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Current Price Of Polkadot (DOT) Market Cap, And How To Buy Polkadot (DOT) Coin: Polkadot is an open-source sharding multichain protocol that facilitates the cross-chain transfer of any data or asset types. On this post we will unveil all you need to know about DOT and how you can buy it from Coinbase.
What Is Polkadot (DOT)?
Polkadot is an open-source sharding multichain protocol that facilitates the cross-chain transfer of any data or asset types, not just tokens, thereby making a wide range of blockchains interoperable with each other.
This interoperability seeks to establish a fully decentralized and private web, controlled by its users, and simplify the creation of new applications, institutions and services.
The Polkadot protocol connects public and private chains, permissionless networks, oracles and future technologies, allowing these independent blockchains to trustlessly share information and transactions through the Polkadot relay chain (explained further down).
Polkadot’s native DOT token serves three clear purposes: providing network governance and operations, and creating parachains (parallel chains) by bonding.
Polkadot has four core components:
- Relay Chain: Polkadot’s “heart,” helping to create consensus, interoperability and shared security across the network of different chains;
- Parachains: independent chains that can have their own tokens and be optimized for specific use cases;
- Parathread: similar to parachains but with flexible connectivity based on an economical pay-as-you-go model;
- Bridges: allows parachains and parathreads to connect and communicate with external blockchains like Ethereum.
Who Are the Founders of Polkadot?
Polkadot was founded by the Web3 Foundation, a Swiss Foundation founded to facilitate a fully functional and user-friendly decentralized web, as an open-source project.
Its founders are Dr. Gavin Wood, Robert Habermeier and Peter Czaban.
Wood, the Web3 Foundation’s president, is the most well-known of the trio thanks to his industry influence as Ethereum co-founder, Parity Technologies founder and the creator of the smart contract coding language Solidity.
Habermeier is a Thiel Fellow and accomplished blockchain and cryptography researcher and developer. Czaban is the Web3 Foundation’s Technology Director. With a wealth of experience across highly specialized fintech industries, he is currently helping to develop a new generation of distributed technology.
What Makes Polkadot Unique?
Polkadot is a sharded multichain network, meaning it can process many transactions on several chains in parallel (“parachains”). This parallel processing power improves scalability.
Custom blockchains are quick and easy to develop through the Substrate framework and can be connected to Polkadot’s network within minutes. The network is also highly flexible and adaptive, allowing the sharing of information and functionality between participants similar to apps on a smartphone. Polkadot can be automatically upgraded without the need for a fork in order to implement new features or remove bugs.
The network has a highly sophisticated user-driven governance system that also helps to secure it. Communities can customize their blockchain’s governance on Polkadot based on their needs and evolving conditions. Nominators, validators, collators and fishermen all fulfil various duties to help secure and maintain the network and eradicate bad behavior.
How Many Polkadot (DOT) Tokens Are There in Circulation?
Polkadot currently has an allocation of 1 billion DOT tokens, following the network’s redenomination from an initial maximum supply of 10 million in August 2020. The redenomination was undertaken purely to avoid the use of small decimals and make calculation easier. While all balances were increased by a factor of one hundred, this did not impact the distribution of DOT or holders’ proportional share.
Polkadot’s first initial coin offering (ICO) was held in October 2017. The Polkadot price at ICO was $0.29, with 2.24 million tokens offered. The second ICO was held in July 2020, with a Polkadot price per token of $1.25 and 342,080 DOT tokens sold.
How Is the Polkadot Network Secured?
Polkadot’s mass interoperability through a set of common validators helps to secure its multiple blockchains and allows them to scale their transactions by spreading their data across many parachains.
The network uses the NPoS (nominated proof-of-stake) mechanism to select validators and nominators and maximize chain security.
This unique validity scheme enables chains to interact with each other securely under the same rules, yet remain independently governed.
Where Can You Buy Polkadot (DOT)?
The top exchanges for Polkadot (DOT) trading are currently Binance, Huobi Global, Coinbase, Bithumb, Gate.io and more.
How To Buy Chainlink Coin.
With the recent hike in the price of Polkadot , there has been a high demand from potential investors who wish to buy and own Polkadot Coin, A lot of crypto investors are searching the internet to get the right information on how to how & where to get their Token as well as storing them in a secured wallet.
