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Home » Buy Cryptocurrency » How To Buy Polkadot (DOT)
Polkadot is an innovative cryptocurrency that launched in 2020. The Polkadot software is designed to attract users to connect their computers together to operate a blockchain. Upon this blockchain, developers will be able to launch and manage their own, individual blockchains.
You can invest in Polkadot CFDs on the following platforms:
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
72% of retail CFD accounts lose money
Your capital is at risk
So far in the description, it is fair to say that Polkadot’s objectives are very similar to Ethereum’s and Cosmos. However, this cryptocurrency has several innovative features that allow it to stand out from similar competitors.
The main Polkadot blockchain, called a Relay Chain, stores transitions permanently. User generated blockchains, known as Parachains, are more customisable. However, since Parachains are connected to the Relay Chain, they are still able to offer the same level of security and traceability.
With this best of both worlds approach, the team at Polkadot are hoping to win over an army of developers. Users will be able to capitalise on the resources available on the Relay Chain whilst being able to be as creative as they wish with their personalised blockchains.
Polkadot is an example of a cryptocurrency with a clear purpose. It has raised over $200 million from investors and is backed by a number of influential individuals.
As you will read in this Polkadot guide, you can buy DOT easily in a number of ways. By holding this cryptocurrency, you will be able to use Polkadot’s solutions or turn a profit by trading it on reputable exchanges.
Since Polkadot is not a major cryptocurrency, such as Bitcoin or Ethereum, it is normally bought by experienced users. However, if this happens to be the first cryptocurrency you will be investing in, we’re about to show you how simple the process can be.
All you need to do to buy DOT is:
If you have selected certain payment methods, such as a bank transfer, you will need to wait for the funds to reach the exchange before completing your purchase.
Polkadot was launched at a time when cryptocurrencies were already widely used and accepted. As a result, it has become much easier to buy the coin at various exchanges and using different payment methods.
Whilst you’re probably eager to start buying Polkadot right now, you should spend a moment to think about what you intend to use DOT for. This will help you understand which exchange is best to use, and whether you should buy the coin directly or invest in its derivative. We will discuss the latter option later in this Polkadot guide.
Another important consideration is how you intend to pay for your cryptocurrency. You could, for example, convert one coin or token for DOT. On the other hand, if you plan to use fiat currency, you will need to consider which payment method you intend to use. Moreover, you also need to consider the fees normally associated with different methods.
In certain cases, it might make sense to use P2P trading platforms since these allow you to trade directly with other individuals. These platforms give you a greater opportunity for negotiation and can help you find users that accept cash, PayPal, or even cheques.
There are several advantages to buying DOT using a debit or credit card. This payment method provides an instant transfer, allowing you to own Polkadot in seconds. It is also considered to be one of the safest ways to pay, providing an opportunity for a chargeback if you get scammed.
Debit and credit cards, such as Visa and Mastercard, allow you to buy Polkadot using fiat currencies. They automatically convert your base currency into one that your cryptocurrency exchange can accept. As such, they are not only quick, but also convenient.
However, this convenience comes at a price. Many exchanges charge additional fees when using debit or credit cards to buy cryptocurrencies.
If you would like to buy DOT using a debit or credit card, here is where you can do this:
PayPal is a trusted and instant way to buy goods and services online. When it was first launched, it provided the Internet with a trustworthy way to trade online. Today, it remains a popular payment method to buy cryptocurrencies, such as DOT.
Unfortunately, it can be quite difficult to find a cryptocurrency exchange that lets you buy Polkadot using PayPal. The reason for this is the fee that the merchant would need to pay to PayPal can be expensive. If you are looking to use this particular payment method, you could look for a seller that accepts PayPal on a P2P trading platform.
If you are looking to trade Polkadot and profit from price differences, you may wish to consider investing in derivatives, such as Contracts for Difference (CFDs). You can use secure and well-known trading platforms, such as eToro, to trade Polkadot CFDs and fund your account with PayPal.
