Step-by-step instructions 2023
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In this detailed guide, we demystify the process of buying Polkadot, an emerging powerhouse in the world of cryptocurrencies. As part of learning how to buy cryptocurrency, particularly Polkadot (DOT), you’ll discover there are multiple routes:
You can opt to trade Polkadot using a trading broker, or buy actual DOT tokens on a cryptocurrency exchange platform.
Our aim with this guide is to highlight the distinct advantages of both these methods and help you identify the option that suits your requirements best.
Content
Introduction
How to invest in Polkadot?
Part 1
Purchase via a broker or exchange?
Part 2
How to buy Polkadot via a CFD broker
Part 3
How to buy Polkadot on the exchange
Part 4
Is it worth buying Polkadot
Part 5
DOT Coins – safe storage
Introduction
How to invest in Polkadot?
Jeśli chcesz zainwestować w spółkę Polkadot (DOT), w tym artykule zamieściliśmy dwa proste przewodniki.
To purchase Polkadot, the following steps must be followed:
- Choose the right trading platform
- Exchange your local currency (such as Euro) for Polkadot
- Transfer the DOT to a secure wallet or …
- … sell the Polkadot you bought on the exchange (hopefully at a profit)
A subsequent guide will discuss more details about where and how to buy Polkadot.
We have compiled a list of different exchanges and trading platforms where you can invest in Polkadot. We advise familiarizing yourself with the provider before selecting an exchange.
Larger and renowned exchanges should always be preferred over smaller, unknown platforms. If you want to get started right away, follow this link for step-by-step instructions along with screenshots.
Let’s delve deeper into the purchase options for DOT.
If you’re looking to invest in a more established bitcoin, check out the Bitcoin buying guide.
Where to buy Polkadot?
Recommended Polkadot (DOT) Trading Platforms
Hybrid
ecoinomy rating:
9.5/10
| Max leverage | 2:1 CFD |
|---|---|
| Trading fees | Spread 1% |
| Licences | FCA 7973792 + AFSL #491139 + CySEC 109/10, |
| Cryptocurrencies | 79+               |
| Payment methods | PayPal, debit and credit cards, Skrill, Neteller, SEPA, WebMoney |
| Number of users | 25.000.000+ |
Visit site »
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
- Create an Account: Head over to the Libertex platform and sign up. Fill in the required details to create an account.
- Verify Your Account: After signing up, you would need to verify your account by providing some additional information. The verification process varies depending on your country of residence but usually includes submitting a proof of ID and proof of address.
- Deposit Funds: Once you’ve verified your account, you can deposit funds into your Libertex account. The platform accepts several payment methods, including bank transfers, credit cards, and some e-wallets.
- Purchase Polkadot: Navigate to the cryptocurrencies section and search for Polkadot (DOT). Click on it, enter the amount you wish to invest, and click on “Buy”.
- Store your Polkadot Safely: Although brokers like Libertex provide security measures for your assets, it is often recommended to transfer your cryptocurrencies to a secure wallet, especially if you plan on holding them for a long time.
Deposit options
Trading brokers are distinguished by their wide range of deposit options. Libertex, for example, offers the following options:
- PayPal
- Bank transfer (SEPA)
- Debit and credit cards
- Skrill
- Netteler
Most noteworthy is the possibility to purchase Polkadot via PayPal. Other suppliers do not offer this option.
Fees
Fee models at cryptocurrency brokers differ from cryptocurrency exchanges in that there are usually no transaction fees. Instead, spreads are often calculated based on the prices by which brokers make money. However, at Libertex the spread is 0 pips, so no such thing exists. Instead, the broker charges a predetermined commission. If you trade with a leveraged broker, you should also pay attention to whether there are so-called nightly fees. You can check the fees paid to Libertex at any time in your portfolio overview.
Regulations and verifying your account
In Europe, cryptocurrency brokers are usually subject to the guidelines of the financial supervisory authority CySEC (EU). For the user, this means that they must authenticate themselves when registering with a broker.
How to buy Polkadot (DOT) with a broker – step by step
We have created detailed step-by-step instructions so that you can easily trade with Polkadot. Below we describe the complete process of buying and selling Polkadot on Libertex, a suitable cryptocurrency trading platform for beginners. If you prefer to use another platform, check out our comparison of the best regulated cryptocurrency trading platforms in the EU. Libertex particularly convinces with its simple handling and the largest selection of cryptocurrencies at the broker. In addition to cryptocurrencies such as polkadot, you can also trade shares, precious metals and commodities at Libertex.
