New to the world of Polkadot (DOT)? You’ve come to the right place to collect information and learn! If you want to dive right in, scroll down to the section about how to buy Polkadot (DOT), where you can start right away!
Cryptocurrency is a type of digital money. Unlike traditional currencies such as Canadian dollars or Euros, cryptocurrencies like Polkadot (DOT) operate on decentralized networks based on blockchain technology. “Decentralized” means that the network operates without a central authority or intermediary. There are several aspects of Polkadot (DOT) and other cryptocurrencies that qualify them as decentralized. These aspects include the use of blockchain (distributed ledger) technology that no single person controls, peer-to-peer transactions that don’t involve an intermediary, consensus mechanisms to validate and record transactions, and open-source code that allows anyone to scrutinize records of transactions.
If you’re a complete novice, this explanation may still be opaque to you, but we encourage you to investigate the basics further. You’ll soon catch on, and your confidence will grow steadily.
Polkadot is a decentralized protocol designed to connect blockchains seamlessly. It’s often referred to as a “blockchain of blockchains.” The idea was simple — to allow secure communication on cross-blockchain transfers of data, tokens, or assets within the Polkadot network. Take Bitcoin and Ethereum as an example — they can securely transfer value or data without intermediaries despite their incompatibility. The goal is to achieve speed, cost-effectiveness, and scalability by processing multiple parallel blockchains to reduce the processing time on the main blockchain.
Dr. Gavin Wood, co-founder of Ethereum, introduced Polkadot in a white paper draft he published in 2016. Dr. Wood argued that crypto needed a scalable system allowing secure communication between blockchain networks. He realized that Ethereum has limitations for growth and scalability. Today, we have over 13,000 cryptocurrencies and the biggest problem is that blockchains can’t exchange data across each other. He envisioned that Polkadot would be an “improved version” of Ethereum and solve this problem as the first Layer-0 protocol.
Dr. Wood created a Web3 Foundation in 2017 to fund the research and development of the Polkadot project. Through a token sale in October 2017, he raised over $140 million (USD) for this project. In May 2020, Dr. Wood launched the Polkadot platform to the public as a proof-of-authority (PoA) network, with a single Sudo account controlling the governance.
After a month, Polkadot operated in a highly efficient form of a proof-of-stake called nominated proof of stake (NPoS). This enabled DOT stakeholders to have full control of the protocol. They can help collect DOT rewards as a nominator or a validator. Now, it’s difficult to get excited about blockchain when it uses so much energy. However, the NPoS model of Polkadot consumes less energy than other blockchains and has a lower carbon footprint among proof-of-stake protocols.
But Polkadot can do more than just facilitate transactions. Here’s how Polkadot works:
DOT crypto is the native token of Polkadot. It powers the network, allows holders to take part in governance decisions, and can be used for various purposes, from speculation to helping cross-border payments.
DOT holders can decide things, including tabling proposals, voting, how much it costs to use the network, and how often new chains can join. It’s like being a shareholder in a company but for a blockchain, which is pretty cool. Polkadot’s governance system also has an on-chain treasury. Anyone who owns DOT can suggest ways to spend this money on projects that will help the whole network. It’s like a community wallet where anyone can decide how to improve things and help new, exciting projects get started.
The Polkadot crypto has many uses. It’s also a faster and cheaper way to send money worldwide, even without a bank account. People who own DOT can help confirm transactions and ensure everything works correctly. To do this, DOT holders lock up or stake their DOT for a while. This is like putting down a deposit to be part of the security team.
DOT tokens can also be used bonding to create parachains. Since parachain slots are limited, they are leased through auctions. The highest bidder must hold or reserve a part of DOT tokens until the lease ends. DOT tokens cannot be transferred, used, or staked during this period.
Polkadot is a versatile protocol that’s changing the way blockchains interact. It’s designed to connect different blockchain networks, allowing them to share information and value seamlessly. Think of it as the internet of blockchains. It’s fast, cheap, and secure. Whether it’s online banking, digital art, or smart device connectivity, Polkadot is equipped to handle it all.
You can buy DOT on the most popular crypto trading platforms, including Coinsquare. Whether you’re a seasoned crypto investor or just starting, Coinsquare provides a secure and user-friendly platform to buy, sell, and hold DOT.
Want to jump straight into learning how to buy some Polkadot (DOT)? Here’s our quick-start guide!
Coinsquare is a leading cryptocurrency trading platform that was started by Canadians for Canadians in 2014. Coinsquare is trusted by hundreds of thousands of Canadians for their Polkadot (DOT) trades and has processed over $8 billion in trading volume to date.
This crucial step helps protect your identity and your Polkadot (DOT) transactions. It also ensures that Coinsquare meets its regulatory obligations. You will need to submit some personal information, including your name, address and phone number, as well as a scan of a government-issued identity document such as your driver’s license or passport. Rest assured that this data will be kept in the strictest confidence. You will also need to answer a few questions to determine your risk profile.
These funds are what you’ll use to buy your Polkadot (DOT). You can transfer money directly to your account for free using Interac e-transfer, or you can wire transfer the funds from your bank account.
Choose the currency you want to use to buy your Polkadot (DOT). For now, you’ll be using CAD because that’s what you have on deposit in your Coinsquare account, but later on, you might use USD or another cryptocurrency for your purchase. Once you’ve selected the currency, you can go ahead and purchase your Polkadot (DOT)!
