The digital asset space has witnessed one of the worst price crashes in the last few days. Price crashes are drastic price losses more significant than market corrections. Since the continuous price, Bitcoin has dropped, leading to a panic. However, Bitcoin is not the only asset to lose value due to the crash. Other assets have also dropped in price, and Polkadot is one of them.
Polkadot is a network protocol allowing the transfer of arbitrary data and tokens across numerous blockchains. With a solid use case and a strong community, it has recorded a noticeable price growth, helping investors secure profits. However, since the 2021 price crash, the coin has not regained its bullish momentum. Bullish momentum is a term to describe the continuous rise in the price of assets.
Since 2021, it has fallen from the $50 range to around $20 and has managed to go higher from time to time. However, this is the first drastic drop Polkadot would have in 2022, resulting from some bad news from media outlets.
What Is Polkadot?
According to the official website, Polkadot is a protocol focused on multi-chain functionality, helping cross computation. It’s essential for transferring data to all kinds of blockchain. For instance, it can transfer data to public and decentralized blockchains while also helping with data transfer to permissioned blockchains. This improves interconnectivity from a private blockchain to q public blockchain.
Polkadot essentially brings together a network of blockchains called parachains and parathread. It’s safe to note that the Polkadot relay chain protects this network while helping connectivity to other networks. Below are some fundamental parts of Polkadot:
- Relay chain: Polkadot’s relay chain is crucial for operation. It is necessary for shared security and cross-chain interoperability.
- Parachains: Parachains, on the other hand, have a degree of independence because they can have their tokens and optimize functionality.
- Parathreads: While these have some similarities with the parachains, they have some noticeable differences. A difference is that parathreads follow a pay-as-you-go model, which is more economical to use with lesser connectivity.
- Bridges: As the name implies, these allow parathreads and parachains to communicate with other networks or blockchains.
Why is Polkadot Useful?
Use Cases are essentially in the digital asset space. It helps you decide if the coin will continue to grow. Today, hundreds of digital assets have use cases, making them unique and attractive to investors willing to take a risk. For the past few years in the industry, most investors have looked at already grown assets like Ethereum and Bitcoin. However, things are different with the growth of altcoins.
There are different altcoins in the market with exciting functions capable of improving the user experience while exploring blockchain technology. For instance, Bitcoin’s use case assists with transferring value without a central authority. This led to the interest in decentralization, where community members make decisions for the chain’s growth. Unfortunately, few features were available while experts created Bitcoin, making the first crypto seemingly old and outdated. This led to the birth of Ethereum, bringing a similar use case with a functional system.
Despite Ethereum being one of the most used chains in the industry, its slow transaction execution has left many things to be desired. Still, the team behind Ethereum is working towards increasing the blockchain’s speed while other chains have improved on a series of areas.
Even with the growing numbers of digital assets, DOT–Polkadot’s native token remains one of the top ten cryptocurrencies on numerous lists within a short period after the official launch. The primary use case for Polkadot is its ability to enable cross-chain functionality, enabling communication between different blockchains.
Another important reason for this chain is its ability to facilitate a faster innovation cycle. With different new technologies like the blockchain and Web3, it’s crucial to prioritize speed for efficient use of technology. Because of the chain’s ability to enable chains to communicate, they can benefit and leverage features of chains that they communicate with. This is a significant reason many chains are going cross-chain to improve functions and leverage different features for the industry’s growth.
How To Buy Polkadot On Binance – Step by Step
Binance is one of the most popular digital exchanges globally, and it offers a wide range of altcoins. Altcoins are essentially cryptocurrencies that came after Bitcoin. This trading platform focuses mainly on altcoin, making it an avenue to earn profits from new or cheap assets.
So, if you are interested in Polkadot, the next step is to buy the asset. Buying on Binance is a straightforward process, provided you read the guide from top to bottom. Another thing to understand is that cryptocurrencies are highly volatile, making it necessary for every trader or investor to invest what they can lose. You won’t be financially wrecked when prices go down when you take on this strategy.
Before buying the coin, you need to decide on the payment method that would suit your needs. For one, Binance has a wide range of payments options, which is good if you like to expand your choices. One of the most used payment methods is a credit/debit card. You can make payments with your card if that is convenient for you.
Another way to make payment is through transfer. This is for people who find it safer to transfer money to the system.
Trading Other Coins For DOT
This is another method you may want to consider. If you have USDT or another crypto that you would like to change to DOT, you can easily do this on Binance.
Below are steps you take to purchase Polkadot on Binance through the credit card option:
Login/Sign up for Binance
The first step is signing up for Binance if you don’t have an account. Signing up for it might take several days because of the KYC requirements needed. You will be asked to input your ID card and other necessary information. After which, you can proceed to complete your facial verification. Binance mandates users to complete their facial recognition before trading on the platform.
Adding Your Credit Card Details
This is essential because the money goes from your account to Binance to buy a cryptocurrency. While using the mobile app, you can click on the wallet below, showing where you have your “total balance” and “portfolio.” You should click on “Deposit” so it shows you whether you want to deposit “fiat” or “crypto.” We will be depositing fiat so that you can click the fiat option.
The next step is choosing your currency. You can easily search for your country’s currency through the search space. After this, we have different options, including peer2peer, bank transfer, or bank card. Choosing the bank card option would take us to where we need to add the credit card details and save. After adding the credit card details, you will type the amount of fiat you need, and the system will add the transaction fee.
After adding some fiat to your account, it’s now time to buy your cryptocurrency. In some instances, you may not buy DOT directly, but you can purchase USDT and convert it to DOT later. Go to the market around the lower part of the market app to search for USDT. You should click on Trade and write the amount you want. The next page shows you a range of options, but you should click on “fiat balance,” which is a balance of your deposit. Now, you have successfully purchased USDT and can now buy DOT.
Return to “markets” and click on DOT to convert your USDT to the coin. Clicking on “convert now” takes you to a page where you can change your USDT to DOT. You can also preview your order to ensure that everything is alright. Now, you have purchased DOT on your Binance.
Should You Buy DOT?
DOT is the native token of Polkadot. This token helps the system facilitate data transfer and serves as an investment option. Choosing to buy DOT is a personal choice, but you need to understand the coin before buying into the investment option. Overall, this token has a lot of potential and may witness future growth.
With a solid use case and growth potential, it’s evident that it will rise. However, it may take a while, especially with the current situation. Many investors take profits or even sell off their assets to buy safer assets. This has led to a liquation worth over $1 trillion. Still, charts show that Polkadot can rise despite all issues in the space.
Purchasing assets through a trading platform is not always easy, especially when you are new to the world of cryptocurrencies and tokens. Thankfully, this guide will help you buy DOT in a straightforward process. It’s safe to note that you need to buy USDT first before getting your DOT. Without buying the stablecoin, you cannot purchase your preferred asset.
You might also like
More from Altcoin
In this top 3 price predictions article for August 2022, we're going to analyze Bitcoin, Ethereum, and Ripple so you …
This post is all about Justin Sun and whether should you invest in Tron. Let's take a look at it …