Do you want to buy Polkadot (DOT), and you’re wondering whether you can do that in Arizona? Fear not, as it’s entirely possible, just as it is in any other state in the US. Polkadot, like all cryptocurrencies, is legal in the state, and there are plenty of places you can buy it.
Naturally, there are a few other things to consider, especially if you’re not familiar with how Polkadot works and how to purchase a cryptocurrency like DOT.
We’ll look into all of that, and we’ll give you detailed instructions on how to buy Polkadot. Most importantly, you’ll get a detailed list of the best exchanges where you can purchase any amount of DOT you need.
Polkadot Explained
Polkadot may be yet another cryptocurrency, but it is still unique in many ways. In terms of market capitalization, it’s one of the world’s biggest coins, always in the top 20 or top 10.
Furthermore, it’s a blockchain interoperability protocol as well as a cryptocurrency. Polkadot is the blockchain platform, and DOT is the native cryptocurrency of that platform.
Polkadot was launched in 2016, and it’s a sharded blockchain system, meaning its purpose is to connect different chains to work in a single network. These chains are called parachains as they can process parallel transactions and exchange information between them. The network remains the same for all of them, so security is not sacrificed.
The DOT token has three essential functions in the network:
- To govern the network
- To bond to create new blockchains
- To be staked by owners for better network operation
All of this means that the token’s purpose is to connect different networks and enable an interconnected, decentralized internet. It can do that precisely because it allows the connection of various blockchains, no matter how diverse or incompatible. That’s why the Polkadot network can be used not just to send and receive DOT tokens but also other coins, assets, and any type of data.
Naturally, there is still the center chain or the so-called relay chain that’s used to bond other blockchains and process all transactions at the same time. Every other connected chain is a parachain like we mentioned.
Polkadot uses the Nominated Proof-of-Stake or NPoS transaction validation method to keep all of this secure. It’s designed with specific roles for users and based on the number of coins that each user puts as collateral when making a transaction.
DOT in Numbers
When it was officially launched in October 2017, Polkadot issued 10 million tokens through an initial coin offering. Now, barely five years later, there are 1.14 billion DOT tokens, of which almost 1 billion are in circulation, while the rest have been burned.
The price of each token changes often, as the cryptocurrency is quite volatile, just like most others. It’s usually between $10 and $55, while lately, it has been around $20.
The total market cap of the DOT network is around $22 billion.
It’s important to note that there is no max supply, meaning miners can create as many new tokens as they want to. This could make the coin less valuable in time, but judging from what we’ve seen so far, this is not happening and is unlikely to happen any time soon. The token also has a predetermined inflation rate of 10%, ensuring that the currency is not devalued.
Most of the tokens in circulation are owned by various investors, 58.4% of them to be precise. The foundation and the founders of Polkadot hold 30% of the coins, and the noteworthy Web3 Foundation, which operates the Polkadot network, has 11.6%.
Where Do I Buy DOT Tokens in Arizona?
As is always the case with crypto, there are two ways of buying DOT — directly from someone, or using a dedicated platform, most notably a centralized crypto exchange.
You can also purchase coins like Bitcoin and Ethereum at a crypto ATM, but Polkadot is limited to online exchanges and direct purchases.
Centralized Crypto Exchanges
Users can buy, sell, trade, and keep various cryptocurrencies, including Polkadot, on cryptocurrency exchanges.
Two types of crypto exchanges exist:
- Centralized exchanges
- Decentralized exchanges
The former are run by specific organizations and have their own rules and fees. They also have to respect the laws of the countries they operate in, and they usually must hold a license. This also means that users need to verify their accounts with proper documents. Globally, centralized exchanges offer the easiest way to buy crypto.
The latter are less common and are made in the spirit of cryptocurrency — completely decentralized. This means that you don’t have to create a profile to use the site, and you don’t have to use your personal information and documents to get verified. This is both good and bad and one of the main reasons decentralized exchanges are rare, especially for Polkadot.
You thus need to concentrate on using a centralized cryptocurrency exchange. To do that, you need to look at the following features to determine which ones are the right choices:
- Availability in Arizona — Most exchanges in the US are operational in Arkansas as well, but it’s essential to make sure they have the proper licenses.
- Availability of DOT and other cryptos — It makes sense that the exchange needs to support DOT, but you still need to check if it supports various other cryptos so you can trade them for DOT and vice versa.
- Fees — Exchanges have various fees, most notably trading fees and withdrawal fees. Make sure they are not too high when choosing an exchange.
- Security and privacy — If an exchange has a license to operate in Arkansas, it’s undoubtedly vetted by proper authorities. However, it’s a good idea to check what kind of security features it comes with and what type of insurance it offers.
- Payment methods — Most exchanges have various payment methods for depositing and withdrawing US dollars. It’s easiest to use the one that has one or more of the methods you typically use.
- Liquidity — Make sure that the DOT token is often traded on the exchange, so you don’t have to wait too long to complete a trade whenever you start one.
- Limits — You can never trade more than the exchange allows, so make sure to check limits like this before you join.
Buying Directly
If you feel that exchanges are not a good option for you for whatever reason, you can always buy DOT directly from a willing seller. However, this method is tricky as you need to be confident that you can trust that person. If that’s an option, it’s best to use a mediator or make the transaction in a public place.
There are a lot of scammers online, which is why it’s usually better to trade on a registered site where you don’t need to worry. So, avoid buying DOT directly from someone if you can’t find a way to ensure you won’t get scammed.
Step-by-Step Process of Buying Polkadot
Now that you know where you can buy the token, you need to understand how the actual purchasing process works. The good news is that this is generally the same across all exchanges, and you will only notice some minor differences once you get on the site.
- Get a crypto wallet. Find a good cryptocurrency wallet that supports Polkadot and set it up for use. This usually requires a simple registration.
- Choose a crypto exchange. Pick one of the platforms we recommend or find a great one on your own.
- Create an account. Follow and complete the registration procedure on the exchange and verify your account with the documents required.
- Deposit funds. Determine how much money you’ll need by accounting for the fees and the exchange rate margins, and deposit the funds using one of the available methods.
- Buy Polkadot. Once you have the money, you only need to find DOT on the site and buy the desired amount.
- Withdraw DOT to your wallet. You don’t have to do this, but it’s much safer to keep your assets in your own wallet, not the exchange.
Conclusion
As you can see, purchasing DOT in Arizona is quite simple. Once you know how Polkadot works, what platforms you can use for buying it, and how the actual purchasing process works, doing it all on your own becomes much easier.
Just make sure you choose the right exchange and that you’re only buying as much as you can