The company behind Libertex, ForexClub, has a long history. Founded in 1997, the company is regulated in the UK and Europe with the Libertex platform and is authorised for financial operations. In our opinion, the security of the platform deserves special attention. While other cryptocurrency trading systems are often in the spotlight due to security issues, no security flaws have yet been found in Libertex. Consequently, hackers have not yet managed to steal or misappropriate customer deposits or financial information. A huge plus of Libertex is the possibility to deposit money via various methods, as well as the possibility to purchase Polkadot via PayPal.
Step 1
Open an account with Libertex
How to create a Libertex account. Following this link to their website click the ‘Register’ button to start your registration.
All you need is an email address and a secure password. To protect your capital, use upper and lower case letters, numbers and special characters in your password.
In Libertex, once registration is complete, the user will be taken directly to the dashboard. No email confirmation is required.
The account is already open and you can log in with your email address and password. In the account, you can choose between making a real money deposit or a virtual deposit.
The virtual account will give you the amount of $50,000 as play money. Use this money and familiarise yourself with the various features.
After all, you want to invest real money later and this way you can avoid potential mistakes. Once you feel comfortable using the platform, you can now buy Polkadot with real money.
To do this, you need to switch to your real account to buy DOT. Before you can take any action, you must confirm your account. To do this, click on your name in the top right corner and then ‘Manage Profile’. For your own security, you can also confirm your email address here. As long as it is not confirmed, attackers can change it and steal your assets!
You should also confirm your basic details and enter your telephone number. Only in this way can you be sure that your money is really safe.
Step 2
Deposit of funds
You can now deposit funds into your account to start trading. With some payment methods you can start depositing in seconds. Find the deposit funds button directly above it in the navigation. The company must confirm your identity within 15 days of making your first deposit. To do this, you will need to provide a copy of your passport or identity card.
Libertex also requires an invoice from your utility or telecommunications provider to ensure the authenticity of your identity documents. On the one hand, of course, it is an effort, but investing money should be an effort. Click the blue button at the top of the BitPanda dashboard with the word ‘Deposit’ and select Fitness Wallets and your preferred deposit method.
Libertex stores the most popular deposits directly as packages. Anyone who deposits €500 is awarded Gold status and saves 3% when trading. The Gold+ package is available from a deposit of €1,450, which includes a 4% discount on trading commissions. Of particular interest is the platinum status worth €1,500.
With this package, traders can save up to 20% on trades.
All individual amounts that fall within the appropriate range also qualify for the corresponding package. The terms and conditions on Libertex are highly variable. When depositing money by bank transfer, no minimum investment amount is required. For all other payment methods, you must deposit at least EUR 100. Deposits via PayPal, Skrill and credit card are extremely fast. The money is available here immediately after the payment process is completed. For other payment methods, the waiting time is up to 48 hours.
Transfers can take up to 2 to 5 days. Once you have selected the desired amount and payment method, you can complete the process by clicking on: “Deposit”. The funds will be transferred to your account based on the payment method used. The most secure way to make a deposit is via PayPal. Simply enter the amount and your e-mail address. You will then be redirected to the PayPal page where you can continue with the procedure.
Step 3
Buy Polkadot
The deposited funds are now available and you can start trading with Polkadot immediately. You can select DOT from the list of available cryptocurrencies or simply type “DOT” into the search engine. As a result, you will receive a certificate for the DOTUSD dollar exchange rate – Polkadot. Currently, no other broker offers more cryptocurrencies to trade than Libertex. You can invest directly in Polkadot using the “Open Trade” button. You should also decide in advance whether you want to bet on rising or falling rates.
Once you have selected your strategy, you can choose your position size and the multiplier (leverage) you want. In Libertex you can use a maximum leverage of 1:30. Once you have made your selection, press the “Buy” button.
If you click the Buy or Sell button, Libertex will open your position for trading.
Step 4
Buying and selling Polkadot
Once you have opened a trade, you can sell Polkadot again at any time. Especially if you have not entered a Stop Loss or Take Profit, you should regularly check whether your trade still fits your strategy. When you click on a trading position, Libertex will display options for action. There you can easily increase your position, open or close another position.
Part 3
Buying Polkadot on a cryptocurrency exchange
As a long-term investor looking to get into blockchain technology, the best thing you can do is buy DOT funds on a cryptocurrency exchange. With many cryptocurrency exchanges, you first need a Polkadot wallet to which you can send your DOT tokens. You can use any supported software wallet for this, but we recommend a hardware wallet such as the Ledger Nano. It is important to be confident in using the wallet! If you lose or forget your private key, you will not be able to access your DOT tokens. A mistake in the address can also result in a complete loss of data! A well-known example of erroneous records was a trader who, due to a simple error, paid 10 600 ETH in fees for one ETH transaction. The equivalent of this transaction was $5 million.
