Polkadot

Polkadot is one of the fastest-growing and unique cryptocurrency tokens in the market today. Here is all the basic information that you need to know before investing in it. 

What Is Polkadot?

Polkadot is a Decentralized Web 3.0 blockchain that allows you to transfer general and arbitrary data across various platforms. Their portfolio is not limited to cryptocurrency tokens. It was founded by Gavin Wood and Jutta Steiner (who also co-founded Ethereum), who heads Parity in 2016, and is currently developed by Parity Technologies, Chainsafe Systems, and Soramitsu. The Web3 Foundation supports it.

What Makes Polkadot Worth Investing In?

Polkadot, unlike other blockchain tokens, is not exclusive to cryptocurrency. The program is open source and allows users to compute and exchange data apart from crypto tokens. This makes Polkadot a true multi-dimensional application. Polkadot delegates extra focus on scalability, interoperability, governance, applicability, and security.

  • Polkadot also has tiers of information exchange that include Relay Chains, Parachains, Parathreads, and Bridges. It is governed by COUNCIL MEMBERS who introduce new radical changes into the working process, and a TECHNICAL COMMITTEE for quick upgrades needed.
  • In addition to this, Polkadot also allows the exchange of information between private protected networks and open public sources. It uses a modification of CHAIN FIBERS with decoherence paid for through transaction latency, rendering it to be a unique technology yet to be replicated or emulated.

As for the cryptocurrency aspect, it boasts of a 24-hour trading value of $2,065,620,667.63 ($2.07 billion approximately – as of writing this post). It is one of the more consistent tokens that have the potential to gain value. It has a 90 day high of $44.70 and a 90 day low of $10.70. Polkadot has an average circulating supply of 987.58 million DOT with no cap on the maximum circulating amount. 

What Use Case Does Polkadot Offer?

Polkadot’s main use case is derived from its ability to host a number of accessory chains for various purposes called parachains. This allows the cryptocurrency to host a robust portfolio of use cases. They include transaction chains, file storage chains, data curation chains, IoT chains, identity chains, oracle chains, finance chains, and privacy chains. However, Bitcoin still remains to be the gold standard of cryptocurrency tokens, and Polkadot still has to find its home in regular commercial trading as a unit of currency. 

Chainlink, MXC Protocol, Speckle OS, CHain X, and Zero-Knowledge Privacy chains are among a few that use Polkadot’s parachains to function.

How Can Invest In The Polkadot Token?

Investing in Polkadot differs from country to country. Binance and Binance based portals are best for most of the world. Users from the USA cannot use this and could depend on other portals like Kraken and Uphold. Users from Australia and New Zealand can also use Easy Crypto to trade Polkadot.

  • You can invest in Polkadot through the IRA using iTrust Capital in the United States of America. DOT is a Proof of State network. Therefore, if you intend to earn Polkadot tokens using the blockchain, you must hold a certain amount and stake it on the chain. 
  • Mining can be done using the ASIC mining rigs and a Quantum Proof of Stake (QPoS) consensus algorithm. It depends on a number of variables such as hash rate, CPUs, GPUs, and difficulty assessed using the DAG Epoch. 
  • Being a relatively newer token, lending is not a feasible route to make profits, especially considering the 90-day variations that it has recorded.
  • Polkadot can be stored using software wallets such as the Polkadot JS wallet, Polkawallet app, or hardware wallets like the Ledger Nano S or the Ledger Nano X

How Risky Is It To Invest In Polkadot?

Polkadot is one of the safer coins to invest in. Multiple factors add to this assurance. 

  • The founder of this cryptocurrency has a solid alternative discovery to his name, and therefore adds to the credibility. 
  • In addition, a glance at the 7-day, 30-day, and 90-day trends would reveal that the token does not lose value drastically over a short period of time. 
  • Fluctuations are secular and gradual, and therefore, you have the time to assess the growth or fall as per your investment plan. You also get ample time to pull out your money in case it falls. 
  • Polkadot also allows options to be traded with Bitcoin and Binance Coin, which are safe alternatives if you do not wish to trade them into currencies. 

To sum it up, Polkadot carries minimal risk and provides good returns for your investment.

Things To Consider Before Investing In Polkadot

Before investing in Polkadot, remember that the ideal market for cryptocurrency still lies in established tokens such as Bitcoin, Ethereum, and Cardano. Some other points include:

  • Limited use-cases: Investing in Polkadot has a lucrative outlook in terms of trading, but its use case is still limited. It has shown promise since its Initial Coin Offering (ICO), but it is not established enough yet to pump in a big chunk of your designated capital.
  • Low Volatility: The coin, to date, has recorded a maximum fluctuation of 16.16%, making it one of the safer alternative cryptocurrencies.
  • High Scalability: The crypto asset has a high scalability potential with its transaction record of 1million/second. This is significantly more as compared to Bitcoin at 3/sec and Ethereum at 15/sec.
  • Bullish trend: Top analysts have predicted a great surge in demand and price of Polkadot. In addition, the bullish trend to move away from the big coins like Bitcoin and Ethereum adds to this trend.

Final Words

Polkadot shows a favorable future in alternative currencies and data sharing. With steady growth, it looks to be around in the foreseeable future. It has cemented its position as a high-value coin worth investing in. With the prospect of a better use case, DOT tokens have the potential to grow even more and generate better profits. 

Similar Posts

Leave a Reply

Your email address will not be published.