Since the launch of the first cryptocurrency (Bitcoin) in 2009, many new digital coins and tokens have appeared. Crypto enthusiasts can choose among hundreds of these digital assets to invest in and trade. Some cryptocurrencies are well-known and don’t represent any problem. For example, any crypto enthusiast knows how to convert Bitcoin to Ripple. However, trading less-known cryptocurrencies like Polkadot (DOT) may not be so easy for inexperienced crypto enthusiasts.
So, we will review some details about Polkadot before we list the best places to buy this cryptocurrency.
Polkadot (DOT): An Ambitious Blockchain Project
It is not common to see innovative and ambitious projects in the crypto sphere. Most projects aim at improving existing services. Polkadot is different. It is a project that aims at allowing the interoperability of different blockchains as if they all were part of a single network. The interconnected blockchains are called parachains since they operate in parallel. All the para-chains can access the Polkadot validation resources. With such an ambitious goal, this project is growing at a very fast pace.
The Polkadot protocol can interconnect both private and public blockchains. It will also connect oracles, permissionless networks, and technologies that may appear in the future. This interoperability will ease the creation of new applications and services. This project has its native token, the Polkadot coin (DOT), which serves several purposes:
- Governance. DOT holders can make decisions about the operation of the network. For example, they can decide on transaction fees, acceptance of parachains, etc.;
- Staking. DOT holders can stake their tokens and earn some extra money;
- Bonding. This process is related to the addition of parachains. When a parachain joins the network, several DOT tokens are bonded. These tokens are unlocked when the parachain leaves the network.
Many blockchain specialists think this project can disrupt current blockchain technology. As such, investing in the project by buying DOT could bring big returns in the future. But, where can one buy this token safely and reliably?
The Best Exchanges to Buy DOT
Many exchanges list this digital token. However, not all of them are reliable and trustworthy. Moreover, you have to pay attention to the exchange rate. There is no standard DOT rate. Each exchange sets its rate based on different factors like supply and demand. Hence, buying in some exchanges will be more profitable than in others. So, we have compiled a list of the best exchanges to buy DOT considering all the factors mentioned above:
- Kraken. Founded in 2011, this US-based exchange is highly reliable;
- Coinbase. Based in the US, this digital asset broker operates in many countries;
- CEX.IO. A trading platform that verifies your identity to transact without limits;
- ChangeNOW. A non-custodial service with an easy-to-use interface;
- Uphold. A trading platform for cryptocurrencies, fiat-money currencies, precious metals, and American equities;
- LetsExchange. An instant exchange that allows trading anonymously;
- BC Bitcoin. Based in the UK, this crypto broker has the best customer support in the market.
You can choose any of the platforms on the list to buy DOT. All these platforms have their pros and cons. However, the pros tend to outweigh the cons.