How to Buy Polkadot UK – Beginner’s Guide

Launched as recently as 2016 – Polkadot is now one of the largest cryptocurrencies in terms of market capitalization. If you like the sound of what this crypto asset offers for your long-term portfolio – this beginners guide will explain how to buy Polkadot UK.

Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply 

How to Buy Polkadot UK – Step by Step Guide 2020

Strapped for time and looking at how to buy Polkadot UK right now? If so, follow the steps below to purchase this digital asset in just a few minutes!

1. Open an account with Binance: You’ll first need to open an account with a cryptocurrency exchange that supports Polkadot. Binance is good for this purpose – as the platform charges a trading commission of just 0.1%.
2. Upload ID:  Assuming that you are looking at how to buy Polkadot UK with a debit or credit card, you’ll first need to upload some ID. This is to ensure that Binance remains compliant with the FCA.
3. Deposit:  Once Binance has quickly checked your ID, you can then make a deposit with your debit/credit card.
4. Buy Polkadot: Finally, now it’s just a case of searching for ‘Polkadot’, click on the respective market, and enter the amount of money you wish to invest.

As soon as your Polkadot purchase is complete at Binance, you can then withdraw your coins to a private wallet.

What is Polkadot?

Polkadot (DOT), a leading Bitcoin alternative, is a blockchain project that was first launched in 2016. The project claims to differentiate itself from others in this space, largely because it has the capacity to connect several blockchains within a single network. Some crypto-hungry investors believe Polkadot could be the next Bitcoin.

In a similar nature to other blockchain projects, Polkadot is also behind its own cryptocurrency of the same name. This allows you to send and receive Polkadot from wallet to wallet – much like any other digital currency.

With that said, although the Polkadot blockchain has some great use cases, most people buy this crypto asset on a speculative basis. That is to say, investors in the UK typically buy Polkadot with the hope of cashing out at a profit in the future.

Why Buy Polkadot? Polkadot Analysis

According to CoinMarketCap, Polkadot first hit a public exchange in August 2020. Back then, digital currency was trading at a price of $2.78. Just 7 months later in February 2021 – the Polkadot hit all-time highs of $38.20.

This translates into financial gains of over 1,200%. Not bad for an investment period of just over half a year.  With that said, Polkadot is currently trading with a market capitalization in excess of $30 billion. Although at first glance this might sound like a sizable amount, it’s actually not when you consider the market valuations of other cryptocurrencies in this space.

In particular – one of its main competitors – Ethereum, has since surpassed a valuation of almost $200 billion. As such, many would argue that the upside potential with Polkadot is still very much attractive.

Polkadot Price – How Much Does it Cost to Buy Polkadot?

At the time of writing in late February 2021, a single Polkadot token will cost you in the region of $35 (about £25). With that said, it is important to understand that like any other tradable asset – the Polkadot price will change throughout the day. In fact, as Polkadot is now a heavily traded crypto asset, price shifts occur on a second-by-second basis.

It is also important to remember that Polkadot – like all cryptocurrencies, operates in a highly speculative and volatile arena. Sure, the digital currency has enjoyed rapid success since it first hit a public exchanger last year – with astronomical returns of over 1,200%.

However, as we have seen with many other hyped-up crypto assets, what goes up can often come crashing straight back down – and quickly. As such, if you are wondering how to buy Polkadot UK in the safest way possible, make sure you keep your stakes modest.

Ways of Buying Polkadot

There are many ways in which you can buy Polkadot in the UK. The easiest way is to use a cryptocurrency exchange that allows you to deposit funds with an everyday payment method. That way, you don’t need to go through the process of converting the likes of Bitcoin or Ethereum into Polkadot.

In the sections below, we cover the many different ways that you can buy Polkadot in the UK.

Buy Polkadot with Debit/Credit Card

Without a doubt, the easiest way to buy Polkadot in the UK is via a debit card purchase. With that said, the vast majority of cryptocurrency exchanges do not accept debit/credit cards, as they do not have the regulatory remit to do so. After all, most platforms in this space operate without a license.

The good news is that top-rated cryptocurrency exchange Binance not only supports debit and credit card purchases – but you can buy Polkadot coin directly.

The process works as follows:

1. You first need to open an account with Binance and then upload a copy of your passport or driver’s license
2. Once your account is verified, select ‘DOT’ from the drop-down list and enter the amount you wish to buy
3. You will then be asked to make an instant deposit with your debit or credit card
4. Once the payment is processed, the Polkadot tokens will be added to your Binance web-wallet

On completion of your debit/credit card purchase, you have two options regarding storage. To keep things simple, you can leave your Polkadot tokens at Binance until you are ready to sell. Alternatively, if you want to take full control over your Polkadot investment, you can withdraw the tokens to a digital wallet.

Buy Polkadot with Bitcoin

If you already have access to Bitcoin, you actually convert this into Polkadot. We briefly explained the process in the section above, albeit, we should elaborate slightly so that you know how this works.

1. Once again, you’ll need to open an account with Binance. If you are not planning to deposit ‘real’ money, you don’t need to provide any personal information or ID.
2. Head over to the ‘Deposit’ area and look for ‘Bitcoin (BTC)’. You can then obtain your unique BTC wallet address at Binance.
3. Copy the address to your clipboard and head over to your Bitcoin wallet.
4. Paste the address into your private wallet and transfer your desired amount of Bitcoin.
5. The Bitcoin should arrive in your Binance wallet in 10-20 minutes.
6. When it does, head over to ‘Markets’, click on ‘BTC Markets’ and then search for ‘DOT’
7. Finally, buy Polkadot coin with your Bitcoin balance

The best thing about the above process is that other than the blockchain fee to deposit your Bitcoin in Binance, you only paid 0.1% trading commissions.

