Where to buy Polkadot
There are various ways to get Polkadot. The easiest way would be to use a centralized exchange. Not all exchanges carry Polkadot, so you will have to find one that works for you. Differences in exchanges are more related to the United States crowd and the US version of Binance. If you’re in the United States, the best exchange to use is Kraken. Outside of the States would be Binance.
Why buy Polkadot?
Polkadot has a superior blockchain to Ethereum. While they are different and Ethereum currently has more use cases, Polkadot has more opportunities. Polkadot aims to build bridges between chains that would connect more and more projects despite them not sharing a blockchain. Imagine Polkadot as a connection protocol that would help everyone to communicate together.
Polkadot was created by the co-founder of Ethereum and CTO Gavin Wood. As a blockchain, it offers more usability rather than Ethereum’s. For example, Ethereum uses its own language for the development of smart contracts called “Solidity.” Meanwhile, Polkadot allows you to use almost any language you want. On Polkadot, you can develop on Rust all the way to Python if your heart desires it’s more developer-friendly in that sense.
If you want to know more about the differences between Ethereum and Polkadot check out Shrimpy’s article on this topic, they have a great explanation.
Methods of Purchase
Exchanges nowadays offer various payment methods when it comes to getting crypto. Speaking from the experience of using Binance, there are multiple ways to top up your balance. Let us get into those options.
Often to use real money on exchanges, you will need to complete some form of KYC (know your customer). KYC is essentially a verification of your identity for the exchange to understand that you’re not using stolen money or not committing other forms of fraud. To some extent, they’re legally obliged to do so. So if you do not want your identity to be known when buying crypto, you should consider other means.
Arguably the easiest method to pay would be with a debit or credit card. This method requires KYC, and there are often fees that you will have to consider. For example, from previous experience of using bank cards, sometimes the costs would be as high as 5%, so if you’re doing large transactions, consider using other means.
The best method for large-scale transactions would be to use bank transfers. Bank transfers have been made more difficult recently. Now you have to use various portals to fulfill the payment. For example, you would have to use ADV cash to put Euro on your account, which requires KYC. Meanwhile, to put USD on your account, you can’t use bank transfers (maybe we’re region locked to Euro, or to deposit, you need to be using US Binance).
If these two methods do not work for you, Binance also has a process of purchase where you buy crypto from other users. You deposit money onto Binance, and then you’re able to swap for crypto by trading with other Binance users. We have not tested this method previously, so be cautious. This method is listed here because you can remove Binancfromof the equation and just directly purchase crypto from others and deposit straight to Binance.
Lastly, you can always deposit the crypto directly onto Binance if you already have some or bought using other means. Or you can swap on the various available decentralized exchanges which support Polkadot. An issue you will run into when using dexs is that there are drastically more significant fees. One great decentralized exchange that allows for swapping across multiple networks is Rubic. So if your crypto is not on the same network as DOT, you might be able to still trade for it there.
If you do not have crypto and want to buy some, we have an article to help you find a method that works for you.
Now that you have Polkadot, the best thing you can do is stake it. Despite Polkadot burning some of its tokens monthly, there is inflation and unlimited supply. If you’re planning to hold the token for an extended period, you want to stake it. Staking Polkadot generates move value that is lost due to inflation. You will profit by staking it while combatting the devaluation of your crypto by holding it.
Staking is essentially mining without the hardware. If you wish to make staking as simple as possible, look into staking your crypto on Binance, they make it super simple. If you want to know more about staking, we have an article you can check out here.
Polkadot is crypto from Gavid Wood, who co-founded Ethereum. It is excellent crypto that aims to connect other blockchains into one so that actions can be carried out across multiple chains. The implications of this are massive and probably going to play a significant role in the future as we steer close and closer into a world where everything is connected one way or another the internet of things.