Is Polkadot (DOT) overdone? Latest explanation of cryptocurrency characteristics, future price forecasts and future prospects

Is Polkadot (DOT) old? We will explain the characteristics, outlook, and future prospects in this article. Polkadot is a blockchain project run by the Web3 Foundation, and although it was initially an unknown coin, it has now become quite well-known. We will explain the main features, past price trends, and future outlook for Polkadot.

What are the characteristics of Polkadot (DOT)? Advantages and disadvantages

The cryptocurrency Polkadot is a blockchain project run by the Web3 Foundation, led by Gavin Wood. This is a project launched in 2016. The main token “DOT” will be used for all purposes within the Polkadot ecosystem. Polkadot has the following features, so we will introduce information such as the official website.

Currently, the core currency that supports the Polkadot network is the DOT token (symbol: DOT). The DOT token is generally written as “Polkadot”, which is the same as the name of the blockchain. Polkadot is a relatively new blockchain that was launched in recent years. However, due to its high utility, investors have invested in it, and it has become quite famous among altcoins.

Interoperability functions that connect blockchains

Many blockchains, such as Bitcoin (BTC), are not compatible because they have different specifications. However, the emergence of Polkadot Chain has made it possible for different blockchains to interoperate. Polkadot Chain has implemented a function called bridge, and this technology has made it possible to interoperate.

Advanced security

Polkadot is able to interoperate with external blockchains and blockchains (parachains) independently developed by Polkadot by connecting them to Polkadot’s main chain. By connecting with other blockchains, security performance can also be shared. Its value is increasing as it has the advantage of providing advanced security performance.

Blockchain can be developed freely

Polkadot provides development tools that allow you to freely develop blockchain. A framework for blockchain development called Substrate is available to the general public, and by using it, you can specifically create new blockchains and data yourself. It also helps prevent and enable hacking.

Staking is possible

Polkadot has staking, which allows you to earn rewards just by holding currency. Staking is not an investment method that allows you to win by using techniques such as trading rules and technology, but it is an investment method recommended for beginners because you can earn a yield just by depositing it. A good way to buy is to invest when the stock goes down on the chart. Let’s hope that the price will exceed the highest value 5 or 10 years after getting serious.

Holder has the right to decide

The content of many ecosystems is determined not only by the holders of the virtual currency, but also by the surrounding environment of the company, such as developers and exchanges. Therefore, in the case of Polkadot, an ecosystem that is attractive to owners tends to develop because only the owners of the native token “DOT” have the authority to make decisions and approve changes to specifications.

What is the future outlook and future potential of DOT?

Some people say that the cryptocurrency Polkadot really has no future, but what is the actual reason, and what will happen to this token and project from now on? Here are the highlights. Anxiety may be resolved for the following reasons. Of course, it is already recognized as a financial product on par with Dogecoin (Doge) and Adacoin (ADA). It will continue to be evaluated.

Market price trends

Below is a monthly chart of coinmarketcap quotes until 2024. Polkadot’s price has been growing very steadily since it was listed in August 2020, although it repeatedly rose and fell in the early stages. Until the first half of 2021, there was a sharp rise and a bubble. DOT had been growing steadily, but prices began to plummet from the end of May of the same year. This is due to the fact that the entire cryptocurrency market has fallen directly into recession. However, from 2022 onwards, sales will recover and there will be a gradual up-and-down trend, so there is hope for this, so it is an opportunity to invest these days.

Source : https://coinmarketcap.com/

Will it become easier to operate in the DeFi market?

Polkadot is already operational in many DeFi markets. Now that applications are interoperable, users will be able to easily move tokens and NFTs between various parachains, decentralize applications in gaming categories such as DeFi and GameF, and even use polka It is said that the dot will become an important currency and will be used in the future.

Demand is increasing in the stablecoin market

Tether (USDT), a leading stablecoin, has launched USDT on the Kusama Network, which is deployed on Polkadot. Once stablecoins are distributed on the Polkadot network, users will start using the Polkadot network, and demand is expected to increase in the future. Aim for the timing to buy individually. There are predictions that Gachiho will reach its highest price in 5 or 10 years.

Started handling on many exchanges

It is already being handled by multiple companies including Bybit, MEXC, and Bitget in Singapore, and GMO, bitflyer, and coincheck in Japan. It’s easy to buy and get started, and you can just buy from these exchanges, so you can buy according to your purpose, and the hurdles have been lowered. If you catch the trend, the value will increase and there is a possibility that your assets will increase a lot. As development progresses, the era of Polkadot may come as a result. Some people predict that it will surpass Ethereum in 10 years.

projects are increasing

Many projects are being developed on Polkadot. The details of the projects being developed on Polkadot (DOT) are as follows, and it is assumed that the number will continue to increase. Polkadot (DOT), which is on the platform side, is also likely to benefit, and the price is likely to rise, making it more likely to rise.

Recommended virtual currency exchanges where you can purchase DOT

Finally, I will introduce virtual currency exchanges where you can actually purchase this virtual currency. We have compiled the information for your reference. We have selected recommended exchanges that cover Bitcoin, altcoins (Ethereum (ETH), Tether, etc. (USDT), Ripple (XRP)), and where you can invest in a large number of coins. It is an exchange where you can trade using an app or a computer. Each has its advantages and disadvantages, but there is no risk and you can make a large profit by making payments. It is safe because a loss cut is adopted when the amount of loss exceeds a certain amount.

Bybit

Bybit is a cryptocurrency exchange established in Singapore. However, it later moved its base to Dubai and is a virtual currency exchange that is expanding globally. The leverage is quite high at 100 times, and the number of coins handled is over 300, so it is quite fulfilling. Overall, there are plenty of big campaigns and bonus services, which is a plus.

MEXC Global

MEXC Global is a virtual currency exchange established in Singapore, Asia. The main users are Japanese, but it is spread all over the world and millions of users transact every day. It handles over 1500 virtual currencies, and you can also speculate on unknown coins, so it is recommended. The maximum leverage is 200x. News also provides information on coins that are attracting attention.

Gate.io

Gate.io is a virtual currency exchange established in China and may have a suspicious image, but it is currently based in the Cayman Islands and is very safe. It handles the largest number of coins in the world, with over 1,700 issues, making it the most recommended exchange for those who want to speculate. We also communicate through the media when new listed coins are released.

KuCoin

KuCoin is a virtual currency exchange established in Hong Kong, but has now moved to the Seychelles Islands. We have successfully expanded globally as a virtual currency exchange that is traded by 8 million people around the world. You can invest in over 700 virtual currencies. The operation is thorough in verifying the identity of the user, and funds can be deposited at a financial institution and international remittances can be made to the wallet.

BitGet

BitGet is a cryptocurrency exchange established in Singapore. Currently, there are millions of users around the world, and it is popular because it has very solid security. The latest copy trading has been introduced in the industry, and it is very famous and has a large number of registered and participating users. The amount of money will increase because you imitate the buying and selling details of experienced traders, both short-term and long-term. You can increase it starting from a small amount.

Points to note when trading virtual currency

One thing to keep in mind when trading virtual currencies is that taxes are payable when profits are determined, not losses. Please be aware that if you make a similar profit on overseas virtual currency exchanges, you will be required to file a tax return in the future. Downloading transaction history is also popular and quite convenient, and the technology and functions have progressed considerably. If you are buying in-kind stocks, be sure to check as there is a possibility that the prices of the stocks you are holding are soaring without you knowing. Please also check the terms of use online.

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2024.10.08