Polkadot (DOT) has quickly become one of the top-10 cryptocurrencies by market capitalization, meaning it is a popular cryptocurrency that is supported on many platforms. So how to earn Polkadot (DOT)? Following are 6 ways to earn Polkadot (DOT) for you!
What is Polkadot (DOT)?
Polkadot is an open-source multiple blockchain environment that operates on Substrate, a software development framework. It enables the bundling of lots of different blocks, simultaneously executing them to run parallel to one another.
By using oracle technology, Polkadot has created a decentralised network where various cryptocurrencies can connect and interoperate (‘speak’) with one another without the need for a ‘middleman’. This then creates a multichain that can run at 100 times the amount of the transactions’ throughput as compared to what would’ve been achieved by one Polkadot or Ethereum chain.
In short, Polkadot improves how blockchains communicate with one another, increasing the scalability of transactions.
How to Earn Polkadot (DOT)?
Trade Polkadot (DOT)
When investing, you would acquire the actual Polkadot coins and own these outright. By investing, you would be paying the full value of the Polkadot coins upfront. This at a capped risk – meaning you would only lose what you’ve paid. Note that we don’t offer this on our platform.
When trading, you won’t own the Polkadot coin but you’ll speculate on its price movement on the market. Trading enables you to go both long (‘buy’) and short (‘sell’), (whereas you can only go long when investing).
Crypto Savings Account
Crypto savings accounts may offer you more favorable rates if you agree to lock up your Polkadot (DOT) for a while, or if you hold a platform-specific token. Nexo, for instance, increases interest rates by up to 4% for holders of the platform’s governance token, NEXO. Binance and Crypto.com are among companies that offer greater interest rates to holders who lock their tokens away for months at a time; keep in mind this kind of deposit means you can’t sell Polkadot (DOT) in the event of a sudden downturn.
Some companies in this category stake your crypto to enhance the security of a blockchain, others add liquidity to vast pools of crypto that power decentralized finance (DeFi) protocols, some may lend your Polkadot (DOT) to others and finally, companies may invest your crypto. But they all have one thing in common: They use the money they earn from these activities to pay you regular interest on your holdings.
Stake Polkadot (DOT)
Like many other PoS blockchains, Polkadot requires nodes to validate transactions. The more nodes available, the more decentralized the network is, limiting the chances of successful attacks on the blockchain.
Polkadot staking is the process by which you can submit DOT tokens in a bid to serve as a validator and get rewarded.
It’s important to note that the Polkadot blockchain uses a Nominated Proof-of-Stake (NPoS) consensus algorithm. This means that you can either take the technical, complex route and stake directly as a validator with a node running 24/7—or you can take the simple road and nominate another validator, in which case you’re the nominator. Most people will fall into the latter category.
With an adequate number of validators, the blockchain can also handle more transactions. The Polkadot blockchain can handle as much as 1,000 transactions per second, making it 75x faster than Ethereum, and also significantly cheaper when it comes to transaction fees.
In the future, Polkadot will be able to handle over 1 million transactions per second when parachains and parathreads are in full effect, with numerous decentralized apps (DApps) running in this ecosystem. To handle the load, staking on Polkadot will only become more crucial.
Stakers will receive rewards in the form of Polkadot’s native token, DOT. As a nominator, you’ll be able to participate in the selection of the most reliable validators to keep the network highly efficient.
Similarly, participating in a Polkadot parachain crowdloan by staking DOT also offers rewards from projects vying for a slot, for example in the form of Efinity’s native EFI token.
Polkadot (DOT) Airdropping
Polkadot (DOT) airdrops are essentially giveaways and promotions offered in digital form. Polkadot (DOT) airdrops are sent to the digital Polkadot (DOT) wallets of people on mass.
To further clear the mist:
- Users who connect with new and current Polkadot (DOT) platforms on a regular basis are likely to receive an airdrop at some point
- As part of a larger marketing campaign, blockchain-based developers and organizations distribute free Polkadot (DOT) to members of their communities on mass
- The fundamental concept with newer projects is to offer tokens in the hopes that you, and others, become more interested in the related Polkadot (DOT) project
- How you can qualify to receive airdrops will depend on the Polkadot (DOT) project in question.
Work for Polkadot (DOT)
To work for Polkadot (DOT), you need marketing experience, specifically Polkadot (DOT) marketing experience. While there is overlap between traditional online marketing and Polkadot (DOT) marketing, the blockchain space relies heavily on social media and community building in channels like Telegram and Discord. Good Polkadot (DOT) marketers know how to design and execute campaigns and are aware of subtle differences between projects.
Since Polkadot (DOT) pretty much lives on Twitter, this is your best bet to be hired. Create a track record by writing tweets and/or posts that demonstrate your knowledge or at least the learning process. While you are learning, you can reach out to projects on Twitter and offer to volunteer. Especially smaller startups will be happy about any helping hand. Discord servers are a fantastic learning tool and way to connect with people in the space and learn a lot along the way. Joining a few Discord servers of projects you like is a strong suggestion. In general, anything that draws attention to you or creates a track record will be invaluable later on, no matter how small.
