Blog Borrowing Polkadot coin (DOT) review: Ethereum’s new competitor

Polkadot coin (DOT) review: Ethereum’s new competitor

date October 15, 2020 time 3 min read 653 views

The Polkadot protocol is changing how data is transferred by connecting public and private blockchains. And the Polkadot coin (DOT) is at the heart of it all. The Polkadot protocol’s exclusive coin, DOT, powers the entire network. It puts users in total control of governance. DOT is sweeping the markets as one of the hottest new crypto investments.

Hailed by Coindesk as an Ethereum contender, Polkadot protocol and its crypto, DOT, have increased more than 44% in value over the past year.

As more eyes turn to crypto through the rise of Bitcoin at the end of 2020, protocols like Polkadot and their coins may grow increasingly valuable. This is because they fix many classic headaches on the chain.

In this Polkadot coin review, we’re going to discuss why DOT is famous today, where to store it, and one surprisingly good place to buy it.

What is Polkadot and why is DOT famous?

Polkadot is a protocol allowing multiple blockchain networks to exist within a single chain. In August of 2020, they launched their native DOT coin powers staking, bonding, and governance on the protocol.

How Polkadot works

There are two types of blockchains in Polkadot: public, permissionless blockchains, and private, permission-locked blockchains. These are called “parachains”.

Polkadot protocol lets chain owners transfer data easily from internal, private blockchains onto public blockchains.

This sort of process could be useful to organizations that want to do automatic payment processing between fiat and crypto. Banks usually prefer to use secure, private networks while crypto, by nature operates on public networks.

It also makes transactions much faster.

Polkadot is an open-source protocol making it easier to move both data and tokens across blockchains
Polkadot is an open-source protocol making it easier to move both data and tokens across blockchains (source: polkadot.network)

The DOT token is used for three main purposes on Polkadot:

  • Governance. DOT holders can use their coins to vote on network fees, auction dynamics, and scheduled addition of parachains.
  • Staking. Polkadot facilitates consensus among users on the platform via staking. If you hold DOT you can stake your tokens to help make decisions on the network. You’re penalized/incentivized for completing tasks by gaining/losing DOT.
  • Bonding. Bonding tokens lets you add new parachains to Polkadot. Parachains are a data structure specific to Polkadot protocol. They can be blockchains—but aren’t exclusively blockchains—that can be validated by the Polkadot Relay Chain. Usually, a parachain will take the form of a blockchain, but there is no specific need for them to be actual blockchains. 

Besides its usefulness within the Polkadot protocol, the DeFi has exploded in the second half of 2020 and brought investors rushing to coins like DOT. It may pave the way for further innovation in the field.

Polkadot coin can be purchased on most major cryptocurrency exchanges
Polkadot coin can be purchased on most major cryptocurrency exchanges
(source: images.unsplash.com)

Where can you buy and store DOT Coins?

Besides earning DOT on the Polkadot network through staking you can also buy it quite easily.

Most major exchanges list DOT including:

  • Binance 
  • OKEx
  • Gate.io 
  • Bitmex
  • Huobi
  • Kraken

Once you’ve made your purchase at the current Polkadot price, you can store your DOT coin on the exchange, or use a crypto wallet like Exodus or Mycelium for additional security.

However, exchange prices can vary drastically. When buying DOT, you should look for a platform that can guarantee the best prices on your crypto every time.

We think we have one for you.

Where to get DOT at the best prices on the market, without trading your coins

You can leverage your crypto to get DOT loans at the best prices through P2P platforms like MyConstant.

We’re a P2P lending platform offering crypto-backed loans. We source the best prices from major exchanges and transfer your loan directly into DOT so you don’t have to.

When you withdraw your loan in DOT on MyConstant you get:

  • To select your rate and term
  • Borrow from as low as 6% APR
  • Your collateral secured in a secure third-party wallet
  • The best exchange rates. Guaranteed
  • No extra fees
  • 24/7 customer service
  • Borrow against 70+ different cryptos

Buy DOT on MyConstant and get in on one of the most exciting DeFi products in the crypto world today without selling your crypto. Sign-ups are free. Loans are quick and secure.

By buying cryptocurrency like DOT coin on MyConstant, you can get some of the best exchange prices available

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