Nebraska is one of the few states in the US that introduced crypto regulation, meaning there’s a legal framework for dealing with cryptocurrencies, including Polkadot. Namely, Governor Ricketts signed a legislative piece dubbed the Nebraska Financial Innovation Act on May 26, 2021, which became effective starting October 1 that year.
The legislative act put Nebraska on the crypto map by allowing digital asset depositories. In other words, Nebraska became the second state after Wyoming to allow banks to hold cryptocurrencies, with Polkadot being one of the eligible cryptos.
Moreover, Nebraska effectively provided a legal ground for crypto trading. All of this means the residents of the Cornhusker State are free to buy, sell, and trade crypto, including DOT.
This article will explain what Polkadot is and discuss the project’s token DOT (along with its tokenomics). Moreover, we’ll talk about the available options for buying DOT in Nebraska and provide a detailed guide on doing it successfully. Read on.
Polkadot Explained
To understand why Polkadot is so popular in Nebraska (and the rest of the world, for that matter), it’s essential to comprehend the state of the blockchain industry at the moment. Namely, every blockchain project is like a world of its own, meaning they cannot communicate or transfer assets to each other.
Polkadot aims to make blockchains interoperable, and it seeks to create the ultimate network for blockchains that will be the basis for Web 3.0, the decentralized internet. That’s why DOT has turned many investors’ heads.
DOT is Polkadot’s native cryptocurrency powering the project’s ecosystem. It’s similar to Ethereum, although it’s currently not as popular as ETH. Speaking of Ethereum, it’s important to mention that one of Polkadot’s co-founders was Gavin Wood, who co-founded Ethereum with Vitalik Buterin. Other Polkadot co-founders include Peter Czaban and Robert Habermeier. All three are big names, which was another reason Polkadot attracted so much attention.
The team began working on Polkadot in 2016, but the project’s popularity skyrocketed in 2020 when Polkadot introduced the concept of parachains, which stands for “parallel chains.” These chains work parallel with Polkadot’s main chain, called the Relay Chain, and are used for building security, yet also work as completely independent blockchains.
This concept attracted many projects, which started auctioning for a slot to operate a parachain, meaning Polkadot already started building its network of interlinked projects. Parachains have many additional features, including the ability to scale better compared to many other blockchain-based services.
With such an innovative approach, Polkadot has set the cornerstone for becoming the leader in the crypto and blockchain space in the future. Whether it will pull it off successfully remains to be seen. However, it seems that it’s doing a pretty good job at the moment.
Polkadot (DOT) Token Features
Apart from buying and selling DOT, as you would do with Bitcoin, you can also use the token for certain utilities and make passive income.
First of all, all Polkadot holders will have control of the Polkadot protocol, which means they will actively participate in the governance, voting on essential steps that the platform should take in the future.
Next, DOT holders can stake their tokens and support validator nodes. Staking is a great way to make passive income after buying Polkadot. We’ll not discuss how DOT staking works in detail, but we encourage you to check it out and learn more about the process to get the best possible experience.
Finally, projects can stake so-called bonding tokens to Polkadot, which will lease them a slot to use a parachain for two years. This is pretty innovative and is being actively explored. Most importantly, numerous projects are already competing in parachain auctions on Polkadot.
Where to Buy Polkadot in Nebraska?
Right now, the only option in Nebraska to buy Polkadot is from an official and licensed cryptocurrency exchange. Of course, you can also buy DOT directly from another person, but that will not be 100% legal in the case of Nebraska, which has started to legalize the crypto sphere.
Nevertheless, we’ll describe both methods and later explain buying Polkadot in a step-by-step guide.
Centralized Crypto Exchanges
Central crypto exchanges are platforms where people trade cryptocurrencies. They often accept several different cryptos that you can buy and sell to make a profit. More importantly, most of them take fiat money, which means you can deposit USD to buy Polkadot or whichever cryptocurrency is available for sale for American dollars.
Before selecting a crypto exchange, it’s important to consider several things, so let’s check them out.
- Nebraska availability — First, you have to check whether the exchange of your choice is available and legal in Nebraska. If it is, go on and explore its other features. However, if the platform isn’t available or legal, we suggest approaching it with caution.
- Overall reputation — Even if a cryptocurrency exchange is available in your area, you should first check what other users are saying about it on the web to learn more about the platform’s overall reputation before joining it.
- Liquidity — Make sure that enough people are willing to buy and sell Polkadot so that you can immediately obtain and trade cryptocurrencies. Exchanges with poor liquidity struggle with making trades as there aren’t enough traders.
- Security — The exchange should have all the relevant security measures in place to protect you and your sensitive data from any kind of cyber attack. This holds especially true for any financial organization in the crypto sphere.
- Privacy — It’s no secret that exchanges require their users to go through a KYC process to verify their identities. However, you must ensure that your identity remains private even after confirming it. Therefore, it’s essential to check the privacy documents and learn more about this before registering.
- Design and interface — Some crypto exchanges are more difficult to use than others. You should pick an exchange that features an interface suitable for your level of crypto trading skill.
- Payment methods — To purchase Polkadot with fiat money, it’s important to deposit it to your crypto exchange account. You can do this by using one of the accepted payment methods. Therefore, ensure that the payment methods offered on the site are the ones you use for online purchases.
- Fees — Every exchange will charge fees for any type of transaction, and it’s up to you to find one that has reasonable costs in comparison to the quality of the offer.
- Limits — You cannot buy and sell as much as you like since exchanges have minimum and maximum trading limits that you should consider when choosing an exchange.
Buying DOT Directly From a Person
As mentioned earlier, the second option is to find a person willing to sell Polkadot and purchase it directly from them. Unfortunately, there are many scammers out there, so you have to be extremely careful when buying directly. That’s why we suggest sticking to a crypto exchange, for starters.
How to Buy Polkadot From a Crypto Exchange
If you decide to use a cryptocurrency exchange to purchase DOT in Nebraska, here’s how you can do it in a few easy steps.
- Obtain a crypto wallet — It’s necessary to find a cryptocurrency wallet that supports Polkadot so that you can store it once you buy it.
- Select an exchange — Use our guide to find the best platform for you, or pick one of the featured exchanges from our recommended lists of the best exchanges in Nebraska.
- Become a member of the exchange — Each centralized crypto exchange requires you to become a registered member, which means you’ll have to go through the registration process. However, it shouldn’t take you more than a couple to complete it in most cases.
- Deposit fiat funds — Use one of the fiat deposit options to send your money to the exchange platform. You’ll use this money to buy Polkadot.
- Buy Polkadot — Find the option to buy DOT, enter the amount you’d like to purchase, and confirm your transaction.
- Withdraw Polkadot to your wallet — Once you buy DOT, it will be stored in your exchange account. Transfer it to your crypto wallet for maximum security.
Final Thoughts
To sum up, Nebraska is one of the few states that created a legal framework for cryptocurrencies. The good news is that Nebraskans have several excellent options for purchasing Polkadot because of that, so make sure to pick a crypto exchange you like and start buying DOT in minutes.
