How To Buy Polkadot (DOT) – Forbes Advisor INDIA

Polkadot is among the top 15 cryptocurrencies based on a market capitalization of around $6.5 billion. If you want to buy Polkadot, here’s what you should know.

What Is Polkadot?

Created in 2016 by Gavin Wood, the co-founder of Ethereum (ETH), Polkadot is a protocol that connects different blockchains.

This platform is designed to provide a bridge between separate blockchains, allowing cross-chain interoperability. For example, it can tie the communications between Litecoin (LTC) and XRP (XRP) together with a smart contract.

Polkadot is a sharded multichain network, which means that it can easily process multiple transactions parallelly on several chains which further improves scalability.

Polkadot’s blockchain tackles some significant outstanding issues with blockchain technology: interoperability and scalability. The crypto allows other blockchains—public and private—and decentralized applications (dApps) to talk with each other under one umbrella.

Polkadot is also quick and scalable, processing more than 1,000 transactions per second (TPS). That’s impressive when you consider that Bitcoin can only process about seven, and Ethereum can only process about 30 per second. With those advantages, Polkadot could expand the usability of some cryptocurrencies.

Polkadot has its own native token, DOT, used for governance, staking and bonding. For those looking for yield, staking is a way of making your cryptocurrency earn passive income without needing to sell your tokens.

All DOT users are given rights to vote on governance, such as on upgrades, but votes are weighted by the number of tokens held by the user.

Initially, Polkadot allowed the creation of 10 million DOT, and it didn’t have a cap on supply. The network’s redenomination in August 2020 changed it to an allocation of 1 billion DOT tokens.

Where Can I Buy Polkadot In India?

It is very much possible to trade Polkadot in India and thus users can easily purchase and sell it via various cryptocurrency exchanges.

If you want to purchase DOT tokens, you can do so through a decentralized exchange like PolkaSwap or the 1Inch Network.

If you’re going to buy Polkadot using INR or another form of fiat currency, you can use cryptocurrency exchanges. A few exchanges that allow users to buy and sell DOT in India are:

• BuyUCoin
• Binance India
• ZebPay
• CoinSwitch
• Wazir X

However, there are fewer exchanges which offer trading pairs that allow customers to trade DOT with USD Coin (USDC), a leading stablecoin. Exchanges such as CoinDCX allow investors to buy and sell DOT and USDC in India.

How to Buy Polkadot

To buy Polkadot’s token, follow these three steps:

1. Select a Cryptocurrency Exchange

If you’re new to investing in cryptocurrency, you’ll have to open an account with a cryptocurrency exchange. Crypto exchanges are marketplace platforms that facilitate trades. Some are very basic and easy to use, while others are for more advanced investors and have features like margin accounts and crypto staking.

If you’re deciding between exchanges, pay attention to the platform’s security features, account minimums and added fees.

2. Submit Your Polkadot Order

Once you have an account, you can fund it by linking your bank account or entering your debit card information. Some exchanges allow you to use a credit card, but think twice before using credit. When you purchase cryptocurrencies with credit, the card issuer will likely consider the transaction to be a cash advance and charge fees and a higher annual percentage rate (APR).

While you may purchase DOT with a credit card, we strenuously advise against it. That’s because credit card transaction fees on crypto exchanges often run high. If you use a credit card to buy cryptocurrency, it generally will count as a cash advance and be subject to a higher interest rate than you pay on regular charges. Other than credit card, you can use bank debit card, or transfer fiat currency via your bank account to the exchange and use that amount to buy Polkadot (DOT)

When you’re ready to buy a Polkadot, enter the ticker symbol—DOT—and the amount you want to purchase, such as INR 1,000 or INR 5,000.

3. Store Your Polkadot

Whenever you buy cryptocurrencies, you have to handle storage on your own. Properly storing your investment is essential to ensure you keep your tokens safe. There are several storage options:

Hard Wallet: A hard wallet resembles a flash drive or USB drive. It’s a small, physical device that plugs into your computer or laptop and stores your private and personal crypto keys. They are considered “cold” because they aren’t connected to the internet or a network when not actively in use.

Paper Wallet: This form of storage is less popular than it used to be but can be a viable storage option. With a paper wallet, you write down keys or apps to download a QR code. If you lose it, you can recover your cryptocurrencies.

Software Wallet: Software wallets are apps or programs you can download to manage your cryptocurrencies electronically. Because they’re connected to the internet and networks, they’re less secure, but they make it easy to trade your holdings.

Crypto Exchanges: Some cryptocurrency exchanges, such as Coinbase, build in storage to their platforms and store your cryptocurrency on your behalf. But relying on an exchange for storage can be risky, and you may want to consider other solutions for long-term storage.

What You Can Purchase with Polkadot?

Polkadot’s token can be used as a governance token, and individuals holding DOT tokens can provide input on the future of the Polkadot protocol. Both nominators and validators can stake Polkadot, which is how Polkadot verifies transactions and issues new DOT tokens.

Like all cryptocurrencies, Polkadot’s pricing can be volatile. Only invest what you can afford to lose, and be sure to research the risks.

Crypto experts advise to explore this next-generation blockchain Polkadot and its notable growth trajectory. Experts also advise to read about the project first before investing in any emerging cryptocurrency such as Polkadot.

According to CoinMarketCap, the current ranking of Polkadot is #13, and at the time of writing, it is up by almost 5.15% and trading around the range of $5.46.