How do you buy polkadot like regular stocks?

Since polkadot (DOT) is a currency, and not a company, you can’t invest directly in polkadot as if it were stocks, since stocks are to do with investing in companies.

On the other hand, you can buy and sell polkadot as a currency by signing up to Lunar Block – and you can do everything directly from your Lunar app.

Get the Lunar app now

If you want to invest in polkadot as if it were stocks, there are still some solutions for you. For example, you could buy your way into some funds – ETFs or ETNs – who follow the rate of polkadot. Instead of investing directly in polkadot, you’re investing in a fund, which follows polkadot’s exchange rate developments.

Follow polkadot’s rate here.

What are ETFs and ETNs?

ETF stands for Exchange Traded Fund, while ETN stands for Exchange Traded Note. Both types try to follow the rate developments of a certain market – such as the polkadot market.

So, when polkadot sees a 20% increase in value, a successful ETF or ETN will then also see a 20% increase in value. 

The difference between ETFs and ETNs

An ETF owns the stocks it tries to follow. That means that when you invest in a polkadot ETF, you’re investing in a fund that also owns polkadot. An ETN doesn’t own the stocks it tries to follow. An ETN works similarly to a bond of debt. If you purchase a polkadot ETN, the issuer of the ETN will then be indebted to you. The debt is then of the same value as the rise in value there has been on the market the ETN follows.

But since these are bonds of debt, where there’s no real ownership over actual assets, you could risk that the issuer goes bankrupt. This would mean that you could lose all the money you’ve invested.

With an ETF, the situation would rarely go this sideways. Because the ETF actually owns the assets - such as polkadot - the ETF can then choose to sell their polkadot coins, in order to raise capital to pay back their investors.

There are pros and cons to both types of funds, which you should consider before investing.

How do polkadot ETFs and ETNs work?

When you invest in ETFs or ETNs it works kind of like a stock. This means that gains and losses are taxed after existing taxation laws for stocks. Your investments can either be taxed as income on equity or as capital income, and further after the asset liquidation principle or inventory principle. Exactly as you know it from the regular stock world.

When you’re trading polkadot as a currency, you don’t have access to income on equity. Here, certain taxation rules apply, which you can get more information on here.

Buy polkadot through Lunar Block

When you trade cryptocurrencies, you need to be aware that it carries a large risk . The value of your cryptocurrency can both rise and fall , and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Buy polkadot ETFs and ETNs through Invest

Do you want to invest in polkadot ETFs and ETNs?

You can do it all with Lunar. Download the free app, sign up to Invest , and get started in a few minutes.

We cooperate with Saxo. You’re investing through Saxo Bank when you sign up to Invest. Everything just happens directly from your Lunar app - making it even easier.

Get Lunar for free now

You can also buy polkadot through Lunar Block

ETFs and ETNs aren’t the only thing you can buy via Lunar.

From your app, you can also sign up to Lunar Block , which is probably Denmark’s easiest platform for buying and selling polkadot and other cryptocurrencies. 

Here, you’re not investing in stocks, bonds of debt, or funds – you’re buying polkadot right from the source.

Get Lunar for free now – and sign up to Lunar Block

What you’re getting

  • The world’s leading cryptocurrencies
  • Everything in one app. Buy and sell without a wallet
  • Simple trading platform without buzzwords
  • A low, set trading price of 2,5% for Standard users, 1,5% for Premium users, and just 1% if you have Pro
  • No pointless fees
  • Best crypto prices across three of the largest exchanges
  • Guide to tax reporting to Skat  [Easy tax reporting]
  • Track price developments and set price alerts on currencies you follow

How to get started with polkadot

  • 1

    Download Lunar for free

    Go to App Store or Google Play and download the Lunar app. Find your photo ID, as you need that to sign up.

  • 2

    Sign up to Lunar Block in the app

    Find Lunar Block under “Products” and sign up. You’ll be asked to take a test about crypto first - among others things, it’s to see if you’re aware of the risks. You can learn more about the risks in the app before you take the test.

  • 3

    Buy polkadot with a single swipe

    When we’ve approved you, you can buy polkadot immediately. Choose your cryptocurrency in the app and buy with a single swipe.

Cryptocurrencies can rise and fall

When you trade cryptocurrencies, you need to be aware that it carries a large risk. The value of your cryptocurrency can both rise and fall, and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Cryptocurrency trading is done through Lunar Block. Lunar Block is not regulated by the Danish Financial Supervisory Authority (Finanstilsynet). That means you won’t have the same protection as when trading e.g. stocks or other regulated assets.

We do not counsel

We do not advise on currencies and do not make recommendations for either buying or selling. We can provide factual information about the different currencies, but past price developments are not an indication of future developments.

No information from Lunar Block should therefore be considered as recommendations and all decisions are up to you alone.

Last updated April 18, 2023. We’ve collected general information. Please note, that there may be specific circumstances that you and your business need to be aware of.