How to Buy Polkadot (DOT)

Contributor, Benzinga
verified by Logan Ross

Want to know how to buy Polkadot? You can buy DOT on Coinbase and iTrust.

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Polkadot (DOT) is an open-source sharding multichain operating on the Ethereum network. Polkadot uses oracle technology to connect blockchains together, allowing information to be shared between multiple projects and networks. The goal of the Polkadot network is to create a truly decentralized web by allowing blockchains to “communicate” with each other. Polkadot is currently the 11th largest cryptocurrency in the world when measured by market capitalization.

Interested in learning more about investing in Polkadot? Our guide will help you get started.

How to Buy Polkadot

  1. Open an online account.

    The easiest way to buy and sell Polkadot today is on Coinbase or Binance.US. If you don’t have an account with either of these exchanges, you’ll want to set one up to purchase Polkadot.

    Creating an account with both of these exchanges is relatively simple as long as you’re ready to comply with the SEC’s know-your-customer (KYC) guidelines. You’ll need to authenticate your identity for tax purposes via your SSN, drivers license, address and a quick selfie.

    This shouldn’t take more than 5 minutes, and once you’re approved you can connect your bank account and get trading!

  2. Buy or download a crypto wallet

    A cryptocurrency wallet is a mobile or desktop app that allows you to safely store your cryptocurrency with a private set of keys. For the highest possible level of security, we recommend investing in a cold wallet. Cold wallets are devices that you can buy from sites like Amazon. Most models work like a flash drive, allowing you to connect to your computer or mobile device via Bluetooth to transfer your coins into a more secure wallet. Your cold wallet stores your coins offline, which ensures that only you have access to your coins.

  3. Make Your Purchase

    The final step to investing in cryptocurrency is to place a buy order through your broker’s trading platform. There are a few different types of buy orders, and each buy order gives your broker a specific set of instructions to follow when they carry out your trade. Some of the most common types of buy orders you’ll see may include:

    Market orders. Market orders are executed as soon as possible. They give you less control over the price paid for each asset, but they can be useful for those who need a quick purchase.

    Limit order. Limit orders are executed as soon as possible at a specific price. For example, you could set a limit order with a price limit of $5 per token. If the price of the token you’re investing in falls to $5 or less, your broker will fill the order. If the price doesn’t fall to $5, your broker won’t fill the order.

    Recurring order. Some brokers offer recurring orders, which allow you to invest on a set schedule. For example, you might set an order to buy $500 worth of Polkadot on the first day of every month. Depending on the broker you’re buying through, you might be able to set recurring orders on an annual, monthly, weekly or even daily basis.

    Stop-limit order. A stop-limit order is a conditional order that is only executed under a specific price umbrella. For example, you might set a stop-limit order for Polkadot with a stop price of $5 and a limit price of $5.25. In this circumstance, your broker would begin filling your order as soon as the price of each token reaches $5. So long as the broker can fill the order below $5.25 per token, your order will continue to be filled until its completed. If the price of Polkadot rises above $5.25, your broker will stop executing the order.

    After your broker fills your order, you can transfer your coins to a wallet if you plan on becoming a long-term investor. You might want to start by transferring a small amount of money before you send your entire purchase to be 100% sure that you have your wallet address correct. If you send your cryptocurrency to an incorrect wallet address, it is very difficult to get your tokens back. 

Best Crypto Exchanges for Polkadot

As delineated above, Coinbase is by far the best way to invest in Polkadot today. Making an account is easy, and you can get started investing in crypto today! Before you’re approved to trade, however, you’ll need to verify your identity. To do so, you’ll need to provide your driver’s license number, Social Security number and home address.

earn free crypto securely through Coinbase’s website
Best For
Coinbase Learn
N/A
1 Minute Review

Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs. 

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.

Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.

