Polkadot has been one of the fastest-growing and most popular cryptocurrencies globally. It has introduced some revolutionary aspects to the crypto world, which is one of the reasons why so many crypto enthusiasts have been flocking around it.
However, according to South Dakota Codified Law 51A, Chapter 17, any person who engages in the business of money transmitting is required to obtain a license. This is because virtual currencies are considered to have a monetary value in the Mount Rushmore State. However, individuals who would like to buy, sell, or trade Polkadot or any other cryptos should first consult their legal advisors and make sure they are not breaking any laws by doing so.
If you want to know more about Polkadot — why it attracts investors worldwide and where and how you can buy it in South Dakota — make sure to stay with us until the end.
Polkadot Explained
Polkadot is a blockchain protocol that allows an entire network of blockchains to work seamlessly together. This technology can transfer any type of data across any blockchain. It was created by one of Ethereum co-founders, Gavin Wood, Peter Czaban, and Robert Habermeier in 2016.
The Polkadot blockchain consists of one main chain (the Relay Chain) and many subchains linked to it (parachains). The Relay Chain is the core chain responsible for security and interoperability. At the same time, it allows the creation of new chains. On the other hand, parachains are blockchains that operate independently on the Relay Chain.
Several advantages of parachains include their ease of customization and the ability to integrate them with the main chain to provide the same level of protection. Polkadot’s developers claim that a system like this can ensure the security, accuracy, and privacy of transactions while using only the computing resources required for the main chain. Furthermore, 1,000 transactions can be made every second through this system.
On the Polkadot network, there is one more type of chain besides the Relay Chain and parachains — the bridge chain. Using these, Polkadot can communicate with other blockchains.
In addition to these, Polkadot aims to address the following issues some of the biggest blockchains face:
- Interoperability — Its network allows any data or assets to be transferred, not just tokens. In addition, it supports 1,000 transactions per second.
- Scalability — Polkadot is a sharded multichain network that allows many transactions to be processed simultaneously across several chains, avoiding the difficulties that conventional networks face. Consequently, Polkadot is highly scalable due to its parallel processing capabilities.
- Security — Polkadot’s platform provides excellent security features that other blockchains can use to ensure fast and secure information transfer and transaction exchange. At the same time, each blockchain is also autonomous and can have its own governance model.
- Elimination of forks — Unlike BTC and ETH communities that are divided multiple times by using forks, Polkadot eliminates the need for forks by integrating new features, fixing bugs, and deploying upgrades without hard forks.
The governance structure of the Polkadot platform consists of three types of Polkadot users:
- Council — Members of the Council are elected by DOT holders and are responsible for proposing and deciding which changes should be implemented to the DOT software. In contrast to ordinary DOT holders, proposals by Council members require fewer votes to be approved.
- Technical Committee — This group comprises teams that build Polkadot and can submit special proposals in case of an emergency. The Council elects Technical Committee members.
- Community (DOT holders) — Any DOT holder can use their token to suggest changes to the network and accept or reject major changes proposed by others.
Polkadot (DOT) in Numbers
Polkadot’s native token is called Polkadot or DOT. In addition to being a governance token, it is also used for various functionalities on the network, such as payments, exchange, and value transfer.
The supply of DOT coins is unlimited, so it is considered an inflationary cryptocurrency. According to CoinMarketCap, Its current circulating supply is over 987 million, with a total market value of more than $20 billion.
Over the past couple of years, the DOT coin has grown immensely. Its lowest price of $2.69 was recorded in August 2020, but it saw exceptional growth and reached its all-time high of $53.88 in November 2021.
Why You Should Invest in DOT
Many users believe Polkadot will grow in value after some time, as other cryptos have done in the past. Since it’s currently not very expensive, they are already investing in DOT and will wait for its value to increase, which is a great way to make a profit.
Some of Polkadot’s greatest benefits lie in its versatility and limitless possibilities when it comes to currency transfer. Thanks to this, its users can trade not only coins but also data and other assets they find valuable.
Last but not least, if you own a DOT, you are eligible for membership in the platform’s governing body. The amount of DOT you hold directly impacts your ability to influence voting and platform control. Thus, if you are interested in exploring the crypto universe further, purchasing Polkadot is the perfect way to do so.
Where to Buy Polkadot in Oklahoma
There are two options when it comes to buying DOT in South Dakota. You can purchase DOT tokens via a centralized crypto exchange or from another individual who owns them. We will discuss both options, but since the former method is much more secure, we’ll focus on it more.
