The Pine Tree State has made several attempts to regulate the ever-growing crypto market. In 2019, the Senate introduced a bill to amend the Money Transmitter Act and introduce digital currencies into the fold.
The Maine House has also introduced a resolution to make the introduction of blockchain technology and digital currencies seamless. However, the bill and the resolution haven’t been fruitful.
Nevertheless, that hasn’t stopped residents from investing in cryptocurrencies, including Polkadot. The innovative cryptocurrency has shown great potential, attracting users worldwide and creating a unique setup unlike anything we’ve seen before.
So, if you’re interested in buying Polkadot (DOT), you’ve come to the right place. We’ll introduce you to the new cryptocurrency and tell you how to acquire it. Read on!
Table of Contents
Polkadot (DOT) Explained
Polkadot quickly gained recognition and became one of the most popular cryptocurrencies, mainly because of the team behind it. The crypto has been around since 2016, and one of its founders is Gavon Wood. Sound familiar? Well, that’s the same guy that co-founded Ethereum. Suddenly, it all makes sense.
Similar to Ethereum, Polkadot operates as a protocol. However, unlike Ethereum, Polkadot isn’t limited to only one blockchain. With this structure, Polkadot aims to create a decentralized web(Web3 or Web 3.0), allowing users to establish their own blockchains and connect them to the main one. Polkadot supports the creation of parallel chains (parachains) through which users can send assets and data, not only coins.
To invest in Polkadot, you must acquire its coin — DOT. However, DOT isn’t simply a coin, like BTC — it has other features:
- Governance — If you own DOT, you’ll be able to participate in governing the platform. Of course, the amount of power you have is proportional to the number of coins you possess.
- Staking — The process of staking DOT will also help secure the network. For that, you’ll receive rewards and collect additional income without any effort.
Let’s see what the numbers say about Polkadot (DOT).
Polkadot (DOT) in Numbers
Polkadot has been dominating the crypto scene for several years. Despite being a young cryptocurrency, it is among the top 20 in popularity and market capitalization.
The coin’s value has experienced some fluctuations but not as drastic as other cryptocurrencies. DOT reached its highest value on November 4, 2021, when it hit $53.88, while the lowest value was in the beginning when DOT was worth $2.9.
The total DOT coin supply is 1.1 billion units, with around 987 million in circulation. The number is sure to grow, as Polkadot has no maximum supply.
Why Invest in Polkadot?
Polkadot attracts investors for several reasons but mostly because it’s interactive. People can link blockchains to the primary Polkadot system and generate an entirely new blockchain. The system also supports various transfers, including data and assets.
Moreover, you can buy an entire coin when investing in Polkadot because its price currently floats around $17. On the other hand, investing in Bitcoin and Ethereum usually means acquiring only a fraction of the coin due to their high value. Therefore, collecting DOT is much more enticing.
Finally, getting Polkadot allows you to participate in the platform’s control and governance. Depending on the amount you’ve staked, you’ll have a say in certain decision-making processes.
Where to Buy Polkadot in Maine?
Like in other U.S. states, you can acquire Polkadot in two ways. The first is through a centralized exchange platform that allows you to purchase DOT for fiat currency. The other option is directly buying from someone willing to sell.
Given that the first opinion is much safer, we’ll discuss it in greater detail. Read on to find out more.
Centralized Cryptocurrency Exchanges
As the name suggests, crypto exchanges allow users to buy or sell DOT using fiat money or other cryptocurrencies. The web offers two main types of exchange platforms — centralized and decentralized.
The former is owned by an organization or a company that operates within a country and respects its laws and regulations. They also have special licenses that allow them to conduct legit business and do security and identity checks, creating a safe environment for their users.
For that, and many other reasons, centralized platforms are the most common choice for people buying DOT. Coinbase, Binance, Kraken, and Gemini are the most popular DOT centralized exchange platforms.
On the other hand, decentralized platforms operate outside any jurisdiction and don’t require users to create an account or disclose personal information. While they may seem safer than their counterparts, decentralized sites are challenging to find.
Therefore, we’ll talk more about centralized platforms and tell you what to pay attention to when choosing the right one. Here’s the all-encompassing checklist to help you identify a secure exchange platform:
- Availability in Maine — Before taking further steps, you must ensure your chosen exchange platform is available to Maine residents.
- Accepted cryptocurrencies — Check whether DOT is among the platform’s accepted cryptocurrencies. Also, if you wish to make further exchanges or use another crypto to buy DOT, make sure the platform features it.
- User interface — Explore the exchange and see whether you can easily navigate it. These platforms should have a neat and user-friendly design.
- Associated fees and transaction costs — Every exchange will come with specific costs and conversion fees that apply to your transactions. So, don’t forget to check out these details before initiating a trade.
- Security — Since you might store a large sum on the platform, you want to ensure it’s perfectly safe. Thankfully, popular exchanges employ cutting-edge encryption and firewalls to secure all data and money.
- Payment methods — Choose an exchange that supports your preferred fiat payment options. You’ll be using them to make deposits and withdrawals, so you want the entire process to be smooth and safe.
- Limits — Some exchanges impose limits on how much you can deposit, withdraw, or trade. So, compare several platforms and choose the one with the most flexible limits.
- Reputation — You can always check out the platform’s overall reputation by reading user reviews. These provide insight into the exchange and tell you what to expect. Therefore, doing a little digging will help you find the right platform.
If using crypto exchange platforms seems like too much of a hassle, you can always buy Polkadot directly from a person willing to sell it. That way, you eliminate the need for third-party involvement.
Another advantage of buying DOT directly is the lack of conversion and transaction fees. You’d also be able to negotiate the price and pay what you think is fair. That said, you should never buy Polkadot from a random person. Perform all the necessary security checks first to avoid being scammed.
Buy Polkadot directly only if you trust the person on the other end of the transaction.
How to Buy Polkadot: Step-by-Step Guide
If you’ve never used an online exchange platform to buy or sell cryptocurrencies, you might find the entire process confusing. However, you can follow our simple step-by-step guide and learn the ropes. Afterward, you’ll have no trouble acquiring DOT, regardless of the platform you choose.
Here’s an overview of everything you should do once you’re ready to add some crypto to your balance:
- Find the right wallet — Although you can store cryptocurrencies in your exchange account, having a crypto wallet is safer. So, find one that accepts DOT and sign up.
- Choose an online exchange platform — Select a popular online exchange that accepts DOT. If you don’t know which ones are good, follow our advice, and go for the platforms we mentioned above.
- Create an account — Typically, exchange platforms have a simple registration process. Keep in mind that they will also require you to complete the KYC requirements and provide the necessary documents. Luckily, the entire procedure won’t take up too much of your time.
- Make a deposit — Select one of the accepted fiat payment options to transfer USD to your account. Make sure you have enough to cover the exchange and potential conversion fees that may occur when buying DOT.
- Purchase DOT — Choose the option to acquire DOT with the fiat currency (USD in this case) and insert the amount you’d like to obtain. After confirming the transaction, you’ll be able to stake DOT or transfer it to your crypto wallet.
There you have it — a simple guide to Polkadot. Now that you know more about this innovative cryptocurrency and its features, you can choose how to buy it — via exchange platforms or direct purchase. In any case, investing in Polkadot is a good idea, especially now, when its value isn’t experiencing steep fluctuations.