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Polkadot (DOT) CFD Trading

Interconnectivity. Interoperability. Scalability. Ecosystem that unites and secures any type of cross-blockchain transfer. Invest in Polkadot and start trading DOT with ATFX today.

Why trade Polkadot with ATFX?

Zero Commissions

ATFX charges no commission on Polkadot CFDs trading, and no bank fees for deposits and withdrawals from your ATFX account, dramatically improving the bottom line for Polkadot traders.

Trading Open 24/5

Trade Polkadot CFDs 24 hours a day, five days a week with the ability to open and close positions as you see fit with ATFX, your preferred Polkadot broker.

Go Long as Well as Short

Trade the ups and downs of Polkadot with our CFDs.

Trade Polkadot on Leverage

With ATFX you don’t own the actual cryptocurrency, but you still gain exposure to Polkadot’s price changes, and you only need to have 50% of the position value as margin. This also means that any profits or losses will be magnified and it is important that you understand the risks involved.

Polkadot (DOT) Price Today

Trading Conditions

Name	Polkadot vs US Dollar
PRODUCT	DOTUSD
MINIMUM SPREADS	0.100
LOTS SIZE (MIN/MAX)	0.1/10
CONTRACT SIZE	100
PIP VALUE/LOT	1 USD
CURRENCY	USD
1:400 ACCOUNTS	1:10 Leverage
1:200 ACCOUNTS	1:10 Leverage
1:100 ACCOUNTS	1:10 Leverage
SWAPS	Refer to Trading Platform
TRADING HOURS* (MON)	00:05-23:59
TRADING HOURS* (TUE-THU)	00:01-23:59
TRADING HOURS* (FRI)	00:01-23:55

What is Polkadot?

Dr Gavin Wood laid the foundation for Polkadot in 2016. He is best known as the inventor of the smart contract language, Solidity. He was also a co-founder of the top smart contract platform Ethereum and was a leading contributor to its first version. Unfortunately, Gavin left Ethereum due to his opposing views regarding the project’s vision. Polkadot crypto is an open-source blockchain platform designed to address the shortcomings of existing blockchain networks. A London-based for-profit organisation known as Parity Technologies initially developed Polkadot. However, a Swiss non-profit Web3 Foundation also coordinates the project’s development. The Swiss entity also funds up-and-coming projects on the network to expand the ecosystem. In 2017, an Initial Coin Offering (ICO) helped the team raise $145 million in funding. Due to a wallet hack, Polkadot ran another two funding rounds in 2019 & 2020, raising $100 million.

Polkadot Network Architecture?

If you are searching ‘how to buy Polkadot coin?‘, you must first understand its fundamentals. Polkadot is a Smart Contract network that employs a novel consensus mechanism known as nominated proof-of-stake. This allows the network to process around 1000 transactions per second. Furthermore, unlike most smart contract platforms, Polkadot is a network of several blockchains.

Polkadot’s base layer only handles DOT transactions and lacks smart contract compatibility. The network draws its smart contract functionality from other blockchains that connect with its relay chain for security. These blockchains are called parachains.

Polkadot Staking & Parachains

Polkadot crypto is a network of blockchains connected to a relay chain. These connected blockchains can be Common Good Parachains, Parathreads or Parachains. Common Good Parachains are blockchains that host critical infrastructure, such as a cross-chain bridge to Ethereum. Parathreads are pay-as-you-go blockchains that can host multiple projects. Finally, parachains are blockchains that a single project can lease for up to 2 years.

DOT is the native cryptocurrency of the Polkadot ecosystem and can be used to pay transaction fees. It also allows holders to participate in an elaborate governance process for the protocol. Polkadot staking is also live, enabling both delegators and validators to earn rewards. Delegate nodes require a minimum of 120 DOT for staking, and the Validator nodes need 350 DOT. There is also a 28-day lockup period for stakers, and the funds of any misbehaving validator can be slashed.

Is Polkadot a Good Investment?

DOT is the native asset of the Polkadot ecosystem. Therefore, its prices are directly tied to the success of Polkadot as a network. If you are asking, ‘Is Polkadot a good investment?‘ You should know that the coin has been in a downtrend since hitting an all-time high of $55 in November 2021. Nevertheless, due to its strong fundamentals, Polkadot’s market capitalization makes it one of the top 10 cryptocurrencies. Therefore, if you’re confident about the project’s fundamentals and believe in Dr Gavin Wood’s vision, the current downtrend could be an excellent long-term buying opportunity. It is significant to note that most of the DOT price action is based on mere speculation as its ecosystem is still in its infancy. Cardano vs Polkadot is one of the hottest topics among crypto enthusiasts. As far as the development is concerned, Polkadot is way ahead of Charles Hoskinson’s brainchild Cardano. While many Parachains are already live on the Polkadot mainnet, most of Cardano dapps are yet to see the light of day.

What affects the Polkadot price?

Like all altcoins, a direct correlation between the DOT crypto and Bitcoin prices can be seen. This factor became evident when the Bitcoin price surged in the 2nd half of 2020. The massive influx of retail investors into crypto pushed the BTC price above $20,000 in December 2020. Since most cryptocurrencies were paired against Bitcoin on exchanges, their prices also went ballistic. Although the Polkadot mainnet went live in May 2020, DOT trading only started in August 2020. In this way, DOT’s listing on leading exchanges perfectly aligned with the start of a Bitcoin bull run.

As the Bitcoin price went on a parabolic run in 2021, the DOT price also soared to record highs. Prices rose as high as $48 in May 2021, generating more than 10x returns in just five months. The chart above shows the surge in the DOT price at the end of 2020. By May 2021, BTC was trading around $60,000 after tagging the highs of $65,000 in April. This was when a sudden Bitcoin crash jolted the whole crypto market. The massive sell-off sent the Bitcoin price below $29,000 in June 2021. The Polkadot price also took an enormous hit and plummeted to $10. This showed that the Polkadot price was tied to Bitcoin’s price action, just like other altcoins. Finally, in the 3rd quarter of 2021, Bitcoin started to recover, and the Polkadot coin followed it higher.

The price correlation between DOT and Bitcoin in the 2nd half of 2021 is quite evident in the chart above. After bottoming out at around $29,000 in June 2021, the BTC price soared to $69,000 in November 2021. All altcoins followed Bitcoin’s move higher, and the Polkadot price touched $55 in the same month. This was a 4,500% price increase from its July 2021 lows of $10.37. The announcement of the first-ever parachain auction in November 2021 increased the demand for DOT. All the participating projects required their community members to stake DOT for bidding. This increased demand took Polkadot from $26 to $55 in just 36 days.

After topping out at $69,000, the Bitcoin price is again in a downtrend. The ongoing bearishness has pushed the Polkadot price into a downward spiral. The coin is now trading at $7.20 (June 16, 2022), which translates into an 87% decline from its November 2021 high of $55. This correlation also suggests that any future Polkadot price prediction depends on Bitcoin’s price action.

What is the circulating supply of DOT coins?

The circulating supply of DOT coins also plays a significant role in its price action. Polkadot initially had a total supply of 10,000,000 coins. However, in July 2020, after a community vote, the supply was redenominated by a factor of 100. Consequently, the DOT supply increased from 10 million to 1 billion. Since the coin doesn’t have a max supply and has 10% yearly inflation, the current supply is 1.2 billion coins.

How can you invest in Polkadot?

If you are wondering where to buy Polkadot, there are several ways through which you can gain exposure to its native asset, DOT. These include spot markets, futures contracts and CFDs. Spot Exchanges like Binance, FTX and Kucoin could be helpful if you have a long-term investing timeframe. However, CFD trading could be a better option if you’re a trader and just want exposure to the volatility of DOT’s price action. CFDs or contracts for difference allow you to increase your position size with little capital, known as ‘margin’. When trading CFDs, you don’t own cryptocurrencies. Instead, you speculate on the direction in which the crypto prices are heading. This makes these products ideal for investors with low initial capital. Another benefit of leveraged products like CFDs is that you don’t have to hold or manage crypto assets on a blockchain.

FAQ

What is Polkadot, and how does it work?

Polkadot is a network of blockchains which are known as parachains. These parachains support smart contracts and are connected to a base layer called the Relay chain for security.

What affects Polkadot prices?

The Polkadot price follows Bitcoin’s price action, just like most altcoins. However, DOT prices depend on the adoption stats and network activity. Major network upgrades and significant news also affect its prices.

How to trade Polkadot or How to start investing in Polkadot?

You can trade Polkadot via a reliable CFDs broker like ATFX.com. You can also buy it from crypto exchanges like Binance, FTX, Kucoin, etc.

What is the best way to trade Polkadot?

The best way to gain exposure to Polkadot is by trading CFDs. This is because CFDs allow you to hold a much bigger position with just a fraction of capital, known as ‘margin’.

What is the minimum amount to start trading Polkadot?

There are no minimum requirements. You can invest as low as $10 on most spot exchanges. You can also increase your position size by trading CFDs.

Why was Polkadot created?

Polkadot was created to unleash the true potential of blockchain technology. Dr Gavin Wood started developing it while considering the shortcomings of the existing smart contract platforms.