Cryptocurrencies have become very popular in the US, including in Washington State. Unlike many US states that have no crypto-related regulations, Washington State passed a bill in 2017 requiring all cryptocurrency exchanges to keep cash reserves equivalent to the number of transaction volumes on the said platform.
Polkadot is one of the newest yet most popular cryptocurrencies to have caught the attention of many Washington State crypto enthusiasts. So, if you want to buy Polkadot in Washington, read our detailed guide.
We’ll introduce you to everything you should know about Polkadot and its DOT token and the most popular and secure ways of buying it in your home state.
Table of Contents
What Is Polkadot (DOT)?
Polkadot was created by Peter Czaban, Robert Habermeier, and Gavin Wood. Wood is known as one of the people behind Ethereum, so the two cryptocurrencies share many similarities. He is also the president of the Web3 Foundation, an organization behind this crypto.
Polkadot is both a cryptocurrency and a protocol, much like Ethereum. However, unlike ETH, Polkadot allows users to transfer data or assets (not only financial transactions) across various blockchains. Polkadot has a unique coin called DOT, a governance token for the entire network.
Polkadot’s primary goal is to unite many blockchains and create a decentralized web (Web3.).
Polkadot is fast and easily scalable, leading many to believe it will succeed in its goal. Aside from the main Polkadot blockchain (the Relay Chain), the platform relies on parallel blockchains (parachains). These parachains help the platform process many transactions simultaneously, making Polkadotunlike any other crypto.
The cryptocurrency’s flagship token (DOT) serves two main functions:
- Governance — Anyone who holds DOT tokens can participate in the platform’s management and decision-making. So, if most investors make the same decision, the entire protocol will adapt.
- Staking — If you stake DOT, you can start verifying different transactions. In return, you’ll receive additional DOT as a reward. The more tokens you possess, the greater your power in the network.
Polkadot in Numbers
Despite being a relatively new cryptocurrency, DOT has been among the most popular ones for quite some time. Although it has yet to reach the recognition enjoyed by BTC or ETH, DOT has a decent following and a fair share of investors. It’s currently ranked 11th most popular cryptocurrency.
DOT’s volatile price ranges between $10 and $25 and is currently worth $19.18. Its all-time high price was in November 2021, when DOT reached $55. This value was the result of the redenomination DOT went through in 2020. It’s a rare process where the coin’s worth gets re-evaluated.
The total supply of DOT coins is currently over one billion, while something less than a billion coins is in circulation. The overall market cap is at the $18.6 billion mark. The token has no maximum supply, so the number of coins in circulation can grow indefinitely.
Investors currently hold more than half of DOT tokens in existence (58.4%), the owners possess 30%, while the remainder of DOT belongs to the Web3 Foundation.
Why Invest in Polkadot?
If you ask anyone why they invest in cryptocurrencies (not only Polkadot), they’ll give you the same answer — cryptos are highly volatile and offer a chance to make a quick yet sizable profit.
Polkadot currently holds mostly positive predictions, so many investors see this as a perfect opportunity to buy and trade DOT, assuming its price will continue to grow. However, if you’re just learning the ropes of the crypto world, you should buy Polkadot and store it in your wallet. That way, you’ll have a chance to see if and how its value changes before making any big moves.
Polkadot allows you to partake in the platform’s governance, unlike other cryptocurrencies. You’ll become a part of the potential changes and help make important decisions. However, your power directly depends on the number of coins you stake.
Where to Buy Polkadot in Washington?
If you’re looking to buy Polkadot in Washington, you’ll have access to the same options as the residents from the other US states. The two most common choices are centralized crypto exchanges and direct purchase. The following paragraphs will focus on the first because the latter isn’t as safe.
Centralized Crypto Exchanges
Centralized exchange platforms are the most common and secure way of buying DOT. They’ve become popular in many US states, including Washington. Currently, Kraken, Coinbase, and Gemini are the most common choices for acquiring Polkadot, but others are at your disposal.
Centralized crypto exchanges operate under an organization or a company, and they abide by a country’s laws. These platforms require their members to register, verify their accounts and go through other KYC procedures before buying DOT.
Their decentralized counterparts operate outside of any jurisdiction, like cryptocurrencies. While these sites offer anonymity and first-class security, they are also rare. Therefore, buying DOT from a centralized exchange is your best bet.
As mentioned, you can choose from several exchanges. However, before you choose one, check out the following details and see whether the platform meets your needs:
- Availability in Washington — You need to see whether the chosen exchange is available to Washington residents before doing anything else.
- Supported cryptocurrencies — Make sure the exchange accepts Polkadot, among other cryptocurrencies that interest you.
- Security — You don’t want to put your personal information and crypto coins at risk, so check the exchange’s security details and protocols.
- User interface — Explore the platform, and see whether the navigation is smooth and hassle-free. You don’t want to invest your time and money in a cluttered and not well-developed exchange.
- Deposit and withdrawal methods — Check out the list of the supported payment methods and see whether the one you’ll use for transferring USD is among them.
- Fees — Exchanges depend exclusively on fees and specific commissions, and the rates vary between platforms. So, make sure you don’t break the bank trying to acquire Polkadot by paying high fees.
- Trading limits — Many exchanges limit how much you can deposit, withdraw, and trade, so it’s good to have that information before signing up and buying DOT.
- Overall reputation — Reading what other customers say about an exchange can help you decide whether to sign up or keep looking.
Direct Purchase in Washington
Another way of buying Polkadot in Washington is through direct purchase. Essentially, you find a person willing to sell its DOT coins and make a deal with them. However, you’ll have to use your negotiation skills and set a price that will benefit you and the seller.
We must emphasize that this purchase isn’t the safest. While exchanges use various security measures and encryptions, buying DOT from an unknown person can be dangerous. Some inexperienced people looking to invest in Polkadot choose direct purchase and end up scammed.
Therefore, if you want to buy DOT from a person, do proper research and make sure you’re buying it from someone you trust.
How to Buy Polkadot in Washington: Step-by-Step Guide
Buying Polkadot is no different from acquiring any other cryptocurrency. However, if you’ve never dipped your toes into the crypto waters, you might need some help getting started. The following guide will walk you through the necessary steps you’ll have to take when buying DOT in Washington:
- Find a suitable crypto exchange — Choose one of the platforms you can access from Washington with no limitations or restrictions.
- Pick a Polkadot-friendly wallet — Find a crypto wallet where you’ll store your coins before purchasing DOT.
- Set up an account — Become a member of the chosen exchange by completing a registration form with the required information.
- Top up your bankroll — Pick one of the accepted banking options to transfer USD to your exchange account. You’ll later use those funds to acquire DOT.
- Buy Polkadot — Locate the option to acquire Polkadot, input the amount you’d like to get and confirm the transaction.
- Transfer DOT from the crypto exchange to your wallet — Once the transaction is complete, DOT will appear in your exchange account. If you want to store it and add another security layer, transfer it to the wallet. However, if you’re going to make further transactions, you shouldn’t waste time sending the coins elsewhere.
There you have it — the necessary information you need to buy Polkadot in Washington. As we’ve mentioned, the best option is to choose a centralized exchange, as it’s become standard in the crypto world and offers high-security levels.
So, explore the available platforms, see what they offer, and go for the one that’s up to your standards. Afterward, you’ll have to create an account, fund it, and buy as many DOT coins as you want.