How to Buy Polkadot (DOT) in 2024: 5 Simple Steps

As one of the top 15 cryptocurrencies in the market, beginners are often interested in learning the different ways of investing in Polkadot (DOT). So far this year, DOT has been relatively bullish, moving to a two-year high in March. Although the price has somewhat retreated from this recent peak, investors’ appetite has spiked, with many hoping to be a part of the next upward trend.

So, If you are eager to learn how to buy Polkadot in 2024, then look no further! In this guide, we’ll walk you through five simple steps to acquire this promising cryptocurrency.

What is Polkadot (DOT)?

Polkadot is a next-generation blockchain protocol that aims to facilitate interoperability between different blockchains. Founded in 2016 by Dr. Gavin Wood, one of Ethereum’s co-founders, Polkadot enables independent blockchains to exchange information and transactions in a secure and trustless manner.

DOT, is the native token of the Polkadot network and serves various purposes, including governance, staking, and bonding. Currently, it is the world’s 12th-largest cryptocurrency with a market capitalization of $11,905,887,271. At its peak in November 2021, it was priced at $55.00 per token, however, at the time of writing is trading at $8.98.

One of Polkadot’s key selling points is its transaction speed. Presently, it processes over 1,000 transactions per second (TPS). Compare this to Bitcoin, which only executes 7, and Ethereum, which currently sits at 15 per second.

How to Buy Polkadot in 5 Simple Steps

Now that you have a better idea of the background of Polkadot, let’s dive into the step-by-step process of how to buy Polkadot coins.

1) Choose a Crypto Exchange

The first step is to select a reputable cryptocurrency exchange that supports Polkadot trading pairs. Consider platforms like eToro, Binance, or MEXC for their user-friendly interfaces and robust security features. Let’s go with eToro, once on their website, begin by clicking “Join eToro”.

2) Complete KYC Verification

As eToro is a regulated exchange, you will need to complete the Know Your Customer (KYC) verification process. This involves submitting identification documents such as a Passport or Driver’s license to adhere to regulatory standards.

3) Deposit Fiat or Crypto

Before initiating any transactions, you will first need to fund your account. Do this by depositing Fiat currency or other cryptocurrencies like USDT. Many exchanges offer multiple deposit options, including bank transfers, credit/debit cards, and digital assets.

4) Choose Polkadot Trading Pair

Now that your account is funded, move to the trading section of the exchange and search for the Polkadot (DOT) trading pair. Common pairs include DOT/USD, DOT/BTC, and DOT/ETH.

5) Buy Polkadot

Finally, you are ready to buy Polkadot.  Enter the amount of Polkadot you wish to purchase and execute the buy order. Ensure to review the transaction details, including the price and fees, before finalizing the purchase.

Where to Buy Polkadot in 2024? The Best Platforms

Now that you are aware of the main steps to take when buying tokens, it is time to consider your options for where to buy Polkadot.

Choosing the right platform is crucial for a seamless and secure trading experience. Here, we’ll review three leading cryptocurrency exchanges—eToro, MEXC, and Binance—that offer Polkadot trading pairs and provide users with various features and benefits.

eToro – Social Trading Platform for Mirroring DOT Trades

First, we have eToro, which is a renowned social trading platform known for its user-friendly interface and is a good option for beginners. With eToro, buying Polkadot is hassle-free, thanks to its intuitive trading platform and straightforward buying process.

One of the standout features of eToro is its CopyTrading functionality, allowing beginners to replicate the trades of top-performing and experienced investors. This feature makes eToro an excellent choice for novice traders looking to learn from seasoned investors while investing in Polkadot.

Presently, there are over 30 million traders are using eToro, and it charges a 1% fee for opening and closing Polkadot transactions. In addition to DOT, the platform has over 70 tradable cryptocurrencies like SOL, XRP, Bitcoin, Ethereum, and Dogecoin.

It is currently regulated in all major financial jurisdictions, including the United States, Europe, and the UK. Recently, eToro also partnered with X (Twitter), offering all users access to its trading services.

Pros

• Social  and mirror trading tools
• Global regulation and a strong reputation
• Competitive fee structure
• 24/7 customer support

Cons

• $10 per month fee after 12 months of inactivity

Visit eToro

MEXC – Stong Market Liquidity and Over 2,000 Listed Cryptos

MEXC sets itself apart from other exchanges thanks to its wide range of digital assets and robust security measures. It also has a user-friendly interface suited to beginners and competitive trading fees.

Created in 2018, MEXC provides an excellent platform for buying and trading Polkadot with low transaction fees and deep liquidity. Additionally, MEXC offers various trading tools and features, including spot trading, futures trading, and staking services, catering to both novice and experienced traders.

There are over 2,000 listed cryptocurrencies on the MEXC platform, which is one of the largest selections among any of the best-centralized exchanges (CEXs).

Pros

• 2,000+ listed Cryptos
• New customer bonuses
• Inexpensive transaction fees
• Staking

Cons

Visit MEXC

Binance – Global Centralized Exchange with Low Fees

Binance is one of the largest and most reputable cryptocurrency exchanges globally, offering a comprehensive suite of trading services and features. It has an extensive liquidity pool and supports the buying of over 400 cryptocurrencies, including Polkadot.

