Buy Polkadot (DOT)
What is Polkadot cryptocurrency?
The founder of the project is Gavin Wood, a British engineer and scientist. During development, he designed the idea and concept of Polkadot, and to implement it, he founded the Swiss Web3 Foundation. Thanks to the efforts of Wood and his colleagues Robert Habermeier and Peter Chaban, the Polkadot protocol saw the world in 2017. year. In the same year, the first token sale took place. In May 2020, the main block of the Polkadot network was launched under the control of the Web3 Foundation and with the consensus algorithm - Proof-Of Authority. After that, in the summer of the same year, when the number of potential validators reached a certain level, elections were held, the management of the Polkadot project passed to users and became decentralized, and the network switched to using the Nominated Proof of Stake (NPoS) protocol. , it can be noted that in August 2020, transactions with Polkadot (DOT) became available and the DOT coin was redenominated. As a result, the maximum supply increased 100 times and amounted to 1 billion coins (but this did not affect the proportional shares of users).
Polkadot promises "true interoperability" between blockchains and a fork-free platform where users can create smart contracts and new blockchains. The Polkadot network also wants to link private and public blockchains, oracles and other decentralized applications. It aims to create a user-friendly hub where individuals and institutions can interact freely using transparent and reliable services.
The DOT cryptocurrency is Polkadot's own token. It provides holders with management powers and can be used in placement and linking operations.
The strengths of the project include:
- Relevance of technological solutions and growth potential.
- A professional team led by an innovator.
- High market capitalization (in the TOP-10).
- Polkadot coin (DOT), widely represented on major marketplaces.
- Scalability and speed of transactions (now 1000 t / s, they promise up to 1 million).
How to invest?
Technologies are constantly evolving and the list of new cryptocurrencies is growing. Projects that competently cover one or more of the needs of modern users are becoming successful. With the growing popularity of digital currencies, they have become a sought-after asset. More and more users began to be interested in the question of how to make money on cryptocurrency. Below we will consider the most relevant ways to make money in the cryptocurrency world.
Mining is the processing of transactions in the blockchain network, through complex mathematical calculations.
A miner with his equipment is a decentralized distributed cell within the blockchain network, a so-called node that is connected with the rest of the network participants and is a support structure, the foundation of the network. During mining, verification and confirmation takes place. transactions in the blockchain by finding the hash of the block. That is, the more powerful the miner's equipment, the greater the chance of receiving a reward in the form of mined cryptocurrency. In this case, there is a direct relationship between power and profit. The essence of mining, in general, is to make a whole network of decentralized computers and the necessary equipment that solves all the necessary tasks using its technical capacity. All these connections are called nodes in mining. And, the more there are in the blockchain system, the more decentralized the network, and all work happens much faster.
With the popularization of the mining of digital currencies, miners are finding more and more new ways to get cryptocurrencies. Thanks to this, the process itself began to take on various forms.
The ecosystem of the project operates using the Nominated Proof of Stake (NPoS) algorithm. In this regard, the classic mining of a coin using video cards, ASICs, processors and any other equipment is impossible.
Investing through online platforms
Now there are a large number of platforms (platforms) for trading digital currency designed to buy, sell, exchange popular and rare coins.
If you have just started buying and investing, then perhaps your choice will be any top platform that has a fairly simple interface, with training materials or a demo account.
Here, almost everything is like in real trading: asset charts in the terminal, making deals to buy and selling, placing limit orders, conducting technical analysis. The difference from a real account is that profit and loss are virtual. Trading on a demo account is completely devoid of financial risks, as well as the opportunity to make money. Working with virtual finance is very useful for beginners. If you take demo trading seriously, observing all the rules of your strategy, time will not be wasted.The demo account allows you to explore all the functions of the trading terminal without losing real money. Setting up the platform, viewing data on assets, reading news, using technical analysis tools - all this can be studied using a training account.
In order for transactions with virtual money to bring not only positive emotions, but also useful experience, the following rules must be observed:
- Write down in the trading plan the strategies that you will use when working with assets. Try to follow the trading plan as closely as possible. If you see that the strategy has some weakness, correct it.
- Conduct technical and fundamental analysis as thoroughly as if the account was real.
- Stick to money management as if you are dealing with real finances. Do not enter the market with the entire deposit (if we are not talking about long-term investments), trying to collect as large a percentage of the capital as possible.
