Buy Polkadot (DOT) - how to invest in Polkadot in Somalia

What is Polkadot cryptocurrency?

Polkadot aims to solve the problem of slow data transfer between public and private blockchains, as well as develop a network without forking and reducing scalability. The unique design of the digital currency keeps transactions safe and accurate, it only uses the computing resources needed to run the main chain. But that's not all the benefits of Polkadot, and users can customize many Parachains for different purposes. Currently, digital currency is among the top cryptocurrencies. Polkadot is now a secure project that has managed to overcome significant difficulties in such a short period of time. And that says a lot about the team and community behind the project.

Pros of the Polkadot ecosystem:

  • An innovative model with great promise;
  • Professional development team;
  • Simplified application integration diagram;
  • High liquidity and functionality of DOT tokens;
  • High level of security and good network scalability;
  • Open source.
Polkadot cryptocurrency
Polkadot cryptocurrency

How to invest in Polkadot?

There are many interesting and promising technologies in the blockchain world. The obvious shortcomings of the traditional financial system contribute to the development of digital money. Due to the fact that the cryptocurrency world is becoming more popular at the moment, below we will consider the most relevant ways to invest in cryptocurrency.

Buy DOT. The DOT cryptocurrency is Polkadot's own token
Buy DOT. The DOT cryptocurrency is Polkadot's own token

Staking 

Staking is the process of deliberately holding cryptocurrencies in an account in order to generate income.

When thinking about what a Polkadot coin is, it is important to understand its purpose and function. The DOT cryptocurrency plays a critical role in the maintenance and operation of the Polkadot blockchain, allowing users who own and bet on DOT to vote to upgrade the network. Each vote is proportional to the amount of cryptocurrency that the user has staked. To encourage staking, Polkadot rewards users with new DOTs based on how many tokens they have staked. The Polkadot blockchain has four main consensus roles and they are all rewarded:

  • Nominees. They protect the chain by making a list of validators and stacking DOTs that are trustworthy to complete the task.
  • Validators. These are the ones hardening the Relay Chain with DOT staking and collator proof checks.
  • Collectors. They mainly support shards. They collect shard transactions from users and then generate evidence for validators to validate the transaction.
  • Fishermen. They monitor network behavior and report suspicious activity to validators.

Staking is one of the three main uses of the DOT token, in addition to financial transactions for management and linking. Parachains on the Polkadot network are public blockchains, private blockchains, or other data sources. Data in Parachains is accessed through specialized nodes, everything is sent to Polkadot, similar to how decentralized oracles work. Parachains are activated by staking DOT tokens and removed from Polkadot by unstaking these tokens. Please note that profitability depends on the performance of the stake pool, changes online, staking volume, supply and demand.

Staking benefits:

  • The threshold for entering this way of earning is quite low. You don't need to invest in expensive equipment and pay large energy bills. For a start, a small investment in the purchase of digital money is enough.
  • It is believed that cryptocurrencies based on the PoS algorithm are much better protected from attacks. This reduces the risk for their owners and therefore for the validators.
  • Passive income that requires minimal attention.
  • Low energy consumption and environmental friendliness.
  • You don't need any special knowledge and skills.
The Polkadot ecosystem operates according to the Nominated Proof of Stake (NPoS) algorithm
The Polkadot ecosystem operates according to the Nominated Proof of Stake (NPoS) algorithm

Investing through an online trading platform

When working on an online platform, working with CFD contracts is practiced.

A CFD is a financial contract that pays for the difference in settlement price between open and closed trades. When concluding this contract, the investor does not need to purchase cryptocurrency. The system fixes the value of the asset at the time of the contract execution and the user's forecast.

The pluses of CFDs on cryptocurrency include the following points:

  • The investor can choose the cryptocurrency in order to enter into a contract for the price difference.
  • Small investment. CFDs allow you to make money on cryptocurrencies without buying them.
  • You can make money quickly. The digital asset market is extremely volatile. This feature opens up a lot of opportunities for investors to make money on the movement of the cryptocurrency rate.
  • You can work with CFDs with leverage. The tool allows you to significantly increase income if the forecast comes true.
  • You can earn money on CFDs around the clock.

Also, for convenience and replenishment of skills, when working on investment platforms, you can use a demo account.

A demo account is a virtual trading account that is given to each user free of charge at his will. On a demo account, you can make trading operations, just like on a real one. 

