How to Buy Polkadot (DOT) with Credit Card, Debit Card, PayPal, Wire Transfer & More

This step-by-step guide will help you know where to buy Polkadot (DOT) using secure deposit and withdrawal methods like PayPal, Credit Card, and Bank Transfer. This article will also show how to buy Polkadot anonymously without ID, and requirements to buy polkadot.

Author: Usman Ahmed   -   Last updated: 01/11/2022
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Introduction

Since its inception in 2020, DOT has benefited numerous investors, allowing them for data cross-chain transfers and offering Defi and parachain solutions.

This simple guide lets you know How to buy DOT in 2022 instantly using different payment methods, including Debit Card, Credit Card, and PayPal in countries like Europe, the UK, and the USA.

Where to Buy Polkadot (DOT) in 2022

  • Min Deposit: $200
  • Number of Coins: 20+
  • Supports Multiple Languages
  • Regulated by FCA, ASIC & CySEC
  • Paypal, Debit & Credit Card Accepted
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Visit eToro

Capital At Risk

  • Min Deposit: 20 $£€
  • Number of Coins: 12+
  • Regulated by FCA & CySEC
  • Place Buy & Sell CFDs Orders
  • Low Minimum Deposit
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Visit Capital.com

81.4% of retail cfd accounts lose money

  • Min Deposit: 1 $£€
  • Number of Coins: 50+
  • Regulated by SEC, & FinCEN
  • Place Buy & Sell CFDs Orders
  • Low Minimum Deposit
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Visit Coinbase

Capital At Risk

  • Min Deposit: 1 $£€
  • Number of Coins: 1500+
  • High Number of Coins
  • Accepts Fiat Deposits
  • Trade on Spot and Futures
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Visit Binance

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  • Min Deposit: 1 $£€
  • Number of Coins: 50+
  • Highly transparent exchange
  • Competitive Bitcoin trading fees
  • Highly secure
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Visit Kraken

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Pros and Cons of Buying Polkadot (DOT)?

Pros

Cons

Buy Polkadot (DOT) Instantly

Step 1: Create an account

First, open an account with a crypto exchange or broker listing Polkadot. Although there are different platforms to buy Polkadot, we’ll list some of the best. Still, it would help if you do your homework to verify that the exchange you’ve selected is secure and reliable.

Ideally, you should choose a reputable exchange. Most crypto exchanges allow seamless signup and should not take more than a couple of minutes. However, you’ll need to complete the KYC requirements before you start buying Polkadot.

Step 2: Fund the Account

Methods of funding your account vary depending on your selected platform or country of residence. Credit cards, debit cards, bank transfers, e-wallets (Skrill, Neteller, PayPal), and wire transfers are common choices likely to be available on most exchanges.

Step 3: Buy Polkadot (DOT), With or Without Leverage

Buying Polkadot tokens is the final step after financing your account. Depending on your chosen platform or your trade preferences, you can buy DOT coins with or without leverage. When you buy Polkadot without leverage, you pay the total amount for the asset and hold its complete ownership.

On the other hand, buying Polkadot with leverage only needs you to pay a fractional amount to enter a position and make profits via price speculation. This type of purchase is known as a CFD contract. In a CFD contract, holders don’t own the crypto asset.

Step One
Open A Free Account
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Step Two
Deposit Funds
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Step Three
Buy Cryptocurrency
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What is Polkadot (DOT)?

Polkadot is a network of interconnected blockchains. Gavin Wood, co-founder and former CTO of Ethereum, started the project in 2016.

Polkadot has a core relay chain that offers security and uniformity for all linked Parachains. Each Parachain may run DApps, generate coins, and set customized network rules. Parachains are restricted and distributed through auctions.

DOT is the native utility token of the Polkadot network. Besides having the right to vote on proposed project improvements, holders can use them to pay network transaction fees. DOT is an unlimited supply inflationary coin having a nominated Proof-of-Stake (PoS) structure.

How Does Polkadot (DOT) Work?

