The Polkadot network uses DOT as its native token. It is a one-of-a-kind program that enables data, cash, and assets to be transferred across blockchains.
The recommended way to buy Polkadot in Australia is: Swyftx
Polkadot differs from specific networks like Ethereum in that it uses several blockchains rather than smart contracts, giving developers a somewhat more detailed design. The Polkadot ecosystem’s native currency, DOT tokens, are utilised for proof-of-stake and administration.
In this post, I’ll take you through how to buy Polkadot, what to do with Dot crypto, where you can purchase Dot crypto in Australia and factors to consider when acquiring Dot. With that mentioned, let’s now move and define Polkadot and see how it works, Shall we?
What is Polkadot?
Polkadot is software that aims to motivate a worldwide computer network to run a blockchain upon which clients may create and run their blockchain applications.
It is one of a variety of rival blockchains seeking to build a cryptocurrency ecosystem, with significant examples being Ethereum (ETH), Cosmos (ATOM), and EOSIO (EOS).
Polkadot, which debuted in 2020, is among the most recent, and it offers a lot of revolutionary technical aspects to achieve its lofty aim.
Polkadot is meant to run two types of blockchains. A core network referred to as a relay chain, and user-created networks referred to as parachains.
How Does it Work?
Polkadot’s core is a network of public and private blockchains that may all communicate via a process called interoperability. Rather than employing smart contracts to operate apps, Polkadot uses parallel blockchains called parachains to accomplish the same goal.
By creating independent blockchains to accommodate dapps rather than smart contracts—which are limited by the rules of the parent blockchain—, programmers get more control over design, including critical characteristics like speed, fees, and whether the information is public or private. Polkadot still supports smart contracts, but they must be contained within a parachain.
A bank, for instance, may choose to hold client data on a private blockchain to which only staff can have access. Clients might then obtain this information through a third-party payments app that runs on a public blockchain. A digital ID stored on a smart contract parachain might be used to secure access to either parachain.
The relay chain, which can be regarded as the core blockchain inside Polkadot, connects various parachains. Friction is decreased by administering a system of parachains from a central relay chain, resulting in a speedier and even more effective network for the consumer and the operators.
How to Buy Polkadot: A Step By Step Guide
Please follow the steps below if you are interested in purchasing a polka dot.
Step 1: Create An Account On A Cryptocurrency Exchange Allowing Dot
It’s also recommended that you set up two-factor authentication to provide an extra level of security.
First, you need to evaluate DOT-supporting exchanges, then ascertain whether the exchange you chose allows you to buy DOT with Australian dollars (AUD), Bitcoin (BTC), or Ethereum (ETH). To create your account, you must enter your email address and establish a password.
It’s also a good idea to enable two-factor authentication to add an extra layer of protection.
Step 2. Deposit Funds Into Your Account
Most cryptocurrency exchanges only enable trading among cryptos and do not accept direct deposits of fiat currency; therefore, you’ll need to possess or purchase BTC or ETH beforehand. The actual procedure for depositing cash into your account differs based on the exchange you use.
Step 3. Buying DOT
Finally, use the exchange to swap your selected currency for DOT. Remember, regardless of the deal you pick, the actual method you must take may differ significantly.
What to Do With DOT Crypto
Polkadot’s function is divided into three areas, according to the Web3 Foundation—which is in charge of its development. These include bonding, governance, and staking.
1. Governance
Governance is how DOT token holders are granted the right to vote on how the blockchain is administered. Token holders, for example, can vote on protocol improvements and relay chain modifications.
The number of votes a user casts is proportional to the quantity of DOT tokens invested. If a DOT token holder fails to vote, their stake will be assigned to a special council of 6-24 people who are chosen to vote in place of the missing DOT holders.
2. Staking
Polkadot has a proof-of-stake system—DOT holders can lock their tokens and contribute to the network’s security in exchange for staking payments.
Staking can be accomplished as a nominator or a validator, and both are compensated for their efforts.
Because their duty is virtually confined to electing validators, nominators will be the most prevalent form of staker on Polkadot.
On the other hand, validators play an essential part in the network’s health. They run a node that works 24 hours a day, seven days a week, to verify network transactions and guarantee efficiency.
3. Bonding
Finally, DOT may be utilised to build additional blockchains, called parachains, on the network. To start a para chain, DOT must be deposited through bonding. DOT tokens are refunded when a para chain is decommissioned.
Where to buy Polkadot (DOT) in Australia
1. Swyftx—Best for DOT Purchase
Swyftx allows users to personalise their dashboards, configure their desired settings, and keep their most commonly used functions at their fingertips in all instances. The chart display is provided by their bitcoin TradingView charting tool, which allows customers to track their automated cryptocurrency trades and set up automatic investments and deposits. Besides, there is a referral and an affiliate scheme on the platform, offering PDF copies of user tax reports.
