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How to Buy Polkadot Coin in the UK – Detailed & Explained in Full

Towards the top of this guide, we provided a quickfire walkthrough of how to buy Polkadot in the UK. However, if you’re a complete newbie in the world of cryptocurrencies and blockchain technology – you might need a more detailed walkthrough.

If so, below you will find a comprehensive step-by-step guide on how to buy Polkadot Coin in the UK – using Coinbase as our example broker.

Step 1: Open a Crypto Broker Account

When using Coinbase to buy Polkadot Coin in the UK, the end-to-end process can normally be completed in less than 10 minutes. This includes registering an account and upload some ID – and then buying DOT tokens with your debit card.

So, visit the Coinbase website to open an account. You will be asked to provide a range of personal information – such as your name, date of birth, and home address. You will also need to provide your email address and telephone number.

Step 2: Upload ID Documents

As noted earlier, Coinbase will need to verify your identity as the platform is heavily regulated. This will require a copy of your passport or driver’s license. Coinbase uses automated KYC technology that can verify your chosen document in less than a minute. If the document isn’t quite clear enough – you will be asked to re-upload it.

Step 3: Add Debit Card

You will now be prompted to add your debit card so that you can buy Polkadot Coin in the UK. You can also choose a UK bank transfer, but this will delay the process by a number of days. Plus, you will then need to purchase DOT tokens manually.

As such, follow the on-screen instructions by entering your debit card details.

Step 4: Buy Polkadot Coin UK

You can now buy Polkadot Coin instantly by entering the amount of tokens that you wish to buy. Once you confirm the transaction, Coinbase will execute your purchase straight away. You will be able to view your tokens within your Coinbase wallet.

Buy Poladot Coin – Best Place to Buy Poladot Coin in the UK

There are numerous routes you can take when thinking about the best place to buy Polkadot Coin in the UK. Although other options exist, the main two avenues to consider are a cryptocurrency broker or an exchange.

Below we explain how the two differ.

Online Cryptocurrency Broker

When purchasing DOT tokens through an online broker – you will benefit from a safe and secure investment process. This is because brokers are heavily regulated in the UK. This means that the broker must comply with a range of investor protections surrounding client fund segregation and anti-money laundering controls.

Additionally, in using a regulated broker to buy Polkadot in the UK, you can use a debit/credit card or bank account to pay for your purchase. This means that you don’t need to go through the cumbersome tasks of obtaining a digital token elsewhere and then transferring the funds over to your chosen platform to swap it for DOT.

Cryptocurrency Exchange

We would only suggest considering a cryptocurrency exchange if you already have a digital token to hand. This is because you can easily transfer your cryptocurrency into the exchange and swap it for Polkadot Coin. Furthermore, as you are not using fiat money to pay for your DOT investment, you can complete the process without providing any personal information or ID.

However, we should make it clear that most cryptocurrency exchanges are unregulated. This means that you stand the risk of having your funds stolen. Although a number of exchanges have a great reputation in this industry, by using an unlicensed platform you can never be sure that your capital is safe.

Ways to Buy Polkadot Coin UK

On top of choosing from a cryptocurrency broker or exchange, you also need to consider the many ways that you can purchase DOT tokens online, In other words, the type of payment method that works best for you.

Below we explain the many ways to buy Polkadot Coin in the UK.

Buy Polkadot Coin With Debit Card

As we covered in our step-by-step walkthrough with Coinbase, using a debit card to buy Polkadot Coin in the UK is simple. You will first need to open an account with your chosen broker and then provide some KYC documents. At a minimum ─ this will either be a passport or driver’s license. Some brokers might also ask for proof of residency and possibly a selfie of you holding your ID card.

Once you’ve bypassed the verification process, you can then enter your debit card details and investment amount. Finally, once you confirm the purchase, the Polkadot tokens will be added to your brokerage web wallet.

Buy Polkadot Coin With Credit Card

If you want to buy Polkadot Coin with a credit card, the steps are like-for-like as per the section above. The two considerations that you need to make is that some credit card issuers (Barclays and Santander, for example) have since decided to block cryptocurrency purchases. Plus, even if you are able to use your credit card, some issuers will charge a cash advance fee when buying digital assets.

Buy Polkadot Coin With Paypal

The only trusted cryptocurrency broker that accepts Paypal is eToro – which is regulated by the FCA. However, although eToro has an extensive range of digital tokens on its platform, the broker is yet to support Polkadot Coin.

