Buy Polka dot or not in 2022?

Buy Polka Dot or not in 2022?

 As soon as we got used to blockchain technology and cryptocurrencies, new solutions are already available on the market, which is referred to as next-generation blockchain protocols. One of these new blockchains is Polkadot.

Polkadot enables seamless communication between different blockchains, thereby solving one of the biggest problems in blockchain technology.

We took a look at what exactly is behind Polkadot, where it is safe to buy Polkadot, and whether it is worth investing in DOT.

    Who is behind Polkadot?

    Polkadot Protocol is an open-source protocol that aims to simplify the interoperability of different blockchains and to make blockchain technology easily accessible to anyone who wants to program applications on a blockchain and control them independently.

    The project is backed by the founders and the Swiss Foundation Web 3. Robert Habermeier has expertise in the areas of research and development of blockchains. dr As one of the Ethereum co-founders, Gavin Wood is probably the most well-known creator of the Polkadot. As Technology Director of the Web 3 Foundation, Peter Czaban is instrumental in supporting the development of new technologies.

    • Founder: dr Gavin Wood, Robert Habermeier, and Peter Czaban
    • Foundation and 1st ICO: October 2017
    • Currency: DOT
    • Company: Web 3 Foundation
    • Headquarters: Zug, Switzerland
    • Consensus algorithm: Nominated Proof-of-Stake (NPoS) 
    • Mining/Staking: Staking

    Buy DOT: What speaks for Polkadot?

    1. Allows different blockchains to interact with each other
    2. Fast implementation of own blockchain projects at low fees
    3. Lucrative staking offer
    4. Currently still low price (but in an upward trend)
    5. The larger function updates possible without fork

    What Makes Polkadot Unique?

    Polkadot wants to connect decentralized services, applications, and institutions in a simple way and thus create an Internet in which independent blockchains can exchange information and transactions.

    Through its shared multi-chain network, Polkadot is able to process many transactions on multiple chains at the same time, which greatly improves the scalability of a blockchain.

    The Polkadot Substrate framework enables the custom development of a blockchain that can be connected to the Polkadot network in minutes. Despite the framework, the network remains agile and flexible for its users, allowing for the sharing of information and functionality among different participants. A big Polkadot Plus and unique selling point are also that no fork is required for larger updates.

    Polkadot wants to connect decentralized services, applications, and institutions in a simple way and thus create an Internet in which independent blockchains can exchange information and transactions.

    Through its shared multi-chain network, Polkadot is able to process many transactions on multiple chains at the same time, which greatly improves the scalability of a blockchain.

    The Polkadot Substrate framework enables the custom development of a blockchain that can be connected to the Polkadot network in minutes. Despite the framework, the network remains agile and flexible for its users, allowing for the sharing of information and functionality among different participants. A big Polkadot Plus and unique selling point are also that no fork is required for larger updates.

    >>>Buy now on eToro & Polkadot<<<

    What problem does Polkadot solve?

    The difficulty of finding enough users becomes more and more difficult with increasing blockchain applications. The consequence of this is that miners or similar functioning bodies cannot ensure the security and continuity of many projects. Smaller projects, in particular, are affected by this problem because they often only have limited resources at their disposal.

    Polkadot wants to get this problem under control by enabling a simple, fast, and above all, resource-saving development of individual blockchain systems as a relay chain.
    Polkadot currency
    Polkadot network

    How does Polkadot work?

    The relay chain is the core and heartbeat of Polkadot. The central Polkadot blockchain manages all parachains connected to the system and is responsible for network-wide security, consensus, and interoperability between the individual chains.

    Currently, the relay chain only offers limited space for new parachains. A para chain place is also called a slot. All parachains have their own tokens programmed for specific use cases. For blockchains that do not require a continuous connection to the network, so-called parathreads are available instead of parachains.

    What investors should pay attention to when buying a polka dot

    • Before making an investment, investors should be clear about their goals. Speculate in the short term or invest in the long term.
    • There are many trading platforms. We recommend comparing different platforms in terms of their offer, fees, and seriousness. For buying DOT, we recommend eToro as one of the best trading options.
    • If you want to buy real coins, you need a compatible wallet. Users can often use a Polkadot Wallet via a stock exchange or load a free Polkadot Wallet onto their smartphone. No wallet is required when buying Polkadot CFDs.
    • We advise setting and adhering to an investment maximum. Fast profits tempt further investments. Cryptocurrencies are highly speculative forms of investment, an investment maximum protects against a total loss of all financial resources.

