Polkadot (DOT) aims to improve the functionality of the cryptocurrency sector by allowing for transactions to be more private and efficient. You can purchase it on a cryptocurrency or decentralised exchange.
Polkadot (DOT) enables developers to be more creative and utilise the full potential of blockchain technology.
It is a
Investing in cryptocurrencies comes with unique risks that you should review before trading.
“The blockspace ecosystem for boundless innovation. Secure, composable, flexible, efficient & cost effective. Powering the movement for a better web.”
Polkadot
Where To Buy Polkadot
Interest from investors has resulted in Polkadot (DOT) being made available on a range of cryptocurrency exchanges and trading platforms. The former focus entirely on the crypto sector, while trading platforms offer a range of markets including stocks, forex and commodities, as well as cryptoassets.
Cryptocurrency exchanges are categorised as being either centralised or
Decentralised exchange (DEX) —a person-to-person marketplace used for buying and selling DOT and other cryptocurrencies. Trades are carried out directly with another investor, and buying DOT on a DEX can usually only be done using another cryptocurrency.- Centralised exchange (CEX) —a marketplace for buying and selling DOT on the exchange itself. The exchange acts as a broker of Polkadot tokens, and they may hold positions in DOT to sell to willing buyers.
Tip: Trading platforms are typically regarded as being more beginner-friendly than exchanges.
How To Keep And Store Polkadot
As with any asset, ensuring Polkadot is stored safely is of paramount importance. This is particularly important in the cryptocurrency sector. There are a range of established methods for storing Polkadot (DOT) tokens.
- Cold wallets —more akin to an external hard drive, DOT is stored offline, making it safe from malicious entities.
- Hot wallets —used to store DOT online, hot wallets (such as Exodus and Atomic) are specialised cryptocurrency wallets that can hold a range of cryptoassets.
- Broker platforms If you buy Polkadot using a broker platform such as eToro, your tokens will be held securely in your account on that platform.
Learn More About Polkadot
Polkadot has innovative features that allow it to build on the success of the Ethereum (ETH) blockchain.
The close relationship between the two cryptos being partly explained by Polkadot being created by Ethereum co-founder Gavin Wood in 2016. With the new crypto having the intention of improving the functionality and
The core Polkadot blockchain is supplemented by parachains —separate blockchains that run and process transactions parallel to the main chain —which can be developed for a number of use cases.
These parachains can be used to develop services and
| eToro Academy | Polkadot Whitepaper | @PolkadotNetwork |
|---|---|---|
| Online | Whitepaper | YouTube |
| A user-friendly platform for learning about Polkadot (DOT) and other cryptocurrencies. | The Polkadot whitepaper, which details more about the reasoning behind Polkadot’s creation and how the network operates. The Polkadot whitepaper is a fairly technical resource, best suited for those with more experience in the sector. | A YouTube channel run by the team behind Polkadot. Alongside introductory videos to the Polkadot protocol, the channel provides regular updates about network and industry changes. |
How To Buy Polkadot (DOT) on eToro
eToro is a user-friendly,
To buy Polkadot (DOT) and other cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH) and Cardano (ADA), on eToro, complete the following steps:
- Create an eToro account
This process is completed online and involves providing personal details to allow eToro to verify your identity. - Deposit funds
Click on the “Deposit Funds” button and enter the amount of fiat currency you wish to deposit. It is possible to fund your account using a variety of fiat currencies and payment methods. - Buy Polkadot (DOT)
Find the Polkadot page on the eToro platform by using the search function or accessing the cryptocurrency page. Click “Invest” and choose the amount of DOT you want to buy right now, or select “Order” to buy Polkadot at a set price in the future.
Final Thoughts
Due to their
Whether you are looking to take advantage of those moves as a
Learn more about cryptoassets such as Polkadot on the eToro Academy.
FAQ’s
- How many Polkadot (DOT) tokens are there?
-
DOT is inflationary in nature, and so the cryptocurrency’s total supply varies. At the time of writing, DOT has an annual inflation rate of 8%, with no maximum supply. As new DOT tokens are created, some are used to reward validators and nominators for helping to keep the Polkadot network secure. The remainder is sent to the Polkadot Treasury.
- What is Proof of Stake?
-
Proof of Stake (PoS) is a protocol used to ensure that transactions on a blockchain are recorded accurately. Polkadot uses the PoS approach which is more energy efficient and faster than theProof of Work (PoW) protocol used by other cryptocurrencies, such as Bitcoin (BTC). - Is buying Polkadot (DOT) safe?
-
Regardless of the asset you are buying, it is important to acknowledge market risk —the unavoidable risk that the price of an asset you hold could fall in value. Equally, operational risk, the risk that your assets can be lost or stolen, also needs to be factored in.
Continuous security upgrades by service providers in the crypto sector have gone a long way towards ensuring that Polkadot is as safe to buy as other assets, such as stocks, bonds or forex.
This information is for educational purposes only and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any financial instruments.
This material has been prepared without regard to any particular investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Not all of the financial instruments and services referred to are offered by eToro and any references to past performance of a financial instrument, index, or a packaged investment product are not, and should not be taken as, a reliable indicator of future results.
eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this guide. Make sure you understand the risks involved in trading before committing any capital. Never risk more than you are prepared to lose.