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Is Now a Good Time to Buy Polkadot (DOT)?

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Is Now a Good Time to Buy Polkadot (DOT)?

Polkadot is a technology that is aiming to connect multiple blockchains. It can be used to transfer data, apps and tokens across multiple blockchains. Its goal is to further decentralize the web and make it easier to transfer items across different chains. This use case is interesting because it is helping to connect multiple blockchains and increase the efficiency of the crypto network. Technology can have a huge impact in a variety of situations.

Is Now a Good Time to Buy Polkadot (DOT)?

The price of DOT has steadily been falling since late 2021 and recently hit a 52-week low. However, this price slide is not unique to DOT, as the entire crypto market has been seeing similar falls in price. 

A few possibilities for the future of DOT will determine if now is a good time to buy.

The first is that the token could continue to slide with the rest of the crypto markets. This trend is entirely possible. While the markets have fallen significantly in the first half of 2022, there could be more room for further downside.

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Conversely, the markets could be nearing the bottom, which would make for a good time to buy DOT. A reversal of current price movements could provide some strong upward price support for the token. 

The final possibility is reliant on Polkadot itself instead of larger market conditions. The project could release new technology that furthers utility, which could drive the price up. On the other hand, a security breach or other mishap could drive the price even lower.

Overall, the token could go in several directions, affected both by crypto market conditions as well as Polkadot itself. 

How Long Will the Crypto Bear Market Last?

While it is impossible to accurately predict the length of a bear market, experts from the NASDAQ see a bear market lasting 1 to 2 years, which means another 18 months. While these are just predictions, they may be able to provide some insight into overall market sentiment.

If a bear market is to last 1 to 2 years, then it is important to use smart investing strategies. Dollar cost averaging is a great strategy that many investors use to mitigate risk. This strategy involves buying a set amount of a token on a fixed timeline (buy 5 DOT once a month). This practice gives investors exposure at all prices.

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Another investing strategy is setting stop losses. This strategy will automatically sell your position at a certain price. Having a stop loss can take the emotion out of investing and allow you to create a concrete plan for your investments. 

Will Polkadot (DOT) Ever Reach All-Time Highs? 

Polkadot’s all-time high is $55, which occurred in November 2021. At this time, it had a market capitalization of over $30 billion and ranked in the top 10 in terms of market cap. In June 2022, it is trading at around $7, with a market cap of around $7 billion. 

For Polkadot to return to all-time highs, it would need to see a nearly 800% price increase. 

While this level is not entirely impossible, it would either require a large amount of time or a big change for the crypto market or Polkadot.

Is Polkadot (DOT) a Good Long-Term Investment?

Polkadot is a unique project that hopes to solve the issue of interoperability in the crypto sphere. As of right now, a variety of projects use the protocol, ranging from NFTs to data collection. 

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Polkadot has laid the groundwork for interoperability, but the future success of the project will come down to the projects that use the technology. New projects will attract more users and increase the demand for DOT. 

Polkadot could be a good long-term investment, but it will largely be dependent on the projects that use the protocol. 

How to Buy Polkadot (DOT)

Polkadot has been around for a few years and is available on a variety of major crypto trading platforms. However, the best platforms to buy Polkadot are Coinbase Global Inc. (NASDAQ: COIN), eToro and Voyager. These platforms are known for their ease of use, security and low fees.

To get started on these platforms, create an account, verify it and fund it. You can often begin trading within 24 hours. 

1 Minute Review

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Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs. 

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.

Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.

Best For

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  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform

Pros

  • Simple platform is easy to operate
  • Comprehensive mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto for learning about available coins

Cons

  • Higher fees than competitors

get started securely through eToro’s website

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Disclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

1 Minute Review

eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features

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Best For

  • Investors looking to CopyTrade other traders
  • Simple user interface

Pros

  • Several major cryptocurrencies and altcoins
  • Expansive network of social trading features
  • Large client base for new traders to imitate

Cons

  • Only 29 coins available
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Voyager is a leading name in the sphere of cryptocurrency investing, giving you access to over 50 tokens and coins. Buy, sell and swap assets using Voyager Crypto’s simple mobile platform available as a free download for iOS and Android users. 

