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How to Buy Polkadot Coin (DOT) on Binance: Complete Tutorial

Polkadot (DOT) is a relatively new coin in crypto markets, yet it has caused a significant stir. Naturally, every investor and trader has had some interest in this coin. And considering that the value of DOT has been on the rise, you probably want to buy Polkadot to improve your performance. 

There are a number of ways to gain exposure to Polkadot either through CFDs, spot or futures market. Few brokers and exchanges allow you to buy Polkadot in different forms from the same platform, and one of them is Binance. The most popular crypto exchange in the world, Binance not only allows you to buy DOT but also provides added features.

Create an account of Binance

Before you can start buying DOT on Binance, you will first need a trading account. If you don’t have one, the process of creating one is easy and shouldn’t take more than a few minutes. Fortunately, we have covered the process in detail in a previous article both on desktop and mobile. Once your account is ready, you’re ready to buy Polkadot on Binance.

Buy Polkadot in the spot market

The first way to buy Polkadot is by buying the coin using either cryptocurrency or fiat. 

  1. Hover over the Buy Crypto button at the top of the page and select how you want to buy DOT. In this example, we selected credit/debit card
  1. In the search window, specify the coin you want by searching for DOT 
  1. Enter the amount you want to spend on your purchase. There are no limits except the level of your account based on trade volume
  1. Once the purchase is complete, go to your crypto wallet to see your Polkadot balance

Another way to buy DOT is by using the advanced trading window:

  1. Hover on the Trade button and click on Advanced
  1. From the trading window, search for DOT and select the cross pair you want to trade. On Binance, DOT has been paired with Bitcoin, Binance Coin, Tether, etc.
  1. Click on the Buy button to initiate the purchase

Polkadot in the futures market

Futures contracts are a derivative financial product that allow investors to bou a product in the future at a predetermined price. Because you only need to provide margin as payment rather than the total value of the asset, brokers and exchanges can provide various advantages such as leverage. Binance does this too, but you need to know how to go about it

  1. From your account dashboard, hover your mouse on the Derivatives button in the top menu bar. When the drop-down menu is revealed, click on Binance Futures Overview
  1. You will be led to Binance’s futures page, where you will be prompted to open a futures account
  1. Next, you will be led to the futures trading window. Read the disclaimer on the right of the page carefully before clicking on Open now
  1. Your futures trading account will now be ready and you can go through the tutorial if you want to understand some of the terminologies used in futures trading
  1. Go back to the trading window and from the search bar search for Polkadot
  1. A price chart for Polkadot futures will appear. From here, you can see a lot of information about the coin including the historical price data and current open orders
  1. You can also perform technical analysis using tools such as moving average, MACD, RSI, stochastic, etc.
  1. When you’re ready to trade, you have a number of options to buy Polkadot. The most straightforward is trading on current market prices. To do this, go to the trading window on the left of the screen, click on Market, enter the amount of DOT you want to buy and click on Buy/Long. You might be prompted to take a quiz before the order is filled
  1. Remember to adjust leverage to the level you want. Remember higher leverage poses higher risk
  1. Alternatively, you can buy DOT through a limit order. This is when you want to buy an asset at a preferred price in the future. Specify what price you want to buy Polkadot at and click on Buy/Long

That’s it, you just bought Polkadot futures on Binance. Keep an eye on your trade to check on how it’s doing in terms of profit/loss.

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