What Is Polkadot? How Can Beginners Trade It?With the intensive progress of the Polkadot mainnet, the market’s FOMO sentiment has gradually been stimulated.
Especially after Polkadot completed the 1:100 token split not long ago, it has pushed the atmosphere of market discussion to a higher peak. CoinGecko data shows that in the past 7 days, the price of Polkadot has increased by 43.2%, and the total market value has reached 5.93 billion US dollars. In just a few days, Polkadot has surpassed many established public chains such as EOS and ADA. In the eyes of many activist investors, Polkadot has the momentum of “stepping on EOS and pointing at Ethereum.”
What is Polkadot?
Polkadot is a public chain, but it is a special public chain. It is composed of multiple chains and can have multiple chains. Why not use a chain?
It attempts to solve the problems of scalability, speed, and cost, allows more personalized blockchains to exist, allows interoperability and upgrades between chains, and allows chains to govern themselves.
Polkadot not only supports the transfer of tokens, but also supports the transfer of data between different chains. Its ultimate goal is to become a cross-chain network protocol, making cross-chain registration and cross-chain computing possible.
What are the biggest differences between Polkadot and Ethereum?
Polkadot and Ethereum 2.0, which are just starting to run, are undeniably similar in the design of the current operating mechanism and the community ecosystem. For example, Polkadot and Ethereum both use Proof-of-stake. , Ethereum’s sharding and Polkadot’s Parachains both use multi-chain design instead of the single-chain design of Ethereum 1.0…etc.
At present, there are 4 major differences between Polkadot and Ethereum in the use process:
- Transaction fee: Ethereum> Polkadot
- Transaction volume per second (tps): Ethereum <Polkadot
- Ethereum is more like a general-purpose blockchain while Polkadot can design different blockchains for different applications
- Ethereum can integrate well with other applications in Ethereum but cannot cross-chain. In addition to integrating with Ethereum applications, Polkadot can also integrate applications with other blockchains such as Bitcoin and EOS.
Polkadot’s architecture and scalability
At present, the TPS of Bitcoin is about 7 and that of Ethereum is about 15, which leads to a very bad transaction experience, slow speed, and high cost, which was especially obvious during the previous peak mining period.
For this reason, Ethereum is gradually moving towards the exploration of Layer 2, especially the practice of the Rollup series. In addition, Ethereum’s sharding is also on the way, although it will take a long time. The picture below shows V God’s vision for the scalability of Ethereum, from 15 TPS to 100,000 TPS.
The price and popularity of Polkadot tokens and Polkadot remain high. While the Polkadot ecology is gradually developing and growing, many exchanges actively participate in the construction of the Polkadot ecology, such as the establishment of the Polkadot Ecological Fund to support project development. What about you? Are you ready to invest in Polkadot, the most topical now?
How Can Beginners Trade It?
If you are ready to in Polkadot, now you must think, “How and Where can I trade it?” It’s easy for everyone, let’s follow my guide, and you can trade like a professional trader!
First of all, you need to choose a trusted exchange, now you must ask, “Which exchange is trusted?” Take my own trading habits as an example, I often trade on Bityard, the world’s leading crypto exchange, providing customers from more than 150 countries with safe, simple and fast digital currency trading services.
The platform simplifies crypto trading for novice traders and offers a concise and easy to understand user-interface, so that’s why I use this platform. You only need 30 seconds to complete the registration and start trading.
After registering you need to deposit and then you can trade! This is how the main spot trading display looks like:
On the left side, there are all the available trading pairs, and in the middle, there’s a simple price chart. On the right, you can find the orders, and below is where you can see the opened positions.
In its initial stage, Bityard focused on crypto contract trading service. With DeFi (decentralized finance) becoming increasingly popular, plenty of currency appearing, the need for crypto spot trading service from the market has become bigger. Hence, with Binance, the world’s largest exchange, as the liquidity provider, Bityard has launched crypto spot trading service with more than 30 mainstream currencies including Bitcoin and Uniswap, to create a more comprehensive digital asset trading service for global users.
Although the bandwidth of the Polkadot network is much higher, it is still too early to make accurate predictions. Technical advantages need to be proven in practice, otherwise, no major payment network hopes to become a parachain. In terms of investment, DOT tokens are expected to be used for short positions, but the feasibility of long-term deposits is still in doubt. Don’t forget the need to decentralize your investment portfolio.
In my opinion, Bityard is the platform that allows investors to trade a wide range of cryptocurrencies, including DOT, BTC, DASH, ETH, EOS, LINK, XRP, TRX, USDT, LTC, ETC, etc. Bityard also enables investors and traders to indulge in margin trading and enjoy the leverage of up to 5 times. Instead of looking at my narrative, let’s try it now!