Is Polkadot (DOT) A Good Buy?

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Last Updated December 5th 2022
9 Min Read

Is Polkadot a good investment?

Well, Polkadot (DOT) had a wildly successful year, and the crypto market is convinced that it has an even more promising future, which makes it a good investment. Polkadot is still considered to be a relatively new cryptocurrency that is still under development and with a huge potential for growth in the future.

The fact that it has already become a crypto investor favourite has unlimited potential for growth and is still lowly priced makes it a good buy to speculative investors.

Since you are here, we want to assume that you are looking to invest in Polkadot. But you still want to get a better understanding of the altcoin before making the purchase. Let us go over everything you need to know about the DOT tokens to help you make this all-important decision.

What you need to know about Polkadot

For starters, Polkadot has only been around for 2 years. And so far, DOT has turned a net positive ROI, made it to the list of the fastest-growing blockchains and cryptocurrencies, and rose to position 11 on CoinMarketCap’s list of the largest cryptocurrencies. It has also entered into key partnerships with both blockchains and DeFi protocols who are already building or looking to build programs on the Polkadot blockchain.

Polkadot prices were also been on an uptrend and rallied for the better part of 2021. From a listing price of $2.69 on 20th August 2020, DOT token prices increased by 1944.61%+ in the first year of its launch to set an all-time high of $55.00 on 4th November 2021.

Today, even though most cryptocurrencies are trading at a dip, DOT token still manages an overall ROI of 101%+. Moving forward, crypto analysts are convinced that the coin will go on an uptrend trajectory in the next years.  

But what is Polkadot? What could it be worth over the few years? And more importantly, how much should you invest in Polkadot? We discuss all these below. Read on.

What Is Polkadot (DOT)?

Polkadot is a next-generation blockchain that provides a communication and data-sharing medium between two or more blockchain technologies. It is designed with the hope of achieving interoperability for the blockchain world where one network can share data with another seamlessly and in real-time. Additionally, Polkadot presents crypto enthusiasts with a platform for customizing a blockchain in minutes and link it with other blockchain technologies for data sharing.

It was created by Parity Technologies - a company founded by Ethereum co-founder Gavin Wood. To a large extent, Polkadot wants to solve the scalability and high gas fee challenge facing Ethereum and the larger data sharing problem facing the entire blockchain industry.

The disruptive nature of blockchain technology has earned it the nickname “Ethereum Killer”, as it provides the crypto community with everything Ethereum has to offer and more. And the tag is confirmed by the fact that Polkadot has been growing at a faster rate than Ethereum, its blockchain developer pool grew faster than Ethereum or all other perceived “Ethereum Killers”.

But the growth and revolutionary technology appeal notwithstanding, you still want to know if Polkadot is a good investment.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Is Polkadot (DOT) A Good Investment?

A deep analysis of the Polkadot blockchain gives so many hints that the DOT token is a good investment and the ultimate must-have for a serious crypto investor. It has also become a hot topic within the crypto community, which drives more eyeballs to its technology and helps bring in more users - effectively created the demand needed to push DOT prices up.

But the key fundamentals that make us believe that the Polkadot token is a good buy today include:

  • Bullish trader sentiments: Trader sentiment analysis tools are strongly bullish about Polkadot’s future price action. This implies that DOT token investors and the crypto community are convinced that Polkadot token will have a bright future - possibly report unprecedented price growth. And this makes the altcoin a good investment.
  • Analysts point to a sustained uptrend: Reputable analysts and price prediction websites are convinced that Polkadot token prices will continue rising in the foreseeable future. Most are especially confident that DOT token prices will reach $100 over the next few years and set aim for $500 by the turn of the decade, which would mean massive profitability for current investors.
  • Low prices: Weighing Polkadot’s disruptive technology and potential for future growth against its current prices, most analysts are short of saying that the token is undervalued. Currently, DOT is trading around $5.62 with a market cap of $6.4 Billion despite being more scalable and having more possible use cases than Ethereum, which is trading close to $1,300 and has a market cap of $157 Billion. This has investors and crypto market watchers convinced that Polkadot could only go up from here.
  • Sustainable technology: There is fear that a possible ETH 2.0 upgrade will render most “Ethereum Killer” blockchains useless. But this is not the case for Polkadot because it offers more than scalability. It is cementing its position as the blockchain for other blockchains by providing an interlink through which all blockchains can share data. This and the fact it will still be more scalable than the proposed ETH 2.0 foolproofs its future and offers an additional reason why it is a good buy.

Read Also: Polkadot Price Prediction – Will DOT Price Increase in Future?

How Much Should I Invest In Polkadot (DOT)?

There is no standard rule on the minimum or maximum amounts that you can invest in Polkadot. Rather, how much you invest in Polkadot should be dependent on such factors as your investment goals, crypto trading experience, and your disposable income.

Here is an example: Let us assume that your thorough research on Polkadot indicates that the altcoin will have appreciated by 1000% in the next 5 years. And your goal is to earn $1 million from your DOT investment by then. This implies that you would need to invest $100,000 in DOT tokens today.

Note, however, that not even the most thorough crypto research is foolproof. Polkadot, like virtually all other cryptocurrencies, is highly volatile and unpredictable. There are so many factors acting on Polkadot token prices and the crypto market in general, which makes it almost impossible to tell what the altcoin will be worth the next day - let alone 5 years to come.

Check Out: Will Polkadot (DOT) Make Me Rich?

How Much Could Polkadot (DOT) Be Worth?

Crypto analysts are convinced that Polkadot prices will rise again and sustain that uptrend over the next few years. 

According to CoinPriceForecast Polkadot DOT token prices would reach $7.56 by the end of 2025 and break above $13.67 before the end of 2030.

DigitalCoinPrice, for instance, estimates that the Polkadot token will be trading around $25.67 by the end of 2025, to reach $30 in 2027 and $80 in 2030.

Crypto experts at Coinpedia, on the other hand, expect the Polkadot altcoin to close 2025 at $14.2458.

Don't Miss: Is Polkadot (DOT) Worth Buying This Year

Should You Invest In Polkadot (DOT)?

There are more than a handful of reasons why you should consider investing in Polkadot today. These range from the fact that the Polkadot token has a net positive ROI, analysis by both experts and price forecasting websites points to a bright DOT future, and the hugely bullish sentiments from current DOT investors and the crypto community.

There are also subtle opinions that Polkadot could be massively undervalued and ripe for an underground price correction. Some experts are even convinced that the altcoin has what it takes to reach new highs in the future and possibly threaten Ethereum’s dominance as the second-largest cryptocurrency. And all these give traders even more reasons to invest in Polkadot.  

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Key points:

  • Polkadot is one of the fastest-growing blockchains and cryptocurrencies
  • Crypto experts estimate that Polkadot prices will rise again and probably reach $30 in the next 5 years.
  • Some of the factors that convince analysts that Polkadot is a good buy include the fact that its impressive past performance, its highly promising future, its sustainable and highly competitive multi-chain technology, and the fact that it is lowly priced.
  • Polkadot is a good buy, especially for long-term investors.