How to trade DOT on WhiteBIT cryptocurrency exchange


A cryptocurrency exchange is a resource that allows you to buy, sell and trade digital currency. WhiteBIT is a centralized cryptocurrency exchange that allows buying and selling cryptocurrencies Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Ripple (XRP), Dogecoin (DOGE), DOT USDT, The available fiat currencies are the U.S. dollar, the euro, the Ukrainian hryvnia, the Turkish lira, and the Kazakhstani tenge. For margin trading, one can use an up to 20x leverage. In addition to active trading, there is the possibility of investing in a blockchain project with interest payments (staking).

What is Polkadot and how to trade it

Polkadot technology involves the use of PoS consensus, secured by DOT tokens. The owners of the latter have the right to participate fully in the consensus mechanism. They can also vote with stakes on any parachain-related issues. In addition, they take an active part in the creation and modification of the protocol.

DOT cryptocurrency is listed on several exchanges. It is relatively new to the market. The main difference from competing cryptocurrencies is the inability to buy directly for fiat money. This means that the currency can only be bought using other cryptocurrencies. The exchange process is simple — first you buy bitcoin or any other crypto, and then exchange it to Polkadot. 

The DOT first appeared on the market in 2020. The total amount is more than one quadrillion. Today, the market capitalization of DOT is already $17 billion. Interestingly, the price of DOT is $16.05. The cryptocurrency is ranked in the top 100 cryptocurrencies. 

Today, the digital asset is used for trading on spot and futures markets. There are many trading pairs to choose from for a profitable trading.

Basic DOT trading techniques

Polkadot was developed by the Web3 Foundation. This development allows the transfer of data between blockchains and supports multiple chains on the same network. The goal of this project is to solve the problem of slow data transfer between public and private blockchains. Today, with DOT, it is possible to create an individual network with no branching and reduced scalability.

To get started, you need to develop a trading strategy. It is an integral part of successful earning. To form a strategy, you need to study the structure and components of the project:

  • The backbone is the linking components between parachemes and parathreads.
  • The project uses independent chains that are used to form their own tokens.
  • There is a part thread component in the structure. This component adds flexibility and allows an independent use of independent chains in the process. 

The Relay Chain component makes it easier to reach consensus between different chains.

The main advantage of Polkadot blockchain is the use of transactions in a confidential manner. This makes it possible to increase the efficiency by several times. The blockchains they create do not expose user data to the public network. On average, they process more than a million transactions per second. 

How to successfully trade DOT

Users who work on the platform with DOT and bid on it can take part in a voting to update the network. How does the voting work? Each vote is proportional to the amount of cryptocurrency the user has bet on. In 2020, DOT cryptocurrency bets brought many cryptocurrency exchanges more than of 15% annual profit.

Banking on the platform is incentivized through rewards. Users receive a bonus based on the size of the token bet. 

Polkadot’s blockchain has four main consensus roles. On each of them, you can get a bonus. These roles are divided into:

  • Validators. This role is involved in strengthening the relay chain. This is done by summing up the total number of DOTs. Validation is done through collators.
  • Nominators. This role performs a protective function. They form a list of validators that are credible. 
  • Collators. Representatives of this role support shards. What does this mean? They collect user transactions in a given direction. The obtained data forms the evidence of validators. This is one of the effective ways of validation. 
  • Fishers. Holders of this role monitor the network behavior. If there is suspicious activity, they let validators know. 

Many experts believe that working with multiple networks is crucial to improving DeFi and decentralized applications. This means that the Polkadot structure, consisting of a relay chain and an unlimited number of parachains, is an extremely profitable, convenient, and promising project, and it makes it superior to the bitcoin model. This observation is proven by experts.

Polkadot is a safe project that has overcome significant difficulties in a short period. This is proven by experts and users of the cryptocurrency. It shows the work of the team and the project community as a whole, and it says a lot about the team. Today, cryptocurrency trading is a profitable investment in the future.

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