Buy Polkadot (DOT)
Cryptocurrency is a form of virtual money, for the release of which special algorithms and data encryption operations are used. Thanks to electronic money, many investors and traders receive good passive income and become more successful in the trading world.
What is Polkadot (DOT)?
Polkadot is a network designed to bring together well-known networks. Polkadot is commonly referred to as a multi-chain network because a project can link networks together, as opposed to other networks that operate on their own.
The Polkadot project hasn't garnered much attention for over three years since development began, but after that it shocked the cryptocurrency space with the official release of its “completed” mainnet. In less than 2 weeks, the Polkadot token climbed into the top ten cryptocurrencies by market capitalization.
The creator of Polkadot is Gavin Wood, the co-founder of Ethereum. Just as the Ethereum network is called the Bitcoin killer, the Polkadot network is called the Ethereum killer. Unlike the Bitcoin network, which transmits only information about transactions and the number of coins in wallets, on the basis of the Ether network, you can create arbitrary "smart contracts" and issue tokens in the ERC-20 standard. Gavin himself has repeatedly stated that the Polkadot project is not a direct competitor to Ethereum and will occupy its own new niche in the cryptoindustry.
Parachain is an independent blockchain with its own token and the ability to optimize functionality for specific tasks and project needs.
The Polkadot developers went even further and implemented the ability to create networks of other projects based on their blockchain. These derived networks are called parachains.
Polkadot is a project of the Web3 Foundation, a Swiss non-profit organization based in the Swiss “crypto valley” of Zug. On behalf of the Web3 Foundation, the British company Parity Technologies has been entrusted with the development and maintenance of the Polkadot network.
Polkadot's challenge is to act as the foundation for all blockchains that register, much like how HTML allows sites, browsers and servers to communicate with each other. The idea is to take care of the convoluted and expensive cryptocurrency mining processes (including verifying transactions and security protocols) and allow developers to focus on creating dapp functions and smart contracts.
Developers creating innovative decentralized systems currently have to develop these systems from scratch. It also means that time, talent, and resources are being channeled into creating competing networks, rather than creating a standard around which everyone builds. This is Polkadot's goal of creating a way for developers to create value on top of all blockchains, not just one.
How does Polkadot work?
Blockchains can connect to Polkadot and work in parallel as so-called “parachutes” to access transaction verification and security on the network with Proof of Stake.
In a so-called "relay chain" network, transaction addresses are verified and data is standardized so that each system can understand it. This is where all the chains bring security together.
While the functionality is provided, blockchains connected to Polkadot can use their own PoS mechanism, decide when and how to update their code, and launch the applications or tokens of their choice. Basically, it is a layer of choice that allows networks to maintain their own security and implement new protocols.
Polkadot also has its own electronic currency DOT (on many sites it is called the name of the network of the creator "Polkadot"). This token allows holders to vote on potential code changes, which are automatically updated online if consensus is reached. And also to perform operations within the network.
What makes Polkadot unique?
At its core, Polkadot is a platform on the basis of which blockchains can transfer information, share their functions, while having a guarantee of overall security. Overall, Polkadot is a globally scalable mulchain technology.
The Polkadot platform is heterogeneous, which is why it is highly flexible, there are no restrictions on the structure and nature of the chains in the system. The network is based on a combination of the best working chains of Bitcoin and Ethereum, complemented by a unique security system and inter-chain interconnections.
One of the more popular features of the DOT system is the presence of an extensive reward system for active users; those community members who are noticed in fraudulent activities are excluded from the system without the possibility of recovery.
In the overall rating of transactions carried out among digital currencies, Polkadot is among the top ten most demanded electronic money. In 2021, the value of Polkadot increased by 21%, which attracted huge attention to this e-money.
How is Polkadot priced?
There is no chart of price movement, which has a clear up or down direction, the price of digital currencies constantly fluctuates, this is called high volatility.
The price of digital currencies, like any asset, is influenced by supply and demand. A rise in price is always an increase in demand, a fall in price is, accordingly, a drop in demand.
Electronic money is mostly decentralized. This means that there is no regulator above them that, if necessary, could control the market situation, as, for example, central banks do by raising and lowering the discount rate (thereby making national currencies more expensive or cheaper). It is different with e-currency: their price is formed based on the demand for the asset from buyers.
The factors that directly affect the growth / decline in demand for electronic money can be very different, both real and artificial (manipulative). Here are some examples:
|The excitement||It is provoked by the expectation of the rise / fall of coins, various expert opinions and forecasts published in the media and social networks.|
|Regulators and their cryptocurrency policies||Any positive or even neutral statements made at meetings of the Administering Authority.|
|Listing on exchanges||When an electronic currency is added to the list of trading instruments on a major cryptocurrency exchange.|
|Hacker attacks||Hacking of exchanges, loss of money by investors - all this leads to a drop in the value of cryptocurrencies, since it demonstrates the weak point of this industry.|
How and where to buy Polkadot?
Before purchasing any electronic currency, you need to think about where to store it. Since digital money does not have a physical body, it can be assumed that it can only be stored online, and this is a correct assumption. Electronic money is stored in online wallets. It is important to remember that not every currency is supported on all wallets, so in the case of DOT, you need to find an online wallet where you can store this cryptocurrency.
After a trader or investor starts an online wallet, he can start buying currency. There are different ways to buy Polkadot in India: using an exchange, an online exchanger or from a currency holder.
When buying digital money on an exchange, there are some peculiarities. Each exchange is an opportunity for traders to carry out their activities. All exchanges differ from each other and in different ways of trading, and the types of assets that can be sold or purchased.
To work on the exchange, you need to create a personal account by registering on the site. Typically, users do not have to provide all of their personal information: just an email address is enough. However, with a sufficiently high income, you will still have to go through verification to withdraw funds.
Then, an application is created for the purchase of the selected currency, and then the digital money ends up in your online wallet. This method is distinguished by its reliability, thanks to verification, but also at the same time, it can take you a little more time than you expected.
In order to purchase Polkadot, traders or investors can also use the services of online exchangers. This method is faster than the first one, but it has the highest commission charged.
The process of obtaining a cryptocurrency is simpler and does not require registration, the only thing you should be sure of is the reliability of the exchanger. After that, you need to select the desired digital currency and the asset that you want to exchange for it. You can get acquainted with several offers and compare the commission, after which the transfer is made. Within 10 minutes or less, what you want will be in your online wallet.
The latter method is considered the most unreliable, but it happens on your terms. When purchasing digital money from holders, it is necessary to avoid fraud, so it is better to make such transactions with a person you know and trust.
How to start investing in Polkadot in India?
To invest in Polkadot, you can only purchase a digital currency, and then wait until its price rises, exceeding the purchase price by several tens of times, but it is worth remembering that this method of investment can take a very long amount of time, starting from two years.
A more popular investment method is the CFD method. It is carried out on trading platforms provided by an online broker.
The bottom line is to study price movement information. If you are sure that the price will increase, then you need to make a purchase, and when the price level is higher than at the time of the opening of the transaction, your profit will grow. The main thing is to close the deal at the time, in order to be in time before the moment when the price goes in the opposite direction.
The same happens when the price should fall. If you manage to open a sell agreement and the price falls below the moment of opening a deal, your profit increases. The main thing is to close the deal at the time. Various trading platform tools will help with this.
To start receiving active or passive income using digital currency, it is only important to show your desire and spend some free time studying the market. This will lead to great results.