Buy Polkadot (DOT)
The price of digital currency Polkadot (DOT) has skyrocketed with the rest of the cryptocurrency market, rising 353% since the beginning of the year. Such growth makes one wonder if Polkadot will grow even more.
The Polkadot project is gaining popularity because its goal is to decentralize the internet by connecting blockchains and their interaction with each other, allowing the creation of new applications, including decentralized financial services. You've probably already heard about this digital currency, and you're wondering if it would be a good idea to invest in Polkadot?
What is Polkadot (DOT)?
Polkadot is an open-source segmentation protocol that facilitates the transfer of any data or asset type, not just tokens, and thus enables a wide range of blockchains to interact with each other.
This interoperability aims to create a fully decentralized, user-driven private network, and facilitates the creation of new applications, systems and services.
The Polkadot network was created in 2017 by Gavin Wood, co-founder of Ethereum. The project was developed by the Web3 Foundation of Switzerland, which aimed to make a fully decentralized network.
DOT is the Polkadot network's own token, which performs three main tasks: it provides network management, its operations, and also participates in the creation of parallel chains through linking.
It has three main functions:
- Management. DOT cryptocurrency owners have full control over the protocol. There are no miners in the ecosystem, and it uses a special algorithm, so holders control all exceptional events, such as protocol updates and patches.
- Functionality. The system uses game theory and rewards those DOT holders who behave honestly. Cheaters will lose portions of their share. This principle allows the system to remain secure.
- Binding and Payment. Polkadot cryptocurrency (DOT) allows you to add new parachains or remove inactive ones.
How Polkadot works
- True interoperability. Polkadot allows cross-blockchain transfers of any type of data or asset, not just tokens. Connecting to Polkadot gives traders the ability to interact with a wide range of blockchains on the Polkadot network.
- Economic and transactional scalability. Polkadot provides unprecedented economic scalability by allowing you to use a common set of validators to protect multiple blockchains. Polkadot provides transaction scalability by distributing transactions across multiple parallel blockchains.
- Perspective. Polkadot can update itself as more advanced technologies become available to integrate new features or fix bugs.
- Security for all. Polkadot's new data availability and trustworthiness scheme allows chains to interact with each other in a meaningful way. Chains remain independent in their management, but unified in their security.
- User-managed network. Polkadot has a complex governance system in which all stakeholders have a voice. Updates to the network are coordinated internally and performed autonomously, ensuring that Polkadot's development reflects the values of the community and avoids stagnation.
Where do Polkadot come from
In total, Polkadot issued 10 million tokens. But after the start of trading, the token was "denominated" 100 times. Thus, 10 million of the original tokens turned into 1 billion, which is now used on the network. The denomination did not affect the market capitalization of Polkadot, as the new coins cost about 1/100 of the old ones, but made the token more convenient to use.
Unlike other cryptocurrencies, the Polkadot network has not announced any information about the limits for the issuance of tokens. Thus, DOT is not immune to inflation in the event of new tokens being issued.
What makes Polkadot unique
Polkadot is a sharded multi-chain network, meaning it is capable of processing multiple transactions on multiple chains in parallel. This parallel processing capability increases the scalability of the network.
Custom blockchains can be developed quickly and easily on the platform and can be connected to the Polkadot network in minutes. The Polkadot network is highly flexible and adaptable, allowing members to exchange information and functions just like through a smartphone app. Polkadot can be automatically updated to introduce new features or remove bugs.
The network has a sophisticated user management system that also helps keep it secure. Communities can customize and adapt the management of their blockchain on Polkadot according to their needs and changing conditions. Nominators, validators, collators, and phishers have various responsibilities to ensure security, maintain the network, and prevent fraudulent behavior.
Where and how to buy Polkadot
Let's consider several possible options to buy DOT at the moment. Many systems have already added this digital currency to their listing.
1. Cryptocurrency exchanges.
This is the most common purchase option. They provide an opportunity to buy DOT for many popular cryptocurrencies, and the same for fiat money.
How to make a purchase:
- Log in and go through verification, if requested by the exchange system.
- Choose the cryptocurrency pair you need.
- Create a purchase order, specify the rate at which you want to exchange assets.
- Get the digital currency you need.
2. Cryptocurrency exchangers.
At the moment, not all of them support DOT, so find a suitable one on the Internet before starting the exchange.
Purchasing DOT with online wallets includes the following steps:
- Indicate the direction of exchange. Methods for depositing and withdrawing an asset depend on the specific exchanger.
- Create an exchange request and wait for the confirmation of the transaction.
- Wait for the receipt of funds or to the online wallet that you specified.
3. Cryptocurrency wallets.
Those wallets that support this digital currency also allow you to exchange them for other assets, this happens in the following sequence:
- Install the wallet, this can be done using a mobile application or a system that needs to be installed on a computer.
- Top up the balance with the available funds with which you want to make an exchange.
- Go to the desired section, select the currency you are interested in and the funds that you want to pay for it.
- Choose the quantity you want and make an exchange.
Among the listed methods, choose the most suitable one for you. When choosing a service, make sure they are reliable, check the reputation and the level of commission.
How to start investing in Polkadot in South Africa?
Investing becomes more and more popular and in demand every year. Why keep funds that are subject to inflation, if you can use them to increase your capital.
To invest in Polkadot, you first need to have access to the Internet. Nowadays, traders are increasingly using trading platforms. With their help, they have constant access to price changes in the market online, which allows them to instantly react and reduce trading risks. Thanks to such platforms, traders can invest at any free time, from home or while traveling.
Is it safe to invest in Polkadot in South Africa online?
All sites have security systems, but despite this, you should beware of scammers and check the licensing of the platform you have chosen. Also, do not forget about the constant increase in your level in trading, the more you study, the less likely you are to risk losing money. All successful trading is based on this.
Is Polkadot a good investment?
Despite the great competition among digital money, DOT is popular among traders and investors around the world. This currency has already established itself as a good asset for increasing capital, which already speaks for itself.
It is important to choose the type of investment that suits you best:
- Long-term investment. Its meaning is to purchase an asset of your choice in order to expect its price to rise by more than 5 times in order to sell the currency in the future and get the difference between buying and selling. This method is suitable for patient people who are ready to wait for profit for more than a year.
- Short-term investment. Using this investment method, a trader has the opportunity to make daily profits through quick trades. More investors use this particular guide, so it is more popular. The daily profit is not very large, but the more trades you make, the more you increase your deposit. However, it is worth remembering to be careful.
To protect yourself in trading, use market analysis methods, this will allow you to predict the direction of the price movement of the asset you have chosen and will secure your trading.
How to buy Polkadot in South Africa right now?
Get an online wallet that supports this currency and buy DOT online using an online exchanger, cryptocurrency exchange or crypto wallet.
To become a successful trader, you need to hone your skills and choose successful strategies. It is possible to do this without investing your own funds, using a training account provided by the trading platform. With its help, the trader reduces the number of risks arising during trading and prepares for real trading at his own pace.
Opening a real account
When you are sure that your knowledge and skills are enough for successful trading, you can switch to a real account. To do this, you need to make an initial deposit, its size depends on the platform you choose. After these manipulations, you can start trading. Take your time and start small, gradually increasing your contribution, and this is the key to success.