CFD trading platforms that allow you to buy DOT with PayPal include:
Your capital is at risk
Bank transfers are a slower and relatively inconvenient way to buy DOT online. In some cases, it can take up to 10 business days for your funds to be transferred to your exchange account. However, they can be cheaper to use and are much more widely accepted than PayPal.
You can use bank transfers to buy Polkadot at a wide variety of cryptocurrency exchanges and CFD trading platforms. Some of our recommended platforms include:
Since Polkadot is still not as popular as major coins, it can be difficult to buy it anonymously. However, there are still ways to buy DOT without needing to verify your identity.
One of the safest and most convenient options to buying Polkadot anonymously is to use Changelly. This reputable cryptocurrency exchange lets you buy and sell cryptocurrencies easily, and only requires your very basic details. What’s more, you don’t need to provide any verification documents.
Another option to buy DOT anonymously is to find a seller on a P2P trading platform. If you go for this option you should be aware about possible scams and dangers. As a result, we wouldn’t recommend that you choose this method if you plan to buy a significant amount of Polkadot.
Cryptocurrency exchanges or online brokers are the safest and best ways to buy Polkadot. Available worldwide, these platforms let you buy and oftentimes sell DOT using a number of convenient payment methods.
Some of the best exchanges to buy Polkadot on include:
By opting for trustworthy, and sometimes licensed platforms, you will be reducing the likelihood of being defrauded. If this will be your first purchase of crypto, we recommend you read our beginner’s guide to cryptocurrencies.
It is fairly difficult to buy Polkadot with cash since no Polkadot ATMs currently exist. As a result, the best option is to find a seller in your area who is ready to accept cash payments. To do this, you will need to use a P2P trading platform.
If you decide to buy DOT with cash and find a seller, remember to wait until the funds have reached your wallet before handing over the cash. It is very easy to get scammed by rogue traders and, if you use cash, there is no sure way to recover your funds.
Whilst you can buy Polkadot with EUR, USD, or another fiat currency, you can also trade it for another cryptocurrency. As coins and tokens become more widespread, it is becoming more likely that you will trade them rather than buy them.
One of the best platforms to trade DOT is Binance. Supporting over 1,000 different coins and tokens, this exchange is designed for cryptocurrency trading. As such, it offers a safe and quick way to convert your coins in a low-cost manner.
Here are other reputable platforms that allow you to trade Polkadot:
Trading Polkadot is allowed in most countries around the world, but there are a few exceptions. Countries like Turkey and Egypt have outlawed or severely restricted the use of cryptocurrencies. As a result, many online exchanges do not allow residents of these countries to open an account.
Even western countries, such as the United States of America, have, at best, a lukewarm approach towards crypto. This has led to several online exchanges, including ChangeNOW and BitMEX, to stop accepting US users. Moreover, since CFD trading is banned in the USA, platforms such as IQ Option and Plus500 are not available in the country.
When Polkadot was launched in 2020, cryptocurrency CFDs were already quite common. Today, you can trade DOT CFDs and benefit from price movements without needing to buy or store the coin. Apart from being safer than buying and selling Polkadot directly, investing in DOT CFDs is also cheaper.
Here are some of the best CFD trading platforms to trade Polkadot on:
CFD trading does carry additional risks, especially if you make use of leverage. This tool can help you maximise gains, but can also increase your losses significantly. As a result, you should only trade Polkadot CFDs if you understand the risks and can afford any potential losses.
You can store Polkadot in a number of wallets. If you are looking for the most secure option, we recommend using the Ledger Nano S, since this provides a cold storage solution at an affordable price. Alternatively, you can store Polkadot for free on Guarda, however, this hot wallet is considered to be less secure.
If you do not wish to concern yourself with securing your cryptocurrency, you should consider investing in Polkadot CFDs instead. By buying the asset’s derivatives, you can close trades quicker and don’t need to worry about protecting your investment from cyberattacks.