Home How to Buy Polkadot (DOT) in February 2024
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One of the earliest launched cryptocurrencies in the space, Polkadot was launched in 2016 and has since become one of the most popular cryptocurrencies out there. It has among the largest market capitalizations of all the cryptocurrencies, and at the same time is widely considered a good alternative to buying Bitcoin. In this guide, we consider the different platforms as well as the peculiarities of buying Polkadot.

Where to Buy Polkadot Step by Step

If you want to buy Polkadot quickly, follow this easy steo-by-step guide.

  • Sign up to a crypto exchange-The first step is to sign up to a crypto exchange that supports DOT. We recommend eToro because it is regulated, offers low fees and is very easy to use.
  • Verify your account- Regulated exchanges will ask you to verify your account using proof of ID. it can take up to 48 hours for the verification process to be complete.
  • Fund your account-After verifying your account, you will need to deposit funds onto the platform. eToro allows you to use a variety of payment methods and the minimum deposit is just $20.
  • Buy DOT- Once you account is funded you will be able to search for DOT and place an order.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

What is Polkadot?

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In 2016, Polkadot (DOT) emerged as a leading contender to Bitcoin with distinct features that set it apart. One of its main advantages is the ability to connect multiple blockchains within a single blockchain network, which is not possible with Bitcoin. This has led many cryptocurrency enthusiasts to speculate that Polkadot could potentially serve as a viable alternative to Bitcoin in the future.

Polkadot also has its own cryptocurrency called DOT, similar to most other blockchain projects. DOT can be sent and received between wallets like any other digital currency. However, while the Polkadot blockchain has numerous practical applications, most people invest in this cryptocurrency on a speculative basis, hoping to sell at a profit in the future.

How to Buy Polkadot with eToro

Below is a detailed overview of how to buy Polkadot on eToro. These steps may be similar for other platforms but it is important to conduct research into the exact process before starting your application. We will use eToro for the purpose of this guide because it is our recommended broker.

Step 1: Open an account

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The first step to creating an account is to navigate the official eToro website and click on ‘join today’. When you click this, a registration form will appearon screen. The form will ask you to fill in some basic personal information including a name, email address, phone number and address. This should take no more than 10 minutes to fill out.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

Step 2: Upload ID

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eToro requires KYC information which includes verifying your identity. To do this, you will need to upload photos of two forms of ID: one must prove your identity and the other must prove your address. The platform will ask you to upload clear photos of each document.

Once you have uploaded the two forms of ID, it can take up to 48 hours for the verification to be complete.

Step 3: Deposit funds

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After verifying your ID, you will be able to access the eToro trading platform. At this point, it should be possible to fund your account. The minimum deposit is $20 and there are several payment methods available including PayPal, Skrill, Neteller, credit card and debit card.

Step 4: Buy Polkadot coin

To start trading Polkadot, the final step is to use the search bar to find the Polkadot coin or DOT, enter the desired amount for buying or selling, and then click on the order button.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

Why Buy Polkadot?

According to CoinMarketCap, Polkadot was publicly listed on an exchange in August 2020 at a price of $2.78. By February 2021, the price had soared to an all-time high of $38.20. This surge in value was partly due to the general increase in cryptocurrency speculation, which also raised the prices of other altcoins that are closely linked to Bitcoin. However, it was also fueled by the recognition of the advantages of Polkadot’s ability to connect multiple blockchains into a single network, setting it apart from similar cryptocurrencies. This resulted in a staggering 1,200% increase in value in just over six months.

Despite Polkadot’s current market capitalization of over $30 billion, some argue that its potential for growth remains attractive. In comparison to one of its main competitors, Ethereum, which is valued at almost $200 billion, Polkadot’s market cap may seem small. As a result, investors are increasingly speculating on Polkadot, hoping to buy in now and sell in the future when the price reaches its full potential.

How to buy Polkadot with PayPal

Some investors may prefer to buy DOT with PayPal so that there purchase is protected under the platform’s user protection. There are a number of exchanges that allow you to purchase crypto with PayPal however, we recommend using eToro.

To purchase Polkadot with PayPal through eToro, simply choose PayPal as an option when funding your account. You will need to make sure that there is enough in your PayPal account to make the deposit and you will also need to verify the transaction by completing 2FA.

How to buy Polkadot with Bitcoin

It is also possible to exchange DOT for other currencies such as Bitcoin. To do this, you will need to use a cryptocurrency swap. There are many platforms that offer this including ByBit, Coinbase and Binance.