You won’t be able to spend your Polkadot (DOT) at all Canadian retailers, but the list of stores that accept Polkadot (DOT) and other cryptocurrencies is always growing. Keep an eye on the news about Polkadot (DOT) and ask your favourite retailers about their policies.
All cryptocurrencies carry some level of risk, just like other volatile investments. It's essential to thoroughly research the token you plan on investing in and understand the risks before making any decisions. Remember, you should never invest more than you can afford to lose.
You can transact on Coinsquare in numerous currencies other than Polkadot (DOT), including Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Bitcoin Cash (BCH), Cardano (ADA), Dogecoin (DOGE), Chainlink (LINK), Polygon (MATIC), Shiba Inu (SHIB), USD Coin (USDC), XRP, and many more.
You can store your Polkadot (DOT) in software applications called wallets. Wallets come in two varieties: hot wallets and cold wallets. Here are the differences between them.
Connectivity: Hot wallets are connected to the internet while cold wallets are not.
Access: Hot wallets offer quick and easy access for transactions while cold wallets require physical access.
Security: Cold wallets are more secure than hot wallets, which are more vulnerable to hacking and cyber attacks.
Usage: Hot wallets are ideal for frequent transactions and trading, while cold wallets are best suited to holding crypto in long term storage or in large amounts.
Setup and Maintenance: Hot wallets are easier to set up and maintain. Cold wallets require more complex set up and maintenance.
Recovery Options: Both hot and cold wallets often have recovery options like seed phrases, while cold wallets can also be backed up.
Convenience: Hot wallets are highly convenient for everyday use. Cold wallets are less convenient due to their physical access requirement.
Physical Risk: Cold wallets come with a higher physical risk, as they can be lost, stolen or damaged; while hot wallets carry a lower risk because they are not physical objects.
It is legal to buy and sell Polkadot (DOT) in Canada, but Polkadot (DOT) itself is not legal tender, meaning that it is not issued by the government or controlled by them. Cryptocurrency trading platforms are also legal in Canada, but be careful to choose one that is in good standing and has not been banned or isn’t allowed to operate in Canada. As a leader in the cryptocurrency trading space, Coinsquare is dedicated to complying with all federal and provincial regulations for cryptocurrency trading; we are held to the highest standards of any financial institution in Canada, so you can have confidence in the transactions you complete on our platform.
If you want to get more into the world of cryptocurrency, you can engage in additional activities.
You can purchase other cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Bitcoin Cash (BCH), Cardano (ADA), Dogecoin (DOGE), Ethereum Classic (ETC), Polygon (MATIC), Shiba Inu (SHIB), USD Coin (USDC), XRP, and many more.
Staking allows you to get more involved in the cryptocurrency space. Staking involves locking up some of your cryptocurrency for a period of time and participating in the validation process that is central to maintaining the integrity of the system.
Get information and news updates in Coinsquare’s real-time news feed. On the website and in the mobile app, you can also check on the current market prices for Polkadot (DOT) and other cryptocurrency products, look at the trading history of Polkadot (DOT), and learn more about topics related to cryptocurrency.
Cryptocurrency has been criticized for its environmental impact, and not without reason. Traditional cryptocurrency mining, especially for coins like Bitcoin, has been associated with high energy consumption due to the power required for mining operations.
However, the cryptocurrency industry is sensitive to these concerns and is looking for ways to make cryptocurrency more sustainable. Here are some changes that some blockchains have undertaken to mitigate the impact of cryptocurrency on the planet:
Newer cryptocurrencies are being designed with sustainability in mind from the start instead of making changes after the fact. While these advancements show a commitment to sustainability and minimizing environmental impact, there is still a great deal of work to be done. Keep an eye on the news about the evolving cryptocurrency landscape.
Confirm your identity and answer a few onboarding questions.
Add funds to your account via e-transfer, wire transfer, or from another crypto account.
Choose Polkadot (DOT) from the list and select the currency you want to use.
Complete your Polkadot (DOT) purchase.
If you want to learn more about Polkadot (DOT) and the cryptocurrency world, getting involved with the Polkadot (DOT) community is a great idea. Here are some ideas about how you can follow trends, meet other investors, and contribute to the growth of the Polkadot (DOT) space:
If you have technical or business skills, you can also engage with development teams, contribute your skills to the Polkadot (DOT) project, or participate in governance by helping with decision-making and setting future directions.
Coinsquare offers a variety of services for all your Polkadot (DOT) needs.
Coinsquare Wealth provides more customized services from certified Wealth Directors. Although our Wealth Director don’t provide investment advice, they help our clients navigate the cryptocurrency space so they can get more out of it and avoid obstacles. Coinsquare Wealth also offers other advantages, such as same-day settlement in CAD or USD and enhanced liquidity for large trades/
Coinsquare Pro gives experienced traders the resources they need to make complex decisions and apply advanced trading strategies. Intuitive trading tools, enhanced trading logs, and near-instant execution of trades allow them to control their investments with greater precision.
Coinsquare Trade is a no-fuss service that gives our customers access to over 53 digital currencies, in-app customer service support, fast withdrawal and deposit options, and a clean, user-friendly interface.
Coinsquare has been in business in Canada since 2014 and was developed by Canadians for Canadians. We are confident that we can provide you with the best Polkadot (DOT) buying experience in the country. Join us today!