When you invest through Voyager, you’ll pay nothing in commissions, which is a major benefit when compared to other cryptocurrency brokers. Voyager is also one of the only brokers we’ve seen that allows users to earn interest on their crypto investments. 

Though the broker could do more to improve its customer service, it’s an excellent option for beginner investors and seasoned professionals alike.

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Best For

  • Cryptocurrency investors looking for a wide selection of supported projects.
  • Investors who prefer mobile trading.
  • Anyone interested in earning interest on their crypto investments.

Pros

  • Simple, straightforward and intuitive mobile platform
  • Wealth of investment opportunities
  • Allows users to earn interest on select crypto investments

Cons

  • Only available for mobile users — no desktop platform
  • Limited routes to contact customer service team
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How to Store Polkadot (DOT) Safely

While exchanges serve as mediums to purchase and sell cryptocurrencies, wallets serve as a way to store cryptocurrency. Wallets can add another layer of protection to your crypto assets because you have full discretion over your funds instead of the exchange having control over the tokens. 

Hardware wallets are physical devices that store the private codes needed to send crypto. If the physical device is not present to confirm transactions, then crypto cannot be sent.

Ledger is a leading brand of hardware wallet known for its safety and usability. It currently offers Nano S and Nano X models. The Nano S offers basic features while the Nano X is designed for easier use with bluetooth connectivity and a larger screen. 

Once you have purchased a Ledger hardware wallet, you download its software onto your computer and create an account. You’ll be assigned a wallet address (typically a long string of letters and numbers) from which you can send and receive DOT through the wallet.

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buy now securely through Ledger Hardware Wallet’s website

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Launched in 2014, Ledger has transformed into a fast-paced, growing company developing infrastructure and security solutions for cryptocurrencies as well as blockchain applications for companies and individuals. Born in Paris, the company has since expanded to more than 130 employees in France and San Francisco.

With 1,500,000 Ledger wallets already sold in 165 countries, the company aims at securing the new disruptive class of crypto assets. Ledger has developed a distinctive operating system called BOLOS, which it integrates to a secure chip for its line of wallets. So far, Ledger takes pride in being the only market player to provide this technology.

Best For

  • ERC-20 tokens
  • All experience levels

Pros

  • Easy to set up and use
  • Supports more than 1,500 different digital assets
  • Tamper proof
  • Portable
  • Long-lasting battery
  • Bluetooth connectivity features
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How Does Polkadot (DOT) Fit in the Bigger Picture? 

DOT is a governance token, meaning that it is used to vote on proposals and new projects. The project itself is one of the few of its kind and has pretty limited competition. 

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While Polkadot is a unique project, the price of DOT still moves fairly closely with the overall crypto market. Make sure to stay up to date on current crypto prices with Benzinga’s price table. 

So, is Now a Good Time to Buy Polkadot (DOT)?

Polkadot is a project that shows a lot of promise and potential uses. However, the technology is essentially useless if no one uses it. As such, the future of Polkadot will largely be dependent on the projects that use the protocol. 

If you think that Polkadot can reel in new projects, then now may be a good time to buy. 

Frequently Asked Questions

Is now a good time to buy Polkadot (DOT)?

The price of DOT is dependent on several factors, including the project’s success and the overall crypto markets. If you think highly of Polkadot and crypto market sentiment, then now may be a good time to buy. 

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Can Polkadot (DOT) reach new all-time highs?

Polkadot could reach new all-time highs though it is very unlikely in the short term. A move like that would require a nearly 800% increase from its current price. 