The main difference is the lack of real money on it. It’s like a school account where you can lose everything and don’t owe anything to anyone.

Purposes of demo accounts:

  • Get acquainted with the interface of the application, trading terminal;
  • Try real trading strategies;
  • See how and what is happening on the online platform.
How to invest in Polkadot in Somalia?
How to invest in Polkadot in Somalia?

Mining

Creation and emission of cryptocurrencies occurs as a result of computer calculations called "mining".

Cryptocurrency mining is the process of issuing new cryptocurrencies and confirming new transactions as a result of computer calculations. Sometimes it is also called simply "coin mining".

Different crypts have different encryption algorithms (but there are also the same ones). The main point of mining is to be the first to solve a computational problem in order to get a reward. Competition in the field of mining is very high. Only one participant can get a block, who will receive all the rewards. It's like a lottery. Naturally, few people will like the situation when you can mine for years and end up not getting anything. Therefore, miners solved the problem using pools.

Recently, more and more people are asked what the mining income depends on and is it worth doing it? Let's consider what affects the profit of miners.

  • Electricity cost. If you mine on your own, then it is advisable to have access to cheap electricity.
  • Initial costs. How much will it cost to farm or rent a hash rate?
  • Mining difficulties. The complexity of mining is constantly growing and therefore the competition is greatly increasing. This growth will continue in the future.
  • Cryptocurrency rate. The cost of a cryptocurrency greatly affects the profitability and relevance of mining.

If we consider Polkadot, then mining on computing equipment is impossible, due to the fact that the system operates on the Nominated Proof of Stake (NPoS) consensus algorithm.

Crypto exchange and crypto wallet

A cryptocurrency exchange is a platform where one digital currency is traded and exchanged for another or for different world currencies. But did you know that there are two categories of cryptocurrency exchanges?

Thus, cryptocurrency exchanges are divided into two main types:

  • A decentralized exchange that operates on the basis of a distributed ledger, does not store funds and personal data of users on its servers and acts only as a platform for finding matches on applications for the purchase or sale of users' assets. Trading on such platforms takes place directly between participants without any financial intermediaries.
  • Centralized is a trading platform where a third party in the person of the administration is used to monitor and protect transactions on behalf of the user, where the blockchain system does not track transactions. But the important difference here is that centralized cryptocurrency exchanges require their users to provide their personal information before using the tools they provide. These exchanges are easy to use and meet the requirements for safe and easy trading.

When working on a crypto exchange, you will need a crypto wallet.

A crypto wallet is a tool that can be used to interact with the blockchain network. 

Wallets are divided into three groups: software, hardware and paper. They can also be called hot or cold, depending on how they work:

  • A hot wallet is any kind of wallet that is connected to the internet. These wallets are quite easy to set up and provide quick access to your balance, which makes them convenient for traders and other regular users.
  • In turn, cold wallets have no connection to the Internet. Instead, they use physical media to store keys offline, making them more resilient to hacking. Thus, cold wallets are a much safer means of storing coins. This method is also known as cold storage and is especially suitable for long-term investors.
Invest in Polkadot
Invest in Polkadot

Polkadot perspectives

So, let's draw conclusions whether you need to buy and invest your finances in Somalia, and also try to make a Polkadot forecast. The developers of the project set themselves global goals and even if they fail, the idea will sooner or later be picked up by another team. However, at this stage, Polkadot has enough competitors, and although the bandwidth of the Polkadot network is much higher, it is still premature to make an accurate forecast. The technical advantages need to be proven in practice, otherwise no major payment network wants to become a parachain, but I would like to note that investing in the cryptocurrency market provides endless benefits. First, the ability to send any kind of data over the blockchain is revolutionizing the sector. In addition, you can transfer data across publicly available open blockchains without permission and take advantage of the best characteristics of each network.

How to buy Polkadot in Somalia through an online trading platform?
How to buy Polkadot in Somalia through an online trading platform?

Thus, Polkadot ushers in a new era of scalability, interoperability and security. In addition, the firm's flexible and adaptive architecture fosters the development of construction technologies, including smart contract platforms. Already, the Polkadot projection has shown many possibilities. Developers can create next-generation applications that get permission from a private blockchain and use them on the public blockchain. 

Summing up the above information, we can conclude that Polkadot is a promising investment.

GENERAL RISK WARNING:
The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose