Buy Polkadot Coin – How to Buy Polkadot Coin in the UK
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Although Polkadot Coin (DOT) was launched as recently as 2020 – the project has already established itself as a top-10 digital currency in terms of market capitalization. With this in mind, it makes sense that you can easily invest in Polkadot Coin in the UK – should you wish to diversify your portfolio.
In this guide, we walk you through the process of how to buy Polkadot Coin in the UK and discuss the best online brokers to consider using.
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The thing to think about when learning how to buy Polkadot Coin in the UK is to carefully choose a broker. This is no different from selecting a suitable stock broker to buy shares, albeit, you’ll be looking to pick a specialist cryptocurrency provider.
Below you will find a small selection of the best online brokers that allows you to invest in Polkadot in the UK.
If you’re completely new to cryptocurrency brokers and exchanges – we review the above Polkadot Coin providers further down in this guide.
If want to buy Polkadot Coin from the comfort of your home without reading this guide in full – check out the quickfire walkthrough below. In doing so, you’ll be able to invest in Polkadot Coin in the UK in less than 5 minutes!
Once you confirm the purchase, Coinbase will execute this instantly. The DOT tokens will then be displayed in your Coinbase account! You can leave them there or withdraw the tokens to an external wallet.
One of the most important decisions you need to make when thinking about how to buy Polkadot Coin in the UK is that of the broker or exchange you decide to use. Not only do you need to look at fees, payments, and user-friendliness – but how safe the platform is.
To help you pick the right platform to complete your Polkadot Coin purchase with, below we review a number of top-rated brokers.
Coinbase is by far the best online broker to buy Polkadot Coin in the UK. First and foremost, the platform allows you to invest in DOT tokens via a direct debit card purchase. This means that you can simply select Polkadot Coin from the list of supported cryptocurrencies, enter your stake and debit card details, and then confirm the investment.
As soon as you do, the coins will be added to your Coinbase portfolio. You will, however, need to first open an account. This will require some personal information from you – alongside a copy of your passport or driver’s license. This is known as a KYC (Know Your Customer) process and is required as per anti-money laundering laws. Fortunately, Coinbase is usually able to verify ID documents in less than a few minutes.
When it comes to fees, we should make it clear that Coinbase is somewhat pricey. For example., by investing in Polkadot Coin directly with your debit card, you will be charged an all-in fee of 3.99%. This means that for every £500 invested, you will pay Coinbase £19.95 You can reduce your fees by transferring funds from your UK bank account. This won’t be an instant purchase though, as you will need to wait for the deposit to arrive. Then, you will need to manually buy Polkadot Coin – which will cost you a commission of 1.49%.
Although a commission of 1.49% is still deemed expensive, it is important to note that Coinbase has a great reputation. For example, not only does it now boast a client base of over 35 million traders, but Coinnbase is a public-listed company on the NASDAQ exchange. Plus, Coinbase is regulated with all relevant bodies in the US – which is one of the strictest jurisdictions for cryptocurrency platforms. Coinbase can be accessed online or vai the iOS/Android app.
Another option you have when buying Polkadot Coin in the UK is to pay with your purchase with crypto. For example, if you already have some Bitcoin, Ethereum, or Tether – you can simply swap these tokens into DOT. This option comes with several benefits when you complete the exchange with OKEx.
For example, you will only need to provide an email address and password to open an account. This means that you don’t need to supply any personal information, contact details, or KYC documents. Furthermore, when swapping a cryptocurrency into Polkadot Coin on OKEx, the commission payable is just 0.10%.
If, on the other hand, you want to use OKEx with a debit or credit card, this is also possible. But, you will pay higher fees and you will be required to go through a KYC procedure. Once you are all set up at OKEX and you have completed your first crypto purchase, you might decide to use the ‘Earn’ tool. This allows you to earn interest on your tokens by loading the funds to traders that seek leverage.
Binance is also a good option to consider in your search for Polkadot Coin. In fact, Binance allows you to buy Polkadot Coin in the UK directly with your debit or credit card – much like Coinbase does. However, unlike Coinbase – which charges 3.99% for the pleasure, this will cost just 1.8% at Binance.