Furthermore, Swyftx offers a quick and easy way to sign up, verify, deposit cash, and start trading. Unlike other Australian exchanges such as CoinSpot, CoinJar, and Independent Reserve, there is no requirement for customers to provide ID paperwork or photos and wait hours for their accounts to be authorised before they can buy bitcoin.
Swyftx’s quick verification procedure, which can be conducted within only a few minutes with a name, email address, and ID document information, allows clients to get started with cryptocurrencies right away.
It is a secure exchange with numerous security layers to protect customer assets. Two Factor Authentication (2FA) and cold wallet storage keep customer accounts and wallets safe. This implies that to log in; users must have something they know (password) and something they have (2FA device).
Pros
- It is a good investment: Swyftx’s minimal spreads help it be the highest value exchange in Australia.
- Exchanges hybrids: Swyftx seeks to provide the perfect blend, with trading tools on the one hand and the convenience of a brokerage service on the other.
- A large variety is available: On Swyftx, there are hundreds of different cryptocurrencies.
- Service to customers: Swyftx boasts an average response time of one minute and thirty seconds for customer support.
Cons
- Conversion fees for fiat currency: The AUD/USD conversion fees following the fee-free period may negate the overall value for money.
- AUD-only: Swyftx takes AUD fiat deposits predominantly, while other currencies are accessible for significant payments.
2. Independent Reserve—Best for Excellent Customer Support
Independent Reserve is an Australian-licensed cryptocurrency exchange that offers users a safe and secure platform to purchase and trade 26 common digital money. The forum was formed in 2013 and has since broadened its services, incorporating crypto investors in New Zealand and South-East Asian countries such as Singapore.
Ever since the exchange’s inception in 2013, Independent Reserve has earned the trust of more than 200,000 people and 8,000 SMSF accounts by allowing them to purchase cryptocurrencies using Australian Dollars (AUD), New Zealand Dollars (NZD), United States Dollars (USD), and Singaporean Dollars (SGD).
Independent Reserve is a licensed cryptocurrency exchange in many nations, including Singapore, Australia, and New Zealand. As a result, clients may fill their accounts with fiat currencies, including AUD, USD, NZD, and SGD.
Fortunately, each currency may be easily switched, allowing users to choose the currency to pay with based on foreign exchange rates. Deposits may be made via different payment
options, including bank transfer, PayID, and SWIFT for US and Singapore dollars.
Pros
- It is an exchange that is entirely compliant and AUSTRAC licensed
- Over 200,000 investors and 80,000 SMSF Accounts trust the business.
- The exchange offers a 0.5 per cent trading charge that decreases with increased volume.
- A reliable and straightforward user interface for fast buy/sell
- Excellent live assistance and tax tools are available 24 hours a day, seven days a week.
Cons
- Professional trading using charts is outdated.
- There is no mobile trading application to make orders or manage portfolios.
3. Digital Surge—Best for Ease of Use
Digital Surge is a crypto exchange in Australia that offers a simple method to purchase, trade, and store cryptocurrencies. The system enables crypto to be as pleasant and straightforward to learn as possible.
It is a friendly, close-knit team located in Brisbane devoted to creating trustworthy relationships within the cryptocurrency fraternity by participating in various community activities to raise knowledge of the sector.
With a maximum cost of 0.5 per cent for buying and selling deals, Digital Surge is among the least expensive cryptocurrency exchanges in Australia. Trading fees on Digital Surge are the lowest when particularly in comparison to other reputed and reliable services such as Swyftx (0.6 per cent), CoinSpot (1 per cent), and BTC Markets (0.85 per cent).
The cost can be decreased to 0.1 per cent each trade if you trade more than $1 million in a period of 30 days. Moreover, the margins between the 270 supported currencies average 0.4 per cent every transaction. Generally, Digital Surge provides excellent value for money and is one of the affordable locations to acquire altcoins in Australia thanks to its minimal trading costs and spreads.
Pros
- The interface design is straightforward to use, making it excellent for novices.
- Charges are modest, and the cost structure is straightforward.
- It simply takes just a few minutes to sign up and begin investing.
- You have the accessibility to price alerts, trigger orders, and regular purchases.
- Customer care is available 24 hours a day, seven days a week by chat and email.
Cons
- The only option for fiat deposits is AUD which is a minor concern for the majority of Australians.
- Credit cards are not permitted to be used to finance an account.
- There is just a temporary market for BTC-AUD and ETH-AUD.
