How Investors Can Become Polkadot (DOT) Millionaires?
The Polkadot (DOT) team is working to strengthen the connection between different blockchains. Currently, the project's native token DOT is trading below 90% of its all-time high reached on November 4, 2021 at the peak of the bull market.
A large-scale market crash often causes newcomers to panic and quickly sell their properties. However, experienced traders consider such events as an opportunity to establish a reliable medium or long-term portfolio and buy the coins they want at a discount.
Let's find out how much you need to invest in Polkadot now to become a DOT millionaire during the next bull run.
What is a polkadot?
Polkadot is a project created by Ethereum founder Gavin Wood, who wrote the Solidity programming language.
In the year In early January 2016, Wood left Ethereum to work on his own project. As part of the initiative, the developer decided to find a way to increase the interoperability of the blockchain, the main task of which is to “teach” projects to “connect”.
Read more: What is Polkadot (DOT)?
The project was launched in November 2018. Since then, the project developers are constantly working to improve Polkadot. They launched the first phase of the main protocol in May 2020.
In late August 2020, the team underwent a DOT rebranding. As a result, the cryptocurrency was among the top 10 leaders in the market capitalization ranking.
Polkadot's native token performs several functions:
Protocol Management: Token owners control the protocol. For example, DOT owners can determine the transaction fee structure. Protocol Operation: DOT tokens are required for Polkadot protocol operation. Tokens can be likened to the fuel that runs the project. Rewards: Active network members receive rewards at DOT.
The asset currently has a capitalization of $4.88 billion and ranks 14th in the ranking of cryptocurrencies based on market capitalization.
How many tokens do you need to buy to become a millionaire?
You can use the following formula to calculate the number of tokens to buy to become a millionaire when DOT returns to its peak.
Number of polkadots = target size / expected future price
Where:
Target amount: $1 million Expected future price – all time high $54.98
So, to see a million dollar round sum in your account, you need to buy 18,188 DOT. At the current price of $3.80, the coins would be worth approximately $69,114.
Read more: What is Blockchain interoperability?
However, it should be understood that the crypto market is extremely volatile and subject to black swan events. The presented calculations are based only on the current data and assumptions. Always remember to respect risk and money management and only trade with money you can afford to lose.
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