Recently, cryptocurrencies have been a point of contention in the United States on the federal and state level. The US Congress passed 35 bills related to cryptocurrency regulations, blockchain technology, and central bank digital currency (CBDC) in 2021. States differ in the way they’ve chosen to deal with the concept. Some have passed laws and regulations regarding this industry, while others remain reticent.
Idaho is one of the states that hold a positive stance toward cryptos. It views digital currency transmissions the same way it views fiat currency transmissions. According to the law, you can acquire, use, and sell cryptos like any other currency as long as you have a valid money transmitter license.
Polkadot is one of the virtual currencies that have been gaining traction lately. If you’re interested in acquiring DOT coins, stay with us. This article covers how Polkadot works and whether, why, and where you should and can buy its digital coins in the Gem State.
Top 5 Idaho Polkadot Exchanges
What Is Polkadot?
Polkadot is more than just a cryptocurrency. It’s both a token in itself (a native cryptocurrency that uses DOT as its symbol) and a protocol that connects unrelated blockchains and allows them to communicate amongst one another without an intermediary.
As a token, Polkadot has three core functions related to trading, staking, and governance. It has financial value and can be used for trading, it allows holders to participate in the process of staking —- issuing tokens and verifying DOT transactions, and it gives its holders, as DOT owners, control over the future of the Polkadot protocol.
As a protocol, Polkadot creates a channel for previously incompatible blockchains like Ethereum and Bitcoin, for example, to send and receive value and data to one another. It aims to connect all separate blockchains into an interoperable web.
Such a web would create a standard for all decentralized networks. It would construct a foundation for building new decentralized systems without wasting energy and time on starting from square one every time, as is the case today. It would also improve the mining process regarding costs, validation of transactions, and security protocols.
Polkadot’s Current Worth
Polkadot was founded in 2017 by the co-founder of Ethereum — Gavin Woods. It currently ranks among the top thirteen cryptocurrencies globally despite being so novel. While its rating may change due to frequent fluctuations common for the crypto market, that shift shouldn’t be drastic. Polkadot has ranked among the first 20 cryptos on the global crypto market for a while now, and it’s still generating growing interest.
When it comes to its monetary worth, DOT has oscillated a lot since its foundation. It reached its peak in November 2021 when it was valued at $55. The current price of DOT is much lower — $16. The total supply of DOT coins is currently a little over a billion, with nearly a billion of them in circulation, according to CoinMarketCap.
Should I Buy Polkadot?
The short answer to this question is yes, but let’s take a look at the reasons why buying Polkadot seems like a good investment:
- Reputation — Polkadot is a relatively young company, but that hasn’t stopped it from establishing a good reputation quickly. One of the reasons behind its high standing in the community has to do with its founders. Besides Gavin Woods, whom we’ve already mentioned, its founders are Robert Habermeier and Peter Czaban. They all have backgrounds in the blockchain industry, distributed technology, and related fields and are well-known in the crypto world.
- Business model — Investors are attracted to Polkadot’s goal and business plan. Many have already decided to participate in this company’s revolutionary mission to create a decentralized web. This unique network would dramatically change the face of the industry — make space for better solutions and build a more functional system. Investors also find additional security in the fact that the company’s collaborating with some of the best organizations in the field to achieve its goals.
- Volatility — This is another reason individuals are interested in buying DOT coins. Fluctuations on the crypto market allow you to buy DOT for a smaller price and sell for much more in just a short period, making a profit quickly.
- Control and profit — Polkadot allows its users to own and actively participate in its governance. By staking DOT, they can have a say in whether and how Polkadot changes and earn money along the way.
Where to Purchase Polkadot in Idaho?
There are two ways to buy Polkadot in Idaho, having its crypto regulations in mind. You can purchase DOT directly from an individual who has the coins or use a centralized cryptocurrency exchange platform. We will discuss both of these options in detail below.
Centralized Cryptocurrency Exchanges
Centralized cryptocurrency exchanges are platforms where you can buy and sell coins in a fast and secure way. They support more than one cryptocurrency, so they also facilitate exchanging one virtual currency for another.
The crypto scene abounds with different cryptocurrency exchanges, but not all will be available to crypto users in Idaho. Coinbase, eToro, Kraken, and Paybis are some of the most popular ones that hold licenses in the Gem State.
Choosing a Cryptocurrency Exchange
If you’re new to the crypto sector, you’ll have to be careful when choosing the exchange where you’ll purchase DOT. Consider the following advice to make the best possible choice:
- Check for an Idaho license — Make sure the crypto exchange platform you’re interested in has a valid Idaho money transmitter license. You won’t be able to join the platform legally otherwise.
- Ensure it supports Polkadot — Not all exchanges licensed in Idaho work with Polkadot. So, make sure that the platform you’re planning to join does include DOT in the list of cryptocurrencies it supports. You can start by checking out the crypto exchanges we’ve mentioned above since Polkadot is available on all of them.
- Take a look at other crypto options — Don’t forget to check how many and which other cryptocurrencies the platform you’re interested in works with besides DOT. You should be able to exchange your DOT coins for a significant number of popular and reputable cryptocurrencies.
- Confirm it’s trustworthy — Look at the safety and privacy protocols the platform is using to protect its users and their funds, as well as whether it has ever experienced any security breaches.
- Look into its fees and limits — All crypto exchanges come with a set of fees attached to their transactions and conversions and a set of limitations regarding their users’ crypto withdrawals, deposits, and trade. While you can’t avoid any of these rules no matter what you pick, you can ensure that the fees and limits on your platform of choice are reasonable and fit your budget.
- Check its banking options list — To be able to buy and/or exchange DOT, you’ll have to deposit funds in fiat currency into your crypto exchange account. Crypto exchange platforms collaborate with various payment companies to make these transactions and conversions possible. So, remember to check what payment methods the crypto exchange platform of your choice supports.
Buying Polkadot Directly
You can also purchase DOT from a person who has these coins and agrees to sell them to you. This option might seem more straightforward than the one we previously covered, but this is not the case for two reasons:
- According to the Idaho regulations regarding the management of digital assets from 2019, even individuals who engage in money transmissions must hold a money transmitter license. So, you won’t be able to buy and receive DOT without this legal document.
- It’s much more dangerous as you won’t be able to hold the person who agreed to sell you the coins accountable if their offer turns out to be a scam. We suggest you buy DOT from someone you know and trust if you choose to do it directly.
Detailed Guide to Buying Polkadot in Idaho
The process of buying Polkadot in Idaho isn’t complicated regardless of what option you choose. You can refer to our step-by-step guide to help you acquire your first Polkadot cryptos if you decide to use a cryptocurrency exchange. Most of these platforms function similarly, so the following steps should cover all essential aspects of the process:
- Choose a platform available to Idaho residents whose services agree with your preferences and needs.
- Fill in the registration form and submit your account request.
- Find a reputable and secure crypto wallet where you can store your DOT coins after you buy them.
- Deposit the money you’d like to exchange for cryptos using the payment method of your choice.
- Purchase as many DOT coins as you like and wait for the transaction to clear.
- Send the coins into your crypto wallet or stake them.
- That’s it!
Final Thoughts
That’s all you need to know if you’re interested in buying Polkadot in Idaho as a novice to the crypto scene. As you can see, the process sounds more intimidating and complex than it actually is. All you have to do is obtain an Idaho money transmitter license and choose a crypto exchange platform or find a person willing to sell you DOT.
