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How To Buy Polkadot Online in 2022

Last updated 18th Aug 2022
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Polkadot (DOT) is a blockchain network that looks to provide scalability, security, and interoperability. It boldly aims to make different forms of data transmissible between other blockchains; currently, coins do this but not so much other data types. It is a platform developing with the vision of reaching new levels of connectivity and interoperability in the blockchain space.

Many market speculators believe that Polkadot still has the potential to increase in market value as it is one of the few platforms that hasn’t really pumped as of yet. It currently sits as the tenth biggest asset on the market, and many believe this could easily rise to the top five.

We will detail everything you need to know about trading Polkadot, including where to buy it, how to buy it, and our top tips when doing so.

Best Brokers to Buy Polkadot in 2022

There are a few different ways you can purchase Polkadot, so we have put together a list for you with the best providers available.

1
eToro
Minimum Deposit
$10
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10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

Key Takeaways

  • You can buy DOT on brokerages, exchanges, DEXs, and P2P networks.

  • Polkadot is one of the potential big players in shaping the future of blockchain networks.

  • Polkadot may be subject to incoming regulation which could hurt its market performance.

  • Exchanges are the best option for crypto newcomers or swing traders, and a good option for long-term traders.

  • Polkadot has enjoyed sustained growth over the past year, could continue to rise, and may even increase dramatically. However, it is subject to high levels of volatility.

What Is the Difference Between Owning Polkadot VS a Derivative Product

There are two core ways in which you can purchase a cryptocurrency.

  1. The first is via physical ownership – you buy the asset for a specified price and then store it in your wallet. You own the asset and you hold it.

  2. The second is through other financial products like CFDs, futures, and EFTs. CFDs are a contract you agree to when you complete your purchase. They pay you rewards if the asset price rises or you incur losses if it goes down. You do not own or hold the asset with derivatives.

Most derivative products are only for the core group of coins, meaning altcoins are often not supported or applicable. You need to check with the relevant brokerage to see if they offer these products.

Different Ways to Buy Polkadot

You can buy Polkadot using any of the following platforms:

Brokerage:

  • Polkadot is available on a good range of brokerages. Some include eToro and Libertex.

Exchange:

  • Almost all exchanges will list Polkadot because of its popularity; they provide slightly lower fees than most brokerages but can be more complicated. Two of the most popular exchanges with Polkadot are Binance and Coinbase.

Decentralized Exchange (DEX):

  • These operate in the same way as a traditional exchange, but are unregulated and are not owned/operated by a singular entity. Two of the most popular include PancakeSwap and UniSwap.

P2P:

  • Person-to-person exchanges offer great rates due to the lack of a middle man; it's best to think of this as swapping rather than trading. There are a few platforms designed just for this (Paxful) and the main exchanges also offer P2P services (Binance).

Where to Buy Polkadot

Here are two of the best ways you can buy Polkadot:

Binance

The world's largest cryptocurrency exchange. You can buy over 500 cryptocurrencies on the platform and access several tools to improve your trading experience.

Pros

Some of the most competitive fees of any exchange or broker on the market
A platform that specialises in crypto trading
Insurance on some of your purchases

Cons

Centralized
Can be difficult and costly to transfer funds into external wallets
Not as trusted or regulated as eToro

eToro

One of the most accessible and well-recognised brokerages on the market, eToro is great for beginners and experienced traders.

Pros

Highly respected and regulated
Easy to store your funds with no need for a wallet
Highly accessible, offering services to over 100 countries

Cons

High non-trading fees
Spreads can be more costly than fees found on exchanges
Customer support is below the industry average

How to Buy Polkadot Online?

The process of buying a cryptocurrency can be complicated, especially if you are new to the space. Check out this step by step guide for how to buy Polkadot on Binance:

Step 1: Sign up for an account
Step 2: Provide ID for the KYC regulation process
Step 3: Deposit funds
Step 4: Click the "trade" tab
Step 5: Set an amount

How to Trade Polkadot?

Here are all of the steps you need to follow to trade Polkadot. You can do this on any of the platforms mentioned on Different Ways To Buy Polkadot. It's worth noting that it might be easier to use a broker if you’re new to the space, but exchanges like Binance offer better rates and also have good educational content specifically for crypto trading.

We've used Binance as our example:

Step 1: Select your pair
Step 2: Set a limit order
Step 3: Find your new cryptocurrency

Crypto Investment Strategy

There are two principal investment strategies with cryptocurrency: long-term holds and short-term swing trades.

