Buy Polkadot (DOT)
What is Polkadot cryptocurrency?
The Polkadot developers went far and implemented the ability to create networks of other projects based on their blockchain. Such derivative networks are called parachains. Parachain is an independent blockchain with its own token and the ability to optimize functionality for specific tasks and needs of the project. The number of places for parachains in the Polkadot network is limited, such places will be distributed through auctions. Gavin himself has repeatedly said that the Polkadot project is not a direct competitor to Ethereum and will occupy its own new niche in the crypto industry.
Advantages of the Polkadot blockchain:
- Interoperability: The Polkadot network allows blockchains with different consensus models to interact with each other through dedicated intermediaries, and no action is required from the developers or users of these blockchains.
- Security: Polkadot's own security system provides the necessary layer of protection both for the operation of the entire system and for the blockchains, services and applications involved in it.
- Open source: the availability of the code allows anyone to make sure of its reliability, as well as help in finding and fixing bugs, if any.
- Scalability: due to the use of parachains, the total system bandwidth can grow indefinitely. Thanks to this, everyone will be able to connect to Polkadot without slowing down the network.
- A system of incentives and penalties: all network participants, from collators to ordinary users, can receive rewards for actions that contribute to the development of the network. There are penalties for actions that do not comply with the consensus algorithms. It is such a system that should ensure the reliable functioning of Polkadot.
How to Invest in Polkadot in the Philippines?
Today, the cryptocurrency industry has gained great momentum. Many have long viewed digital money as a good investment vehicle. So what is a cryptocurrency? In simple terms, it is something like a digital code that is unique to each coin. This money appears in the digital space, and their unit of measurement can be called "coins". Moreover, these coins are exclusively the property of the virtual world, which does not have a reflection in the real one. But in reality, transfers between fiat money and digital coins are going on more actively than ever. Below are the most relevant ways to buy crypto and invest your capital in the Philippines.
Cryptocurrency comes from complex mathematical calculations.
To solve them, a computer with a lot of computing power is required. Also, for this process, special mining programs are used. The computer participating in this process is part of a single network, on each node of which a common distributed database is stored in the form of blocks. The chain of these blocks is called the blockchain. To create a new block, you need to choose a value that would include the hash (digital signature) of all previous blocks. Thus, the data already written to the blockchain cannot be changed under any circumstances. The longer the chain of blocks, the more difficult it is to find a new block. It is important to understand that with the growing popularity of virtual money, making profit from mining becomes more problematic. This is explained not only by an increase in the number of participants, but also by the arrival of significant financial resources in this market segment.As a result, mining individually becomes simply unprofitable and unprofitable.
Another potential danger is the fact that some cryptocurrencies that have appeared recently do not provide for the possibility of mining.
Polkadot is one such virtual currency. This is due to the fact that the system works on the Nominated Proof of Stake (NPoS) consensus algorithm, in this regard, DOT mining on computing equipment is impossible.
Staking is a way to ensure the performance of the cryptocurrency network and passive earnings.
Currently, DOT is an ambitious project created by some of the leading people in the cryptocurrency world. It is not only popular, but also DOT is a proof-of-stake cryptocurrency. This means that members can receive regular rewards by placing bets - without the need for expensive mining equipment. Polkadot offers a good return on your investment.
How does polkadot staking work?
In staking, you can be either a nominator or a validator. Here you can look at the nominator's manual to understand your responsibilities as a nominator, and the validator documentation to understand what you need to do as a validator. Any potential validator can indicate their intent to become a candidate for validator. Their nominations are published for all nominees, and the nominee, in turn, presents a list of any number of candidates he supports. In the next era, a certain number of validators with the most DOT support are elected and become active.
There are no specific requirements to become a nominator, although each nominator is expected to closely monitor the performance and reputation of the validators they support. Nominations are not a set and forget operation. Once the nomination period ends, the NPoS election engine accepts nominees and their associated votes as input and outputs a set of validators. This “selective decision” must meet certain requirements, such as maximizing the stake for nominating validators and distributing stake support validators as evenly as possible. The objectives of this electoral mechanism are to maximize network security and achieve fair representation of candidates.To explain how rewards are paid to validators and nominators, we need to look at validator pools. The validator pool consists of a portion of the elected validator along with the nominators supporting it.
