How to Buy Polkadot (DOT) in Canada

How Much DOT Can I Buy?

DOT, like other cryptocurrencies, is highly divisible. You can buy a whole DOT coin or fractions of it. When opting to buy DOT, a platform like Netcoins allows you to buy whatever dollar amount of DOT coins you’d like. Buying DOT in regular intervals (like days, weeks or months) is known as dollar-cost averaging and can be a great way to average the price you buy at. All of these options are available on Netcoins, Canada’s first publicly-owned, fully regulated cryptocurrency exchange.

Related Article: How much do I need to get started with crypto?

Why Buy Polkadot (DOT)?

Designed for interoperability, Polkadot offers crypto projects an opportunity to work together and leverage one another. 

For security reasons, blockchains tend to operate independently from one another with minimal communication. Polkadot allows for trustless communication between blockchains, meaning that communication can be accomplished without relying on trust or compromise of security. An application of this would be platforms communicating to facilitate a cryptocurrency swap, showing a strong use case in the DeFi (Decentralized Finance) space. 

Polkadot has also implemented sharding, which allows them to break their blockchain into separate “shards” (or database partitions). When fully operational, this allows Polkadot to achieve 1 million transactions per second, resulting in reduced fees and faster transaction speeds. 

Finally, innovative partnerships with cryptocurrency projects like Chainlink and Ankr enable interaction with real-world data and staking rewards on DOT. A unique value proposition, working scaling solution, and innovative partnerships make Polkadot (DOT) a solid cryptocurrency worth considering as an investment.

Like any cryptocurrency, Polkadot does come with risks. However, looking beyond price volatility, Polkadot is a project that presents a clear value proposition to the crypto world. Given its reputable founder, unique value proposition, and solid track record, Polkadot is seen by some investors as an investment worth making.

What Sets Polkadot Apart?

Polkadot is different from traditional cryptocurrencies, which tend to operate individually. Their use of parachains set them apart from rival currencies like Bitcoin and Ethereum, whose blockchains operate independently and are considered closed-loop networks. 

Parachains (or parallel chains) operate on top of the Polkadot network and carry the benefits of the Polkadot network while maintaining independence through their unique tokens and specific use cases. The seamless ability to build on the Polkadot network and communicate with other blockchains creates a unique value proposition that sets Polkadot apart from other projects.

Is Polkadot better than Ethereum?

Polkadot is setting itself up as a complementary platform to Ethereum. Although factors such as scalability make Polkadot more intriguing, its emphasis on interoperability makes Polkadot a project that does not need to dominate to succeed. Rather, Polkadot can ride the wave of cryptocurrency adoption and benefit from everyone’s success.

How to Store Your Polkadot (DOT)?

You can buy DOT from crypto trading platforms, like Netcoins, and leave your DOT coins inside the platform. However, there are much safer options to storing your DOT as leaving them in exchanges can expose them to certain risks like hacking and theft.

The safest option to keeping your DOT secure is to transfer them into a Polkadot wallet. A Polkadot wallet is a type of digital wallet that is used to send and receive DOT, similar to a Google wallet or a physical wallet.

There are four different types of Polkadot wallets: hardware wallets, desktop wallets, mobile wallets and web wallets.

Hardware wallets look like a USB device. They are considered to be offline wallets because they’re not connected to the internet. The fact they’re offline makes them more difficult to find and to hack. As such, they’re typically considered the safest option to store your DOT. 

Desktop wallets on the other hand are programs that store your DOT on your computer’s hard drive. Mobile wallets perform the same function as a desktop wallet but on a mobile device instead. 

Finally, a web wallet is an online service that sends and stores your DOT on your behalf anywhere, anytime. Similar to checking your email. Polkadot JS offers web and desktop wallets that allow you to manage your DOT.

Desktop, mobile and web wallets are all connected to the internet (and referred to as “hot wallets”). Like mentioned earlier, they are more susceptible to potential risks. On the other hand, hardware wallets (or “cold wallets”) are considered safer options as they are not connected to the internet. 

This is why it’s often advised that Canadians pull out their DOT from crypto trading platforms and send them directly to a hardware wallet. Only in this way, are they in full possession of their DOT and can keep them secure.

Could Polkadot (DOT) Be a Good Investment?

Looking into 2022 and beyond, Polkadot is a project solving critical and prominent issues in the crypto market. Its emphasis on communication and scalability makes Polkadot one of the largest cryptocurrencies by market cap (the total value of all DOT tokens combined). 

Importantly, an investment in DOT is an investment in the future growth and success of the Polkadot network. That’s because Polkadot’s native token, DOT is used for facilitating network governance, bonding tokens to connect parachains, and staking, which relates to operations and security. 

Because of its critical role in operations, we can assume that any growth in the Polkadot blockchain will result in positive price appreciation for DOT. As long as Polkadot continues to operate smoothly and the network continues to build, DOT may look like a solid investment that could play a crucial role in the crypto market for the indefinite future.

Related article: Three Ways to Make Your Cryptocurrency Work For You