4. CoinSpot—Best for Multiple Cryptocurrencies
Coinspot is a Melbourne-based Australian cryptocurrency exchange that offers a safe and secure marketplace for trading cryptocurrencies. Users may instantaneously purchase or sell Bitcoin or trade on the open market to wager and make a possible gain.
Casey Block Services Pty Ltd ABN 19 619 574 186, business as CoinSpot, is a legally licensed corporation. Australia’s highly regulated financial industry controls the exchange to guarantee proper behaviour and activities involving investor funds.
The exchange employs financial institution security precautions to secure its users’ data and cash. Additionally, the exchange conforms with Australia’s stringent AML/CTF standards imposed by AUSTRAC to guarantee the safety of customer accounts. Besides, CoinSpot also employs two-factor authentication (2FA), which needs a mobile phone code to access the site and has become the security standard for exchanges worldwide.
To open an account with Coinspot, new users must complete a registration procedure, just like other crypto exchanges. To begin, go to the website, select ‘Register’ somewhere at the top of the page, fill out the form, and then tap ‘Create Account.’
Coinspot exchange will request an email address password to validate the user’s access to the email address provided. The email address verification accomplishes the basic Coinspot account registration procedure, allowing users to log in for the first time to Coinspot.
Pros
- Users may purchase straight in AUD.
- Deposits and withdrawals are both low- or no-fee.
- The UI is simple to use.
- A wide range of cryptocurrencies is available.
- AML/CTF regulations are followed.
- A smartphone app, OTC trading, and SMSF support are among the extra services available.
Cons
- Only available in Australia
- Margin trading is not accessible.
5. Binance—Best When Looking for Lower Fees
Binance is the world’s biggest cryptocurrency exchange in terms of trade growth and liquidity. The site is highly user-friendly, and it provides a vast choice of crypto pairings, new goods, features, affordable fees, and prompt customer service. The platform is offered in many countries worldwide, reinforces trading assets of any exchange, and has excellent liquidity.
There is no fee required to open a new account or keep a Binance wallet. However, certain costs are associated with using Binance accounts, including transferring funds into the exchange, buying and selling, exchanging assets, and withdrawing funds to an external wallet. These fees are prevalent on a centralised exchange to compensate the company’s expenditures for supplying the infrastructure necessary to establish a safe business climate.
Binance is a standard trading service owing to its global accessibility, support for different fiat currencies, and many depositing cash methods into an account. Customers from all parts of the world may fund their trading accounts using various payment options, including bank transfers, credit/debit cards, SEPA, wire transfers, and cash deposits.
Pros
- Buy costs are low for both non-instant and instant transactions.
- A massive collection of coins is available.
- A variety of other services are available.
- There are almost 50 different cryptocurrencies to choose from.
Cons
- There are fewer crypto-to-crypto currency pairings on this site than on the worldwide Binance site.
- Not accessible in the US
How To Sell DOT
Choose whether you want to trade your DOT tokens for a cryptocurrency, stablecoin, or fiat currency. When you’ve decided on an exchange pairing, search for the ‘Sell DOT’ option and input the amount you want to sell.
Factors to Consider When Buying DOT
Because cryptocurrency may be a volatile and hazardous investment, it’s always a sensible move to analyse the token and its related platform before purchasing. Conduct independent research, and please do not invest more money than you can stand to lose.
- Novelty: Polkadot is a nascent blockchain that leverages revolutionary technology that has yet to be tried and proven compared to more structured chains such as Ethereum or EOS. Polkadot is now in the ‘para chain rollout’ phase, during which these chains will be optimised on a test net. These parachains will be placed on the Polkadot system after they’ve been appropriately created and audited.
- While the project team behind Polkadot is very skilled, the platform’s economic viability remains to be seen. What’s more, Polkadot competes in a crowded market versus operational initiatives, which have had many years to establish a customer base. The platform’s unique selling feature is its usage of parachains, the progress of which may influence the price of the DOT token.
- Tokenomics: At the time of writing (October 2021), Polkadot has a circulating supply of 987,579,314 DOT, as per CoinMarketCap. There is no maximum supply, and the inflation rate is 10%, which is relatively high, implying that the supply of DOT coins will rise year after year. However, if consumption does not equal this growth, DOT’s value will be diminished.
Buy DOT With Swyftx
Swyftx makes it easy to sign up, verify your identity, deposit cash, and start trading.
Unlike other Australian exchanges like CoinSpot, CoinJar, and Independent Reserve, customers do not have to provide ID paperwork, photos or wait hours for their accounts to be authorised before they can buy bitcoin.
Fortunately, Swyftx’s has a fast verification procedure, which requires only your name, email address, and ID document info and allows users to begin using cryptocurrencies right away.
