Polkadot is a popular cryptocurrency, ranking among the world’s top 20. This makes it an exciting option to many crypto fans and those looking to diversify their investment portfolios.
If you want to get your hands on some DOT tokens in Georgia, know that you are in the right place.
In this detailed guide, we’ll tell you all you need to know about this interesting platform and cryptocurrency, how it works, and where you can buy it. We’ll also explain how that purchase works so you can head over to an exchange and buy some DOT tokens right now. Let’s begin!
Polkadot Explained
Polkadot is a protocol that lets users transfer any type of asset or data across different blockchains. Polkadot is also a cryptocurrency as it has a unique token called DOT, which acts as the governance token for the network. People can stake it to reap the rewards and ensure the network’s security.
The main goal of this protocol is to unite different blockchains and enable a more decentralized internet.
It is fast and scalable, which is one of the main reasons many believe it can achieve its intended goal. The network uses parachains, parallel blockchains on the main Polkadot blockchain — the relay chain. These parachains enable the relay chain to process as many transactions as are needed, making this crypto unique.
The DOT token has two main functions within this unique network:
- Governance token — Holders of DOT can influence the entire network and make decisions that affect the Polkadot protocol. In other words, if most holders agree on something, the whole protocol will change, as Polkadot is entirely decentralized.
- Staking token — You can stake DOT tokens, which lets you become one of the verifiers of transactions, and you can get new DOT tokens as a reward. Additionally, this system allows for security within the network.
Polkadot was created by Gavin Wood, Robert Habermeier, and Peter Czaban. Wood is the most notable of the three as he co-founded Ethereum. He is also the president of the Web3 Foundation, the leading organization behind Polkadot.
Staking DOT Tokens
Unlike Bitcoin, which uses the simple proof-of-work system where miners need little power to confirm transactions, Polkadot uses a proof-of-stake mechanism. This system lets members who stake tokens verify transactions, secure the network, create new tokens and distribute them.
Depending on how much knowledge you have and how much time you are willing to dedicate to the network, there are several roles you can assume in this staking system:
- Validator role — This is the central role in the system, one that requires the most dedication and work. Technical knowledge is also a prerequisite for validators. Validators have to run their devices all the time and stake a big portion of the tokens they own. It’s hard work, but the rewards are great, as validators can verify transactions, add new blocks with transactions to the main chain, earn new tokens, and get a portion of the transaction fees.
- Nominator role — This role allows for people to stake tokens indirectly. Nominators need to delegate some of their tokens to a validator they trust, and they get a cut of the tokens validators to earn. However, validators must adhere to the rules for both to reap the rewards, which is why it’s paramount for nominators to choose trustworthy validators.
- Collator role — This is a specialized role where you need to follow the valid transactions on the main chain and submit each one to validators.
- Fishermen — Another specialized role where you only need to look for misbehavior across the network and report it when you find members breaking the rules.
It’s important to note that every role comes with rewards; it’s just that higher and better rewards come to those who assume the most challenging parts and stake the most tokens. They also have the most say in the governance of the network.
DOT in Numbers
DOT is one of the top 20 cryptos on the planet, often even in the top 10. Its price is volatile and often between $10 and $25. Its all-time high price is $55 — the value DOT had in November 2021.
The current market cap of the token is $18.5 billion, while the circulating supply is almost 1 billion DOT tokens. The total is much higher, around 1.1 billion, and the difference between the two numbers are burned tokens, mainly the ones locked in inaccessible wallets.
The token doesn’t have a max supply, so the numbers can go up indefinitely. However, a predetermined 10% inflation rate allows the currency to avoid eventual devaluation.
Investors own more than half of all tokens in existence (58.4%), the founders own 30%, and the remaining 11.6% are in the hands of the Web3 Foundation.
Where Can I Buy Polkadot in Georgia?
As is the case with most of the US, you can buy Polkadot in two different ways — directly from a person or through a crypto exchange. Let’s explain both methods.
Centralized Crypto Exchanges
The best and easiest way to buy Polkadot, or any other coin, is through a centralized crypto exchange. You can also use a decentralized exchange, which doesn’t require personal documentation, but these are rare and almost non-existent for DOT tokens.
Centralized exchanges are common, and all of the most popular crypto exchanges on the web, like Coinbase, Binance, and Kraken, cover Polkadot. Many more exist, which is why there are a couple of things you need to know if you want to learn how to choose the best one for your needs:
- Availability of DOT in Georgia — The most important thing you need to check when looking for a centralized exchange is, of course, that it works in Georgia and that it features DOT.
- Security — Security is crucial in the crypto world, so check what features the exchange offers. Also, look how it handles breaches, what it did with them in the past, and what insurance coverage it offers.
- Privacy — Preserving your privacy is always important in the crypto world, so check that the exchange handles your data in the right way and that it won’t share it with unnecessary third parties.
- Payment options — Most exchanges have a wide range of payment methods for making deposits and withdrawals, but the list must include the ones you usually use or want to use.
- Liquidity — It’s often not enough that an exchange has DOT tokens. It also needs to have enough of them, or in other words, for the people to trade the token in sufficient amounts, so you don’t have to wait for ages to complete a trade.
- Fees and commissions — Exchanges depend on fees and commissions, but some have higher and some favor lower ones. Look for the latter, so make sure you check the trading fees, deposit fees, withdrawal fees, and others that affect you.
- Limits — Most exchanges place limits on how much you can trade, deposit, and withdraw, so it’s worth checking what the numbers say.
Buying Directly
To avoid the need for accounts and document verification at exchanges, you can always try to buy DOT from someone directly. However, this is a tricky solution for two reasons — it’s not easy to find a DOT owner willing to trade directly, and it’s almost as hard to find a trustworthy trader.
If you deal with the former, you can deal with the latter by meeting and completing the trade in person in a public place. If that’s not an option, you should find a mediator, as you don’t want to risk getting scammed by someone you don’t know.
Buying DOT on an Exchange — Step-by-Step Process
As buying through an exchange is your best option, we wanted to help you out by explaining the process. It’s actually quite easy as it’s fairly similar on most exchanges, so you can always follow these steps:
- Set up a wallet — Find a good crypto wallet that supports Polkadot and set it up so you can later store your DOT tokens on it.
- Pick an exchange — Use the advice we’ve given you here to pick a suitable exchange or just choose one of the recommended ones.
- Create an account — Head over to the official site of the exchange and create an account. Make sure to complete the verification process according to the site’s instructions so you can begin trading immediately.
- Make a deposit — Determine how much money you’ll need to buy the desired number of DOT tokens, and don’t forget to account for fees and exchange margins. Then pick a deposit option you like and complete the deposit process.
- Buy DOT — Pick DOT on the site and buy the amount you want. It should reach you reasonably quickly if the trading volume on the exchange is high. Then store your DOT tokens in the wallet to keep them secure.
Bottom Line
So, there you have it — everything of importance you needed to know about buying Polkadot (DOT) in Georgia. It’s clear that your best option is a good centralized crypto exchange, and once you have decided that Polkadot is a good investment for you and have chosen a great site, the rest is easy.
Just head over to the exchange’s official website, create a profile, make a deposit, and buy as many DOT tokens as you want. Then you can keep or use them as you see fit.
