As new cryptocurrencies continue to explode onto the scene we are entering a multi-chain world where compatibility between different blockchains is essential. Polkadot (DOT) is at the forefront of this multi-chain universe and one of the most exciting projects in the cryptocurrency space.
In this step-by-step guide, we will show you exactly how and where to buy and hold DOT seamlessly.
What is DOT?
Polkadot (DOT) is an innovative blockchain and cryptocurrency project which aims to be the base layer of Web 3.0, a new decentralized and uncensorable internet built on top of blockchain technology.
Created by Ethereum co-founder Gavin Wood, Polkadot’s primary value proposition is its cross-chain composability. This means that as the base layer of Web 3.0 it will tie together various other important blockchain and cryptocurrency projects. Imagine a world where Bitcoin and Ethereum can interact and both can simultaneously be built on top of. This is the world that Polkadot is building.
DOT is the native currency of the Polkadot blockchain and ecosystem. To participate and build on top of the Polkadot system, users will be required to stake DOT, which gives it a valuable use case.
Read on to learn more about how you can buy and hold DOT and participate in the future of the decentralized internet.
Step 1: Register on Fiat-to-Crypto Exchange
Before you can buy DOT or other cryptocurrencies you will need to register on a fiat-to-crypto exchange. As the name implies, the primary purpose of a fiat-to-crypto exchange is to move your funds from the legacy fiat system into the crypto ecosystem. Once this has been done it will be much easier to move and trade freely and without permission amongst cryptocurrencies.
CryptoWallet offers a fast and easy registration process in their intuitive app which is available on both Apple and Android devices. In addition to this, CryptoWallet even provides a unique crypto debit card that lets you spend your cryptocurrencies anywhere that accepts debit payments.
After downloading the CryptoWallet app and finishing the guided registration process you will be ready to convert your fiat money into crypto, which is the next step.
Step 2: Buy BTC with Fiat Money
Moving from the fiat system into crypto is one of the more difficult aspects of trading cryptocurrencies. Fortunately, CryptoWallet helps streamline the process by allowing you to buy major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Tether (USDT) with your debit or credit card.
Once you have purchased one of these large-cap cryptocurrencies, it will be much easier to trade for any other cryptocurrency of your choice including Polkadot. We recommend buying Bitcoin (BTC) to start with since it is the most widely accepted and well-known cryptocurrency.
Once you have purchased BTC you are set to trade it for DOT, which we will show you how to do in the next step.
Step 3: Transfer BTC to an Altcoin Exchange
Now that you have BTC you can send it to any altcoin exchange of your choice relatively easily.
Altcoin exchanges that support DOT include Crypto.com and Binance, both of which are large and reputable exchanges. Once you have decided on which exchange you will choose you can sign up at the chosen exchange and find your BTC receive address. Then you can copy and paste the BTC receive address into the “Send To” section on CryptoWallet.
It may take some time (generally 15-45 minutes) for your BTC to arrive on the new exchange. Once it has arrived you can search for the BTC/DOT trading pair (since you are trading Bitcoin for Polkadot) and execute your trade.
Congratulations you now own DOT. The next step is to securely store it.
Last Step: Store DOT Securely
It is important to consider security when storing cryptocurrencies like DOT which can skyrocket in value.
You generally have two options to store cryptocurrencies securely, both of which come with their own trade-offs.
Software (or ‘hot’) wallets allow you to store your crypto online in a protected way. With your crypto online you can easily access and use it whenever you like. CryptoWallet is an excellent choice for storing large-cap cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Tether (USDT) since you can sell, trade, and even spend (using CryptoWallet’s unique crypto debit card) with ease. CryptoWallet is also protected by BitGo, a leading digital asset custodian, so your funds are always safe.
However, CryptoWallet only supports the major cryptocurrencies listed above and not DOT, so you will need to look elsewhere to store your DOT in a software wallet.
The other option for storing crypto is to use a hardware (or ‘cold’) wallet. Hardware wallets store your keys offline, making them much more difficult to hack. For this reason, hardware wallets are generally the best option for storing large amounts of funds or if you are looking to store your crypto for a long period of time.
Ledger and Trezor are two excellent choices for reputable and popular hardware wallets that support most altcoins including DOT. The downside of hardware wallets is that you must purchase extra equipment (the hardware wallet itself) and that you will not have readily available access should you want to use your crypto regularly.
Other Useful Tools for Trading DOT
There are many useful tools for trading DOT. For example, you can compare exchange rates for DOT to get the best price by visiting CoinGecko.com or CoinMarketCap.com. These sites provide live price feeds as well as important statistics such as the price history, total market cap, and total trading volume.
In addition to this, the Polkadot ecosystem provides a host of other useful tools for trading and using DOT. This includes a decentralized exchange (DEX) protocol called PolkaSwap. Decentralized exchanges like PolkaSwap allow you to make trades directly from your wallet without having to give up custody. As a Polkadot DEX, PolkaSwapi allows you to trade between DOT and other tokens which have been created on the Polkadot protocol.
Latest News for DOT
The Ukrainian government recently announced that they will be accepting donations in DOT, in addition to BTC and ETH for support during the current war. To support this announcement, Gavin Wood (Polkadots founder) donated 5.8 million dollars worth of DOT, one of the largest crypto donations on record to the eastern European nation.
Can I buy DOT with cash?
No, you cannot buy DOT or most other cryptocurrencies with cash.
However, CryptoWallet does provide a ‘cash-like’ way to purchase cryptocurrencies like DOT. By using your debit or credit card you can purchase Bitcoin (BTC) and send that to an altcoin exchange of your choice to trade for DOT.
Are there any quick ways to buy DOT in Europe?
The easiest way to buy DOT in Europe is to purchase BTC on CryptoWallet and send your BTC to an altcoin exchange of your choice to trade for DOT.
Are there any alternative platforms to buy DOT or Bitcoin with credit cards?
While CryptoWallet is the easiest way to buy BTC (and trade for DOT) with your credit card, other options do exist. It is best to do your own research and consider the reputation and trade-offs of these other options.