Polkadot employs proof-of-stake consensus instead of proof-of-work to protect the network, validate transactions, and generate and distribute new DOT. Polkadot holders’ involvement in staking procedures depends on time, technical expertise, and financial resources.

Validators having sound technical expertise do most of the work. To be a validator, you must have a reliable node (one of the network’s computers) and stake a significant quantity of your holding DOTs. Holders can also earn a portion of transaction fees and receive tips by verifying authenticated transactions and adding new blocks to the relay chain. Not to mention, you can also lose your staked DOT upon acting suspiciously, making a mistake, or having technological issues.

Regular investors can stake indirectly through nominees. You may trust a validator with some of your DOT. Your validators earn DOT for you in exchange. Stakeholders should not forget to take precautions while selecting a validator.

On the other hand, Collators and Fishermen jobs demand less commitment than validators but require more technical competencies than nominators. While collators send Parachain transactions to relay chain validators, Fishermen discover and report problematic actors on the network.

Polkadot can analyze extensive data since the Parachains help the main relay chain enabling the network to execute more transactions per second than Bitcoin and Ethereum. Polkadot should get quicker as the network expands and new Parachains get added, reaching a benchmark of one million transactions a second.

How is Polkadot Different from or Similar to Bitcoin?

Bitcoin has always been at the top of the list in the crypto regime. Besides being one of the oldest cryptocurrencies, it has the largest market capitalization globally. On the other hand, Polkadot is relatively a new entrant and still establishes its impact. Let’s examine how Polkadot is different from or similar to Bitcoin.

Bitcoin (BTC)

Bitcoin is decentralized digital money that you can transmit through a peer-to-peer bitcoin network without mediators. Satoshi Nakamoto created Bitcoin in 2009. It primarily serves the purpose of value storage and exchange medium.

Polkadot (DOT)

Polkadot is a distributed computing open-source blockchain platform. The network employs a proof-of-stake consensus mechanism to verify transactions. Dr. Gavin Wood, the co-founder of Ethereum, invented the coin in 2016.

Differences Between Polkadot (DOT) and Bitcoin (BTC)

Market Capitalization

When comparing the market cap of Bitcoin and Polkadot, Bitcoin is the definite winner with a total market cap of a little over $700 Billion. On the other hand, the Polkadot market cap is worth around $17 billion. Honestly, it is hard to ascertain how high Polkadot can go further.

Verification

Both BTC and DOT employ distinct verification techniques. To authenticate transactions, BTC uses the proof-of-work mechanism, in which network miners solve challenging mathematical puzzles. On the other hand, DOT hosts a proof-of-stake consensus mechanism to verify the stake. DOT validators are chosen based on their DOT holdings.

Value

Bitcoin differs significantly from Polkadot in terms of value. Not to mention, BTC has been the most valued cryptocurrency ever since its inception.

Fees

Polkadot competes well with bitcoin, adopting a weighted charge mechanism for transactions. Users can perform transactions at a cost of up to 0.2%, making the DOT way cheaper than BTC.

Similarities Between Polkadot (DOT) and Bitcoin (BTC)

Trading style

There are various strategies to trade DOT and BTC. Crypto enthusiasts can buy or sell either of the coins on major crypto platforms and smaller exchanges.

Storage

Holders need to store both DOT and BTC in the same way. After acquiring the coins, a compatible cold or hot wallet is necessary.

Regulation

Both Polkadot and Bitcoin are similar in terms of regulations. Because they are based on blockchain technology, no banks or bodies govern either of the coins.

Polkadot Historical Price Performance

When launched, DOT was worth roughly $0.29. The crypto price surged to $4.484 on the following day i-e August 23, 2020. The coin kept increasing and reached $6.3 by August 31, 2020. It took the crypto coin only ten days to rise over 200%. The price kept floating between $4 and $ 7 over the next few months until it printed an all-time high of $9.2 on December 31, 2021.

