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Frequently asked questions

Polkadot is a crypto protocol and network that links different blockchains and enables cross-blockchain transfers of any type of data or asset. For instance, with Polkadot you could send Ethereum to a friend who receives the equivalent amount of Tezos. Polkadot sometimes is referred to as a ‘Ethereum killer’, largely owing to the role that Ethereum co-founder Gavin Wood has played in its development.

DOT is the ticker name of Polkadot. The ticker name not only saves screen space and removes confusion, it’s also an easy way of distinguishing the coin itself from the Polkadot network.

Polkadot is like any other cryptocurrency traded on so called exchanges, which determine the price through supply and demand. Polkadot's price is both highly volatile, and somewhat correlated with broader trends in the crypto markets. We should note also that DOT is a relatively young currency, which points to extra volatility as technical challenges arise and are overcome (or not overcome). There are hundreds of projects using the Polkadot network, whose popularity (or lack thereof) will influence the perceived longevity, and therefore the price of DOT.

You can buy Polkadot on a crypto exchange. Your method of payment will depend on the exchange through which you buy Polkadot. Some will only accept US dollars, others will accept a range of different currencies. Some will accept only bank transfers, others might accept payment through services like PayPal. If you’re unsure of your options, use the filters on Cryptoradar to narrow the field, and find an exchanges that are right for your needs.

A crypto exchange (or cryptocurrency exchange) is a marketplace where buyers and sellers trade cryptocurrencies. Just like regular stock exchanges, a cryptocurrency exchange serves as a middleman who sets the market price at which an equal number of buyers and sellers can be found.

Is now a good time to buy DOT? Frankly, we don’t know. But there are several strategies when it comes to crypto investing. One approach is to buy in when price slips. In the crypto community this strategy is known as "buying the dip" (BTD). Another strategy is dollar-cost averaging: investing a certain amount of money on a set schedule, say $100 every Monday morning. Dollar-cost averaging seeks to average out the lows and highs over time. No matter which strategy you choose, Cryptoradar’s price alerts help you to not miss a dip, and adhere to your investment schedule.

There are risks associated with any investment. Crypto markets are particularly volatile, with large upswings and downswings. Only invest as much as you can afford to lose. When it comes to choosing a crypto exchange, there are also a couple of thinks to be wary of. Before you can start trading, a crypto exchange will ask you to verify your identity. This is necessary because of anti-money-laundering laws. The verification process and time can differ significantly and take anywhere from minutes to weeks. All crypto exchanges charge a fee or a spread to finance their operations. Fees can differ significantly among exchanges, so make sure to get a good deal. Additionally, make sure that your preferred crypto exchange supports the payment methods of your choice, but be aware of any additional payment fees that may apply. Last but not least, if you’re new to crypto, make sure that your chosen platform is easy to use and has good customer support. This helps you avoid making costly mistakes.

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