Long-term Holds

  • Often known in the crypto community as HODLing, it refers to holding your crypto for a long time and waiting for the price to appreciate. This strategy means ignoring the market's volatility and just sitting on your assets until they gain significant value. The wider crypto community idolizes this strategy based on its bullish faith (HODL = hold on for dear life).

Short-term Trades

  • Often referred to as swing trading, this strategy relates to trying to make gains by trading within the volatility cycles. You buy at a dip and sell at a peak. Short-term trades are risky and require an ability to analyze and read market trends.

How to Store Polkadot?

Once you have purchased Polkadot, you will need to store it in a wallet. There are two main choices, and your trading volumes — plus how long you're holding your coins — will influence your decision.

Hot Storage

Hot storage refers to wallets that you need to sign in using an app or website. This method is a better choice if you're trading in the short term.

Coinbase and Binance are two examples of native hot wallets you can use to store Polkadot.

Pros

Easy-to-use
Better for short term trading

Cons

Vulnerable to hacking

Cold Storage

Cold storage refers to wallets that require offline verification before you sign in, and it's better for holding larger amounts — or keeping your money for an extended period. Ledger is an example of a wallet that falls into this category.

Pros

Extremely secure
Good for large amounts

Cons

Not good for short term trading
Inaccessible without the password

What Are the Different Ways to Pay For Polkadot?

To buy DOT on any platform you will need to use one of its deposit methods. Here are some of the most common:

Credit and Debit Cards:

  • Use your card to directly buy cryptocurrency. Can incur some fees but is extremely convenient.

Bank Transfer:

  • Transfer funds directly from a bank account linked with your chosen platform. One of the most expensive ways to deposit funds but very convenient and accessible to beginners.

Crypto Transfer:

  • Connect a wallet to your platform that already has crypto funds. By far the cheapest method but can be difficult for beginners.

PayPal:

  • Connect your account to some supported platforms and top-up your exchange wallet; Paypal now also accepts crypto.

What to Consider When Buying Polkadot?

Before buying DOT, you should consider some market factors that affect trades and the amount of money they cost. Here are some we suggest researching:

Different Fees:

  • Different platforms have different fee structures which directly affect your returns. Fees to look out for are deposit/withdrawal, maker/taker, commissions, and non-trading fees.

Volatility:

  • Crypto markets often rise and fall large amounts over short periods of time; while this means there are big gains to be made, you must be extremely careful with your money. DOT has hit heights of $50 and lows of $12 in the last year.

Investment Strategy:

  • Your strategy is your tool to manage the volatility of this market; utilize market trends and analysis to navigate through the peaks, troughs, and support levels of an asset.

Regulations and Taxes:

  • The regulation around cryptocurrency is ever-changing. We advise you to constantly keep in check with the relevant taxes and regulations for your country. For example, some countries have now banned crypto trading, and others have enforced rules like double-taxation.

Is It Safe to Buy Polkadot Online?

Your purchase is as secure as the platform you use.

Here are some of the ways you can make your trade as safe as possible:

  • Use a regulated broker like Coinbase or Binance.

  • Use two-factor authentication with your accounts.

  • Store holdings in a cold wallet.

  • For hot wallets, complete KYC to ensure access to insurance.

How to Sell Polkadot?

Step 1: Select your pair
Step 2: Set a limit order
Step 3: Find your new cryptocurrency

Is It Worth Buying Polkadot Right Now?

Polkadot is definitely crypto worth watching. It is a coin based on meaningful functionality that targets to actively guide the future development of the ways blockchains interact with one another.

Currently, Polkadot is undervalued at $26 which marks an opportunity to buy in. It has performed steadily over the past year with highs of $50 and lows of $12. However, many speculators note that Polkadot is yet to really experience a meaningful pump and could very well be next in line.

We advise you to always be careful with these assets as they carry extreme risk, but Polkadot offers a reasonable price for a coin with great functionality and a fantastic team behind it.

Final Thoughts

The best method for buying Polkadot depends on your experience level. For newcomers to the space, we recommend an exchange like Binance. For experienced traders, we recommend a DEX for cheaper fees.

FAQs

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Keith Hodges

Keith Hodges

Keith is a finance SEO specialist, having worked previously as a journalist in the industry. He is currently the Head of SEO at BanklessTimes and is based in London. Keith has written and worked extensively in the personal finance and investment industries, with particular focus on international and digital currencies.