Best For
  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform
Pros
  • Simple platform is easy to operate
  • Comprehensive mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto for learning about available coins
Cons
  • Higher fees than competitors
get started securely through Binance’s website
Best For
Altcoin Trading
N/A
1 Minute Review

Binance is the largest cryptocurrency exchange in the world by trading volume. In fact, it tops the ranks of cryptocurrency exchanges maintained by CoinMarketCap, which are ranked based on 24-hour trading volumes, exchange score and average liquidity. Binance triumphs over exchanges like Huobi Global and Coinbase, which follow closely in 2nd and 3rd places, respectively. 

Previously based in Malta, the Binance Group is now based in the Cayman Islands. Binance has several locations and entities registered across the globe. In the United States, it’s known as Binance.US. The exchange in the U.S. uses the same cutting-edge technology and trading services as its global counterparts with the difference being U.S. regulatory compliance. It is operated by San Francisco-based BAM Trading Services.

Binance.US ranks 9th on CoinMarketCap’s list of the top 10 exchanges based on metrics like 24-hour trading volume, exchange score and average liquidity. Binance could be a good platform for you to invest in cryptocurrencies if you are a U.S.-based trader who trades frequently, doesn’t intend to pay high trading fees and needs access to a large number of cryptocurrencies. 

Best For
  • US Citizens
  • Frequent day traders
  • Users interested in Binance Smart Chain (BSC) and Binance Coin (BNB)
Pros
  • Low trading fees
  • Easy-to-use platform
  • Wide selection of altcoins — it offers 51 cryptocurrencies apart from Bitcoin (BTC)
  • Good customer service
  • High liquidity because of large trading volumes
Cons
  • Only residents of 43 states in the U.S. can trade on Binance.US. You cannot trade on this platform in New York, Connecticut, Hawaii, Texas, Vermont, Idaho and Louisiana
  • Despite the wide selection of altcoins, the number of tokens offered on the U.S. platform is not comparable to the hundreds of choices available on the Binance global platform
  • There is no option for telephonic customer support
get started securely through Uphold’s website

Best Cryptocurrency Wallets

Most Affordable: KeepKey

Some cold wallet models can cost upwards of $100. If you only need to store a bit of crypto, you might want to consider the secure and affordable KeyKeep model.

KeepKey is a simple, straightforward cryptocurrency wallet that connects to your computer via USB. KeepKey supports ERC-20 tokens like Polkadot in addition to other major cryptocurrencies like Bitcoin, Ethereum, Litecoin and more.

Best of all, KeepKey offers all of this protection for less than $30.

Best For Simple Setup: Trezor Model T

The Trezor Model T is 1 of the most popular cold storage solutions available, combining top-of-the-line security with an easy setup process that even complete beginners will understand. To get started, simply connect to your computer or mobile device via Bluetooth or USB, visit trezor.io/start and follow the instructions. Your device will be up and running in just a few minutes, allowing you to quickly transfer your investments to your wallet.

The Trezor Model T also features a full-color LCD touchscreen, which can help you manage your coins more effectively when you’re away from home or on a public wi-fi connection. With a simple setup process, large storage sizes and plenty of compatible coins and tokens, the Trezor Model T is a great choice for new investors and seasoned professionals alike. 

Trade or Sell Your Cryptocurrency

If your broker is able to fill your order, you’ll see it in your brokerage account. From here, you’ll need to decide if you want to hold onto your tokens for a long period of time or trade throughout the week or day to capitalize on short-term price movements.

If you decide to sell on an ongoing, short-term basis, you’ll need to open an account with a broker that puts a high emphasis on platform speed and security. If you don’t already have an account, start your search with some of our recommended choices below.  

Current Crypto Prices

The cryptocurrency market is exceptionally volatile. Even major cryptos can regularly see a 6% drop or increase per day. Take a look at how the crypto market is moving today with the chart below.

Add Cryptocurrency to Your Portfolio

Not sure which cryptocurrency to invest in? Consider investing in a crypto ETF instead of individual coins. An exchange traded fund (ETF) is a bundle of stocks that trade like a single share.

Crypto ETFs like the Amplify Transformational Data Sharing ETF and the Reality Shares Nasdaq NexGen Economy ETF can add instant diversification to your investment portfolio while also providing exposure to the expanding world of blockchain technology. 

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