If security is important to you first and foremost, you can choose a cryptocurrency broker to store your cryptocurrency for you. When choosing the right cryptocurrency exchange for Polkadot, consider the following features:
Deposit Options
Generally speaking, deposits can be made to the cryptocurrency exchange in various ways. The most important deposit methods are:
- Bank Transfer (SEPA)
- Credit Card Cryptocurrencies
- eToro allows deposits with e-wallets like PayPal, Skrill and others
Cryptocurrencies as a means of payment are, of course, suitable only for investors who have already entered the cryptocurrency market. Making a deposit by credit card is probably the easiest way to buy Polkadot for many investors. Experience shows, however, that these fees can sometimes be quite high. Similarly, almost all cryptocurrency exchanges, on which you can trade DOT, are unregulated.
For this reason, customer accounts are sometimes subject to attacks. In addition to stealing cryptocurrencies, attackers also focus on sensitive information, such as credit card data. That’s why we always recommend making payments by bank transfer, even if transactions may take a few days. Bank transfers have the lowest fees and allow safe depositing of larger amounts into the exchange. If you’re in a hurry, you can buy Polkadot through the PayPal system.
Fees
Cryptocurrency exchanges have different fee structures. For exchanges such as Kraken or Binance, the fee schedule is based on the monthly trading volume. Investors with large amounts pay lower fees than individual investors.
Regulations
Many cryptocurrency exchanges are not yet regulated. To prevent money laundering and tax evasion, KYC (Know-Your-Customer) and AML (Anti-Money-Laundering) checks are usually conducted during registration at the exchange. To do this, you need to verify your details based on an ID card or passport. It is recommended to choose an exchange that adheres to these guidelines, as there is less risk that the deposited funds will be frozen by the tax office.
Even at this point, we are still at an early stage of cryptocurrency development. None of the major cryptocurrency exchanges are based in Poland or in the EU, so few, if any, cryptocurrency exchanges are regulated. If you prefer to buy on a trading platform that is regulated by a financial market supervision authority, it’s better to choose a cryptocurrency broker.
How to buy Polkadot on the exchange – step by step
Buying Polkadot on eToro Exchange eToro, unlike traditional cryptocurrency exchanges, functions both as a trading platform and a wallet service. This means you can buy, sell, and hold your cryptocurrencies in one place. Here’s a step-by-step guide on how to buy Polkadot on eToro:
{etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
- Sign Up: Visit the eToro website and create an account.
- Verify Your Account: Complete the verification process by providing the necessary information. You may need to submit identification documents as part of this process.
- Deposit Funds: Once your account is verified, you can deposit funds. eToro accepts a variety of payment methods including bank transfer, credit/debit cards, and PayPal.
- Purchase Polkadot: Navigate to the cryptocurrencies section, search for Polkadot (DOT), and click on it. Enter the amount you wish to purchase and click on the “Buy” button.
- Store Your Polkadot: After purchase, your Polkadot coins will be automatically stored in your eToro wallet.
About eToro Wallet: The eToro wallet is a digital wallet where you can store your cryptocurrencies. This wallet allows you to send and receive various cryptocurrencies. It’s secured with several safety measures, including multi-signature facilities, DDoS protection, and standardisation protocols.
However, remember that despite these security features, it’s always a good practice to move your cryptocurrencies to a private wallet if you’re planning to hold them for the long term.
While eToro acts as a broker and wallet, it provides a unique experience by combining the two services into one platform, giving it an edge that most traditional exchanges do not have. This blend of features puts it into an “exchange” category as it allows users to perform a wide range of transactions similar to those on typical crypto exchanges.
Fees for buying and selling DOT on eToro
| Deposit | Free, conversion fees apply |
| Purchase Polkadot | 1% spread |
| DOT transfer to etoro wallet | 0.5%, minimum charge USD 1, maximum charge USD 50 |
| Withdrawal money from the platform | $5 |
| Fee after 12 months of inactivity | 10 USD monthly |
For more details about eToro, check our full eToro review.
Part 4
Is it worth buying Polkadot?
The question of whether an investment in Polkadot pays off cannot be answered in a generalised way. Investment decisions should always be made on the basis of your own analysis. From our point of view, Polkadot is an interesting project. As far as developers are concerned, Polkadot is a Web 3.0 platform for the interoperability of blockchain platforms. The web should allow interoperable blockchains to be created in minutes.