      How many Polkadots exist?

      In September 2021, there is approximately 978,578,315 DOT in circulation. Polkadot is an inflationary token with an inflation rate of around 10%. The web3 Foundation itself specifies this value on the Polkadot homepage. The exact inflation value varies and is based on the amount of DOT being put into circulation.

      Unlike Bitcoin, Polkadot is not limited. This means that there is no maximum number of tokens that can be circulated.

      Buy Polkadot with PayPal, credit card, and more

      Polkadot is listed on the well-known stock exchanges, exchanges, and many other trading platforms, so that interested parties have a large selection of payment options at their disposal. We recommend buying Polkadot at eToro. eToro offers the most common payment options:
      • Credit card
        • Immediate availability
        • Deposit free
      • Instant bank transfer
        • Immediate availability
        • Deposit free
      • Bank Transfer
        • Available in 3-4 banking days
        • Deposit free
      eToro also allows deposits via PayPal. Bank transfer is the most popular deposit method, however, the deposited funds will only be available for trading after 3-4 banking days.

      What are the Polkadot fees upon purchase?

      The amount of the Polkadot buy fees depends of course on which broker or stock exchange you choose as a user. Most providers charge a commission per transaction (fixed amount or as a percentage of the transaction volume), while other providers charge a difference between the purchase and sale price, known as the spread.

      Would you like to buy Polkadot cheaply without spreads or high transaction fees? We recommend the provider eToro, which convinces with a high level of user-friendliness. Buying Polkadot from eToro involves the following costs and fees:
      • spread, deposit fee, an inactivity fee: FREE
      • withdrawal fee: 5 EURO

      Buy Polkadot anonymously without registration and verification

      Some buyers attach great importance to data protection and privacy and wish to buy cryptocurrencies anonymously and without registration. There are many reasons for this and they do not always have to mean a criminal act. It is often about protecting your own data when buyers do not want to register or verify on a platform.

      From our point of view, the only way to buy Polkadot anonymously is to buy or sell it directly via a so-called peer-to-peer marketplace. Here buyers and sellers meet in a virtual place to trade different cryptocurrencies. However, caution should be exercised here, because you are only insufficiently protected against possible fraud.

      For this reason, we recommend buying Polkadot from a regulated provider like eToro. Buyers and sellers of cryptocurrencies are protected by financial regulators and protected from fraud and other criminal activity. The deposited capital is subject to deposit insurance so that it is also protected in the event of the trading venue becoming insolvent.

      Broker or Exchange: Where's the Best Place to Buy Polkadot?

      You can buy Polkadot from brokers or crypto exchanges – which option you should choose depends on your own wishes and goals. If you want to keep and send the tokens in the wallet, then an exchange is more effective. Investors who primarily want to benefit from price developments are better off with a broker.

      crypto broker

      You can trade CFDs with a crypto broker. With this financial instrument (a derivative) one profits when the price develops correctly, without having to worry about safe storage in wallets and the functioning of smart contracts.

      Another benefit is that crypto brokers are strictly regulated and licensed by government financial regulators, so you can be assured of the segregation of customer funds and statutory deposit insurance of customer deposits.

      crypto exchange

      On a crypto exchange, one can buy real polka dots, which can then be stored in a polka dot wallet or sent to other people and parties.

      Anyone who believes in the future of the blockchain project and its community may prefer such an investment. However, more time is required for the administration and custody of the DOT.

      If you want to buy a physical Polkadot, you must first become familiar with how wallets, smart contracts, and how to deal with private/public keys work.

      You should also know about different wallet types and the advantages of hardware wallets.

      Better trade Polkadot CFD or buy real DOT?

      Buy Polkadot as a real coin or would you rather trade and make quick profits with CFDs? Which option is better depends mainly on your own trading strategy and goals.

      Buy Polkadot CFDs

      Polkadot is one of the cryptocurrencies that can be traded not only physically, but also as a CFD. Due to the natural volatility of cryptocurrencies, speculating with CFDs can be successful. If investors are aware of the risks, we can recommend trading CFDs.

