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*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
How to buy
If you live in Ireland, a great way to buy Polkadot is, definitely, this popular broker.
eToro*, one of the main brokers around the world, is registered and licensed, among others, by the Australian Securities and Investments Commission (ASIC).
We recommend eToro because you can create an account for free with this broker, and its fees for trading online are very low. Besides, eToro is available in your language, accepts users from Ireland, it is really easy to manage, and its friendly interface is ideal for those who are starting to trade with cryptocurrencies and stocks.
How to sign up, step by step
The first thing you need to do is click here and fill in the fields on the right: enter your name, email, and set a password.
Now check your email: you have received an email from eToro, click on the link and your account will be verified.
Once on eToro, you just have to click on “Deposit funds”, in the page menu.
There, you can choose how much money you want to add to your account (the minimum is $ 200) and the payment method:
As you can see in the image, the first deposit can be made by credit card, PayPal, or bank transfer.
How to make your first trade
When eToro has confirmed the receipt of your credit, you just have to search for “Polkadot” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
What is Polkadot?
Polkadot is a platform developed by Gavin Wood (co-founder of Ethereum) whose purpose is to allow the transfer of information between different blockchains and solve the scalability problems of these, which also has its own token: the DOT.
Each blockchain, along with its ecosystem, is a totally isolated entity from the rest, so they cannot communicate with each other. Thus, although we can exchange Bitcoin for Ethereum and vice versa, we cannot transfer data from one network to the other.
Added to this are the limitations of each network which, with the progressive increase in their use, end up congested and increasingly slower. In the case of Bitcoin, the network can only process on average 3 transactions per second, which is a very low limit.
On the other hand, Ethereum has even processed 19 transactions per second which may fall short given the large number of decentralized applications operating over the Ethereum network.
These limitations make it highly unlikely that these two cryptocurrencies (and the vast majority) will become a mainstream payment method. To understand this, let's compare with traditional means of payment such as Visa.
According to its official website, Visa can process 65 thousand transactions per second in 160 different currencies, although supposedly on average it only processes a maximum of 20 thousand transactions per second. Whatever the figure, the difference is abysmal.
Add to this the ability of the Visa platform to connect to other platforms such as Paypal, in addition to any bank's own platforms. Knowing the magnitude of the problem, we can now understand more clearly the breakthrough that Polkadot represents for the crypto world.
How much is the difference between Polkadot and other cryptocurrency networks?
Polkadot's complex infrastructure seeks to solve the problems described with a multi-chain platform where different blockchains can be connected, that's right, it connects Bitcoin with Ethereum and many others.
In addition, the platform allows individual chains to exchange information with each other also making it possible to process multiple transactions in parallel which greatly increases the amount of processing.
According to tests conducted in 2020, Polkadot is capable of processing more than 1,000 transactions per second. Although this amount is still far from what Visa processes, the best thing is that this amount can be increased very easily as the number of users and transactions grows.
But like all of them, it works with its own token, the DOT, which is used to pay fees for each transaction made using the Polkadot network. Therefore, as the use of Polkadot is expected to increase, the price of its token, the DOT, is also expected to grow steadily over time.
eToro deposit methods
Within the payment methods accepted on eToro you will find: bank transfer, PayPal, credit card (Visa, MasterCard, Diners, Visa Electron and Maestro), Neteller, and Skrill. There is not much to explain here: making a deposit with eToro is really simple. You just need to go to “Deposit funds”, type a number and select your preferred method.
(Keep in mind that you should be the account or credit card owner, for security reasons).
You can start from $ 200, and there is a limited maximum for unverified accounts. Thus, if your intention is to deposit higher amounts, you should contact Support to verify your account first.
You can make the deposit in any currency you want and eToro will do the conversion to USD. Nevertheless, we suggest depositing directly in USD since the platform charges a commission.
As we have mentioned previously, one of the best things about eToro is its extraordinary simplicity: anyone can trade without having to read endless explanations.
Everyone who has used Twitter, Facebook or any of the most common social networks, has enough skills to operate with the eToro interface.
We will explain, roughly, the registration process and the different sections that you will find on the page.
First of all, you will have to enter all the information that eToro asks for: first and last name, address…
They will also ask you about your previous investment activities.
But don't feel intimidated. The objective is to know more about you and be clear about which financial instruments they should suggest according to your knowledge and experience.
Let's get to know the different sections of the site.
In “Set Price Alerts”, you have, as its name says, the possibility to set alarms on the price of certain securities. It is a very useful tool for when you want to purchase an asset that is falling, but it seems to you that it has not finished falling yet.
“News Feed” is the more “social” section. There, traders can interact and share experiences.
“Discover” includes the tabs “Instruments”, “People” and “CopyPortfolios”. As we discussed in this guide, the financial instruments that eToro offers are:
- Raw materials
- Index funds
The term “social trading” comes to life within “People”: that is where you can duplicate the movements of any investor you choose with just one click.
Using the search bar, you can find the users that you find more interesting: by average profits, types of instruments or risk level, for instance. Just indicate the amount of your investment and eToro will be in charge of replicating the movements of the selected investor, in proportion. “In proportion” means that if you have $ 1000 and the trader puts 10% in an asset, the platform will invest also 10% of your funds (that is, $ 100) in that same asset.
In this part you will also find the three most popular types of CopyPortfolios, which are Top Trader, Market, and Partner.
The benefit of copying to CopyPortfolios instead of specific traders is that this way the risk is more diversified. Besides, the portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain industry is going to have success anytime soon? Then look, because surely there is a CopyPortfolio about it.
* Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.