Polkadot Price Prediction – DOT Price

Polkadot (DOT) has been one of the most popular cryptocurrencies in recent years. This is one of the reasons why everyone is talking about Polkadot Price Prediction for the coming years. This virtual currency is currently one of the best in the cryptocurrency market. It has offered several solutions to investors and it continues to expand. 

However, there are some challenges that Polkadot should face in the coming years. This is why it would be important to understand Polkadot price prediction and how this could have an impact on DOT. In this guide, we are going to share with you all the information you should know about Polkadot and whether the price of this virtual currency will continue growing in the coming months. 

What is Polkadot (DOT)?

Polkadot is a blockchain network that enables blockchain transfers of different types of data and assets. That means that Polkadot will give you the possibility to interoperate different blockchain networks and expand their functionalities. 

Basically, thanks to Polkadot’s solutions, it is possible to transfer data, information and assets across blockchains that are not compatible. For example, it is possible to send an asset from Bitcoin (BTC) to Ethereum (ETH) without having to be worried about blockchain compatibility. 

This crypto and blockchain project has also created the so-called DOT virtual currency. This digital asset lets investors earn rewards through staking and also vote for different initiatives and improvements (governance). 

One of the easiest ways for investors to take part in a blockchain network is by purchasing the coin behind it. In this case, DOT users would be able to stake their funds and use them to make decisions about the future of this blockchain network. 

Each blockchain would be connected to Polkadot, which would work as a relay chain. Thanks to Polkadot’s blockchain architecture, it is possible to prioritize decentralization, speed and security, which is something that the cryptocurrency market has been trying to deal with for many years. 

Thanks to its interoperability solutions, Polkadot enables cross-blockchain transfers through a scalable and decentralized blockchain network. Participants can easily create custom blockchains in minutes thanks to the Substrate framework and connect their chains to Polkadot. 

Another thing that is worth taking into consideration is related to the fact that Polkadot works with a Proof-of-Stake (PoS) consensus algorithm. This consensus algorithm is less energy-intensive than Proof-of-Work (PoW), which is used on top of Bitcoin. Hence, Polkadot is more energy-efficient than other blockchain networks in the market. 

Despite the fact that it is more energy-efficient, this blockchain has also a clear focus on privacy. Thanks to its novel data availability and validity scheme, chains can interact with each other in a meaningful way. Finally, thanks to its sophisticated governance system, all stakeholders have a voice. 

That means that network upgrades will be coordinated with the community without having to fork the network. Furthermore, the network remains future-proof and community-driven. 

Polkadot Price Over the Last Few Years

Let’s now focus on Polkadot’s price over the last few years. If we want to have a clear Polkadot (DOT) price prediction, then we should also understand what happened with this virtual currency in the market. 

According to data shared by CoinMarketCap, there have been several periods with positive growth for DOT while others have been relatively negative. Basically, DOT has followed the general trend of the market in recent years. 

The first period that we see is 2020. During the second half of 2020, DOT was traded between $3.75 and $6 per coin. Most of the time, DOT was close to $4.5. This was just the beginning of this virtual currency that started to move higher in early 2021. 

In the first months of 2021, Polkadot was able to reach the incredible price per coin of $40. This allowed a large number of investors to register massively large profits. The coin remained close to $36 for several months (between February and April. This is when the digital currency was able to move higher and hit $44 per coin. 

Indeed, DOT surged in April to $45 for the first time in history. The price of this virtual currency remained at these high levels for some weeks before falling to $29 in mid-April. But things turned bullish once again before starting a bear trend. DOT surged to $48 per coin in May 2021, when Bitcoin (BTC) was reaching an all-time high. 

Between May and the last days of July, DOT’s price started to move lower due to a bear market that affected the whole crypto industry. The bear market lasted just a few months, therefore, it was not a massively long bear trend as it happened in 2018. 

DOT fell below $11 for a short period of time on July 20th, and then it started to move higher once again. As you can see, Polkadot price prediction is very difficult to do because we are talking about a volatile digital asset. 

The bull market did not finish with DOT hitting $48 per coin. Indeed, in November 2021, DOT surged above $52 for the first time in history. The digital currency followed the whole crypto market, which was moving higher once again after several months of a bearish trend. Nonetheless, a new correction took place in the market. Since that moment, DOT has been moving lower almost on a weekly basis. 

The coin is now being traded close to $17 and it has a market capitalization of $17 billion. 

How to Buy Polkadot (DOT)?

It is now time to know how to buy Polkadot. If you believe in some of Polkadot price predictions in the market, then you might want to add DOT to your portfolio. Fortunately, over the last few years, several cryptocurrency exchanges have been adding support to fiat currencies. In this way, it becomes easy for users to buy and sell digital currencies in almost all jurisdictions. 

Therefore, the easiest way to buy Polkadot is by using a cryptocurrency exchange. These are platforms that let investors buy and sell virtual currencies in seconds. They are very user friendly and have been created with the goal to facilitate crypto transactions between individuals. 

There are different cryptocurrency exchanges around the world that would let users get access to DOT. However, most of them follow a standard process that includes creating an account at the platform, depositing funds and purchasing the digital currency that you want to buy. 

Hence, the first step that you should follow if you want to buy Polkadot is to create a cryptocurrency exchange account. You can select the exchange that offers you the best services in your country. 

Then, you will be able to deposit funds. For example, if you live in a eurozone country, you can deposit euros (EUR). Then, you might be able to purchase DOT directly with euros or using another virtual currency such as Ethereum (ETH) or Bitcoin (BTC). This would highly depend on the cryptocurrency exchange that you are using and the trading pairs available. 

Finally, if you want to hold your DOT coins for a long period of time, the best thing that you can do is withdraw your funds from the exchange. You can hold your DOT coins in a hardware or software wallet. This is the best and easiest way to manage your coins. 

Where to buy Polkadot (DOT)?

If you have now decided to buy Polkadot, then we should make sure that we know where to buy this virtual currency. There are different cryptocurrency exchanges in the market that are letting users purchase DOT. Indeed, the variety is huge, which means that you should be able to get access to DOT in most jurisdictions around the world. 

But which are the best exchanges that let you buy Polkadot? 

At the moment, Binance, Coinbase Exchange and Crypto.com Exchange are the largest cryptocurrency trading platforms supporting DOT. 

Binance has now 13 different trading pairs for users to buy and sell DOT with the currencies they want. These trading pairs include DOT/USDT, DOT/BUSD, DOT/BTC, DOT/BNB, DOT/EUR, DOT/ETH, BDOT/DOT, DOT/GBP, DOT/TRY, DOT/BRL, DOT/AUD, DOT/BIDR and DOT/RUB. As you can see, there are many different fiat currencies that would let you buy Polkadot in seconds. 

All these trading pairs represent close to 15.53% of the total trading volume for DOT around the world. Binance might be one of the best options if you want to buy DOT. 

Coinbase Exchange has four trading pairs linked to DOT. These trading pairs include DOT/USD, DOT/EUR, DOT/USDT, DOT/BTC and DOT/GBP. In this case, there are also several fiat currencies supported. Coinbase Exchange has a market volume of 3.17 for Polkadot. 

Finally, we have Crypto.com with four trading pairs. These trading pairs are DOT/USDT, DOT/USDC, DOT/BTC and DOT/CRO. This cryptocurrency exchange now represents 2.31% of the total trading volume of this virtual currency around the world. Each of these exchanges offers different features to investors and users. There are many other exchanges in the market that would also let you buy and sell DOT. 

Polkadot Price Prediction – DOT Price

The goal of this article was to analyze Polkadot price prediction for the coming years. But let us tell you that we are not financial advisors and that all the information shared in this post is just for educational purposes only. Cryptocurrencies are extremely volatile and their price fluctuates at all times. This is why it is very important to make sure that we understand the risks before investing in any digital asset. 

When it comes to Polkadot price prediction, we should know that DOT has always followed the market. That means that it might be highly possible for DOT to continue to behave in this way. Therefore, the market will give information about the direction of the trend but we would not know how high or low DOT could go. 

Polkadot Price Prediction 2022

Polkadot price prediction for 2022 would start with a bearish note. The market has moved close to 50% lower since the beginning of the year. This is why DOT is already down for those investors that purchased it in early 2022. 

The main question is whether there will be a continuation of the bear trend in the coming months. There are many fundamental aspects that we should take into consideration, including interest rates moving higher and a war between Ukraine and Russia. Fundamentals seem to be playing a more important role than technical aspects. 

Polkadot Price Prediction 2023

This trend could continue in 2023. However, considering the difficulties that we have to understand a possible clear direction of the market in 2022, it is also extremely difficult to know what could happen with the Polkadot price prediction for 2023. 

If the market bottoms in 2022, then we could see a recovery from these lower levels. This would help the virtual currency move higher and start searching for a new bull trend. Again, Polkadot will also depend on the entire market and the direction that it takes in the next few years. 

If the market moves lower, then DOT should also move lower. Instead, if Bitcoin moves higher, we should also see this digital currency reaching new highs. 

Final Words

In this guide, we have shared with you all the information that you should have about Polkadot price prediction. As you can see, there are many things to take into consideration when it comes to digital currencies. Fundamentals would also then have an impact on technicals, this is why it becomes so difficult to understand how Polkadot could behave in the next few years. 

Now, we need to know that there are some things that would let Polkadot move higher. This would only happen if the entire cryptocurrency industry starts a new bull trend. But there are some specific things about Polkadot, such as network usage and expansion in the market that could help increase DOT demand. 

Now, in order to understand Polkadot price prediction, it is crucial to see Bitcoin and how it behaves when traditional financial markets move.