Centralized Cryptocurrency Exchanges
Centralized crypto exchanges are the most popular way of purchasing DOT or any other crypto. They are platforms that allow their users to sell, buy, and trade cryptocurrencies.
On a centralized exchange, the network of transactions is managed by one central authority. Since the company is in charge, it is responsible for managing the ledger, executing transactions, safeguarding user data, and performing other duties related to managing a financial system. It requires all its users to go through the KYC process.
It is important to mention that there are also decentralized crypto exchanges. Unlike centralized ones, they don’t rely on any authority — instead, they have their internal system of users and devices. The widely distributed network gives each user equal ownership, eliminating reliance on a third party. Here, peer-to-peer transactions can be done anonymously since no personal documentation is required.
Before opting for an exchange, here are a couple of aspects you need to take into consideration:
- Availability in South Dakota — Although most crypto exchanges in the US are regulated nationwide, it is still crucial to make sure they have a license for South Dakota.
- Accepted cryptocurrencies — It is vital to check the selection of assets offered by each exchange. While major cryptos are most likely available everywhere, some smaller tokens like Polkadot may not be. Therefore, it’s essential to know what options each exchange provides.
- Security and privacy —Since your personal and financial data must be well-protected at any time, take your time to study the exchange’s security protocols. Check if there have been any cyberattacks in the past and where the exchange stores your funds.
- Reputation — Check out the platform’s ratings and comments to learn more about its reputation. Look them up on social media and Google since this is where most people leave their comments.
- Liquidity — DOT may be available on the exchange, but it does not mean there is enough of it. Without sufficient trading volume, you won’t be able to execute a single trade at any time.
- Fees — All centralized exchanges charge fees, primarily for trading, depositing, and withdrawing. To avoid losing money while trading, pick exchanges with the lowest fees.
- Limits — There is a maximum amount you can trade, deposit, or withdraw on every exchange. Make sure you understand all of the limitations before committing so that you do not end up disappointed.
- Payment methods — Exchanges offer a variety of payment options, including credit cards, debit cards, bank transfers, and e-wallets. Make sure the exchange you’re considering offers the methods you usually use.
- User interface — Pay attention to how the platform works. If you’re new to the market, you won’t find all options equally easy to navigate and use. Spend some time on the exchange to see if it is convenient for you to use regularly.
Direct Purchase
Trading the DOT coins with another person directly is a simple process. You will be required to either send or give cash to that DOT holder, and they need to send you the tokens in return.
Even though this is another valid option for buying Polkadot, we don’t recommend it due to being unsafe. It is impossible to know whether the other person has good or bad intentions, so we advise you to avoid this method. However, if you decide to go for it, try to find someone you trust to complete the purchase.
How to Buy Polkadot in South Dakota — Step-by-Step Guide
If you are new to the crypto world and want to start buying Polkadot via a crypto exchange, the process is pretty straightforward and more or less the same on all platforms. Still, we’ve created this list of steps to guide you along the way:
- Set up a wallet — Before joining a crypto exchange, you need to find a wallet to store your tokens. Find the one that supports Polkadot, register, and you can start using it.
- Pick an exchange — After carefully considering all the factors we’ve discussed so far, choose a platform that is available in South Dakota. You can also go for another exchange, but don’t forget to research it thoroughly in advance.
- Register an account — Visit the exchange’s official website, create an account, and provide all the necessary documents. Don’t forget to verify your account by clicking on the link from your email.
- Make a deposit — Select one of the available payment methods and follow the instructions. Don’t forget to deposit enough money for the tokens and the fees included.
- Purchase DOT — Pick the trading pair USD to DOT, enter the desired amount of tokens you want, and complete the purchase.
- Transfer DOT to your wallet — Once the coins you’ve purchased appear in your exchange account balance, you should send them to your crypto wallet to ensure their safety.
Bottom Line
As you can see, you can purchase Polkadot in South Dakota without any difficulties. You just need to find a reputable crypto exchange or other DOT holders to obtain the tokens.
We have already mentioned that Polkadot is a fast-growing cryptocurrency that has already caught the attention of many companies. Still, we always recommend becoming familiar with Polkadot and other cryptos as well. For those among you who are just getting started, it’s best to do your own research and learn more about it. If you are ready to invest, choose any of these crypto exchanges we have recommended, and you can start trading right away.