Where to Buy Polkadot in the UK

So now that you know how to buy Polkadot UK, we are going to look at one of top-rated trading platforms that you might want to consider.

Binance – Largest Cryptocurrency Exchange for Trading Volume and Liquidity

Binance is now the largest cryptocurrency exchange globally, in terms of trading volume and liquidity. This platform offers hundreds of tradable pairs – many of which contain Polkadot. For example, you can trade Poladot against USDT, Bitcoin, BUSD, Binance Coin, and more.

Trading fees at this top-rated crypto exchange stand at just 0.10%. In order to benefit from this low trading fee, you will need to make a deposit into Binance with a cryptocurrency. If you do, a £1,000 Polkadot trade would cost you just £1 in commission.

With that said, if you are looking at how to buy Polkadot UK with a debit/credit card on Binance, the fees are a lot higher. At the time of writing, this stands at 3% of the total transaction amount. Previously, it was 2%, and for a short ‘promotional’ period, 1%. Nevertheless, this means that a £1,000 Polkadot purchase will set you back £30 in fees.

This is, however, a direct purchase – meaning that there is no requirement to then perform a conversion to obtain Polkadot. The other option on Binance is to deposit funds via UK bank transfer. This is free, and as the transfer goes through the Fast Payments Network – the funds should be credited in a few minutes.

Either way, once you complete your Polkadot purchase on this crypto and Bitcoin trading platform, you then need to decide whether you want to keep the tokens in your Binance account or make a withdrawal to a private wallet. if opting for the former, Binance offers several security features to keep your crypto funds safe. This includes two-factor authentication, address whitelisting, and email notifications.

Pros

• Largest cryptocurrency exchange UK in terms of trading volume
• Hundreds of cryptocurrency pairs supported
• Trading commission of just 0.1%
• Supports UK debit/credit cards and bank transfers
• Great reputation in the cryptocurrency scene
• Ideal for advanced traders that seek sophisticated tools and features

Cons

• Not great for newbie investors
• A standard charge of 2% on debit/credit card deposits

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

How to Buy Polkadot Tutorial

To conclude our guide, we are now going to walk you through the process of how to buy Polkadot UK with Binance. By following the simple steps outlined below, you could have your hands on Polkadot tokens in just a few minutes!

Step 1: Open an Account

To get the ball rolling, visit the Binance homepage and click on the ‘Register button. You will then be asked to enter your email address and choose a strong password. Once you verify your email account by clicking on the link sent by Binance – your account is officially open.

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

Interestingly, if you are not planning to deposit funds with a debit/credit card or account – and instead stick with cryptocurrency transactions – there is no requirement to provide any personal information. But, if you are looking to buy Polkadot coin with pounds and pence – you’ll need to go through a KYC (Know Your Customer) process.

Step 2: KYC

The KYC process at Binance will initially ask you to provide your:

• First and Last Name
• Home Address
• Date of Birth

Next, you will need to upload a copy of your passport or driver’s license. This needs to be a clear copy and all four corners of the document must be shown.

After that, you will need to pass the face verification process. This requires you to hold your passport or driver’s license next to your face.

To do this, you can either:

• Use your webcam
• Download the Binance app and take a picture with your phone’s camera

By completing the above steps, you will be able to deposit up to £5,000 per day. If, however, you want to increase this to £10,000 per day, you would also need to verify your home address.

Step 3: Fill Out Polkadot Buy Order

Once your verification documents have been validated by Binance – you can then proceed to make a deposit. The process will differ depending on whether you plan on using a debit/credit card for a direct purchase – or a UK bank transfer.

If you want to use your debit/credit card – hover over the ‘Buy Crypto’ button at the top of the page and then click on ‘Credit/Debit Card’.

You will then be presented with an order box.

Here, you need to do the following:

• Change the currency from ‘USD’ to ‘GBP’
• Enter the amount of Polkadot you want to buy in pounds and pence
• Click on the dropdown box next to ‘Coin’, and click on ‘DOT – Polkadot’
• Then, click on ‘Buy Dot’

In the example screenshot above, you can see that we are buying £100 worth of DOT with our debit/credit card.

Step 4: Deposit Funds

Once you click on the ‘Buy Dot’ button, you will be asked to enter your debit/credit card details. Binance supports Visa and MasterCard and the minimum deposit is £15.

Assuming that you have already verified your account, your payment will be taken instantly and the Polkadot will be reflected in your Binance wallet instantly.

If, however, you wish to deposit funds from your UK bank account, you’ll need to hover your mouse over the ‘Buy Crypto’ button and click on ‘Bank Deposit’. Then, Binance will give you the UK bank account details to transfer the funds to – alongside your unique deposit reference number.

Step 5: Sell Polkadot

At some stage – whether that’s in weeks, months, or years – you will want to sell your Polkadot investment back to cash. When the time does arise, the process will depend on how you decided to store your tokens.

If, for example, you kept your Polkadot tokens in your Binance web wallet, then all you need to do is sell your position to GBP.

If you withdrew the tokens to a private wallet, you will first need to transfer the Polkadot tokens to your Binance wallet, and then complete the conversion back to GBP.

Conclusion

In summary, with Polkadot increasing in value by over 1,200% since last August – this cryptocurrency is now in hot demand. In fact, at the time of writing, the blockchain asset is now the 6th largest in terms of market capitalization.

Don’t invest in crypto assets unless you’re prepared to lose all the money you invest.

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