There are a couple of excellent Polkadot (DOT) job boards that will help you find a job and understand what kind of skills are required:
- https://cryptojobslist.com/ — Personal favorite thanks to daily updates and amount of info.
- https://cryptocurrencyjobs.co/ — As good as the previous one.
- https://crypto.jobs/ — Updated regularly but poor user experience.
- https://www.crypto-careers.com/ — Regular-ish updates, not as good as the others.
- https://pompcryptojobs.com/ — Semi-regular updates.
- https://angel.co/company/crypto/jobs — Good, but US-only and account needed.
- https://www.cryptojobsdaily.com/ — Semi-regular updates.
- https://laborx.com/ — Freelance board for crypto work.
- https://jobs.defialliance.co/jobs — Jobs in decentralized finance.
Hold Polkadot (DOT)
The ‘HODL’ strategy, which stands for ‘hold on for dear life’, is very popular among crypto traders. This strategy involves buying and holding your Polkadot.
However, you’ll only use this strategy if you buy and hold when you’ve got a positive outlook on its long-term price.
If your research or trading plan indicates that you should sell your positions to make gains or limit loss, you can set up stop losses to automatically close your position.
Can I Get Free Polkadot (DOT)?
Sure, we can get free Polkadot (DOT) by Polkadot (DOT) faucet, Polkadot (DOT) PTC sites, Polkadot (DOT) Bonities and other ways. It is never too late to start investing in crypto. While it may be tempting to turn to these websites that promise an endless supply of crypto coins, it is not worth the hassle of dealing with identity theft, hacks, and other possible cyber attacks.
Is Polkadot a Good Investment?
Polkadot is a unique asset that has quickly gained traction in the crypto sphere. It uses revolutionary technology to further decentralize the blockchain and allows you to create new chains. However, it has powerful competitors that may outcompete with Polkadot over the long run. But, Polkadot has distinguished itself by creating cross-chain features to connect different blockchains in a seamless fashion. Future projects and uses of Polkadot will ultimately determine the price. Polkadot is a strong force in the crypto world and has limitless potential.
How to Earn More Cryptocurrency?
What Could I Do With My Polkadot (DOT)?
The DOT token is used for staking and governance. There are endless reasons you would want to connect individual blockchains. For one, the ability to send any type of data across any type of blockchain revolutionizes the sector. You could transfer this data across public, open, permissionless blockchains and leverage the best characteristics of each network.
In this way, Polkadot introduces a new era in scalability, interoperability, and security. The firm’s flexible and adaptive architecture facilitates building technology, including smart contract platforms. In this way, developers can start to build next-gen applications that get permissioned data from a private blockchain and use it on a public blockchain. These capabilities have some analysts to suggest that Polkadot poses a credible threat to Ethereum’s dominance.
Where Can I Spend My Polkadot (DOT) Tokens?
Polkadot (DOT) Tokens can be bought or sold on Coinbase and other exchanges
In the crypto market, there are more and more layer 1 platforms such as Solana, Polygon, Celo. The independent operation of current chains is having problems in usage barriers, scalability and asset portability. Polkadot was created to solve those problems, as layer 1 platforms built on parachain can focus more deeply on specific purposes such as gaming, DeFi or transactions, which is a significant change compared to the current blockchains that are all responsible for becoming one for all platforms.
Currently, the network on Polkadot is waiting for the parachain to be ready so that projects can start working on Polkadot, so the expectation about the potential of the project on Polkadot network is worth looking forward to.
More About Polkadot (DOT)
Where Polkadot Came From?
Gavin Wood, a co-founder of Ethereum, came up with the idea for Polkadot and released its white paper in 2016. The next year, Wood and Peter Czaban founded a nonprofit organization, the Web3 Foundation, dedicated to the development of Polkadot. Robert Habermeier, who has a research and development background in blockchains, is also a co-founder of Polkadot.
In October 2017, the Web3 Foundation raised $145 million in Ethereum by selling DOT tokens. However, the wallet storing the ETH tokens was hacked, and about $90 million in funds were frozen. To recoup the loss, the foundation held a private token sale in 2019.
Polkadot rolled out in multiple phases. The initial version of the network launched on May 26, 2020. It completed the launch when its first five parachains went live on Dec. 17, 2021.
Is DOT and Polkadot Same?
The Polkadot token (DOT) serves two main functions within the Polkadot network: it’s a governance token, which allows holders to have a say in the future of the protocol, and it’s used for staking, which is the way the Polkadot network verifies transactions and issues new DOT.
Is Polkadot Expected to Grow?
Experts seem optimistic as well: The Price Prediction forecast the price of Polkadot crypto to trade around $25 in 2022, $37 in 2023, and $84 in 2025. The estimated price rise in the coming five years is $180, increasing by 868%.