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Albania To Start Taxing Crypto-Related Income From 2023

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Albania To Start Taxing Crypto-Related Income From 2023

Authorities in Albania are finalizing regulations that will allow the taxation of income and profits from cryptocurrency investments. The government intends to begin imposing the levy in 2023, after adopting the necessary legislation which has been proposed for public consultations.

Albania Set to Impose Crypto Tax as Early as Next Year

The Albanian state should begin collecting taxes on income from crypto assets as of 2023 in accordance with a new income tax bill, the local English-language portal Exit News reported on Friday. The government also hopes to pass a number of other laws and bylaws this year in order to comprehensively regulate the matter.

The special tax legislation is currently open for public consultations. It introduces the concept of taxing crypto holdings and income derived from virtual assets. The latter have been defined as “a digital representation of a value that can be deposited, traded or transferred in digital form, and that can be used for payment or investment purposes or as a medium of exchange, including but not limited to cryptocurrencies.”

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However, the definition does not cover central bank digital currencies (CBDCs), the report notes. That’s despite a growing number of monetary authorities around the world developing a digital version of their national fiats. The list includes major powers such as the United States, the European Union, China, and the Russian Federation.

The Albanian law also defines cryptocurrency mining as an activity using computing power to confirm transactions and gain virtual assets in exchange. The extraction of cryptocurrencies has been a grey area although law enforcement has been going after illegal mining facilities in the country and pressed charges against some of their operators.

Under the new legislation, any income from crypto transactions or mining will be classified as corporate income when it’s received as a result of business activity. And when the beneficiaries are private individuals, they will have to pay capital gains tax of 15%.

Financial Watchdog Tasked to Expand Crypto Regulatory Framework

Earlier this month, the Albanian parliament ordered the Financial Supervisory Authority (AFSA) to prepare and adopt new regulations regarding cryptocurrencies by the end of 2022. Albanian law allows crypto trading platforms to legally work in the country but no licensed entities are currently operating in Albania, Exit News remarked.

Two years ago, Albania also adopted a law titled “Financial markets based on distributed ledger technology.” While many have welcomed the legislation, critics have questioned whether the small nation in South East Europe, still an EU hopeful, is capable of properly regulating its crypto sector to prevent it from being used for money laundering, something it’s struggling to achieve in the fiat space.

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The legislature referenced a recent report by the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (Moneyval), which recommended additional steps regarding the risks associated with cryptocurrency. In November 2021, the AFSA approved its first two regulations implementing the crypto markets law, which introduced capital and licensing requirements for entities working with digital assets.

Do you expect Albania to adopt comprehensive regulations for its crypto space by the end of the year? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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NHL enters the NFT space partnering with Marketplace Sweet

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NHL enters the NFT space partnering with Marketplace Sweet Abdulrasaq Ariwoola · 42 seconds ago · 1 min read

The NHL partnership with Sweet will offer a variety of digital collectible experiences to its fans, tradable in the marketplace

1 min read

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Updated: June 25, 2022 at 3:59 am

Cover art/illustration via CryptoSlate

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The National Hockey League on Thursday announced its partnership with NFT Marketplace Sweet. This partnership will be the league’s first dive into digital collectibles.

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The partnership, of which the NHL’s players and Alumni’s association are part, will go live in October to mark the start of the 2022-2033 NHL season.

The NHL Marketplace

The NFT marketplace is expected to offer a range of experiences to NHL fans. Including digital collectibles that showcase historical moments, past and present season game highlights, and NHL stars top plays.

The marketplace will also feature gamified collection experiences, specialty packs, and 3D interactive trophy rooms where users can display their collections. Among these offerings there are also dynamic NFTs designed to change based on current team data.

Additionally, fans would be able to buy, sell, collect and trade the collectibles on the marketplace.

However, the announcement did not state which blockchain would host the marketplace.

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NFTs in the sporting space

The NHL  joins a long list of sporting institutions that have embraced digital collectibles.

