It’s time to get updated on the modern developments that the cryptocurrency market has in store for contributors and investors. Polkadot (DOT) will be one of the protagonists in 2021, as it has proved with its rapid success that investment without high risks pays off. You should take the opportunity to learn about its proposals and the benefits it will bring to your community.
If you find it a topic of interest and plan to invest in the future, we recommend you to take a look to see if it is really worthwhile to make exchanges, investments or purchases with Polkadot (DOT).
How POLKADOT (DOT) works?
It is a cryptocurrency system that works through scalability, interoperability, fragmentation and transparent governance. With many collaborators, investors and trusted workers it has been possible to develop the web function of this open source project.
Basically Polkadot functions as a shared method that allows blockchain platforms to operate together. The aim is to create a network to operate on the basis of several blockchains.
The design of DOT is made to work under the paradigm of unified work between blockchains and blockchains so that they can operate on the web. The goal is to provide innovative benefits to the use of blockchains. The Polkadot network function works through four main parts:
- Validators: they are responsible for sealing and finalizing blocks with data on the platform and support large payloads within the network.
- Nominators: they are reliable validator selectors when risk finance must be placed to perform the selection. They strengthen the overall security of the Relay Chain.
- Classifiers: send evidence coming from the block transmission state to the validators. They are also part of security since they show the malicious compartments that a validator may have in the network.
- Fishers: they are like bounty hunters that look for malicious behavior on the platform that they report to the validators.
Polkadot not only has DOT tokens as an open source multi-chain sharding protocol to make transactions easier from any asset and data. It is also so that the extensive system of blockchains can interoperate together for positive purposes for the organization.
Main benefits of POLKADOT (DOT)
Polkadot’s technology is founded on split networks capable of operating various shares in parallel on multiple chains. This will speed up the parachains, reduce any risk on the platform and allow transactions to scale in volume. This makes it possible to scale and obtain fast resources for system growth.
The DOT environment has the benefit of sharing data and tools with an aesthetic like Android apps, any process can be done without the need to use centralized services that work by giving unknown uses to the data.
On the other hand, if the user gets tired of using other currencies such as Bitcoin and Ethereum due to the fact that they are autonomous entities, they can switch to DOT, a system with which they can interact and connect directly between resources. This is known as cross-chain technology.
It is a way to include oracle networks (a platform that offers transport and translation services for data coming from around the world), so that they can be connected to any digital economy and finance service.
On the other hand, the software of blockchain networks like any other system needs to be updated from time to time to correct and optimize processes so that users enjoy a better service, which is maintained over time.
However, the advantage of this software is that updates are very easy, since they have chains with an update method known as hard fork, which is an optimization in the code that improves some functions. This could separate Blockchain into two communities.
POLKADOT (DOT) prices throughout its history
Despite the short time Polkadot has been on the market, it has an incredible story to tell. Since its inception in 2020, it has been one of the promising blockchain cryptocurrency projects, ranking in the top 10 of its class.
This project has lived up to its proposition of being a fast platform with large capital and inclusion through smart contracts in the Polkadot network. That is why today it ranks 6th among the list with a capital of $5.5 million.
So far that has been the largest amount DOT has raised in just one year of trading. If you want to invest, these are the most relevant data that will help the user to make a decision.
However, if a more accurate prediction is required, it is recommended to take a look at the details, i.e. aspects such as date, price volume, and price percentage. Below we will show you the sum of its movements since its inception, the current one and the average between both periods.
In August 2020 the opening was at $2.90900, the high at $3.07760, the low at $2.90900, the volume at 1.07M and the var at 5.80%. In the current case, in February 2021 the open is at $23.60740, the high at $24.49680, the low at $23.60740, the volume at 359.98K and the var at 3.77%.
Once you have both comparative numbers you can have an average and then a prediction. The set between August 2020 and February 2021 have an average of at the maximum $24.49680, minimum $2.90900, difference $21.58780, average 7.39176% and var $742.10382.
Purchase Methods of POLKADOT (DOT)
Despite being a new cryptocurrency, it has easily adapted to the purchase methods, as it is not so different from the others. There are only a few exceptions depending on the Exchanges used. In most platforms the user must comply with four or five general steps for the exchange or investment, such as:
The user must select the preferred supported Exchanges platform to register. The international platforms are Binance, Coinbase and FTX. Registering on any of them will take a matter of minutes.
