How to buy Polkadot (DOT), sell or exchange it for fiat or cryptocurrency

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The Polkadot cryptocurrency, which appeared in 2020, is already in great demand today and ranks fourth in terms of market capitalization. Over the past month, its rate has grown by 220%, which indicates increased public attention. For those who decided to buy Polkadot (DOT), as well as sell or exchange it, the editorial staff of Profinvestment.com has compiled an overview of all the main ways to do this.

On August 18, 2020, Binance exchange listed the DOT token and opened trading in DOT / USDT, DOT / BTC, DOT / BUSD, DOT / BNB pairs.

About the Polkadot platform

The project was created as a tool for ensuring interaction between different blockchains. Through the Polkadot network, you can transfer data and assets from different chains. The security of this method is ensured through transactional scalability – when transactions are distributed across multiple parallel blockchains. You can transfer absolutely any data from both private and public blockchains.

Polkadot code is compiled in a productive virtual environment WebAssembly (Wasm), which is also actively used by Google, Microsoft, Apple, Mozilla, etc. The multi-platform network framework Libp2p is responsible for data exchange within the ecosystem. In the framework of Polkadot, the concept of parachains (parachains) is used – these are blockchains connected to the main chain, but having unique characteristics for each connected project.

The DOT token is essential for decentralized governance, rewarding decent contributors, and most importantly, adding new parachains.

You can track transactions on the Polkadot blockchain using the browser https://polkascan.io/polkadot

Polkadot (DOT) cryptocurrency buying, selling and exchanging methods

Let’s consider the main ways by which you can buy or sell a DOT token at the moment. The asset is not yet supported by payment systems and well-known p2p-exchanges, unlike currencies such as Bitcoin or Ethereum. However, many other services have already added it to their listing.

1. Cryptocurrency exchanges

The most common option. The DOT token is supported by a large number of centralized and decentralized marketplaces. Among them:

  • Binance
  • Huobi Global
  • Bitfinex
  • OKEx
  • Kraken

They provide an opportunity to buy DOT for BTC, USDT and other popular cryptocurrencies, as well as for fiat money (USD, RUB, EUR, TRY and others).

How to exchange Polkadot (DOT) on a cryptocurrency exchange:

  1. Log in to the exchange. If verification is required, then pass it.
  2. Select the required currency pair. This can be done both directly in the trading terminal and in the wallet when choosing the currency of interest.
  3. Create a market or limit Buy / Sell order. When creating a limit order, you specify the rate at which you want to exchange assets. The order will be executed when a counter order appears on similar conditions. The commission for limit order creators is usually lower. A market order implies an instant buy at the available price, that is, the closure of one of the existing limit orders. The commission is slightly higher.

Having received the desired assets on the balance, you can withdraw them to your wallet or leave them for further trading.

DEX

If you decide to use a decentralized protocol for the exchange (for example, Binance DEX or PancakeSwap), then the algorithm will be different. Automated market making is used here and there is no usual order book. To exchange Polkadot (DOT) for DEX:

  1. Connect to the exchange via a decentralized wallet (most protocols support MetaMask, Trust Wallet, TokenPocket, MathWallet, etc.). You will need to confirm the connection in the pop-up window of the wallet, provided that you are authorized in it.
  2. Choose a currency pair for instant exchange. The given asset must already be stored in your wallet.
  3. Make an exchange. As soon as the transaction is confirmed, you will immediately receive the purchased cryptocurrency to the same wallet.

2. Cryptocurrency exchangers

At the moment, few cryptocurrency exchangers support DOT, but there are some. For example:

Using an online exchanger to buy or sell Polkadot (DOT) involves the following steps:

  1. Indicating the direction of exchange. With the help of such services, you can both buy and sell DOT if necessary. The methods of depositing / withdrawing funds depend on the specific exchanger.
  2. Create a request. Then proceed on the basis of what operation you need to perform. If you buy Polkadot for fiat, you will need to transfer fiat funds to the details that the service will give. If you buy or sell a token for cryptocurrency, then transfer the crypto to the wallet address. In either case, you will need to wait for the confirmation of the transaction.
  3. Press the button confirming your payment. All this must be done within the allotted time.
  4. Wait for the receipt of funds in response to your details or wallet address.

Polkadot network addresses start with 1 and have the following format: 1HNn6R3ZivJVgLVh5Tk3WjnLnTQNUpfdSvp1pNza6x8GyDU. You can find out the address of your wallet directly in the wallet that supports this token by clicking on the “Receive funds” button.

3. Polkadot (DOT) exchange via wallets

Cryptocurrency wallets that support Polkadot (such as Trust Wallet and Atomic Wallet) often provide the ability to exchange this asset as well. For example, consider the order of exchanging DOT through the Atomic Wallet.

  1. Install wallet. There are versions for Windows, macOS, Ubuntu, Debian, Fedora, as well as applications for Android and iOS.
  2. Top up the balance with the necessary coins.
  3. Go to section
  4. Select the given and received cryptocurrency.
  5. Enter the amount to be exchanged.
  6. Press the button

Conclusion

Among the listed methods, you can choose the most convenient for you; As for the choice of the services themselves, then pay attention to their reputation and the established level of commissions. Polkadot (DOT) is an asset that is definitely worth paying attention to in the current environment. WalletInvestor analysts expect it to grow to $ 5,000 and more in 2021. Of course, predictions do not always come true, but experts have reason to make such assumptions. There is a high level of community recognition of the token, and high capitalization signals the same.

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