If you were wondering how to buy Polkadot in West Virginia, you’ve come to the right page.
West Virginia features the regulatory framework called the West Virginia Fintech Regulatory Sandbox. Currently, the WVFR is used in some cases, and there’s no need to get a money transmitter’s license for trading cryptocurrencies. However, this regulatory body tells us there’s an effort to recognize and regulate the fintech sector, including blockchain, cryptocurrencies, NFTs, and more. Therefore, we might see some changes for crypto traders in the future as well, so we advise checking out the latest legal development to learn more.
This article will discuss Polkadot and why there’s so much interest in buying its cryptocurrency, also called Polkadot or DOT. We’ll also discover possible ways to buy DOT if you’re from WV and discuss how they work. Finally, we’ll answer the most frequently asked questions about the Polkadot project and its ecosystem. Read on.
Table of Contents
What Is Polkadot?
First of all, it’s necessary to distinguish between the cryptocurrency Polkadot and the Polkadot network. That’s why we’ll always use Polkadot’s ticker symbol DOT to refer to the cryptocurrency. Still, we’ll first explain what the Polkadot network is.
Polkadot is a decentralized network that aims to fix the lack of cross-chain interoperability between different blockchains, bringing the concept of Web3 closer to us.
Interoperability is a word you’ll often hear in the context of blockchains. Namely, a blockchain network built on Ethereum and the Bitcoin network cannot communicate, meaning you cannot make a transaction between the two and store your ETH (or any other token) on the Bitcoin network and vice versa. Suppose you add to that many other different blockchains. In that case, you get a highly scattered industry with many obstacles on the way. To make a decentralized internet a reality, all of these chains need to collaborate, and that’s what Polkadot aims to do.
But how? Well, by introducing the so-called parachains. Namely, Polkadot features its main blockchain, called Relay Chain. However, various organizations can run a blockchain via Polkadot by using parachains. These parachains are highly customizable and can fit any project.
However, all parachains are secured by Relay Chain and feed essential information to it, making them all part of the big picture. You can think of Relay Chain as the heart and parachains as the veins. The trick is that parachains can communicate with each other, meaning cross-chain interoperability is possible, while the security and all other perks of blockchain networks remain.
DOT Token Explained
The Polkadot network features the cryptocurrency that powers its ecosystem, called DOT. DOT is to Polkadot what ETH is to Ethereum. Still, there are substantial differences between the two, as Polkadot’s ecosystem is different to an extent compared to Ethereum’s.
DOT is essentially just like any other cryptocurrency, meaning you can buy it, sell it, or hodl it. It has a certain value that changes based on a wide array of factors, including supply and demand, overall popularity, the success of the Polkadot project, and more. Even though it’s still not nearly as popular as BTC or ETH, DOT has been in the top 20 cryptos by popularity for a long time. The last time we checked, DOT was 12th based on the total market cap.
But what’s the reason for DOT’s popularity? Why are people so interested in buying DOT in West Virginia and other states?
The most important reason is that Polkadot currently aims to solve one of the most significant issues in the crypto sphere and has the potential to become the Microsoft of the crypto world. Moreover, some famous names are behind the project, including Gavin Wood, who co-created Ethereum.
On top of that, DOT is a utility token, and owners of DOT can directly partake in the governance of the project.
Since Polkadot uses the Proof-of-Stake consensus mechanism, you can stake your DOT to support the network. You can do that either as a Validator (who runs a full node and gets to add new blocks, like miners in Bitcoin) or a Nominator (who supports and elects Validators by entrusting them with their DOT). Of course, you can take several other roles, such as a Fisherman, who monitors for possible security breaches, or a Collator, who collects data from parachains and adds them to the Relay Chain.
All in all, Polkadot came up with a system where DOT owners have many benefits, and that’s one of the primary reasons why people are interested in investing in it.
Where to Buy DOT in West Virginia?
You can obtain DOT in two ways in West Virginia. First, you can join a centralized crypto exchange and buy DOT with fiat money or other cryptocurrencies. Second, you can buy DOT directly from a person willing to sell it to you. Let’s make a brief overview of the two methods.
Centralized Crypto Exchanges
So far, centralized crypto exchanges are the most popular option for buying DOT and are currently considered the most secure — provided you select a reputable and licensed exchange. Some of the most popular options include Coinbase, Gemini, Kraken, and more.
What makes centralized crypto exchange different from their decentralized counterparts is that they can accept fiat money. Therefore, if you don’t have any crypto, you can still buy DOT via a CEX. Moreover, decentralized exchanges usually aren’t licensed in the US.
Here are some aspects of centralized exchanges you need to pay attention to if you want to get the best possible experience when buying DOT.
- DOT availability — Check whether the crypto you want to buy (DOT in this case) is available on the exchange of your choice.
- WV availability — Check if you can legally register an account in West Virginia, as some exchanges aren’t available in the US or even in specific states.
- Other cryptos — Analyze all the other available cryptocurrencies and crypto trading pairs, as you might trade DOT at some point.
- Reputation — Read what others are saying about the exchange you want to use to learn more about its quality of service.
- Security — Try to find out as much as possible about the established security protocols to ensure maximum protection of your cryptos and sensitive data.
- Payment methods — Check which fiat payment options you can use to deposit your funds to your crypto exchange account.
- Fees — All online crypto exchanges charge for their service, so make sure to explore their fees and commissions before making any transactions.
- Liquidity — Liquidity shows you how fast you can exchange cryptocurrencies. Note that higher-traffic exchanges will have better liquidity.
Direct Buying
Another method to obtain DOT is to find someone willing to sell and purchase it directly from them to your crypto wallet. In that case, you’ll have to pay them in cryptos or fiat money. Please remember that this method is extremely unpractical, and there’s a chance you can get scammed, so we advise sticking to crypto exchanges for starters.
How to Buy DOT in West Virginia — Quick Step-by-Step Instructions
Here’s a quick step-by-step guide on successfully becoming an owner of Polkadot (DOT) in West Virginia.
- Get a cryptocurrency wallet — Obtain a software or hardware wallet that accepts DOT. Please research the best Polkadot wallets before opting for one.
- Select a crypto exchange — Pick a centralized crypto exchange to start the purchasing process.
- Open an account — Provide the required information to become a registered member of the crypto exchange.
- Make a deposit — Find the option to deposit fiat money and use one of the accepted payment methods for that. You can also deposit cryptocurrencies via your wallet.
- Buy DOT — Find the option to purchase Polkadot and enter the amount you’d like to buy. Pay attention to the minimum and maximum limits and transaction fees.
- Withdraw DOT to your wallet — Find the option to withdraw your funds and enter your wallet address to transfer your DOT from the exchange to the wallet.
Bottom Line
Hopefully, our guide has helped you understand Polkadot and how it works. Moreover, we hope we have assisted you with learning more about the process of registering on a crypto exchange and buying DOT.
Polkadot is definitely an exciting investment option. If you wish to become a DOT owner, make sure to research and consult professionals before you make your first buy.