Buy Polkadot in the UK

Why investors buy Polkadot: Polkadot’s primary mission is to help multiple separate seemingly incompatible blockchains all work together like they are compatible, as per Polkadot's whitepaper.

Traditional blockchains operate pretty much all alone, limiting their ability to communicate and share data.

Polkadot changes the game by connecting these blockchains — like a digital highway where information flows freely between different projects.

The DOT token or cryptocurrency is used in the Polkadot ecosystem.

The relay chain and parachains

Polkadot’s architecture revolves around the Relay Chain. Around it orbit various parachains — individual blockchains with specific uses. These parachains can specialise in anything from decentralised finance (DeFi) to gaming or identity management.

Because Polkadot doesn’t have apps on it, it’s called a zero layer, because it is a foundation layer.

But the parachains around it do have dApps (apps made on a blockchain rather than the internet). Here are some really cool parachains to look into.

Imagine Polkadot as a bustling city with different districts, each serving a unique purpose. It's like the Relay Chain ensures seamless communication between these districts.

Scalability and efficiency

By spreading transactions across multiple parachains, it achieves efficient processing and resource use. Unlike congested highways during rush hour, Polkadot’s lanes remain open and efficient.

Substrate

Developers can create their own parachains using the Substrate framework. It’s like building with Lego blocks — assemble your unique blockchain, connect it to Polkadot, and benefit from the network’s security and interoperability.

This flexibility encourages innovation and rapid development.

DOT Token

Polkadot (DOT) was launched through its initial coin offering (ICO) in October 2017.

During the ICO, the initial price of Polkadot was US$0.29, and a total of 2.24 million tokens were offered.

Since then, Polkadot has evolved significantly, and its price has experienced wild fluctuations. At its all-time high price, it was trading at US$55, in October of 2021, however at the time of writing, 28 March 2024, the price of DOT was US$9.40.

The native DOT token serves several purposes. It can just be a speculative investment. People buy the token at what they think is a competitive price, and sell when they think it won’t go much higher. (Or they buy it at the top of the market and end up having to sell after the price drops!)

Other uses of DOT

Governance: DOT holders participate in decision-making, shaping Polkadot’s future.

Staking: Lock up DOT to secure the network and earn rewards.

Bonding: Parachains use DOT as collateral to secure a slot on the Relay Chain.

Owning DOT means being an active participant in the Polkadot ecosystem.

Who is Gavin Wood?

Polkadot’s co-founder, Gavin Wood, played a pivotal role in Ethereum’s early days. His vision for Polkadot combines scalability, security, and innovation.

Where is Polkadot headed?

Polkadot’s ecosystem is vibrant and expanding. New projects, collaborations, and use cases emerge regularly.

As more parachains join, the network becomes more popular with the possibility of growing in strategic importance within the crypto world. This may result in a positive return for speculative investors and users.

Many people who invest in Polkadot see themselves positioning their investment for tomorrow. Interoperability will be a critical factor as the crypto landscape evolves. However, although Polkadot is a promising project, no one knows for sure what will happen in the future.

Energy efficiency

Polkadot’s proof-of-stake (NPoS) model consumes significantly less energy than traditional blockchains. It’s reported to be environmentally friendly and sustainable.

How to Buy Polkadot (DOT)

If you’re interested in buying Polkadot (DOT) through CoinJar, here’s a step-by-step guide.

Download the CoinJar App

First, download the CoinJar app on your iOS or Android device. You can find it on app stores.

Create an Account

Sign up for a CoinJar account within the app. Verify your identity. UK residents are required to do an assessment and then wait 24 hours (see below).

Payment method

After your ID has been accepted, you can then create an account on the exchange. After this is done, you can move normal everyday money like Pounds (fiat) via your chosen payment method into your crypto account.

Make a Purchase

Once your account is set up and verified, you’re ready to buy Polkadot. Use your card, or a bank transfer to deposit Sterling to your account in order to make the purchase.

CoinJar supports various payment methods, so choose the one that suits your investment risk appetite.

Remember, don’t put all your eggs in one basket. Putting all your money into a single type of investment is risky. A good rule of thumb is not to invest more than 10% of your money in cryptocurrency.

Congratulations! You’re now part of CoinJar, which has been in operation since 2013. Explore the app, research before you invest, manage your portfolio, and keep an eye on your Polkadot investment.

Polkadot: In Summary

Polkadot (DOT) isn’t just another cryptocurrency. It’s a multichain network designed to address scalability and interoperability issues faced by traditional blockchains.

Polkadot was founded by the Web3 Foundation.

This open-source project brought together some of the brightest minds in the blockchain industry. Their goal? To create a platform that enables seamless interaction between different blockchains.