Buy Polkadot (DOT) - how to invest in Polkadot in New Zealand

Polkadot is a cryptocurrency that is consistently in the top 10 capitalization after the denomination carried out by its developers in September 2020.

How to buy Polkadot?
How to buy Polkadot?

What is Polkadot (DOT)?

Polkadot is a project that aims to find a solution to improve blockchain interoperability. DOT is the platform's native token. The project was created by one of the developers of the second largest cryptocurrency by capitalization - Ethereum - Gavin Wood. In the crypto community, he gained fame, including as the creator of the Solidity programming language.

In 2016, Gavin Wood decided to leave Ethereum for his own project - Polkadot. With its help, the developer plans to teach blockchains of different projects to "communicate".

Polkadot supports smart contracts. The similarity of the toolkit with Ethereum was the reason to include the project in the list of the so-called "ETH killers", which also includes projects such as Cardano and Solana.

Choosing a cryptocurrency
Choosing a cryptocurrency

The Polkadot cryptocurrency is a network token that performs a number of important and responsible tasks:

Management Functioning Payment and binding
Asset holders have full control over the protocol; there are no miners in the system, it operates on a proof-of-stake algorithm, and holders can manage both updates and fixes to the protocol. The system is capable of rewarding honest DOT holders and taking away some of the assets from deceivers. The polkadot currency allows you to remove inactive and add new parachains if necessary.

What makes Polkadot unique?

To understand what makes a coin attractive, you need to pay attention to facts such as:

Staking is the process of deliberately holding cryptocurrencies in an account in order to generate income. Most often, such a function is supported by coins that work on PoS and similar algorithms.

PoS is short for proof-of-stake. The mining algorithm implies the distribution of rewards in the system, depending on the amount of assets on the user's account.

Polkadot cryptocurrency, you can stake. DOT token regularly tops the list of coins with the most attractive staking conditions.

The difference between staking and mining is that staking does not require large computing power, buying video cards or ASIC miners. Accordingly, staking is a greener and more energy efficient way to create a new block on the blockchain.

Mining requires more involvement in the process, you must constantly be very attentive and collected. In the case of staking, the process is simplified and open to a larger number of members of the blockchain community, the threshold for entering staking is lower than the threshold for entering mining.

Also, the Polkadot blockchain has some advantages:

Compatibility Scalability Safety Open source
The Polkadot network allows blockchains with different consensus models to interact with each other through special intermediaries, and no action from the developers or users of these blockchains is required. Due to the use of parachains, the total throughput of the system can grow indefinitely. Thanks to this, everyone will be able to connect to Polkadot without slowing down the network. Polkadot's own security system provides the necessary layer of protection both for the operation of the entire system and for the blockchains, services and applications involved in it. The availability of the code allows anyone who wants to be convinced of its reliability, as well as help in finding and fixing errors, if any.

How does Polkadot work?

Polkadot is not just a blockchain, but a platform for creating other blockchains, which allows them to be combined into a single network.

The DOT token performs the following functions:

1. Management.

Token holders confirm transactions and vote on protocol upgrade proposals. Moreover, they are divided into:

  • simple holders - can propose changes and vote for them;
  • members of the Board of Management - responsible for making changes to Polkadot;
  • members of the Technical Committee - elected by Council members and can make urgent changes to Polkadot.

2. Staking.

Rewarding network tokens for confirming transactions. The average return on DOT is about 12% per annum. So far, 10 million tokens have been issued, but they can be "reprinted". DOT is listed on all major exchanges. Now it is the fifth cryptocurrency in terms of capitalization.

How is Polkadot priced?

The cryptocurrency market is still considered to be very young. Most people have only heard the term "cryptocurrency" but are hardly familiar with this industry.

Young markets have a number of qualities that inevitably make them volatile.

Liquidity in this market is limited when compared to traditional markets, including the foreign exchange market. For perspective: the total value of all the money in the world is approximately more than $ 90 trillion, while the total cryptocurrency capitalization is about 250 billion. The difference is 36 thousand percent.

