How to Buy Polkadot (DOT)

Polkadot is a blockchain project that promotes cross-chain interoperability by allowing disconnected, independent blockchain networks like Acala, Centrifuge and Phala to transmit data and crypto assets between one another. Polkadot achieves this by connecting specialized blockchains, called parallel blockchains, or parachains, to a single blockchain, referred to as the relay chain.

The relay chain handles the important blockchain technology components such as security and data validation using a nominated proof-of-stake (NPoS) consensus mechanism, while parachains can be customized to provide a range of unique services and features. New parachains are added to the Polkadot ecosystem through a community based process, referred to as a Parachain Slot Auction.

DOT is the project's native token and serves a number of purposes. DOT token holders can participate in crypto staking to earn network validator rewards. DOT also serves as a governance token, meaning holders can lock away their tokens to gain the ability to vote on proposed changes to the protocol. DOT tokens are also used to pay all transaction fees on the Polkadot network.

Want to dive deeper? Read Kraken’s What is Polkadot? (DOT) to learn more.

Check the current price of Polkadot (DOT) and other digital assets on our price pages.

Polkadot was first developed by Peter Czaban, Robert Habermeier and former Ethereum co-founder Gavin Wood in 2016. The protocol went live four years later.

Gavin Wood is responsible for inventing Solidity, the programming language that powers Ethereum's blockchain technology. The team also created Kusama, the so-called “canary network” where new parachains can be tested before joining the wider Polkadot ecosystem.

Polkadot is designed to be used as the internet of blockchains, allowing independent chains, including custom blockchains, to be able to communicate with each other. Any type of token or data can be transported between parachains and transactions are spread across the entire network of connected blockchains to allow for greater scalability and speed. This has allowed the Polkadot ecosystem to become one of the leading networks for cross-blockchain transfers of value and data.

Parachains can be built from scratch using the project's Substrate framework to make interoperability with other chains easier from the get-go. Existing blockchains can also join the Polkadot ecosystem as parachains or parathreads.

In order to join the network, projects must bid for one of 96 slots in a process called Parachain Slot Auctions. These follow a candle auction format whereby potential projects bid using DOT to secure a lease until an unknown time period elapses. Slots can be leased for a maximum of 96 weeks (~ two years) before they become available again for others to bid on.

Projects can also lean on their communities to provide digital currencies and help fund parachain bids.

There are currently over 1.1 billion DOT tokens in circulation. Polkadot is an inflationary project, meaning it has an unlimited supply.

With more than a decade of experience, Kraken has established itself as a pillar of the cryptocurrency industry. While we have grown to now offer over 200 cryptocurrencies, we remain one of the best places to buy DOT. 

You can buy Polkadot on Kraken with as little as $10 since each DOT is divisible into smaller units. While you do not need to execute larger orders, Kraken’s advanced price discovery and execution technology helps offer some of the best rates of any cryptocurrency exchange. 

Your verification level determines what you can do with your Kraken account. This can be located by signing into your account, selecting your name in the upper right and then selecting Get Verified. You will then see highlighted your current (pending or verified) level. 

Dollar cost averaging is a popular strategy that allows you to invest in an asset at regular time intervals using fiat currencies (cash) and other payment methods like a bank transfer, regardless of its price. This sort of recurring buy strategy is designed to help build wealth over time while minimizing the impact of unpredictable price changes.

Kraken works hard to protect your DOT
When you buy Polkadot with Kraken, your crypto is automatically stored in our hot wallet — an accessible but highly secure place to keep your DOT safe.

Kraken allows you to hold your own Polkadot
Our rigorous security standards ensure that our users’ crypto is always safe on our platform. However, if you want to hold or transfer your Polkadot, Kraken allows you to take full custody of your DOT in the wallet of your choice, unlike many other fintech services. DOT can easily be stored on hardware wallets, web, or mobile wallets.

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Disclaimer
Information provided in this “Learn” section is for general educational purposes only and is not intended to constitute investment or other advice on financial products. Such information is not, and should not be read as, an offer or recommendation to buy or sell or a solicitation of an offer or recommendation to buy or sell any particular digital asset or to use any particular investment strategy. Kraken makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any such information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.