Michigan regulations don’t mention Polkadot or cryptocurrencies in general, but that doesn’t mean that they are not popular. Many investors and crypto enthusiasts are interested in buying Polkadot or already have decent supplies of this compelling token.
If you want to be one of them, you’re in the right place. This guide explains how buying Polkadot works and, more importantly, where you can buy DOT in the state. But before we demonstrate that, let’s cover what Polkadot is, how it works, and the reasons for buying it.
What Is Polkadot (DOT)?
Polkadot (DOT) is an open-source protocol that allows users to safely transfer any type of asset or data over the blockchain, be it Polkadot or any other connected blockchain.
The native cryptocurrency of Polkadot is DOT, and you can buy it to become a part of the ecosystem.
Polkadot’s primary goal is to unite different blockchains and bring us much closer to an interconnected, decentralized internet. As its value also exists outside of the crypto world, it can certainly do that, as long as people are willing to use it.
The blockchain behind Polkadot is designed to be scalable and speedy, which is essential if you want the network to grow. This is achieved through parachains, or better said, parallel blockchains that are part of the network but still operating on their own terms. The parachains take off the demand from the main chain called the Relay Chain.
They are connected with the help of something called a bridge, which allows parachains and the Relay Chain to communicate and transfer data or assets between them. Bridges even allow connection to non-blockchain databases, which shows how flexible and valuable Polkadot is.
On the other hand, the native token does several things besides being the cryptocurrency behind the protocol:
- It’s a governance token, meaning that its holders get a say in how the whole Polkadot network is run and how it advances.
- It can be used for staking, meaning you get to verify transactions on the network and earn more DOT tokens as a reward.
Polkadot in Numbers
At the time of writing (March 2022), Polkadot stood as the number 12 crypto on the planet, worth around $18. The price changes constantly, but the coin is always in the top 20 cryptos, which shows how much it has achieved in the short time it’s been on the scene.
The market cap of Polkadot was around $17.6 billion, with as many as 987 million tokens available. The total supply is larger, approximately 1.1 billion, but this is only because many of the tokens are no longer in use and locked away in inaccessible addresses.
The number of tokens that can exist is not capped, but there is a predetermined inflation rate for the network to prevent the currency from ever losing its value entirely.
Why Buy Polkadot?
If you’re not entirely sure at the moment, here are some of the main reasons why others are buying DOT tokens:
- To diversify their investment portfolios and long-term investment strategies
- To stake the tokens and earn even more Polkadot
- To participate in the governance of the network and help it grow
- To create and launch news blockchains
However, you still need to consider the downsides of investing in Polkadot. Like all cryptocurrencies, the price is very volatile, so there’s no way of knowing where it’s going to go. What’s more, the tokens are not backed by any tangible assets, and we can never be certain if the government will change its stance on crypto at some point.
If you’re willing to take these risks, Polkadot will undoubtedly prove an excellent addition to your portfolio, as it shows a lot of promise and it has already achieved a lot in its short existence. On top of that, it’s one of the most commonly held altcoins by venture capitalists.
Where Can You Buy DOT in Michigan?
In Michigan, buying DOT tokens is available through two distinct methods — crypto exchanges and directly from someone.
Before explaining how both methods work, you need to understand the two types of cryptocurrency exchanges — centralized and decentralized. The former is regulated and run by specific organizations, while the latter is more in line with the spirit of crypto, making it completely decentralized and open to all.
It might seem that using decentralized exchanges is better, and it often can be, but it’s not the case with Polkadot in Michigan. First of all, decentralized exchanges are very rare, and many cannot be trusted. More importantly, no notable decentralized exchanges in Michigan offer Polkadot.
Centralized Cryptocurrency Exchanges
Before buying DOT on a centralized crypto exchange, you need to choose one. We recommend a couple of respect exchanges, but if you want to make your own choices or simply learn how to pick the proper exchange, you need to consider the following things:
- Availability in Massachusetts — The exchange must be available in Michigan and regulated by the proper US-based authorities.
- Accepted cryptocurrencies — Polkadot needs to be accepted on the exchange, but it also needs to have many others as this shows that the platform is widely used and offers a lot of trading pairs. This gives you the option to exchange DOT for many other cryptocurrencies if you want to diversify your portfolio further.
- User interface — Many exchanges have great interfaces, but some are quite complicated to use, especially if you are a beginner in the world of crypto.
- Reputation — Every trading platform needs to have a good reputation for you to start using it. You’ll leave your money in its hands, so an excellent reputation is a must.
- Liquidity — Many Polkadot exchanges have crypto, but they might not have enough. Make sure that the trading volume is sufficiently high so you’ll have an easy time completing each trade.
- Security — Security is everything in the cryptocurrency world, so make sure the exchange uses proper security measures. Check how it’s dealing and has been dealing with breaches, as they are not uncommon in the world of cryptocurrency.
- Payment methods — Exchanges offer a wide range of payment methods, but it’s still something you have to check, as the platform you like might not have the payment methods you’re usually using. Thankfully, debit and credit cards are always there if the exchange is regulated.
- Fees — Fees are how crypto exchanges make money, but each platform has its own pricing system. Check it out to see what fees exist and how high they are.
Buying Directly from a Person
You can always buy Polkadot or any other crypto directly from a willing seller. However, you need to make sure you can trust this person. If not, make sure you meet in public or go through the process via a trustworthy mediator. You never know if someone wants to scam you, so it’s essential to stay safe.
How to Buy DOT in Michigan (Step-by-Step Guide)
Buying Polkadot on an exchange is incredibly simple. Here’s the process you’ll get to follow on pretty much every exchange:
- Find a good wallet. The crypto wallet needs to accept Polkadot and be highly reputable and safe. You’ll need one if you want to keep your assets secured and available for use when you need them.
- Pick an exchange. You can choose one that we recommend or find one on your own. Make sure it’s reputable, safe, and that it offers enough Polkadot.
- Create an account. Visit the official site of the exchange and complete the registration procedure. Provide all the necessary information and documents to get your account ready as soon as possible.
- Make a deposit. Use one of the available payment methods to deposit US dollars you’ll then use to buy DOT tokens.
- Buy DOT. Choose the amount you want to buy and complete the transactions. The new tokens will be in your account when the Polkadot network confirms the transaction.
- Transfer DOT to your wallet. Once you have your tokens and want to keep them stored, transfer them to your wallet as it’s much safer than the exchange.
Now that you know all there is to know about buying Polkadot in Michigan, head over to an exchange and start buying DOTs. You’ve seen that the process is quick and straightforward, so if you’re ready to make this investment, you can do it right now from the comfort of your home.
Make sure you’re aware of the risks and that you’re ready to spend the money you’ll use for buying the tokens, and then you can begin your new investment venture.