Polkadot is a freely-tradable token, with the majority of volume on major exchanges occurring on Huobi, Binance, Coinbase, Uniswap (V2) and OKEx Gate.io. Pairs against other cryptocurrencies and stablecoins are active, as well as with fiat currency, including on Bankman-Fried’s FTX exchange
NOTE THAT: Polkadot cannot be directly purchased with fiats currency. However, You can easily purchase this token by purchasing USDT or any major Crypto Currencies like BITCOIN from any fiat-to-crypto exchanges and then transfer to the exchange that offers to trade this Polkadot , in this guide article we will walk you through in detail the steps to buy and own your first Polkadot Asset.
Register on Fiat_to_Crypto Exchange
Since you can’t buy Polkadot directly with Fiat Currency, You will have to buy one of the major cryptocurrencies (BTC, USDT, ETH). But in this case let’s consider USDT (USDT). You can perform this transaction on fiat-to-crypto exchanges, like Coinbase.com, Coinbase is one of the largest crypto exchanges that accept fiat deposits.
All you need to do, create account with them ( ensure you keep your password safely) after creating an account then move to the next step which is to buy USDT.
Buy USDT with fiat Currency
Once you finished with account creation and KYC process. You will be asked to add a payment method. Here you can either choose to provide a credit/debit card or use a direct bank transfer.
PLEASE NOTE: You will be charged higher fees when using cards but you will make an instant purchase. While a bank transfer attract lower charges but slower purchases, Though it sometimes depends on the country of your residence, some countries will offer instant cash deposit with low fees.
Now that you have successfully added your card to coinbase, you have to trade USDT, click the ‘Trade’ button right at the top left, choose USDT and confirm your transaction.
Transfer USDT to an Altcoin Exchange
After buying your USDT, it’s worthy of note that since Polkadot is an altcoin that can’t be traded in all Crypto exchange, we need to transfer our USDT to an exchange that Polkadot can be traded, Let say Gate.io. Many exchanges has their own policies as some has restrictions to some countries, for example Binance does not allow investors from USA as customers. So you have to choose an exchange that suit your location and create an account with them before proceeding to the next steps.
PLEASE NOTE: It will always be advisable to set up 2FA authentication as it adds extra security to your account.
Deposit USDT to Your Preferred exchange
Depends on the policies of the exchange, you might be required to go through another KYC process, this usually takes minimum 0f 30 minutes and a maximum of a day, After the whole verification process you are now good to go.
Since we are now transferring our previously bought USDT from Coinbase to the exchange where Chainlink can be traded (Gate.io), click on ‘Copy Address’ or right-click on the full address and click copy to grab this address to your clipboard. Now head back to Coinbase, go to Portfolio page and click on the USDT on your asset list, then click on ‘Send’ on the right.
Under the Recipient field, paste the wallet address from your clipboard (from the exchange you want to send your USDT to), for security and accuracy reason, you should always check if both addresses are matching and Click ‘Send’ to proceed, you should receive a confirmation email instantly, click on the confirmation link on the email and your coins are on the way to your preferred exchange.
Now go to your exchange to confirm your USDT arrival, don’t worry if you haven’t seen your deposit almost immediately, It might be undergoing some network verification on blockchain network and this should take a few minutes for your coins to arrive. Depending on the network traffic condition of the USDT network, during busy times it may take even longer.
You should receive a confirmation notification from your exchange once your USDT has arrived. guess what? You are now finally ready to purchase your Coin
At this stage which is the final of your purchase, held to your exchanging platform, then go to ‘Exchange’. make sure “USDT” is selected to be able to trade USDT to altcoin pair of your choice, in this case Polkadot . You should see Polkadot /USDT, select that pair and you should see a price chart of Polkadot /USDT in the middle of the page. All you need to do is to execute your order and you are done getting your Polkadot Token.
Some Top Exchanges You Might Love Base On Your Location
BitMart – Is one of the most trusted cryptocurrency trading platform which provides real-time trading services including Bitcoin (BTC), Ethereum (ETH) and other Altcoins. It accept American customers unlike BINANCE that doesn’t support American customers.
Binance is a popular cryptocurrency exchange which was started in China but then moved their headquarters to the crypto-friendly Island of Malta in the EU. Binance is popular for its crypto to crypto exchange services.
Gate.io is an American cryptocurrency exchange that launched 2017. As the exchange is American, US-investors can of course trade here.
After Purchasing your Polkadot , and your plan is to hold it for long. You will have to open a secure wallet online or you make use of appropriate “Cold Wallet” as there had been too many hacking incidents associated with online and funds had lost severally.
Thank you for your time, note that this page is open for update and corrections. Please Note That, buying of crypto currencies is at your own risk, all our post is for education purpose and it’s advisable that you buy according to the dollars you can afford to lose. You can as well check out how to buy HotCross.