- Polkadot is the brainchild of Gavin Wood, the co-founder of Ethereum.
- Its energy efficient design makes it a more eco-friendly investment.
- Polkadot's value has the kind of volatility that appeals to active traders.
You can buy Polkadot in a number of ways including crypto exchanges, apps, and wallets.
If you want to buy Polkadot in Australia today, this guide will take you through the entire process from start to finish.
Where to buy Polkadot
Step 1: Choose an exchange where you can buy Polkadot
Many exchanges have listed Polkadot since it is one of the biggest coins by market cap. Finding an exchange where you can buy Polkadot will not be difficult.
However, when you are choosing a crypto exchange, there are several things to take into consideration. For example, an exchange should be extremely secure, so look for features such as 2FA and cold storage for digital assets. Also take time to research fees and spreads for trades, fees to deposit and withdraw funds, etc. since these can vary a lot.
Other features to consider if you are more advanced include the ability to trade on margin, staking, borrowing against your holdings, etc.
Step 2: Sign up and get verified
Once you've picked your preferred exchange, you'll have to create an account and verify your identity.
Most exchanges require your full name, date of birth, and street address. Although there are some exchanges where you don't have to provide more details on your identity and you can trade anonymously, many exchanges are regulated and therefore need to verify your identity. Therefore, it's likely that you'll need to provide a copy of an official form of ID. Often you must take a selfie while holding it.
Whilst verification is a minor inconvenience, it does make your account more secure.
Step 3: Fund your account
Your exchange account can be funded in a variety of ways. If you have cryptocurrency in a wallet at another exchange, you can transfer that to your new exchange wallet and then trade it for Polkadot.
But for most people who are new to crypto, the easiest funding option is to transfer fiat money (AUD) from a bank account or with a debit or credit card. Certain exchanges accept Osko, PayPal, PayID, POLi, etc. Note that it could take several days for funds to clear into your account, especially when funding a new account for the first time. Some exchanges require a minimum amount to be deposited when opening an account.
Step 4: Set your budget
Decide how much Polkadot you want to buy and stick to it. Altcoins like Polkadot can be extremely volatile, so you should only invest money you won't miss if your trade makes a loss.
Step 5: Buy some Polkadot
If you are new to trading, the market order is the easiest way to get started. Some exchanges call this instant buy, meaning you will buy Polkadot at the current market rate. Keep in mind that there can be some slippage in a fast-moving market with this order type.
Most exchanges also have the ability to order based on triggers, giving you a way to automatically buy Polkadot when certain conditions are met.
Recurring orders are also available on many exchanges. This gives you the ability to purchase Polkadot on a regular basis that you specify, i.e. $100 every month, and benefit from dollar cost averaging.
Where to store your Polkadot
After buying Polkadot, you can hold your assets in the exchange's wallet. This keeps it convenient so you can trade out of your position very quickly.
If you would prefer a more secure, long term way to store your Polkadot and other crypto assets — perhaps because you have substantial holdings — consider a hardware wallet. These are cold, meaning they are disconnected from the internet so they can't be hacked. The downside? If you lose or forget the key, you're locked out.