South Carolina is relatively progressive when it comes to cryptocurrency and, by the same token, Polkadot. The state passed a bill in 2020 that recognizes the importance of blockchain technology, which many have understood to mean that it is looking to become one of the blockchain and crypto hubs in the Southeast.
Despite that, there aren’t many other regulations showing how South Carolina sees crypto, but that only means that the transactions need to comply with federal laws. And as we all know, buying and selling any cryptocurrency is legal as long as it’s done on a regulated exchange.
Thankfully, the US is full of these, and almost all of them operate in the Palmetto State. This piece will discuss regulated US exchanges and show you how you can buy Polkadot on any of them.
But before we do that, we want to cover Polkadot itself. What is it? How does it work? What makes it special? If you want to begin investing, you need answers to all of these questions, so keep reading to find out.
Polkadot (DOT) Explained
Polkadot is a complex protocol that uses blockchain technology and has its native cryptocurrency bearing the same name, often referred to as DOT.
Polkadot is very much like Ethereum, but with the potential to be even better. It was created, in good part, by Gavin Wood, the notable co-founder of Ethereum. In a way, Polkadot is an extension of the same technology and vision, only much broader and possibly better.
The central aspect of Polkadot is that it aims to be the connective tissue for various individual blockchains and become the leader in bringing forth the next version of the internet — the completely decentralized Web3.
To understand Polkadot better, you need to learn that it has two essential components — the leading blockchain called The Relay Chain and various other blockchains dubbed parachains.
The Relay Chain keeps the network secure and deals with all transactions on it, while parachains benefit from the security and flexibility of the network. However, they don’t just mooch off of it — they also enable the Relay Chain to deal with more transactions faster, making Polkadot very scalable.
What Makes Polkadot Unique and Revolutionary?
Polkadot is unique and special in several ways, most notably in how scalable it is. It can process up to 1,000 transactions per second, which is more than most major cryptos, including Bitcoin and Ethereum.
This on its own wouldn’t be so special since a few other cryptos are much faster, like Cardano and Solana. In fact, what makes Polkadot unique is the fact that it is the only crypto that can effectively connect all other blockchains and enable transfers of any assets, coins, or data.
This is precisely why Polkadot is so revolutionary. The two features make it the only mainstream and trusted blockchain technology and cryptocurrency that can enable a decentralized web.
DOT Token
Polkadot is undoubtedly extraordinary, but the DOT token can still be used for very ordinary purposes — after all, it is still a cryptocurrency. This means that you can buy it, sell it, trade it, and use it to purchase goods and services, as long as vendors allow it.
Besides that, Polkadot can also be staked. This means you can stake a specific number of DOT tokens and take part in the governance of the network. That way, you’ll receive rewards for your contributions. This is the primary way to get more DOTs without spending additional funds.
The DOT token is typically priced below $20 (at least it was in the early months of 2022, when this article was written). However, the price can surge or plummet at any moment, just like with any other crypto. The number of tokens is close to 1 billion, which makes this crypto one of the top 20 by market cap.
Furthermore, it’s worth noting that there is no cap on the number of tokens that will be released. The network only has a predetermined annual inflation rate close to 10%.
Where to Buy DOT in South Carolina
You can buy Polkadot using two methods — on a cryptocurrency exchange or by trading directly with a person who has Polkadot. Let’s cover both methods.
Centralized Crypto Exchanges
Cryptocurrency exchanges are usually the most common method for buying any cryptocurrency, including Polkadot. In essence, they are marketplaces for trading cryptocurrencies.
There are two types available — centralized and decentralized crypto exchanges. We are dealing with the former as the latter are hard to find. Plus, they don’t deal with fiat currencies, and since they are not regulated, they might be unreliable.
On the other hand, centralized exchanges are more trustworthy, as they are fully regulated and operated by responsible organizations. However, they still have their downsides, and it’s worth learning about their features and aspects so that you know which one to choose:
- Availability in South Carolina — The most important aspect of a crypto exchange is its availability in South Carolina. The good news is that most of the popular exchanges work throughout the US, but it’s always important to check.
- Cryptocurrency options — Besides DOT being available, you should also check if various other cryptos are tradable. The more there are, the better the exchange is.
- Reputation — This is everything today, especially in the online world. You can learn more about each exchange’s reputation by googling it and looking at its reviews, customer feedback, and more.
- Security — Every crypto exchange needs to be completely safe so that your assets and data can remain safe as well. Check the exchange’s security features and how it deals with breeches. If it has coin insurance, that’s a big plus.
- Liquidity — It’s not enough for an exchange to offer Polkadot. It also needs to have large quantities of it. The more DOT is traded, the easier it will be for you to buy it in due time.
- User-friendliness — Every exchange should be user-friendly, which is especially important for beginners.
- Payment methods — Crypto exchanges typically have various payment options, including credit and debit cards, bank transfers, e-wallets, and more. Check if your preferred methods are available so that you’ll have an easy time making deposits.
- Fees and pricing — Exchanges only charge fees, never subscriptions. But these fees are very different from platform to platform, so make sure to check what they are before joining.
Direct Buying
You can always choose to buy directly from another person if you want to avoid the complexities of exchanges. However, this is not always easy. You need to find someone willing to sell, and you need to trust that person.
If you find someone you don’t know, it’s safer to make the trade in person or find a mediator both of you can trust.
How to Buy DOT in South Carolina — Step-by-Step Instructions
Buying DOT or any other coin follows basically the same pattern on all exchanges. It’s very simple, but if you’ve never done it before, here are some step-by-step instructions that will show you how the process looks:
- Set up a wallet — Find a good crypto wallet that supports DOT and set up an account. You’ll need it for the safe storage of tokens if you want to keep them long-term.
- Pick an exchange — Take a look at our recommendations and everything you’ve learned about exchanges to make a smart choice that suits your needs.
- Visit the site and set up an account — Visit the exchange’s official website and start the sign-up process. This procedure includes personal information and a verification process afterward.
- Make a deposit — Once the account is ready and verified, you’ll be free to choose a payment method and make a deposit in US dollars. The money will likely arrive instantly.
- Buy DOT — Find the USD to DOT trading pair and buy the desired number of tokens.
- Transfer DOTs to your wallet — As mentioned earlier, transfer your tokens to your wallet for safer storage. However, keep them in the exchange if you plan to trade them soon.
Bottom Line
Polkadot is genuinely a revolutionary cryptocurrency, one that’s clearly here to stay. You now have all the necessary knowledge and tools to buy your first DOT tokens should you wish to do so.
Therefore, if you’re ready to invest, pick an exchange you like, set up an account, and start buying Polkadot.