You will need to transfer your BTC from your crypto wallet to the platform and then swap BTC for DOT. When transferring your Bitcoin to the platform that you choose, make sure to use a secure and reliable internet connection.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

Buying Polkadot Safely

Like all crypto assets, DOT is prone to volatility. Therefore, it is important to create a good risk management strategy before investing in the asset. It is also a good idea to only invest as much as you can afford to lose.

Polkadot has strong use cases and is set to perform well as mass adoption occurs. However, there is no guarantee that the token will take off in the way that other coins, such as Bitcoin, have done. There will undoubtably be demand for DOT as developers seek to use the Polkadot network yet other external factors could still impact the price.

Investors should be aware of crypto scams before using any online platforms to invest. Always use a reputable exchange, a reliable internet connection and never share your account details or wallet address with anyone. If you store your DOT in a crypto wallet, take note of the seed phrase- this will be the only way to access your funds.

Risks of Buying Polkadot

While the Polkadot network certainly has use cases, the demand for the technology is not likely to be high until mass adoption occurs. Until then, buying DOT may be a little risky.

When utility is not strong, altcoins get their value from social media hype and community. As a result, the success of a coin can be predicted by taking a look at investor backing and enthusiasm. DOT isn’t a meme coin so has not managed to generate much ‘hype’ however, there is a lot of buzz online about DOT staking, which offers an impressive 12% APY. As a result, Polkadot is well-known by the community.

Polkadot (DOT) is considered to be a good way to diversify a crypto investment portfolio. However, it is important to note that the asset has experienced some volatility over the years. Nevertheless, volatility is very normal in the crypto market and should not put investors off of looking deeper into an asset.

Selling Polkadot

Sometimes investors choose to close their positions on assets if the coin is particularly volatile or if they are happy with the returns that they have received and do not want to risk the price going down. In this case, it is a good idea to know exactly how to sell DOT.

Most platforms will allow you to close or sell your investments very easily. On eToro, investors can close their positions at anytime by simply clicking ‘close trade’. This will convert DOT back to fiat currency and you will be left with cash in your trading account.

It is also possible to place a SELL order through eToro. A SELL order is a short position that involves profiting when the market goes down.  SELL orders aren’t typically held long term and are usually used by day traders to profit in a bear market. You can execute a SELL order through eToro by clicking ‘sell’ instead of ‘buy’. It is important to understand that this type of trading is very high risk.

Where to Buy Polkadot

1. eToro – The overall best broker to buy Polkadot coin

In 2024, we recommend eToro as the premier platform for trading Polkadot. eToro stands out from other platforms that allow Polkadot trading due to several key factors. Firstly, eToro is highly regulated, which is a rare feature for cryptocurrency trading platforms. Many platforms are unregulated, posing a risk to your invested capital. eToro, however, is regulated by both the CySEC and the UK’s FCA. In addition, eToro offers trading options for a variety of other cryptocurrencies such as ETH, BNB, ADA, XRP, and more.

Trading cryptocurrencies on eToro is possible in two ways. Firstly, you can buy and sell cryptocurrencies using fiat currencies such as USD, GBP, or EUR, depending on your account’s base currency. Alternatively, you can trade cryptocurrencies using other cryptocurrencies such as BTC, ETH, and BNB. eToro does not charge commissions on trades, setting it apart from other platforms. Instead, they only charge spreads, allowing you to enter and exit trades at your convenience.

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If you lack experience in trading cryptocurrencies, but still want to benefit from their price movements, eToro provides passive trading tools that can help. You can opt to copy the trading strategies of experienced cryptocurrency traders and profit from their knowledge. Alternatively, you can invest in the eToro-curated CryptoPortfolio, which shields you from the volatility of any single cryptocurrency. The portfolio comprises a range of cryptocurrencies, including Polkadot, with varying weights, enabling you to invest in a diversified basket of cryptos. The eToro investments team manages this portfolio, removing the need for you to regularly rebalance it.

eToro fees

Fee Amount
Commodities trading fee Spread, starting from 2 pips
Forex trading fee Spread, 2.1 pips for GBP/USD
Crypto trading fee Spread, 0.75% for Bitcoin
Inactivity fee $10 a month after one year
Withdrawal fee $5

Pros:

  • eToro offers a user-friendly platform with a simple interface, making it easy to navigate.
  • You can engage in copy trading and other social trading options
  • Regulated by various agencies globally, ensuring a secure trading environment.
  • The platform offers cryptocurrency derivatives in specific regions.
  • Very low trading comissions
  • You can trade a range of assets, including stocks, currencies, indices, and ETFs.
  • eToro grants access to a curated CryptoPortfolio that the eToro team manages.

