What is Polkadot (DOT) coin and how can it be used?
Polkadot is a multichain protocol that aims to connect different specialized blockchains into a universal unified network. So in some sense, Polkadot can be described as “blockchain for blockchains”. Polkadot facilitates the cross-chain transfer of any type of data and assets, making different permissionless networks, private chains, oracles, and smart contracts interoperable with each other.
The Polkadot network has four structural components — relay chain, parachains, parathreads, and bridges. The relay chain can be called the Polkadot’s heart since it is responsible for security, cross-chain interoperability, and security across the whole network. Parachains are independent chains that may have their own tokens and purpose but are connected to the relay chain. Parathreads are similar to parachains but they have flexible connectivity. Bridges allow parachains and parathread to communicate with blockchains outside the Polkadot network.
The project development started in 2016 when the white paper was released but Polkadot mainnet was launched only in 2020. Polkadot has a native cryptocurrency called DOT that acts as a governance token and allows holders to vote on potential network updates and changes. Also, DOTs are used to maintain the network consensus by staking and creating parachains/parathreads in the Polkadot network by bonding.
Where to buy DOT coin and why choose CEX.IO?
DOT has quickly become one of the top-10 cryptocurrencies by market capitalization, meaning it is a popular cryptocurrency that is supported on many platforms. Its popularity is one of the reasons why a lot of people want to know how to buy Polkadot coins and where to do that. To buy DOT, you can use a bitcoin exchange. But before selecting one, it is recommended to make sure that the platform supports your country and the payment option that suits you most.
CEX.IO allows users in more than 99% of countries to trade cryptocurrencies and get access to multiple crypto-related services. It means CEX.IO can become a suitable option to buy DOT for most users around the world.
Multiple payment options
CEX.IO supports dozens of cryptocurrencies and numerous payment methods for fiat transactions, making it easier to find the way to buy DOT that fits your needs. With CEX.IO, you can buy cryptocurrencies using Visa and Mastercard payment cards, domestic (ACH, SEPA, Faster Payments) and international (SWIFT) bank transfers, and online wallets (Skrill, AdvCash, Epay, QIWI).
CEX.IO is a regulated crypto exchange that established itself as a secure place to store and buy cryptocurrencies for its over 8-year history. CEX.IO follows a strict AML/KYC policy to provide a safe place for trading and multiple crypto-related services. Also, CEX.IO allows users to protect their funds with several second-layer security measures. More about security you can find in our article.
Access to advanced services
CEX.IO Exchange allows you to buy DOT using different services — Instant Buy/Sell, Exchange, and Trade. Yet, CEX.IO Exchange is not a single product of the CEX.IO ecosystem. Your CEX.IO account opens access to advanced crypto services — staking, savings, loans — that you can benefit from with your DOT and other cryptocurrencies.
How to buy Polkadot with a credit card using the Instant Buy/Sell option?
When it comes to the easiest and fastest way to buy Bitcoin on CEX.IO, the Instant buy service is one of the first things you should try. With this service, you can buy Ethereum and dozens of other cryptocurrencies, including DOT, in a matter of minutes and by simply using your payment card.
Just follow these steps if you want to know how to buy Polkadot cryptocurrency with the Instant buy service:
- Choose DOT in the list of cryptocurrencies to buy;
- Set the amount want to buy/spend or pick one of the pre-calculated packs;
- Add a new card or use a verified card for transaction;
- Double-check the details and confirm the transaction.
As you can see, it’s not that hard. After transaction confirmation, you will receive DOT on your CEX.IO balance in seconds.
The Instant buy service is available via both the CEX.IO website and CEX.IO mobile app. But the Instant sell option is exclusive for an app. It works similarly to Instant buy. With this service, you can sell Bitcoin and other cryptocurrencies and withdraw fiat funds using your payment card.
How to buy Polkadot with a debit card?
If you want to get access to the Exchange and Trade option for buying DOT, then you first need to add funds to your balance. You can do that with a debit card or any other payment method available on CEX.IO.
For fiat transactions, CEX.IO supports several currencies (USD, EUR, GBP, RUB). But when making a card deposit/withdrawal, you can also use a payment card in local currency. The main thing is to double-check that overseas transactions and currency conversions are available for your card. Then, you will be able to select one of the supported currencies on CEX.IO for deposit/withdrawal, and a transaction in your local currency will be converted with your bank rates. Using this way, you can also use a payment card in local currency for crypto purchases via Instant Buy/Sell.
It is important to note that CEX.IO allows using only personal Visa and Mastercard payment cards, so make sure you don’t try to use a gift, prepaid, or business card for deposit/withdrawal.
After making a deposit, you will be able to use Exchange and Trade services to buy DOT. The trade option allows you to place market and limit orders on available DOT markets. While Exchange service provides you an opportunity to convert crypto and fiat even when there is no direct market for trading. The Exchange service is available only via the CEX.IO mobile app.
Frequently asked questions
How to trade Polkadot (DOT)?
If you want to start trading, then you should go to the Trade page on the CEX.IO website or tap Trade Pro in the CEX app. The first market you’ll see for trading is BTC to USD but with a search field or filtrations, you will easily find the DOT to USD market and other pairs available on CEX.IO.
Before placing a buy or sell order, you should consider what order type to choose. On CEX.IO Exchange, you can use market and limit orders for trading. With a market order, you can instantly buy and sell an asset at the best available price in the order book. But remember that the market order cannot be canceled. With a limit order, it is possible to buy an asset below the current market price or sell higher than the current market price. However, a limit order execution may not be instant. In this case, you need to wait until the price reaches a specified level or opposite orders that can match yours appear in the order book.
Where to check the Polkadot (DOT) price?
On the Trade page, you can select one of the DOT markets available on CEX.IO and you will see the current price of the base asset indicated in quoted currency. Beside the current market price, you will also find there a price chart, order book, trading volume, and other metrics that should be helpful to assess the current market situation. If you want to check live crypto prices of all assets available on CEX.IO, then you can use our Prices page.
What to do after I buy DOT?
After buying DOT, you can use it in a few different ways:
- Store on your balance — some users hold DOT, expecting it to increase in value. You don’t need to take additional actions for that. You can withdraw or exchange your DOT anytime;
- Keep trading — if you want to benefit from DOT price fluctuations you can try to find promising entry and exit points to buy and sell an asset. You can exchange Polkadot (DOT) for other assets whenever you want;
- Send it — CEX.IO allows you to easily transfer DOT to external wallet addresses;
Stake Polkadot (DOT) — on CEX.IO, you can get staking rewards just by holding DOT on your CEX.IO balance. Learn about the CEX.IO Staking program and see how easily you can earn with crypto here.
Earn interest with DOT — you can send DOT from your CEX.IO balance to the Savings account and receive a passive income every day. More details about Savings you can find here.