Depending on the country and the user’s needs, it may be necessary to acquire another type of more common cryptocurrency (BTC or Ethereum), and then make the exchange, since it will only work if it is indirectly. This only happens in some cases.
A direct order is made to purchase DOT coins easily, securely and quickly to continue with the process.
Now it is time to make the purchase online and then look for a reliable wallet to make a safe investment.
Binance and FTX are the top choices to make these transactions as they meet quality platform features.
Such as, they have integrated wallets, they are licensed brokers with deposit insurance, with many tradable assets, modern crypto system, licenses and they trade real cryptos and cryptocurrency CFDs. Binance in particular is the first choice.
HOW TO BUY POLKADOT (DOT) WITH PAYPAL
So far most Exchanges and wallets do not support or do not recommend using PayPal as a payment method. Some of them do not even place Paypal as an option due to several reasons that can stunt the purchase of cryptocurrencies, and not only in the case of DOT, but also of other cryptocurrencies.
Over the years this inconvenience has not changed, as Paypal does not allow users to directly buy a cryptocurrency.
There are also those who try to change this inconvenience and choose to offer their services with the PayPal method, but it usually ends badly. Sometimes there can be scams on unknown platforms. In the case of Coinbase, there is trust, since there is the possibility of making the payment indirectly, but that merits high commissions.
The process to buy would be the conventional one starting with a registration, verification, exchange and online purchase process. It should be noted that PayPal’s own commission is 2.4% to 3.4%, and then you will have to add the commission of the Exchange previously selected.
HOW TO BUY POLKADOT (DOT) WITH CREDIT OR DEBIT CARD
To buy the cryptocurrencies, the user must select the Exchange of preference, complete the registration process and select the payment method by credit or debit card. Once this is done, the user must enter his personal data and, depending on the platform, a verification may be required.
You have the option to do it directly or indirectly. It is important to keep in constant knowledge about this currency, as it is new and there may still be changes. It is recommended to use Coinbase.
HOW TO BUY POLKADOT (DOT) WITH EURO (€)
Currently the Polkadot is at 16,49 €. Its capitalization is continuously increasing and is already
at €17,174,112,099. However, the value of the DOT cryptocurrency is down 0.59034 €, that is -3.58% of its price, and its volume is 579,511,438 €.
Taking these data into account, the user will have to make a decision as to when it will be the most convenient time to buy. The process will be similar to buying coins with any other payment method in a trusted Exchange.
HOW TO BUY POLKADOT (DOT) WITH DOLLARS ($)
Buying directly can be difficult. Most platforms offer the service but indirectly. You must first buy the most common currency and then purchase the DOT.
To do this, one must get an Exchange such as Coinbase for ETH or BTC, and then exchange for DOT. For their part, dollar rates on Binance are at $22.89.
Investing in POLKADOT (DOT): a good idea?
Polkadot (DOT) enters the top of the most popular cryptocurrencies in recent years, and rightfully so. There are several plus points to consider an investment with Polkadot’s DOT token, as its digital market capitalization is on the rise of $5.5 billion.
After denomination and exchange quotes DOT prices are increasing to the maximum. DOT on Blockchain is increasingly dominating the market better and better catching up with other leading systems such as Ethereum. Such is the ambition of this project that it has become a hub for crypto advertising on Twitter, increasingly immersing itself on the internet with excellent news for the crypto market.
With crypto market analysis thrown up by Livecoinwatch, Cryptocompare and Coingecko it can be determined that many cryptocurrencies are sideways or have red valuations for longer periods with the exception of DOT. The $5.5 million is the strongest support and evidence to position DOT in the top 6 position in the 2020 lists.
It is among the top cryptocurrencies, just below Chainlink with $5.7 billion and above Bitcoin which has a capitalization of $5 billion.
It has been doubling this figure in recent weeks. The estimate is that DOT tokens will be increasing by at least 12% in the coming weeks.
As for the most recent trading volume, it has been determined at $860 million with 35% on Binance alone. The more that is known about DOT the more confidence is added to be able to conclude whether or not it is a good idea to invest.
 2024 Complete Guide){kind=link}
 2024 Complete Guide){kind=link}