Buy Polkadot Coin With Bitcoin

You can also buy Polkadot Coin in the UK with Bitcoin – and many other cryptocurrencies for that matter. You will first need to transfer the crypto asset over to an exchange. Then, you can swap the token into Polkadot Coin.

For example, if you are looking to use Bitcoin, you would need to head over to the DOT/BTC marketplace to complete the swap. If you were using Ethereum to pay for your purchase, the respective pair would be DOT/ETH.

Why Buy Polkadot Coin UK?

Many inexperienced investors will look to buy Polkadot Coin in the UK purely because of speculative reasons. For example, there might be a fear of missing out (FOMO) as per the huge financial returns that Polkadot has generated since it was launched in August 2020. However, this is a short-sighted way of investing that will ultimately result in you taking on more risk than you should.

Instead, you should do lots of research on Polkadot Coin before investing any money. Some of the most important considerations to make are discussed in the sections below.

Returns of Over 1,600% in First 9 Months

The team at Polkadot released its DOT token to the markets in August 2020. Back then, the coin was trading at $2.76. In May 2021, Polkadot hit a price of over $48.68 per token.

This means that in just 9 months of trading – early investors made gains of over 1,600%. This means profits of over £1,600 for every £100 invested.

New Generation Blockchain

Polkadot is different from the likes of Bitcoin and Ethereum, insofar that the underlying technology can connect various blockchains to a single framework. This could be highly beneficial in the future – especially when you consider that blockchains typically specialize in a niche market.

For example, Ethereum specializes in smart contracts while Filecoin is focused on storage. Polkadot would therefore be able to combine these two niche markets in a decentralized manner. This is, perhaps, why Polkadot has become a top-10 cryptocurrency in terms of market capitalization in less than one year of trading.

You can buy Polkdaot on the Cheap

Polkadot – like many newly launched digital tokens, hit an all-time high in May 2021. This is because the wider cryptocurrency markets collectively enjoyed a rapid upward trajectory. However, the markets have since entered a sluggish period – where projects like Polkadot have lost a sizable amount of value in comparison to their recent highs.

For instance, while Polkadot was priced at over $48 per token in May 2021, as of mid-July 2021, the same cryptocurrency is trading at just under $13.

This means that DOT has decreased in value by 72% in just a couple of months. On the flip side, many would argue that this is an excellent time to enter the market. After all, you can now buy Polkadot Coin in the UK at a major discount – instead of paying overinflated prices.

The Cost of Buying Polkadot Coin

It is important to consider the costs of buying Polkadot Coin before you proceed with an investment. These costs will largely depend on the broker or exchange you sign up with, as well as your chosen payment method.

Deposit Fees

Deposit fees are usually very low when you decide to buy Polkadot Coin via a bank transfer. In fact, some platforms offer this service for free. Making a deposit with a cryptocurrency is also a low-cost option, as you usually only need to cover the blockchain mining fee.

However, if you decide to buy Polkadot Coin with a debit or credit card, this is often the most expensive option. Coinbase, as we noted earlier, will charge you 3.99%. Other brokers charged even more – so it’s important you check this before proceeding.

Trading Commission

Cryptocurrency brokers and exchanges also make money by charging trading commissions. Unless you are buying a really small amount, this is usually charged as a percentage. For example, OKEx and Binance charge a commission of 0.10% to buy Polkadot – which is super competitive. Some platforms, however, charge in excess of 1%.

Selling Polkadot Coin: A Quick Overview

Whether it’s a few weeks, months, or years later – at some point you will decide to sell your Polkadot Coin investment. If you bought the coins from a broker and kept them there – you can just initiate a sell order. This means that the broker will sell the DOT tokens at the current market rate and then add the proceeds to your cash balance.

If you decided to transfer the DOT tokens to your private wallet, you will first need to transfer the funds to an exchange. If the platform supports a fiat market against Polkadot (e.g. GBP/DOT), then you can sell the tokens back to cash. If not, you might need to swap Polkadot into a cryptocurrency like Bitcoin, and then cash out the tokens to pounds and pence.

How to Buy Polkadot Coin UK – Conclusion

This guide has walked you through the step-by-step process of how to buy Polkadot Coin in the UK. This includes the importance of choosing the right broker and what payment methods you might consider when investing in DOT tokens. We’ve also discussed some of the most important factors to bear in mind when risking money on a speculative asset class like Polkadot.

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