only ones, as plenty of investors from the Bluegrass State want to become a more significant part of the crypto world and diversify their portfolios.
One of the ways to do it is to start buying and investing in Polkadot (DOT). It is one of the relatively new cryptos on the market, but it has already taken an important spot in the entire cryptocurrency niche.
Polkadot is already one of the biggest cryptos on the planet, despite the price fluctuations. And in this piece, we wanted to talk more about it and how it works.
We’ll give you the numbers and the facts, but we’ll also give you the sites where you can buy this prominent token. On top of that, we’ll explain how buying DOT works and everything else you need to know to become a proper investor. Let’s jump right in!
Table of Contents
Polkadot is software created to get the global computer network to run on a single blockchain on which users can launch their own blockchains or connect existing ones. In other words, the Polkadot blockchain wants to connect all other blockchains but in a decentralized network.
Polkadot or DOT is the native token of this software, and it operates like most other cryptocurrencies, but mainly like Ethereum. That’s because the principal founder of Polkadot is Gavin Wood, the famed co-founder of Ethereum. He created Polkadot in 2016 with the help of Peter Czaban and Robert Habermeier.
Wood was behind Ethereum’s language code Solidity utilized by developers looking to create decentralized apps (dapps) that run on Ethereum. When he left Ethereum, he started Parity Technologies. This company maintains the Substrate, a framework that Polkadot developers now use to easily and quickly create blockchains on the Polkadot network, called parachains.
This brings us back to Polkadot itself. It was officially launched in 2020, and one of the main features it started offering was the option to create these parachains that run with the help of Polkadot but keep their own independent systems. Parachains allow Polkadot to scale more quickly than Bitcoin, which has been plagued from the very start by low scalability.
Parachains benefit from the security the main Polkadot chain offers — the Relay Chain. In turn, the Relay Chain benefits from faster transactions and thus better scalability.
All of this matters as it’s precisely what enables the Polkadot network to become the leader of a decentralized web. Many cryptocurrencies have tried to do the same, even Bitcoin and Ethereum, but they don’t share this unique ability to scale as much as Polkadot can.
Naturally, this is only a possibility for now, and Polkadot has a long way to go to achieve this. It has to be adopted by a lot more people. However, for now, it’s undoubtedly growing enough to warrant the interest of numerous investors and crypto enthusiasts.
But what do its numbers say? Let’s take a look.
DOT in Numbers
Polkadot is one of the top 20 cryptocurrencies globally, often reaching the top 10 as well. At the time of writing (early March 2022), the DOT was priced at $19, with a market cap of $18.3 billion. This ranked it as the number 12 crypto on the planet.
These are already impressive numbers, but it’s worth noting that Polkadot was worth a lot more in 2021 when its price reached $55. It’s been on a slow decline since then, but with expectations to rise in the near future.
The total supply of DOT tokens is 1.1 billion, while the circulating supply consists of more than 987 million tokens. This number is limited as Polkadot doesn’t have a max cap. It relies on a fixed annual inflation rate that keeps its price from dropping to zero.
We can say a lot more about tokenomics and the technology behind this crypto, but these are the basics you need to know for now. Make sure to read more about Polkadot if you are serious about buying larger quantities and becoming an investor. In the meantime, let’s look at where and how you can actually buy DOT.
Where to Buy Polkadot in Kentucky?
Buying Polkadot in Kentucky is possible using one of the two methods:
- Crypto exchanges
- Buying directly
We’ll describe both methods, but first, you need to understand that when it comes to exchanges, you can only buy Polkadot at centralized ones. These exchanges are licensed by the proper authorities and operate like a regular marketplace that allow purchasing various cryptos.
Decentralized exchanges also exist, but these rarely keep Polkadot and seldom have a license.
Centralized Crypto Exchanges
Centralized crypto exchanges are usually the best option for buying Polkadot or any other cryptocurrency for that matter. However, as many of them exist, you must find a way to choose the best one for your needs. Here are a couple of features you need to look at as they will help you decide which one is good and which isn’t:
- Availability in Kentucky — The most important thing is that the exchange works in Kentucky. It needs to be licensed under the US and state laws.
- Reputation — Nowadays, online reputation is a big thing, and crypto exchanges are no different. Check some reviews and feedback from members to learn whether the exchange is good.
- Liquidity — The exchange needs to have a high trading volume of Polkadot, which shows that there are enough tokens in use. That way, you won’t have to wait too long to complete a trade, and the prices will be reasonable.
- Security — This is the most important thing in the crypto world. Check what security features the exchange has and how it has dealt with breaches in the past.
- Privacy — If you’re in the crypto world, you already know privacy matters. So, make sure to check how the exchange deals with your data.
- User interface — As long as the exchange has a friendly user interface and good user experience, it will be better for beginners.
- Payment options — Crypto exchanges usually have many payment methods, but it’s essential to check that the list includes the options you usually use.
- Fees — Every exchange has various fees, most notably for trading and withdrawing assets. Make sure these are within reasonable limits and similar to other businesses.
- Limits — Most exchanges place limits on trading, how much you can deposit and withdraw, and more. Check that the limits work for your needs.
Instead of using registered platforms that take your data and money, you can always trade DOT directly with people. However, this is not as easy as it might seem.
Most notably, it will be hard to find a trustworthy person who wants to sell Polkadot. Furthermore, you have to make sure the trade is safe if it’s someone you don’t know. It’s best to make the trade in person within a public location, but if that’s not an option, you’ll have to find a mediator to avoid being scammed.
How to Buy DOT in Kentucky on an Exchange (Step-by-Step Explanation)
Now that you know how to buy DOT in Kentucky, let’s have a look at how the buying process works in a typical exchange, as most of them function pretty much the same:
- Set up a wallet — The first thing you need to do is get a good crypto wallet that supports DOT and set it up per its instructions.
- Pick an exchange — Once you have the wallet ready, you can go ahead and choose an exchange from the list we recommend.
- Create an account — Head over to the official site of the exchange and follow the process for creating an account. Make sure you complete the verification as well.
- Make a deposit — Once the account is active and ready, choose one of the available deposit methods and deposit fiat currency. Make sure you deposit enough to account for the exchange margins and fees.
- Buy DOT — Purchase the desired amount of DOT. Just search for Polkadot (DOT) on the exchange and buy it with the USD currency you’ve deposited.
- Transfer DOT to your wallet — Once you have your DOT tokens, you should withdraw them to your wallet for safe storage. If you want to start trading it, though, it’s best to keep the desired amount on the exchange so you don’t have to take it back and forth from the wallet.
As you can see, buying Polkadot is incredibly easy in Kentucky. You only need to find a proper crypto exchange, and you can get started in no time.
However, make sure you find a recommended one and that you have studied Polkadot carefully and are ready to buy it.