      Making a big profit with little capital can be possible with market fluctuations. The other way around, the total loss of the invested capital is also possible. Investors should definitely consider that with Polkadot CFDs they receive security and thus participate directly in price fluctuations, but not in the blockchain.

      Buy Polkadot directly

      From our point of view, the direct purchase of Polkadot makes sense for those who are looking for a long-term investment, plan to stake, or want to start a project on the blockchain. However, a permanent observation of the market and the Polkadot project should also happen here in order to avoid possible losses.

      Is Polkadot mining possible?

      Since Polkadot does not follow a proof-of-work approach like Bitcoin, classic mining of new DOTs is not possible. Interested parties who do not want to buy coins, however, Polkadot owners can earn new coins as a reward by staking.

      In the Proof-of-Stake network, DOT holders can stake their tokens and earn additional DOTs in this way. In the nominated PoS consensus used by Polkadot, stakers can be either nominators or validators. Nominators secure the relay chain by selecting good validators to support them with their tokens. In return, they receive a new DOT as a block reward. Validators produce new blocks, validate para chain blocks and ensure their finality.

      Do you need a Polkadot wallet?

      Some readers have asked us whether they should buy Polkadot with or without a wallet. The answer: It depends. About what? The question is whether you would rather buy a physical DOT or a Polkadot CFD.

      • If you are only interested in the price gains without delving further into the technology of the coin, you will find buying Polkadot without a wallet better.
      • Die-hard crypto fans who, on the other hand, find the Polkadot blockchain exciting in addition to DOT, want to send and receive tokens, and are even active in the Polkadot community, should buy physical Polkadot with a wallet.

      Safety Issue: Is Polkadot Safe?

      Polkadot uses a nominated proof-of-stake consensus to protect the entire network against outside attacks. Shared Security ensures that all para-chains connected to the Polkadot Relay chain benefit from validator security. This way, most projects on the parachains don't have to worry about security.

      Nominators appoint validators according to the rules of the network, support them with tokens, and in this way earn new DOTs. If you don't follow the rules, you can also lose DOT. This procedure is intended to increase the reliability of the nominators and validators.

      Buy Polkadot via the app: how does it work?

      Be able to react immediately to price fluctuations and buy Polkadot from anywhere in the world. If you are looking for this freedom, you will find it at eToro. The provider offers an award-winning and free-trading app that makes it easy to trade on the go. The app is available as a download for mobile Android and iOS devices in the respective stores.

      Polkadot Course: How's it going so far?

      • The main network will be launched in August 2020. Within a week, the token goes from €2.27 to €5.14 per unit.
      • The year 2021 starts successfully for Polkadot. The price rises and reaches the first all-time high of €15.07.
      • On February 22, 2021, Polkadot surpassed the high from January and reached a price of €32.63 per token.
      • Like the market as a whole, the Polkadot price falls to a low of €25.42 per unit. It only stays there for a short time and starts to rise again until it reaches a new all-time high on May 15, 2021.
      • After the all-time high at a price of €42.42 per token, the price corrects sharply and again reaches a low of €23.93 per token.

      Polkadot forecast: how much growth is in the coin?

      Web3 Foundation is actively working on the biggest problems of the blockchain world with relay chain technology. If the concept catches on, companies that have previously avoided the expense and effort of starting their own projects can easily implement projects.

      As with any cryptocurrency, the price increases in the long term with high demand. Depending on whether competitors like Ethereum or Tezos position themselves well in the future and work on their own development, it will either have a positive or negative effect on the course. However, due to the constant further development of the Polkadot network, experts assume that Polkadot will develop into one of the most important crypto projects on the market.

      However, predictions are only guesses. Whether a cryptocurrency will increase in price is impossible to predict. We can only read the signs and heed crypto enthusiasts and expert opinions for a given project.

      Why is the Polkadot price rising?

      The price of a cryptocurrency is determined by supply and demand. Above all, demand is crucial for the rising prices of digital currencies. The more demand there is for a token or for a project, the higher the price per unit increases.

      Polkadot is gaining more and more followers and increasing popularity. The project aims to decentralize the web by allowing blockchains to easily interact with each other. More and more investors and institutional investors are emerging with an interest in profiting from Polkadot's technology and price.

      When is the best time to buy Polkadot?

      Since cryptocurrencies are naturally subject to high fluctuations, it is not easy to determine the ideal time to buy Polkadot and other cryptocurrencies. Polkadot is a very young cryptocurrency that reacts to the smallest reports and fluctuations in the leading currencies. In order to find an ideal time to buy, we recommend observing the market over a longer period of time.