Besides a few minor dips in the price, DOT continued hitting new heights and reached $39.7 on February 21, 2021. After stumbling down by $10 over the next month, it started an upward journey again and recorded a new high of $45.8 on April 04, 2021. The following 20 days proved to be a complete disaster for the coin, and it dropped to $28.9 on April 24, 2021.

After rising back to $47 the same month, it started falling off and recorded its all-time low of the year at $12.3 in July amid the crash of the crypto market. However, the crypto soon started recovering, and the bullish momentum escalated it to the newest level of $53.4 on November 04, 2021. It was the highest price level that Polkadot had achieved during its existence.

Unfortunately, DOT could not sustain its position longer and dropped to $24.0 on December 20, 2021. As of January 23, the crypto floats around $17.5 with a market value of $24.17 bn and placing 10th among cryptocurrencies.

Buy Polkadot (DOT)

Remember that cryptocurrency markets are incredibly unpredictable, making it difficult to anticipate a coin’s price in a few hours, much alone long-term. Not to mention, the past performance of a crypto asset doesn’t guarantee its future growth. As a result, experts and forecasting platforms make mistakes.

Before making a final choice, it is better to conduct your research and consult with industry experts. Never invest more than you can afford to lose.

What Factors Influence Polkadot Price?

While multiple factors can influence DOT’s price, let us discuss a few of them below.

Scalability

Unlike the Ethereum network, which is crowded and sluggish, Polkadot quickly integrates with various networks and is more scalable. Not to mention, despite being the most popular programmable blockchain, the Ethereum network failed to deliver as promised. Consequently, developers shifting to the cheaper network (Polkadot) to create apps utilizing Ethereum and Bitcoin blockchains can influence the DOT’s price to surge.

Reduced congestion

Polkadot employs Parachains to fix speed and traffic issues. Instead of one network for all apps, each has its tiny blockchain (or Parachain) linking back to the main chain.

On Polkadot’s blockchain, a spike in demand for one application will not affect the performance of others, and this can help the coin become the preferred choice of developers and may contribute to the rise in the coin’s value.

Adaptability

The crypto industry is so young that it may often be challenging to evaluate projects and comprehend the basics. Market caps might also be deceiving. Coins utilize diverse validation techniques, and address different challenges, and there’s relatively little historical data.

While the management staff is one element, the number of developers involved is the other factor. According to a recent Electric Capital report, Polkadot’s development community grew from 197 in 2019 to 388 in 2020. Compared to Ethereum developers, the percentage is pretty low, but it shows moderate growth in Polkadot’s popularity, suggesting a possible surge in the prices of DOT.

How to Invest in Polkadot (DOT)

If you wish to add DOT to your investment portfolio, there are several ways for doing so.

Buy and HODL Polkadot

Whether you trade in a stock market or stake your interest in forex, commodity, and even crypto markets, HODLing is one of the most popular strategies of all time. Since cryptocurrencies tend to be excessively volatile, holding them for the right time can be a viable investment decision. No doubt, the crypto market can crash, leading you to incur losses. However, it surges back over time for sure. Therefore, if you hold your position until the crypto market recovers, you are likely to make a substantial profit. Polkadot has a bright future ahead of it based on past success. Buying DOT coins and hodling can be a rewarding long-term investment plan.

Buying Polkadot CFD

You may also trade DOT as CFDs. You can open a CFD contract and start speculating on DOT’s price. Your trading platform allows you to predict whether the underlying asset (DOT) will rise or fall.

You can open a transaction on the margin because CFDs are leveraged products. Depending on the leverage employed, investors can make huge gains. However, using high leverage can also result in significant losses.

Day Trading Polkadot

You can also day trade your DOT coins. Day trading refers to liquifying your position on the same day. Successful day traders need to understand DOT market movements besides sound understanding of the forex and crypto markets. Day trading is a rewarding strategy to invest in the coin, but it may be difficult for newcomers. It may take time to learn day trading, but you can always seek professional help to handle your account.

