How & where to buy Polkadot (DOT) online
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This beginner’s guide will introduce you to Polkadot, how it works, and the network behind the coin. Learn about how the platform sprang up as a competitor to Ethereum, and how to spend your hard earned money on it.
What are the best exchanges to buy DOT on?
We’ve picked out the options that offer the best, low-cost service for beginners. Use the table below to choose one and sign up, or keep reading to learn more about Polkadot first.
How to buy DOT online – a step-by-step guide
Step 1. Find an exchange
An exchange is the best place to find Polkadot, and as it has grown it’s become available on more and more platforms. While you have lots of options now, these are two exchanges we recommend in particular:
- Binance: One of the biggest names in the cryptocurrency trading space, Binance allows users to trade hundreds of different cryptocurrencies, including Polkadot. Open an account right now.
- Gemini: Gemini is a leading crypto exchange and one of the few available in the US. It targets beginners in particular, which makes it a great place to start any crypto journey. Join Gemini now >
Step 2. Sign up and fund your account
When you use a cryptocurrency exchange you normally have to sign up for an account before you can fund your trades. This usually means providing some identification, that varies from platform to platform but can mean a copy of a photo ID. Most exchanges now accept deposits in fiat currency, although some still can only be funded with cryptocurrency.
Step 3. Purchase
Once you’ve created and funded your exchange account, search for the Polkadot coin via its coin ticker – DOT. Then pick the pair that corresponds with the currency you want to spend on it. If you’ve loaded your account with Bitcoin then you want the DOT/BTC pair, and from there you can choose how much you want and execute the trade.
Step 4. (Optional) Get a suitable wallet
You can get your own Polkadot wallet and transfer your coins into it for added security. You don’t have to do this, and most exchanges will let you hold coins within your account. The only real reason to consider this is if you’re planning on buying and holding a large amount of Polkadot for the long term. If you do decide to use a wallet, here are two of the top options around:
- Freewallet: An online cryptocurrency wallet that you can access through your browser or with an app on your phone. Freewallet has wallets for over a hundred different cryptocurrencies. Join Freewallet today >
- Nebeus: With Nebeus you can store your coins offline in a secure hardware wallet. That means they’re protected even if you connected to a computer that’s been infected with malware. Sign up for Nebeus now >
How to trade Polkadot – a step-by-step guide
Step 1. Find a broker
First, you need to make sure you can trade Polkadot with your broker of choice. Most of the top brokers offer a range of cryptocurrencies along with assets you can trade, like stocks, forex, and commodities. Two of the leading crypto brokers around that are worth trying are eToro and Plus500.
Step 2. Deposit money
Most brokers let you use fiat currency (like GBP, EUR, and USD) to fund your account and trade crypto. You should take into account the trading fees each broker charges on every trade to make sure you get the best value for your money.
Step 3. Decide how you’d like to trade
The most common methods for trading with an online broker are spread betting and contracts for difference (CFDs). You can check out our cryptocurrency courses to understand more about what each involves, and which one is best for you.
Step 4. Start trading
When your broker account is set up, you’re ready to start trading. We recommend that beginners start out with a demo account to learn how to trade cryptocurrency and understand the market without the risk of losing money.
Once you start trading you can decide to go long or go short. If you think an asset will go up, you take a long position. If you think it will go down, you take a short position. When you short an asset you’re selling it early and hoping to buy it back later at a lower price, making a profit on the difference.
Another trading strategy is to trade with leverage. Beginners should avoid doing this as it carries a much higher risk of losing money if the market moves the wrong way. For more experienced traders, using leverage lets you make large trades with just a small amount of the trade value (the margin).
You should always take time to think over any potential investment, and this is especially true when it comes to cryptocurrency. Here are some pros and cons to consider when it comes to investing in Polkadot, along with some key questions to think about below.
- Polkadot has quickly established itself as a popular cryptocurrency
- It’s been developed by well-regarded, big names in crypto
- Has already done deals with independent developers to build on its platform
- As DOT is required to build on the platform, more development should push the price up
Finally, here are three more questions you should think about. These should help you decide if you want to invest in Polkadot.
