Cryptocurrency is making strides in every part of the United States, and Wisconsin is no exception.
One of the more notable cryptos as of late is undoubtedly Polkadot, and if you’re interested in buying this compelling token in Wisconsin, you’re on the right page.
Wisconsin may not have significant laws on cryptocurrency like some other states, but it certainly doesn’t lack places and methods of buying Polkatod. This article will tell you all about them, how the actual buying process works, and answer some of your burning questions on how Polkadot works and what makes it special.
Table of Contents
What Is Polkadot (DOT)?
Polkadot is an open-source protocol, similar to Ethereum, built by Robert Habermeier, Peter Czaban, and Gavin Wood. The last name is probably familiar to many crypto enthusiasts as Wood is Ethereum’s co-founder. This explains the similarities between Ethereum and Polkadot.
However, Polkadot is still very unique. It’s effectively an entire network of interconnected blockchains. It’s unique in this regard as it’s the notable technology that has offered us a way to connect entirely different and unique chains on the same network.
The goal is to connect the entire internet and bring a concept known as Web3 closer to reality. It’s effectively the next iteration of the World Wide Web, but a completely decentralized one, as Polkadot allows connected blockchains to benefit from its security, interoperability, and scalability but doesn’t require them to change or become any less unique than they already are.
Now, these blockchains that are a part of the Polkadot network are called parachains, and they are all connected to the main chain of the network — the Relay Chain. The Relay Chain provides them with security and lets them connect to other chains, while parachains provide the Relay Chain with the ability to scale further and improve the entire Polkadot network.
But that’s not all, as Polkadot is also a regular cryptocurrency like all others.
What Is the DOT Token?
Polkadot or DOT is the native token of the Polkadot network. It’s a cryptocurrency like all others, meaning you can buy, sell, and trade it as much as you want. Its price is usually high and volatile like all other cryptos, but it’s still always in the top 20 in the world by market cap.
DOT is also a utility token, meaning it can be used to govern the Polkadot network. You have to buy DOTs and stake them. That way, you’ll get to be a part of the governance of the network, a small one very likely, but you’ll still get to partake like everyone else. It’s one of the reasons why Polkadot is a decentralized cryptocurrency and network.
When staking DOTs, you choose one of the following roles that exist in the Polkadot system as part of its highly-secure Proof-of-Stake (PoS) consensus mechanism:
- Nominators — You get to secure the Relay Chain. Your task is to stake DOTs and select validators that you trust, better said, those doing a good job for the network.
- Validators — Stake DOTs and secure the network. You can also take part in the consensus with other validators and confirm the proofs collators send.
- Collators — You get to maintain the shards in the network by collecting transactions made by Polkadot users. Furthermore, you have to create proofs and send them to validators.
- Fishermen — The task of a fisherman is to monitor the Polkadot network for bad behavior. You then have to report that to validators.
Where Can I Buy Polkadot in Wisconsin?
You can buy DOTs using two distinct methods — directly from a person or through a cryptocurrency exchange.
The latter is preferred as it’s much safer and you always know what you’ll get. Naturally, we’ll still cover both methods, but before we do, we need to explain the difference between centralized and decentralized exchanges.
Specific organizations own centralized exchanges, have licenses to operate, boast much higher trading volumes, and let you use fiat currency to buy cryptos like Polkadot.
Decentralized exchanges are more in tune with the decentralized nature of cryptocurrency, but they don’t have licenses, so you can never feel entirely safe using them. Plus, they are rare, it’s hard to find ones that offer DOT, and you can’t use fiat currency, only other crypto.
For these reasons, we’ll only focus on centralized exchanges.
Centralized Crypto Exchanges
Wisconsin is home to a wide range of centralized crypto exchanges that operate throughout the US. If you don’t know which one to pick, you should consider the following aspects and features of exchanges and how they should look:
- DOT availability — The most important thing is that the exchange has DOT available for trade. Polkadot is a highly popular token, so it’s unlikely that a popular exchange won’t have it, but it’s still important to check.
- Availability in Wisconsin — If an exchange operates in the US, it will likely work in Wisconsin, but you should still check to make sure you don’t waste time creating an account.
- Other crypto availability — Even though you’re interested in Polkadot, the exchange should still have other cryptos as that ensures it’s a good exchange and it gives you options for the future.
- Liquidity — Liquidity shows that you can trade cryptocurrencies faster, so it can only mean that exchanges with more traffic and thus more benefits have better liquidity.
- User interface — If you are new to the world of crypto and exchanges, you must find a trading platform that has an exemplary user interface that’s completely user-friendly.
- Security — Safety is paramount when trading and using cryptocurrencies, so you want the exchange to have top-of-the-line security features and possibly even insurance for specific portions of your assets.
- Reputation — The better the reputation, the better the exchange. It’s a fact that works with pretty much any business today, and crypto exchanges are not immune to it.
- Payment options — Exchanges have many payment options for both depositing and withdrawing fiat currency. This includes bank transfers, credit/debit cards, e-wallets, and more. Check that your preferred payment method is among them.
- Fees — All centralized exchanges operate on fees as that’s the primary way they make a profit. However, some have more or higher fees, so it’s worth checking before you commit.
Buying Directly from Someone
If you don’t like paying fees or being part of the complicated world of exchanges, you can always opt for buying directly from a willing seller.
However, it’s still not a method we can recommend as it’s rarely safe. You never know if the seller will actually hand you over the DOTs once you buy them, which is why you should only go for trades with people you can trust. If that’s not an option, make sure you are in public when making the trade or go through a trusted mediator.
Stay safe, as the cryptocurrency realm is always filled with scammers.
How to Buy Polkadot — Step-by-Step Guide
As buying Polkadot on a centralized cryptocurrency exchange is the best option in Wisconsin, here’s an overview of how that process works for a complete beginner:
- Set up a DOT wallet — Find a good crypto wallet that supports DOT and set it up. If you choose an online one, you only need to create an account, and if you want a safer hardware wallet, you’ll have to buy it and set it up.
- Pick a crypto exchange — Choose a crypto exchange from our recommended list with the help of all the explanations we’ve included here.
- Create an account — Visit the official site of the exchange and click on Register/Join/Sign Up. Make sure to input all the necessary information to successfully register an account.
- Verify your account — The next step is to verify an account per the exchange’s instructions. Bear in mind that this step might come later, but it only involves you showing specific IDs so the platform can verify your identity, age, and place of residence.
- Make a deposit — Once the account is ready, you can head over to the payment area and pick a deposit option. Follow the instructions and complete a deposit.
- Buy DOT — Once the money is in your new account, you can buy the desired amount of DOT.
- Transfer DOT to your wallet — If you want to start staking or hodling your tokens for the long run, it’s best to transfer them to your new DOT wallet as that’s a much safer storing option than the exchange itself.
And that’s about it — all the essential information you need to know to start buying DOTs. You can start right now by picking an exchange, but if you’re still not overly familiar with the token, make sure you study it more.
Use the official website, or the official Telegram chat, Twitter, or Reddit community to ask questions and read up on Polkadot.
Once you’re ready to buy and you’ve decided to do so without outside pressure, you can start with ease at any time.