Furthermore, Polkadot operates in a completely decentralised manner. DOT owners can use their tokens to exercise their voting rights and thus influence the development of the project. It was only with the introduction of the Polkadot core network in May 2020 that the blockchain became independent of Ethereum. As a result, DOT is no longer an ERC-20 token. Of course, of particular interest is the relatively low cost of DOT. This can be traced back to 21 August 2020. This is when the community decided that DOT would be split at a ratio of 1:100.
As a result, investors received 100 times the amount of DOT in their portfolio – but the price was also divided by 100. This action did not affect the community’s actual investments. However, the low price is more interesting for retail investors. DOT was initially listed at a price of USD 5.35. This was a success for investors in the ICO, as the price was still USD 0.29 at the time of the ICO.
However, DOT is also a cryptocurrency designed for the DeFi market. Polkadot provides an ecosystem for easy token issuance – this approach is similar to Ethereum’s ERC20 standard. This allows Polkadot to become a serious competitor and gain important market share. After all, Polkadot is also a staking coin. Thus, investors who stake DOT are regularly rewarded. The current rate of return is 12% per year, which is well above the market average. Overall, Polkadot can be described as an exciting project for the future and the potential for further development can be viewed positively.
Part 5
Polkadot wallet – Secure your DOT safely
Polkadot price forecast
We often receive questions from readers about the further development of the DOT course. Our readers are eager to find out whether investing in DOT is currently profitable. From our perspective, the underlying data points to further positive development of the DOT rate. After all, DOT is a liquid and cheap cryptocurrency that attracts the eyes of investors. In addition, there is a reasonable and sustainable approach to the DeFi market. However, investors should always consider current market data before investing.
What is certain, however, is that Polkadot can look forward to increasing adoption, announcements of further cooperation and positive development of the DeFi market. The competitive situation with other blockchain solutions is likely to be important. For example, Ethereum and Tezos are considered direct competitors. If competitors benefit from greater market penetration, this could affect the price of Polkadot. Kelvin Koh, an expert at Spartan Black, expects Polkadot to become one of the dominant blockchains in the future. As such, it is not impossible that Polkadot will become one of the top three blockchains on the market and receive a corresponding market capitalisation.
What is important at the moment, however, is that DOT is not in direct competition with Ethereum. However, connectivity and interoperability between the various blockchain platforms will be crucial in the future, and the Polkadot solution will not be able to function without them.
Frequently asked questions when purchasing Polkadot
What is Polkadot (DOT) and why should I buy it?
Polkadot is a unique multi-chain technology that aims to connect various blockchains into a single, unified network. It’s a promising project in the crypto world because it addresses issues such as scalability, interoperability, and security in blockchain networks.
How can I buy Polkadot?
To buy Polkadot, you will need to create an account on a cryptocurrency exchange or platform such as eToro or Binance. After verifying your account and depositing funds, you can purchase Polkadot directly using your selected currency.
What payment methods can I use to buy Polkadot?
Most platforms accept a variety of payment methods to buy Polkadot, including bank transfer, credit/debit cards, PayPal (on platforms like eToro), and other cryptocurrencies.
How do I store my Polkadot safely after purchase?
After purchasing Polkadot, it’s important to store your coins safely. Your Polkadot can be stored in the platform’s wallet, such as the eToro wallet. However, if you’re planning to hold your DOT for the long term, consider transferring it to a secure private wallet.
Can I trade other cryptocurrencies for Polkadot?
Yes, you can trade other cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), or Binance Coin (BNB) for Polkadot on most exchanges. Always ensure that the platform you’re using supports this feature.
Is it safe to buy Polkadot online?
Buying Polkadot online through a reputable platform is generally safe, as they employ a range of security measures to protect your assets and personal information. However, you should always conduct your own research and use a trusted exchange or broker.
What are the fees associated with buying Polkadot?
Fees can vary depending on the platform you’re using to buy Polkadot. These can include transaction fees, deposit/withdrawal fees, and trading fees. Always check the fee structure of the platform before initiating a purchase.
Gianluca Lombardi
Gianluca is the editor-in-chief of this site. A finance graduate, he is an active trader who has tested all trading platforms and knows all their secrets. Technology is his passion; he spends much of his free time in the metaverse. Gianluca loves learning new things, researching, discussing and writing about technology, especially when it comes to cryptocurrency and blockchain technology.