Binance also supports instant and free bank account transfers via the UK Faster Payments network. At the time of writing in July 2021, this has temporarily been suspended as per ongoing talks with the FCA. However, if and when this deposit feature is reinstalled – it’s arguably the best option to take.
Binance also supports hundreds of cryptocurrencies – all of which you can deposit into your account from an external wallet. This will allow you to buy Polkadot Coin in the UK without needing to provide any personal information. Plus, the commission mirrors that of OKEx at 0.10% when doing a crypto-to-DOT swap.
Towards the top of this guide, we provided a quickfire walkthrough of how to buy Polkadot in the UK. However, if you’re a complete newbie in the world of cryptocurrencies and blockchain technology – you might need a more detailed walkthrough.
If so, below you will find a comprehensive step-by-step guide on how to buy Polkadot Coin in the UK – using Coinbase as our example broker.
When using Coinbase to buy Polkadot Coin in the UK, the end-to-end process can normally be completed in less than 10 minutes. This includes registering an account and upload some ID – and then buying DOT tokens with your debit card.
So, visit the Coinbase website to open an account. You will be asked to provide a range of personal information – such as your name, date of birth, and home address. You will also need to provide your email address and telephone number.
As noted earlier, Coinbase will need to verify your identity as the platform is heavily regulated. This will require a copy of your passport or driver’s license. Coinbase uses automated KYC technology that can verify your chosen document in less than a minute. If the document isn’t quite clear enough – you will be asked to re-upload it.
You will now be prompted to add your debit card so that you can buy Polkadot Coin in the UK. You can also choose a UK bank transfer, but this will delay the process by a number of days. Plus, you will then need to purchase DOT tokens manually.
As such, follow the on-screen instructions by entering your debit card details.
You can now buy Polkadot Coin instantly by entering the amount of tokens that you wish to buy. Once you confirm the transaction, Coinbase will execute your purchase straight away. You will be able to view your tokens within your Coinbase wallet.
There are numerous routes you can take when thinking about the best place to buy Polkadot Coin in the UK. Although other options exist, the main two avenues to consider are a cryptocurrency broker or an exchange.
Below we explain how the two differ.
When purchasing DOT tokens through an online broker – you will benefit from a safe and secure investment process. This is because brokers are heavily regulated in the UK. This means that the broker must comply with a range of investor protections surrounding client fund segregation and anti-money laundering controls.
Additionally, in using a regulated broker to buy Polkadot in the UK, you can use a debit/credit card or bank account to pay for your purchase. This means that you don’t need to go through the cumbersome tasks of obtaining a digital token elsewhere and then transferring the funds over to your chosen platform to swap it for DOT.
We would only suggest considering a cryptocurrency exchange if you already have a digital token to hand. This is because you can easily transfer your cryptocurrency into the exchange and swap it for Polkadot Coin. Furthermore, as you are not using fiat money to pay for your DOT investment, you can complete the process without providing any personal information or ID.
However, we should make it clear that most cryptocurrency exchanges are unregulated. This means that you stand the risk of having your funds stolen. Although a number of exchanges have a great reputation in this industry, by using an unlicensed platform you can never be sure that your capital is safe.
On top of choosing from a cryptocurrency broker or exchange, you also need to consider the many ways that you can purchase DOT tokens online, In other words, the type of payment method that works best for you.
Below we explain the many ways to buy Polkadot Coin in the UK.
As we covered in our step-by-step walkthrough with Coinbase, using a debit card to buy Polkadot Coin in the UK is simple. You will first need to open an account with your chosen broker and then provide some KYC documents. At a minimum ─ this will either be a passport or driver’s license. Some brokers might also ask for proof of residency and possibly a selfie of you holding your ID card.
Once you’ve bypassed the verification process, you can then enter your debit card details and investment amount. Finally, once you confirm the purchase, the Polkadot tokens will be added to your brokerage web wallet.
If you want to buy Polkadot Coin with a credit card, the steps are like-for-like as per the section above. The two considerations that you need to make is that some credit card issuers (Barclays and Santander, for example) have since decided to block cryptocurrency purchases. Plus, even if you are able to use your credit card, some issuers will charge a cash advance fee when buying digital assets.