Cons:

  • Does not offer many advanced trading or analysis tools.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

2. Binance – The best trading platform for day trading DOT

buy polkadotBinance is the go-to choice for cryptocurrency day traders, and for good reason. The platform offers a wide range of cryptocurrencies to trade, with new ones frequently added. Binance facilitates easy investment in both large and small-cap coins by ensuring speedy listing of new coins. Polkadot, for instance, has been available for trading on Binance since its launch. Similar to eToro, Binance allows trading of Polkadot for both fiat and digital currencies. The platform handles billions of dollars in trading volume daily.

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Binance levies relatively steep fees for withdrawals and deposits, particularly for credit/debit card deposits (2-3%). However, this is offset by the platform’s low trading fees. Furthermore, holding Binance Coin (BNB) can further reduce the trading fees you pay. Binance provides an array of specialized tools and technologies tailored for cryptocurrencies, rendering it a suitable option for expert crypto traders.

Binance fees

Fee Amount
Crypto trading fee Commission, starting from 0.1%
Inactivity fee Free
Withdrawal fee 0.80 EUR (SEPA bank transfer)

Pros:

  • Advanced charting platform with numerous technical indicators
  • Hundreds of pairs supported
  • Very low commissions
  • Supports fiat currency deposits
  • Low fees, with additional discounts for using BNB
  • Security measures are very tight

Cons:

  • The platform will charge up to 2% for deposits made with debit/credit card
  • Customer service can be delayed at times

Your money is at risk.

3. Coinbase – The best beginner platform for trading DOT

where can i buy polkadot coinCoinbase is a leading and sizeable cryptocurrency exchange that facilitates trading of nearly every currency, including Polkadot. With over 73 million users, the platform manages over $255 billion in assets, offering unparalleled levels of liquidity among cryptocurrency exchanges. Coinbase presents over 100 tradable cryptocurrencies, including Bitcoin, Ethereum, and Polkadot Coins. The platform’s fee structure enables users not only to trade but also to invest, making it highly attractive.

The platform has two options that you can use: the standard Coinbase platform and COinbase Pro. The main difference is that orders through the Pro Platform can be subject to a higher level of technical analysis and you can choose a variety of order types.

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Coinbase fees

Fee Amount
Crypto trading fee Commission, starting from 0.50%
Inactivity fee Free
Withdrawal fee 1.49% to a U.S. bank account

Pros:

  • Advanced charting platform with numerous technical indicators
  • Hundreds of pairs supported
  • Easy for cryptocurrency beginners to use
  • Support for a large number of cryptocurrencies
  • Opportunities to earn cryptocurrency
  • Lower pricing available with Coinbase Pro

Cons:

  • Charges up to 2% on credit/debit card deposits
  • Customer service responses can be delayed at times

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

How much does Polkadot cost?

As of early December 2021, the price of a Polkadot token is around $29.54, with a market capitalization of $29,052,819,037 USD. However, it is crucial to note that the Polkadot price is subject to change throughout the day like any other tradable asset. Since Polkadot is now a highly traded cryptocurrency, its price can fluctuate on a second-by-second basis.

Polkadot price forecast

At the beginning of 2021, the price of Polkadot was $9.26. As of today, Polkadot is trading at $29.24, marking a 216% increase since the start of the year. According to CoinPriceForecast, they predict that Polkadot’s price will reach $39.63 by the end of 2021, resulting in a year-to-year change of +328%, with a projected rise of 36% from today. In the first half of 2022, the price of Polkadot is expected to rise to $54.03, followed by an additional $16.21 increase in the second half of the year, resulting in a year-end price of $70.24, which is +140% from the current price.

However, the potential for future growth of Polkadot is dependent on various factors such as project announcements, new technological advancements, regulatory changes, and the overall cryptocurrency market. Therefore, it is essential to conduct thorough research before investing in Polkadot.

The Verdict

Polkadot (DOT) is an excellent investment for anyone who wants to diversify their crypto portfolio or start staking for returns. In this article, we have covered how to buy Polkadot with fiat currency, PayPal and Bitcoin. We have also looked into the best platforms for beginners to buy the token. Take a look at our other articles to find out more about investing in cryptocurrencies.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

FAQs

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Nishit Kumar Finance Writer and Analyst

Nishit Kumar Finance Writer and Analyst

Nishit is a NGL Trader Analyst at Akari Trading. He has also worked as an analyst for Morgan Stanley and Onyx Commodities.

Before starting his career in finance, Nishit studied at the University of Warick where he was an active member of the Hedge Fund society. Due to his qualifications and experience, Nishit is considered an industry expert and enjoys writing content that could help traders to make informed decisions.

As well as writing, Nishit worked as Associate Editor for The Economic Transcript until 2021. He has also written for Newsweek and has good knowledge of current events that could affect the financial markets.