How To Find The Most Efficient Software Platform To Trade Polkadot in 2022

If you are looking for an alternative to Ethereum, Polkadot has emerged as a leading contender.

Like a lot of post-Bitcoin cryptocurrencies, Polkadot is both a decentralized protocol and a token that can be purchased or sold via exchanges.

With that being said, in this post, we will explain more about Polkadot, including how to find the best software platform for trading Polkadot in 2022.

What is Polkadot?

Polkadot is a type of protocol that connects blockchains, enabling data and value to be sent across networks that were previously incompatible, for example, Ethereum and Bitcoin. It is also designed to be scalable and fast.

The DOT token is used for both governance and staking. You can buy Polkadot or sell it via the many exchanges and online platforms available today.

Why are investors attracted to Polkadot?

There are a number of reasons why Polkadot is gaining interest from investors. Mainly, it comes down to interactivity. Developers have the ability to link blockchains to the Polkadot system, and they can even make entirely new blockchains. With developers flocking to this platform, it has started to catch the attention of investors.

When we compare this option to the likes of Ethereum and Bitcoin, investors usually have to purchase fractions of coins based on their value. Polkadot is more enticing right now, as it is a lot more affordable, so many people feel like now is the right time to jump on this investment.

Of course, it all comes down to the type of investor you are. Choosing a budding cryptocurrency comes with even more risk. However, it is a high-risk, high-reward approach, as you also have the most to gain. Nevertheless, we must stress that nothing is ever guaranteed when investing in any crypto coins.

As cryptocurrency increases in popularity, we will see Polkadot and potentially other upstarts take a segment of the market share from the chief players, i.e. Ethereum and Bitcoin. Just look at how Ethereum surpassed Bitcoin’s growth in 2021.

A lot of investors are looking toward new up-and-coming blockchain networks, which offer an alternative to Ethereum.

It is also worth noting that Polkadot has a foundation that has been created to reward people who hold DOT. As a token holder, you will have governance rights over the complete platform, which includes voting rights on network upgrades, removing or establishing parachains, and network fees.

Bad investors are weeded out and their DOT tokens are released into the ecosystem. This means that room is left for serious investors to help Polkadot enhance the way in which its services are offered.

How to purchase Polkadot

Before we reveal some of the best exchanges out there that offer Polkadot as an option, we need to explain how to purchase this cryptocurrency. Here are the steps you need to follow:

Open an account online

The first thing you need to do is open up an account online with a cryptocurrency exchange that accepts Polkadot. We will talk you through some of the best options in the next section. Creating an account is typically easy, so long as you comply with the KYC guidelines.

You will need to authenticate your identity for tax reasons, using a quick selfie, your address, driver’s license, and SSN in most cases. Of course, if you do not have a driving license, another form of identification will be accepted.

This should only take a few minutes and then you will be able to connect your bank account and start trading.

Purchase or download a crypto wallet

A cryptocurrency wallet is a desktop or mobile application that enables you to store your cryptocurrency safely with a private set of keys.

For the greatest possible level of security, we would advise investing in a cold wallet. A cold wallet is basically a device that you can purchase from Amazon or a similar online marketplace. The majority of models operate just like a flash drive, enabling you to connect your mobile device or computer using Bluetooth so you can transfer your coins to a wallet with more security.

A cold wallet will store your coins offline, meaning no one else is going to have access to the coins except you.

Make your purchase

The last step when it comes to trading Polkadot is to make your purchase. There are a number of different types of purchases you can make, so let’s take a look at four of the main ones below:

• Stop-limit order – A stop-limit order is a type of conditional order that is only executed under a certain price umbrella. For instance, you may need to set a stop-order limit for Polkadot with a stop price of $10 and a limit price of $10.50. In such a situation, your broker would start filling your order once the price of every token reaches $10. So long as the order is filled below $10.50 per token, your order will keep filling until it is completed. Once the price goes past $10.50, your broker will stop executing the order.
• Recurring order – This approach enables you to invest on a set schedule. For instance, you may set an order to purchase $1000 worth of Polkadot on the last day of each month.
• Limit order – This is an order that is executed as quickly as possible for a specific price. For example, you could decide to place a limit order of $7 per token. So, if the price falls within $7 or less, the order will be filled.
• Market order – Finally, we have market orders, which are executed as quickly as possible. You will not have as much control over the price paid for every asset, yet they can be helpful if you need to make a purchase quickly.

Where can you buy and trade Polkadot?

There are a number of different platforms you can use to trade Polkadot in 2022. Let’s take a look at some of the best:

Coinbase

It probably does not come as much of a surprise to see Coinbase on this list, as it is an incredibly popular publicly-traded crypto exchange that is listed on the NASDAQ. It is one of the most used crypto exchanges in the U.S. and clients are also accepted from over 100 other countries as well.

With more than 70 million users trading over 460 billion dollars in volume, you know that Coinbase is a trusted platform. One of the reasons why Coinbase is so popular is because of the high level of security provided, including secure offline storage.

You can trade over 140 cryptocurrencies on this platform, including Polkadot (DOT), and it is available on iOS, Android, and Desktop.

KuCoin

KuCoin is another option worth considering, especially as it is one of the most competitive platforms out there in terms of trading costs and fees.

In the early days, KuCoin only provided crypto to crypto trading, however, it has advanced considerably since then. Today, KuCoin provides a diverse range of services, which includes P2P exchange capability. You can also purchase with debit or credit cards.

KuCoin prides itself on being one of the first platforms to offer purchasing and trading opportunities for new tokens. So, not only can you trade Polkadot but hundreds of other coins as well.

Binance

You may have heard of Binance before, as it is one of the biggest cryptocurrency exchanges across the globe. One of the reasons why you may want to trade Polkadot on this platform is because the fees are lower when compared with competing exchanges, meaning you will have more liquidity to purchase and sell at speed. Check out Binance overview article for more information about this exchange.

Uphold

Finally, we have Uphold, which is an innovative trading platform. While it is easy to use, it comes with a number of innovative features that have made it a top choice in the industry.

You can benefit from both mobile app trading and desktop trading, with the view being fully customizable to suit your needs and the assets you trade the most. It will only take you a few clicks to make a Polkadot trade.

Final words on finding the best platform to trade Polkadot in 2022

So there you have it: everything you need to know about how to trade Polkadot effectively and the different platforms that are available. We hope that this has given you a better understanding of the different options you can make the most of if you have decided that this is the crypto coin for you.

Remember, you can always purchase your Polkadot on one platform and then trade it on another, so you need to consider what is going to make the most sense for you based on your investment goals and what you deem to be important.