Buy Polkadot (DOT) With Credit or Debit Card

Purchasing DOT tokens using a credit/debit card is one of the most convenient methods. While most exchanges will accept this as a payment option, you’ll likely discover that some countries are restricted to use this option.

Being a universal trading platform, eToro accepts credit/debit card deposits from traders worldwide. After depositing fiat, traders can buy real DOT coins or open a CFD position to speculate on DOT’s price.

Polkadot (DOT) chart

eToro doesn’t charge any fee on deposits via a credit or debit card. However, the spread charge is an exception. Also, fund transfers in a currency other than USD will incur conversion costs. Not to mention, instant funding of your trading account is yet another benefit of using credit/debit cards.

Buy Polkadot (DOT) with PayPal

PayPal is another viable option for purchasing DOT tokens on brokers/exchanges. eToro supports this option in most countries across the globe. However, you can find the list of restricted countries on the company’s website.

PayPal transactions are available in four base currencies: USD, EUR, AUD, and GBP. The maximum deposit is $10,000. Notably, customers should already have an active account with PayPal connected to a credit card or debit card or should have some funds available in it.

As with credit/debit card payments, there are no additional fees unless you don’t use a currency other than the account’s base currency. Additionally, funds transfers are quick, and the company instantly reflects the balance in your account.

Buy Polkadot (DOT) With eWallets (Skrill, Neteller)

e-Wallets are now widely used to fund exchanges like eToro. Most eToro customers prefer utilizing Skrill and Neteller to buy DOT coins since the deposit procedure is fast and straightforward. Also, eToro offers deposits from $100 to $10,000 with no transactional or processing fees.

Buy Polkadot (DOT) With Bank Wire

Bank Wire is another excellent option for buying your favorite crypto coins on eToro, provided that eToro does accept wire transfers from your home country. By the way, wire transfers are most likely to be accepted worldwide. Unlike card payments or e-wallets, the minimum deposit limit for wire transfers is $500, almost double the required amount in other options.

While the apparent benefit of financing your eToro account using a bank wire is unlimited deposits, the major drawback is the time it takes to process your payments. Usually, wire transfers take longer, and cash may not appear in your account for up to 7 working days.

Buy Polkadot (DOT) Anonymously Without ID Verification

Unlike other platforms, eToro allows clients to buy DOT coins without I.D. verification. If you wish to disguise your identity, you may skip the KYC verification step during the registration process. However, clients need to verify their accounts within 14 days of registration. Else, the broker reserves the right to close your account anytime.

Please note that unverified accounts can buy DOT coins of up to $2250 worth with a non-verified account.

What Do You Need Before You Can Start Buying Polkadot (DOT)?

Before adding DOT coins to your crypto portfolio, make sure you have a trade account, required capital, and a DOT wallet.

1. Trading account

To buy a DOT coin, you first need to open a trading account with an exchange or a broker listing  DOT coin. There are multiple options depending on your trading preferences, so browse around. Most will allow you to try out a demo account or trial period before committing fully. Also, different trading platforms provide distinct trader accounts.

2. Capital Investment

You’ll need money to buy DOT tokens, and the required amount depends on your investment strategy. HODLing doesn’t cost much money because you can purchase tokens in fractions. On the other hand, you may need to pay extra cash to open a CFD position. However, that may not always be the case.

For instance, if you wish to buy a whole BTC token, it will cost you thousands of dollars. However, trading BTC as a CFD would only need you to deposit a minimum amount required to open an account with your selected platform and start speculating on the asset price immediately.

3. Wallet

After buying your coins, you’ll need a safe location to keep them. You can use any hot wallet or cold storage place to protect your crypto holdings.

How Much Do You Need to Buy Polkadot (DOT)?

Buying DOT tokens requires a certain quantity of money depending on several factors. However, the most crucial factor is the market price.

How much to buy DOT

Aside from the token fee, there are additional expenses. Most platforms have customized trading limitations and may have a different pricing structure for deposits, transactions, or conversion costs.