The price of a DOT coin is most dependent on supply and demand. This is a basic economic principle. If a cryptocurrency has a high supply of tokens with low demand from traders and users, then its value will fall. Conversely, if the supply of a cryptocurrency is limited and the demand is high, its value will rise.

The price of cryptocurrencies is also significantly influenced by the media and public sentiment. If a token or platform receives negative advertising, then the price tends to go down. But if the coin gets a lot of support and good media coverage, then the price will almost certainly rise. That is, prices are highly dependent on human emotions and excitement.

How and where to buy Polkadot?

At the moment, any Internet user can buy DOT. Since earning passive and active income using e-currency is considered a common and profitable offer.

To buy Polkadot in New Zealand, you only need Internet access and some free time, but before that you need to think about where you will keep your funds.

Electronic currency is usually stored in special online wallets, with the help of which an investor or trader can move their currency to different sources. To start an online wallet, you need to find out if it supports the electronic money you need. After that, you need to register in order for your funds to be safe.

Start trading Polkadot
Start trading Polkadot

After all the manipulations with the wallet are completed, you can proceed to the purchase of DOT. There are 3 ways to buy:

1. Online exchangers 2. СFD trading 3. Owners of coins
Most of the services change the current e-currencies, euros and dollars from e-wallets to other current currencies. Many trading platforms now have the function of direct withdrawal of funds to a bank card or online wallets. It is convenient and most often safe, but the fees can be higher than those of exchangers. You can buy coins from other owners. This is considered the most unsafe way.

Each method has its own characteristics:

For the first, everything is simple, you should find a suitable exchanger, then indicate the criptocurrency and the volume that you want to purchase. After it is selected for which fiat funds or other currencies, you want to purchase the selected cryptocurrency. After specifying the wallet address, you choose the amount, get acquainted with the commission and make the transfer. After that, funds are taken from your reserve and you receive the amount of currency that you have chosen to the specified wallet.

When an investor or trader uses method 2, then he must be ready to spend a significant amount of time. To get the required currency using the exchange, you need to register on it, which will take your time. After registration, you can proceed with the purchase, but since the site transfers funds to a third-party service, and that service is already transferring money to the user, you pay almost double the commission.

Popular cryptocurrency
Popular cryptocurrency

If you want to exchange your funds for cryptocurrency through "hands", then it is very important to know that there is a risk of facing scammers and losing your money forever. If the person with whom you want to exchange is your good friend or relative whom you trust, then you will not spend on the commission.

All methods are popular among traders and investors, so it is difficult to determine which one is better. Each of them is good in some way and vice versa, has its own disadvantages. Therefore, when choosing between them, you should pay attention only to your preferences.

How to invest in Polkadot (DOT)?

In order to invest in Polkadot in New Zealand, it is important to set a goal. And then go to her with measured steps. Once you have studied all the aspects that relate to the selected electronic money, you can move on to the question of how to get income.

How to invest in Polkadot in New Zealand?
How to invest in Polkadot in New Zealand?

You can purchase e-currency and simply store it in your wallet, as DOT is growing rapidly, this option will bring great profits in the future. But there is also a minus of this option: electronic money is not stable as long as there is demand, it will grow in price, but at any moment the situation on the market may change. Also, the disadvantage is that you will have to expect income for a very long time, usually this method of investment bears fruit only after years of waiting.

Most often, investors and traders use trading platforms to make a profit from the chosen electronic currency. This is due to the fact that the moment of sudden price jumps in the market is huge and thanks to them you can make money on the price difference between buying and selling. If we consider in detail, then this method allows you to predict the price movement up or down and, accordingly, make a purchase or sale of your asset, if the price rises, and you bought an asset, then you will benefit from the transaction. It works the same way, and vice versa, if the price falls, and you sold the asset, then you get the price difference.

This method is considered the most popular among those who like to make money in the market, especially given the scale and the fact that profit can be received daily and its amount will depend on the funds deposited. You decide how much and when you want to earn.

Therefore, do not delay, you can start making a profit today, all you need is time and desire.

The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose