Should I Buy DOT Cryptocurrency?

The Polkadot network is a relatively unknown addition to the blockchain umbrella, bringing its DOT cryptocurrency with it. While DOT is not exactly the biggest crypto option on the market, it has been gradually getting more and more attention – but should you actually buy it?

What is Polkadot?

Polkadot (DOT) is an open-source protocol for transfers between blockchains, allowing the transfer of any data, asset, or token. This makes Polkadot an incredibly useful tool for a wide range of purposes, from transferring money to handling movements between servers thanks to a stable multi-chain sharding system.

The main benefit of Polkadot is meant to be how well it scales up – the same system can be used for multiple blockchains at almost any level of complexity, connecting different groups and communities very efficiently. Custom blockchains can also be made using the Substrate network, which has made it a great way for smaller groups to start up their own.

What is DOT?

DOT is the cryptocurrency associated with Polkadot, the token that specifically comes from that network. DOT is meant to help govern the network, manage upgrades, and award tokens when the network is secured. They are a multi-functional currency that can be used in Polkadot or as a standalone asset.

Since DOT is still a cryptocurrency, it can be used in the same way: there are almost 100 million DOT out in the wild at the time of writing this, and they fluctuate quite heavily based on how people are using them. Since they are tied to the Polkadot system, they are not gathered in quite the same way.

These tokens can also be spent to create parachains, the user-created Polkadot networks. This essentially means that your crypto can also be turned into another miniature blockchain if you do not want to spend it conventionally.

What is DOT Holders?

DOT holders are anybody that has DOT tokens – they can spend them to approve or reject any changes being made to the network, meaning that DOT holders can ‘vote’ on what they want to happen with Polkadot.

DOT holders also get to elect a Council, which is the group that does the final approval on all suggested changes. In this system, anybody who is elected can vote with more weight, but the normal DOT holders can still vote them down.

There is also a technical committee, the people behind Polkadot, that have a hand in all major changes. They are able to create emergency proposals if something happens to the network or the DOT cryptocurrency, like a sudden crash or server problems.

Is Polkadot Safe?

Polkadot, and DOT by extension, are both legitimate and safe. Getting DOT through Polkadot means that you have plenty of extra security, and it will only get better as the network gets increasingly popular.

Obviously, when buying DOT from another source, you will want to use a safe platform. The DOT currency itself does not have any added security features over standard crypto because they are just tokens.

Finally, keep in mind that DOT is not any less susceptible to things like stolen accounts or lost passwords. If you take good care of your crypto wallet and avoid giving away too much personal information, then you should be completely fine.

Is DOT Worth Using?

Polkadot (DOT) is an interesting cryptocurrency because it is not just used for conventional reasons. If you have any interest in the Polkadot system, then owning at least one DOT gives you the option of voting towards certain changes and influencing how it grows. If you have enough DOT, you could even build your own parachain for personal use.

All of this means that DOT is actually quite versatile, although not everybody will want to use every feature. None of this stops you from being able to treat it like a normal currency, too, so you can sell it off or trade it away for goods and services.

If you are interested in DOT, then it is definitely worth investigating. The value has a chance to skyrocket in the future since Polkadot is already spreading and becoming more and more popular with certain communities. Even if you do not care about the added functions built into the tokens themselves, they have value, and they work just fine as a cryptocurrency.