1. Is it a good time to buy Polkadot?
If you want to invest in DOT to show support for the network or to exercise the voting rights that come with owning the coins, it’s a good idea to invest. Otherwise, the decision rests on what your goals are. Long term investors should look for more developers signing up to build their apps on Polkadot, while short term traders can try to benefit from price volatility.
It’s worth remembering that blockchain technology moves fast and more competition could spring up at any time. All cryptocurrencies can be sensitive to market sentiment and that’s especially the case for ones like Polkadot with lots of competitors. If you want to hold DOT for the long-term, it’s worth staying on top of the latest developments with the latest analysis. You can find that below:
Polkadot (DOT) price corrects after gaining 100%
Polkadot (DOT) price explodes over 50%
Polkadot (DOT) price prediction for December
2. What problem does Polkadot solve, and what are the coin’s investment prospects?
Polkadot is trying to solve the issues that have held blockchain technology back so far. Most notably, these are transaction bottlenecks and the difficulty of sharing data between isolated blockchains. Polkadot perform many transactions simultaneously, can transfer data internally, and build bridges that connect it to external blockchains.
DOT’s prospects are linked to the success of the platform. If the Polkadot network entices more developers, it could increase demand for the rest of the DOT in circulation. The aim is to have 80% of the DOT in existence locked up within Polkadot, cutting the supply of DOT on the market in the first place. Polkadot has also been able to get the jump on some competition that remains in theoretical mode. The Polkadot platform is live and doing deals to bring new developers on to start building.
There are still challenges for Polkadot to overcome, however. The main one comes in the form of Ethereum 2.0. Many of the problems Polkadot is trying to solve are also being addressed by its bigger-name rival in an update that’s being rolled out over the next couple of years. If Ethereum 2.0 is a success, Polkadot could find it difficult to convince developers to keep working on its own network. You can stay on top of all the latest news below:
Top proof-of-stake (PoS) tokens you can buy to leverage crypto staking
Is Polkadot (DOT) buy opportunity after the current dip?
Polkadot price prediction: Will the DOT recovery hold?
3. Do you want to hold Polkadot for the long term?
Whether to invest in DOT for the long-term depends on if you believe in the Polkadot network and its future prospects for success. It is already one of the largest cryptocurrencies by market cap and the network is backed by established names in the industry, like Gavin Wood. This could help DOT maintain its value over the long term.
Considerations for a long term investment strategy
If you think that Polkadot’s best days lie ahead and you want to get in on the ground floor, then you’ll want to sign up for a reliable cryptocurrency exchange and get some coins right away. Depending on how long your time horizon is, you might also consider getting a personal wallet to hold your coins.
Considerations for a short term trading strategy
If you’re aiming to trade Polkadot quickly in order to profit from fluctuations in the crypto market, then the overall strength and long term trend of the coin’s price doesn’t matter so much. The important thing to do is make sure you understand technical analysis and indicators and sign up with a broker that offers low trading fees. Anticipating price movements by reading a variety of charts accurately gives you the best chance of trading success.
Yes, you can buy Polkadot with any major fiat currency on Binance. Just sign up to create an account or follow the steps in our buy guide above. You can also buy it with other cryptocurrencies, such as BTC or ETH.
Yes, Polkadot is available on Coinbase. You need to create an account first by providing some contact information and verifying your identity. Then deposit some fiat currency, like USD or GBP, and use it to buy DOT.
Yes, DOT is available on eToro. Simply sign up and follow the steps on how to trade Polkadot above. eToro is one of the easiest ways to buy a crypto like this and still gives you the chance to own the underlying asset itself.
No, you can’t buy Polkadot on Robinhood. You can see real-time market data but there is no option to buy at the moment. Robinhood only offers a small handful of cryptocurrencies, focused on the leading options like Bitcoin and Ethereum.
No, you can’t get Polkadot on Gemini at the moment. The Gemini exchange supports more than 50 coins but, surprisingly, Polkadot isn’t one of them.
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