How to Buy Polkadot (DOT)

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Contributor, Benzinga
Updated: August 11, 2022
verified by Logan Ross

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

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 SoFi or iTrust. If you don't have an account with either of these platforms, 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, SoFi and iTrust are some of the best platforms offering 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.

  • SoFi Crypto
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    securely through SoFi Crypto's website
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  • iTrustCapital
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    Pricing
    1% fee
    Account Minimum
    $1,000
    securely through iTrustCapital's website
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Best Cryptocurrency Wallets

Now that you know how to buy Polkadot you need to learn how to store it safely. Here are a few of the best cryptocurrency wallets on the market:

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.

  • KeepKey
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    securely through KeepKey's website

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.  

  • SoFi Crypto
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    Best For
    Beginners
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    Read Review
    securely through SoFi Crypto's website
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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. 

Frequently Asked Questions

Questions & Answers

Q
Is Polkadot a layer 1 or layer 2?
A

Polkadot is considered a “Layer 0” blockchain which means that its a network blockchains can build on.

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