Although crypto exchanges and brokerage firms do not charge for crypto wallets so you can store your digital currencies safely, do not forget to check non-trading costs, such as overnight fees, inactivity fees, etc.

Where Can You Buy Polkadot (DOT)?

Buying DOT tokens is simple once you have satisfied the prerequisites. Most exchanges provide multiple options, such as buying real crypto assets or trading DOT coins as CFDs or futures contracts. While searching your preferred platform, do look for the available choices.

Usually, two kinds of platforms allow you to buy DOT instantaneously, including crypto exchanges and brokers. You can buy DOT coins with credit/debit cards, bank transfers, or e-wallets on crypto exchanges like Binance, Coinbase, Kraken, etc. On the other hand, brokers such as capital.com, and plus500 allow you to speculate on DOT’s prices using CFDs. However, some hybrid platforms like eToro offer you both options.

What do people say about buying and investing in Polkadot (DOT) on Reddit?

Reddit

The Reddit community seems to have positive views concerning investment in Polkadot. However, while responding to a Reddit member seeking investment advice on DOT, an anonymous user replied that people need to research before staking their interest in DOT. He added that investing in something you genuinely believe in and have a strategy for is less stressful.

Buy Polkadot (DOT) Review

Many have emphasized transaction speed, like in the case of Solana. But transaction speeds aren’t the issue. The main concern is whether the blockchain trilemma is solved? Did they give up decentralization, scalability, or security, and how much of each? Given the DOT outreach, it might be the right solution. A few more posts on Reddit also seemed to apprise Polkadot investment.

Quora

Quora community also has positive thoughts on buying Polkadots. However, a group of people on Quora believe that even though blockchain technology tends to revolutionize the world, and specific cryptocurrencies are already enjoying tremendous growth, it’s hard to say if you should stake your interest in Polkadot or not. It will take time for this new coin to achieve significant success.

Buy Polkadot (DOT) Review

While it is possible to profit from cryptocurrency trading, you must be cautious as the value of the digital currency fluctuates often. If you wish to buy Polkadot (DOT) to sell it later, the price may drop before completing the transaction. So, before investing your money, you should be extremely cautious.

Polkadot allows for the deployment of customized blockchains, which can be readily adjusted to unique demands for enterprises of all sizes while also allowing for their hassle-free upgrading.

Because Polkadot is a new ecosystem, many projects are still in the works. So, despite its great appearance, it requires more time to judge its genuine potential.

We didn’t only write this guide to tell you how to buy Dot tokens or where to get Polkadot. Instead, we wanted to help you get the information and insight you need to see the broader picture and make the most of your Polkadot investing adventure.

Conclusion

Polkadot allows for the deployment of customized blockchains, which can be readily adjusted to unique demands for enterprises of all sizes while also allowing for their hassle-free upgrading.

Because Polkadot is a relatively new ecosystem, many projects are still in the works. So, despite its great appearance, it requires more time to judge its genuine potential.

We didn’t only write this guide to tell you how to buy Dot tokens or where to get Polkadot. Instead, we wanted to help you get the information and insight you need to see the broader picture and make the most of your Polkadot investing adventure.

FAQs

Can I invest in Polkadot?

Yes, you can invest in Polkadot. If you’re looking to invest in Polkadot, you should know that it’s a new cryptocurrency platform with a lot of potential.

Is Polkadot better than Ethereum?

There is no clear consensus on which platform is better suited for smart contract development, as both Ethereum and Polkadot have their own unique strengths and weaknesses. That being said, many developers feel that Polkadot has an edge over Ethereum due to its scalability capabilities, easier development environment, and support for multiple blockchains. However, Ethereum still maintains a large lead in terms of overall developer activity and ecosystem support. Ultimately, it depends on your specific needs as a developer as to which platform is better suited for you.

Why do people buy Polkadot?

People buy Polkadot because they want to be part of the movement to create a better web. Polkadot is designed to connect different blockchains and enable faster, more secure, and more efficient transactions. 

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