The only trusted cryptocurrency broker that accepts Paypal is eToro – which is regulated by the FCA. However, although eToro has an extensive range of digital tokens on its platform, the broker is yet to support Polkadot Coin.
You can also buy Polkadot Coin in the UK with Bitcoin – and many other cryptocurrencies for that matter. You will first need to transfer the crypto asset over to an exchange. Then, you can swap the token into Polkadot Coin.
For example, if you are looking to use Bitcoin, you would need to head over to the DOT/BTC marketplace to complete the swap. If you were using Ethereum to pay for your purchase, the respective pair would be DOT/ETH.
Many inexperienced investors will look to buy Polkadot Coin in the UK purely because of speculative reasons. For example, there might be a fear of missing out (FOMO) as per the huge financial returns that Polkadot has generated since it was launched in August 2020. However, this is a short-sighted way of investing that will ultimately result in you taking on more risk than you should.
Instead, you should do lots of research on Polkadot Coin before investing any money. Some of the most important considerations to make are discussed in the sections below.
The team at Polkadot released its DOT token to the markets in August 2020. Back then, the coin was trading at $2.76. In May 2021, Polkadot hit a price of over $48.68 per token.
This means that in just 9 months of trading – early investors made gains of over 1,600%. This means profits of over £1,600 for every £100 invested.
Polkadot is different from the likes of Bitcoin and Ethereum, insofar that the underlying technology can connect various blockchains to a single framework. This could be highly beneficial in the future – especially when you consider that blockchains typically specialize in a niche market.
For example, Ethereum specializes in smart contracts while Filecoin is focused on storage. Polkadot would therefore be able to combine these two niche markets in a decentralized manner. This is, perhaps, why Polkadot has become a top-10 cryptocurrency in terms of market capitalization in less than one year of trading.
Polkadot – like many newly launched digital tokens, hit an all-time high in May 2021. This is because the wider cryptocurrency markets collectively enjoyed a rapid upward trajectory. However, the markets have since entered a sluggish period – where projects like Polkadot have lost a sizable amount of value in comparison to their recent highs.
For instance, while Polkadot was priced at over $48 per token in May 2021, as of mid-July 2021, the same cryptocurrency is trading at just under $13.
This means that DOT has decreased in value by 72% in just a couple of months. On the flip side, many would argue that this is an excellent time to enter the market. After all, you can now buy Polkadot Coin in the UK at a major discount – instead of paying overinflated prices.
It is important to consider the costs of buying Polkadot Coin before you proceed with an investment. These costs will largely depend on the broker or exchange you sign up with, as well as your chosen payment method.
Deposit fees are usually very low when you decide to buy Polkadot Coin via a bank transfer. In fact, some platforms offer this service for free. Making a deposit with a cryptocurrency is also a low-cost option, as you usually only need to cover the blockchain mining fee.
However, if you decide to buy Polkadot Coin with a debit or credit card, this is often the most expensive option. Coinbase, as we noted earlier, will charge you 3.99%. Other brokers charged even more – so it’s important you check this before proceeding.
Cryptocurrency brokers and exchanges also make money by charging trading commissions. Unless you are buying a really small amount, this is usually charged as a percentage. For example, OKEx and Binance charge a commission of 0.10% to buy Polkadot – which is super competitive. Some platforms, however, charge in excess of 1%.
Whether it’s a few weeks, months, or years later – at some point you will decide to sell your Polkadot Coin investment. If you bought the coins from a broker and kept them there – you can just initiate a sell order. This means that the broker will sell the DOT tokens at the current market rate and then add the proceeds to your cash balance.
If you decided to transfer the DOT tokens to your private wallet, you will first need to transfer the funds to an exchange. If the platform supports a fiat market against Polkadot (e.g. GBP/DOT), then you can sell the tokens back to cash. If not, you might need to swap Polkadot into a cryptocurrency like Bitcoin, and then cash out the tokens to pounds and pence.
This guide has walked you through the step-by-step process of how to buy Polkadot Coin in the UK. This includes the importance of choosing the right broker and what payment methods you might consider when investing in DOT tokens. We’ve also discussed some of the most important factors to bear in mind when risking money on a speculative asset class like Polkadot.
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