      Basically, it can be said that it is always worth buying cryptocurrencies when the market or the desired currency is recovering after a crash. In order not to miss this point in time, regular observation of the market is necessary.

      Is the Polkadot investment worth it?

      From our point of view, Polkadot is an exciting project that definitely has a lot of growth potential. Depending on whether interested parties want to focus on a long-term or short-term investment, investing in CFDs or buying real Polkadot tokens is suitable.

      Since CFDs can be used to bet on rising or falling markets, entry is possible at any time. Polkadot is one of those coins that reacts volatilely to the market and its sentiments, so a profit could be possible in a very short time. However, the risk of a total loss of the invested capital is also possible, traders should be aware of this.

      If you think long-term, we think it makes sense to buy real DOT. The project is constantly evolving and innovations like Kusama are launched. Polkadot is working flat out on the new Web 3.0 and the solutions offered should increase the demand for the token, which should also increase the price and bring a profit in the long run.

      Tips from for Polkadot purchase

      After we have dealt in detail with Polkadot and its benefits, we would like to give interested investors a few tips for buying Polkadot:
      • With regard to the type of investment, interested parties should be clear about their goals before buying. Anyone who wants to speculate on the course is well positioned to trade DOT CDFs. If you want to generate passive income through staking, you must own a real DOT.
      • If you want to bet on DOT trading, we recommend trading with eToro. The provider is subject to the regulations of European supervisory authorities and assets are protected up to 20,000 euros by the European deposit protection fund. Users also have the option of using the free demo account to adapt to trading conditions.
      • Anyone who decides to trade DOT CFDs does not need a wallet to store real Polkadot, since in this case only one security is purchased.
      • Before investors buy into a cryptocurrency, it is advisable to do detailed information about the currency. Is the business model behind the coin convincing or do the developers and representatives of the project have enough experience? Will the project be further developed at all? That and more information can be indicators of the long-term success of a cryptocurrency.
      • In any case, investors should bear in mind that the crypto market is subject to extreme fluctuations. Accordingly, high profits are just as possible as a total loss of the invested investment.
      • If you want to buy a real Polkadot, you need a wallet that supports the coin. It is important to decide on a compatible wallet and of course the security aspect. In order to keep Polkadot safe, different wallets are available for storage, such as Polkadot-js desktop, -extension or -APPs (= desktop, online or mobile)

      Polka dot advantages and disadvantages

      A big advantage of the Polkadot investment is the participation in this young, dynamic, and promising blockchain project. No other cryptocurrency has managed to make it into the top 10 coins in such a short time after launch. This shows that users and the community have high expectations of the future potential of blockchain.


      • Promising blockchain with great performance
      • Rapid price increases in the past few months
      • Smart Contract/dApp/Oracle Compatible Blockchain Platform
      • Incompatibility between different blockchains can be achieved via Polkadot


      • High volatility in price development
      • Well-known projects and supporters are still missing
      • Competition with other smart contract platforms like Ethereum, Cardano, EOS,…
      An important disadvantage is the young age of the cryptocurrency, which is reflected in the above-average volatility. Polkadot's beta - a measure of volatility - is well above that of more well-known coins such as Bitcoin, Ethereum, Litecoin, or Cardano.

      It is also regrettable that no major application of the Polkadot blockchain with corporations or well-known institutions has yet become known. So it could be a long time before mass adoption of the Polkadot blockchain occurs.

      Ultimately, Polkadot joins a long list of contenders in the battle for the "King of dApps" - the most popular and sought-after smart contract-enabled blockchain platform. A race in which the Ethereum platform, which has been strengthened with Ethereum 2.0, has clearly competed as the contender for victory.

      Buy DOT – Our conclusion

      Polkadot is one of the most exciting cryptocurrencies on the market, within a few months the DOT token made it into the top 10 coins by market capitalization. Crypto fans who want to buy DOT can either buy from a broker or a crypto exchange.

      We advise beginners to buy Polkadot at eToro because here you can benefit from the current price development both from real DOT and with a polka dot CFD, without having to worry about the safe storage of the tokens in a polka-dot wallet. In addition, you can also trade with a 1:2 leverage, whereby the increased risk must be taken into account.

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