When working on online platforms, you can use a CFD agreement. CFD trading is suitable for traders with a small amount of capital. You will get access to a wide variety of markets and a wide range of trading tools.
A CFD is an agreement between two parties, the seller and the buyer, on the transfer of the difference between the current value of an asset at the time of the conclusion of the contract and its value at the end of the contract.
In order to learn all the nuances of trading in the crypto world, a demo account will help you.
Demo account is a virtual trading account for working in the financial markets.
The main positive aspects of using demo accounts are:
- no need to invest your own funds. Anyone can evaluate their strengths and start trading on the stock exchange, as long as they go through a simple registration procedure.
- fully preserved trading functionality. This is the most beneficial for algorithmic traders. The automated system tested on a demo account can be applied to work on real accounts without additional architecture changes.
- real conditions for conducting operations. The only caveat in this kind of trading is the conditional funds on the account. But this is often the biggest advantage of demo trading - the ability to completely exclude the emotional factor from your actions. For novice players, there is no better school.
To get real profit, you just need to replenish your account and start real trading.
Crypto exchange and crypto wallet
Cryptocurrency exchanges for trading became extremely popular at the end of 2017 with the peak of cryptocurrency growth. Trading in cryptocurrencies is a promising direction that allows you to buy / sell coins and get income from changes in their price. The effectiveness of such earnings is due to the high volatility of the exchange rate, which can change several times by 5-10% or more during the day.
The exchange should be popular, have a simple and user-friendly interface, and provide a wide range of methods for depositing / withdrawing money.
As a rule, trading is conducted around the clock and seven days a week, and positions are opened for an increase or decrease in prices. Regardless of the characteristics, cryptocurrency exchanges are classified according to a number of characteristics:
- The presence of a single management - centralized, decentralized.
- Fiat money support - with or without the possibility of depositing / withdrawing regular money.
- Regulation - with or without regulation.
- Volume - liquid, illiquid.
To store virtual money, you need to create a special storage - a wallet for cryptocurrency.
This type of wallet is somewhat reminiscent of electronic wallets, although it has a number of fundamental differences. In particular, it differs in that it stores cryptocurrencies, therefore the functionality of these gadgets is tailored for digital money. And in order to enter this wallet, a person must have a so-called private key, which is given to him during the registration process. Although a lot depends on which version of the wallet you have - it is stored on a computer or on a remote server, considering how rapidly the popularity of cryptocurrencies is growing, choosing a reliable wallet for cryptocurrency is almost the first priority. An electronic wallet for cryptocurrency is indispensable, no matter what a person will do with these coins: mine, trade on an exchange, or just invest for a long time.Since cryptocurrencies do not have a physical shell, they are only able to be in electronic form. There is also a moment with cold and hot storage. "Hot" refers to crypto-wallets that are constantly connected to the network, ready to transfer funds at any time. Cold wallets are not intended for regular withdrawals of cryptocurrency. Nevertheless, you can receive money for them at any time.
Cold storage is in many ways safer than hot storage, since it does not require a constant connection to the Internet. However, cold storage is not necessarily a hardware wallet. It can be a piece of paper, the so-called paper wallets.
Polkadot was founded by the Web3 Foundation, a Swiss foundation founded to create a fully functional and user-friendly decentralized network as an open source project, founded by Dr. Gavin Wood, Robert Habermeier and Peter Chaban. New projects are created in the crypto industry every day, but only a small one. some of them deserve attention, and Polkadot is one such project that will still show itself.
The token itself plays a huge role in the ecosystem and game theory around it, and its value is increased by its utility. DOT is what controls the relay chain. The relay chain will connect hundreds of parachains and bridges to all significant crypto assets. DeFi on Polkadot will be able to process thousands of transactions per second for each cryptoasset and will be able to connect to all the liquidity pools available in the cryptocurrency.
After analyzing all of the above on Polkadot, we can say that this is a legitimate project with a unique chance to actually become a project that will overcome the difficult task before it - to surpass Ethereum and become the king of smart contract platforms.
Polkadot enjoys a good reputation in the crypto community and can become a worthy investment in the short and long term. You can buy cryptocurrency, as well as invest your capital at any time and in any country, including Qatar.