In 2020, the NBA launched Top Shot NFTs, its digital collectibles marketplace, in partnership with DapperLabs. Likewise, the NFL launched its play and own NFT game while the MLB is to launch its NFT game soon.

However, the extreme sell-off in the crypto market has seen crypto companies pull out of sports deals. This is so as crypto companies strive to stay afloat as the severe sell-off continues in the market.

FTX recently pulled out of a partnership deal with Los Angeles Angels. Similarly, sources suggest a patch deal between NBA Washington Wizards and a crypto company has crashed.

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What Lido staking dominance may mean for Ethereum’s future

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What Lido staking dominance may mean for Ethereum’s future Abdulrasaq Ariwoola · 2 hours ago · 2 min read

The Ethereum community has raised fears of lido staking dominance leading to centralization. What does that mean for ETH 2.0?

2 min read

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Updated: June 25, 2022 at 3:33 am

Cover art/illustration via CryptoSlate

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Lido DAO token holders have commenced voting to determine whether the DeFi platform should reduce its staking pool. The vote is a follow-up to a governance proposal released on June 24.

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The voting process results from a month-long deliberation over Lido’s staking dominance and whether it should limit itself to curb potential centralization risks.

Lido currently holds 31% of all staked Ether on the Ethereum proof-of-stake blockchain, the Beacon chain. The staking dominance has raised fears within the Ethereum community, and critics fear it will threaten Ethereum’s decentralization.

The vote is expected to end on July 1, and the result will determine whether Lido will self-limit or not. Should the majority of voters vote in favor, another vote will take place on how the self-limiting process should work.

Concerns over stETH dominance

In the governance proposal, Lido stated that its staking dominance would give it more voting power once the Beacon chain goes live. As a platform that started to counter centralized exchanges, it argued that such centralized voting power poses an existential threat to the blockchain.

The Ethereum community has raised similar fears about the centralization of voting powers. The DeFi platform currently has around one-third of all staked Ether, which could give voting leverage once the transition to the Beacon chain is complete.

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Vitalik Buterin, the Ethereum co-founder, has argued that no single protocol should have a majority in staking ETH. He opined that such dominance, combined with Lido’s governance structure, is potentially a dangerous point of centralization.

Further, it stated the proposition is premised on the belief that other liquid staking protocols would also limit their exposure. This would effectively allow smaller protocols to meet the supply shortfall.

What Lido staking dominance means for ETH2.0

Ethereum’s transition to a PoS blockchain means it will rely on validators to validate transactions on the blockchain. Unlike a PoW blockchain that requires miners to expend excess energy to solve complex mathematical problems.

However, to operate a validator node, a user must deposit 32 ETH, which is a long shot for many users. Lido, on the other hand, as a staking service provider, allows users to bypass this requirement and earn staking rewards.

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According to data from Etherscan, roughly 12.6 million ETH is staked in the ETH2.0, which amounts to 10.6% of the circulating supply of ETH. Of the 12.6 million ETH staked, approximately 4.2 million have been staked through Lido by 73,369 stakers, making Lido the most used staking pool on Ethereum.

This means, should Ethereum transition to its PoS blockchain with Lido still having the lion’s share of the staking dominance, it would give the DeFi platform excessive influence over transaction verification which many warn could pose a risk. Some concerns include validator slashing, governance attacks, and smart contract exploits.

On the other hand, Lido’s staking dominance could help prevent a takeover by a centralized exchange and ensure the blockchain remains decentralized.

stETH remains depegged

The staked Ether, which is supposed to be pegged to ETH, remains depegged after a wave of massive sell-offs. Speculations have profused about the security of the token and whether its depegging could spell more chaos for the crypto ecosystem.

On June 16, Alameda Capital, one of the largest holders of stETH, dumped its stETH holdings, a massive $57 million. This is coupled with the continued financial troubles of Celsius and Three Arrows Capital, both large holders of stETH.

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As of the time of press, stETH has not gained parity with ETH and is trading at $1,173.

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