Like others on our list, Binance offers advanced trading tools, such as futures trading and margin trading, making it a preferred choice for experienced traders seeking advanced trading functionalities.

Transaction fees for buying and selling DOT are 0.1%, and it currently has the most trading volume of Polkadot in the industry at $48 million over the last 24 hours.

Pros

• Global brand
• Over 400 listed cryptos
• Low fees

Cons

• Unavailable to U.S. customers
•  3.75% fee for debit card deposits

Visit Binance

How We Ranked The Best Places to Buy Polkadot

Our ranking above comes after we have evaluated numerous factors to ensure you have the best trading experience. These factors include market liquidity and trading volume, reputations, and, of course, trading fees. Here’s how each contributed to the rank.

Polkadot Trading Volume – 25%

Trading volume is a crucial metric that reflects the liquidity and activity of an exchange. We considered exchanges with high Polkadot trading volumes, which indicate active markets and better price discovery. Binance currently has the highest daily trading volume of DOT at $48 million; this accounts for just over 18% of the total.

Exchange Longevity and Reputation – 25%

The reputation and longevity of an exchange are paramount for ensuring a safe and secure trading environment. We prioritized exchanges with a proven track record of reliability, security, and trustworthiness.

eToro stands out on this front, and that is why it is our first choice to buy Polkadot with a credit card. The exchange was founded in 2007 and is still considered one of the best copy trading platforms in the market today. It also holds regulatory licenses in the US, UK, and Europe, making it a safe option for new investors.

Cheapest DOT Trading Fees – 25%

Next, we examined trading fees. Since these can significantly impact trading profits, we analyzed the fee structures of various exchanges to identify platforms offering the most competitive trading fees for Polkadot transactions.

Binance and MEXC offer 0.1% per transaction, which is very competitive. However, they do not have quite as strong a reputation as exchanges like eToro have, so although important, low fees shouldn’t be your deciding factor.

Most DOT Trading Pairs – 25%

Finally, a diverse range of trading pairs allows users to access more trading opportunities and optimize their trading strategies. We favored exchanges offering a wide selection of Polkadot trading pairs to cater to different trading needs.

This is why we have MEXC as second on our list, as it currently lists over 2,000 cryptocurrencies on its platform.

Where to Store Your Polkadot (DOT)

When it comes to storing your Polkadot (DOT) tokens, security is paramount. For investors who engage in day trading or frequent transactions on exchanges, it’s common to store a portion of their DOT tokens on the exchange for active trading. However, it’s advisable to transfer the majority of your holdings to self-custodian wallets like cold wallets for long-term storage and security.

Here are some options for storing your DOT safely:

Cold Wallets: Consider using hardware wallets like Ledger or Trezor for maximum security. These wallets store your DOT offline, making them less vulnerable to hacking attacks and online threats. With cold wallets, you have full control over your private keys, ensuring complete ownership of your assets.

Hot Wallets: If you prefer convenience and accessibility, hot wallets like Zengo offer a user-friendly interface for managing your DOT tokens. While hot wallets are connected to the internet, leading to potential security risks, they are suitable for day-to-day transactions and easy access to your funds.

Here is a list of the best crypto wallets currently in the market.

What Can You Use Polkadot For?

Polkadot (DOT) serves various purposes in the blockchain ecosystem, primarily revolving around staking and governance. Here’s a closer look at how Polkadot is utilized:

1. Staking: One of the primary functions of Polkadot is staking, where DOT holders can lock up their tokens to secure the network and earn rewards in return. By staking DOT, participants contribute to the proof-of-stake consensus mechanism of the network, helping to validate transactions and maintain the integrity of the blockchain. Despite its benefits, DeFi platform Lido last year put a stop to staking on the Polkadot blockchain.
2. Governance: Polkadot’s governance model allows DOT holders to participate in decision-making processes regarding network upgrades, protocol changes, and treasury management. Through a decentralized autonomous organization (DAO), DOT holders can propose and vote on governance referenda, shaping the future direction of the network.

Conclusion

After going through this guide on how to buy DOT, you now know the simple steps to take if you have decided to invest in Polkadot. Choosing the right platform to buy Polkadot is crucial for a seamless and profitable trading experience.

By considering factors such as trading volume, exchange reputation, fees, and trading pairs, you can make informed decisions and maximize your investment potential. From our research, eToro stands out as a credible option for beginners. If you are looking for other investment opportunities, here is our list of the best cryptos to buy in 2024.

Buy DOT on eToro

FAQs

Is Polkadot still worth buying?

Polkadot’s innovative technology and growing ecosystem make it an attractive investment opportunity. It is down by 84% from its record high, meaning there is still an upside.

What is the best platform to buy Polkadot?

The best platform depends on your preferences and trading needs. Consider factors such as fees and security features. Overall, eToro ticks a lot of these boxes.

Can I buy Polkadot with a credit card?

Yes, several exchanges allow you to buy Polkadot using a credit card. However, be mindful of associated fees and security risks.

Why is Polkadot so cheap?

Many factors, including market demand and overall market sentiment, influence Polkadot’s price. Cryptos have been down in recent years, but DOT has started this year strong.

References

1. eToro also partnered with X (Twitter) (Yahoo)
2. Lido stops staking on Polkadot blockchain (Coindesk)
3. Decentralized Autonomous Organization (DAO): Definition, Purpose, and Example (investopedia.com)