The general rule of thumb for rewards in validator pools is that two validator pools are paid essentially the same number of tokens for equal work, that is, they are NOT paid in proportion to the rates in each pool.
In the pool of validators, a (configurable) percentage of the reward goes towards paying the validator's fees, and the rest is paid proportionally (i.e. proportional to the stake) to the nominators and the validator. I would like to draw your attention to the fact that the validator is rewarded twice: once in the form of validation fees (if their commission rate is higher than 0%) and once for promoting themselves with a share. If the validator's commission is set at 100%, tokens will not be paid for any nominations in the validator pool.
Investing through an online trading platform
Trading platforms practice working with CFD contracts.
A CFD is a type of bet between two parties on the future value of an individual financial instrument in which both parties agree to settle an amount equal to the difference between the opening price and the closing price of a position. Hence the term "CFD".
In simple terms, if you buy such a contract and the price of the underlying instrument rises, you will receive the corresponding difference from the broker who sold it to you. On the other hand, if the price falls, the difference will be taken from your account.
When working on online platforms, you can use a Demo account. A demo account is a trading account where you can trade virtual money.
Many novice traders often wonder when is it worth starting trading for real money? The answer to this question entirely depends on the accumulated experience in trading. How can you get this experience? The answer is obvious - by trading on a demo account. When opening a demo account, you may also need to select the amount of virtual money to deposit and enter some personal data to identify yourself. The virtual trading platform provides you with a practical mechanism for trading in the financial markets. When you open a foreign exchange account for practice, you get virtual currency that you can use to measure your trading performance.
Crypto exchange and crypto wallet
A cryptocurrency exchange is a trading platform that allows online (24/7/365) trading operations with cryptocurrencies
Now cryptocurrency exchanges have gained great popularity due to the high volatility of assets. In just a day, a cryptocurrency can rise in price by tens or hundreds of percent, and a trader can sell it with maximum profit. The process of buying and selling here is carried out so quickly that you can expand your investment portfolio and significantly increase your capital even in a day with a competent trading strategy. When choosing an exchange, you should rely on such indicators as:
- Reliability rating
- Trading volume
- Money withdrawal
- Payment options
- Site technical support work
In order to actively and successfully engage in cryptocurrency, it needs to be stored somewhere. For this purpose, special electronic wallets are used.
The first and most important question that any new user of digital money asks is how to store them in practice, because of all types of cryptocurrency wallets, each of which has its own characteristics, as well as the pros and cons that result from them , you need to choose the most optimal for each specific case. Since there are a lot of different crypto-wallets, we will try to classify them and outline the main characteristics inherent in one or another type. This will help to understand their advantages and disadvantages, which will give an impetus to make the right choice.
- Hot ones are connected to the network around the clock, which allows you to quickly use your funds at any time, both for sending and receiving. But on the other hand, they are the least reliable, since your private key is on a third-party resource. Such wallets are created by the functionality of a particular service.
- Cold ones are much more reliable than online crypto wallets, since the secret key is under your control (handwritten or printed, or located on a specially designed separate device). There are several types of paper, local, and hardware.
Today, there is a real excitement around the platform and the Polkadot token, because it is a truly revolutionary project. The technology implemented in Polkadot is able to unite all existing blockchains into one ecosystem, which will open up great opportunities for both users and developers. The uniqueness of the system is in the fact that the current validation scheme allows blockchains to interact according to the same rules, at the same time, each individual network is independent and has its own control in the form of its own user system. The project itself and its Polkadot token aroused great interest among developers, as well as is in demand among investors. This was facilitated by a large list of coin advantages:
- A team of renowned developers is behind the project.
- The Polkadot (DOT) cryptocurrency is supported by large cryptocurrency exchanges.
- The platform is interesting and revolutionary in terms of technology.
- Polkadot has a high level of security.
- The project is completely decentralized, and its source code is open source.
- The specific architecture of Polkadot provides the project with high transaction speed and unlimited scalability.
- More and more developers are joining Polkadot through a simple application integration scheme.
- DOT tokens are not only functional, but also have high liquidity.
If we summarize all the above information, then we can say for sure that by now Polkadot is a popular cryptocurrency that is bought and sold on many exchanges. You can buy DOT crypto at many popular sites in the Philippines.