7 Reasons Why You Should Buy & Stake Polkadot and Kusam
- Written by NewsServices.com
It's difficult to find high-quality investments in today's market. Many traditional investment vehicles have become riskier and less reliable than they used to be. While cryptocurrency markets are still highly volatile and unproven, a few projects offer interesting investment opportunities.
Polkadot (DOT) and Kusama (KSM) are two such projects. Here’s why Polkadot and Kusama are worth considering.
What is Polkadot and Kusama?
Before we consider the reasons to invest, let’s review what Polkadot and Kusama are. Kusama and Polkadot are both platforms aiming to enable users to launch and operate their blockchains. They’re very similar, built on nearly identical codebases. The main difference is that Kusama is a “canary network” designed for experimentation, while Polkadot is the mainnet with a focus on stability. Both networks will eventually be connected by a bridge and have their own native cryptocurrencies, Polkadot’s DOT and Kusama’s KSM. For trading purposes, they're often measured in BTC. For instance, KSM BTC is currently worth about 0.002443 and you should follow this KSM BTC price live if you trade regularly.
Reasons to invest in Polkadot and Kusama
Here are seven reasons why you should buy & stake DOT and KSM:
A strong team backs Polkadot and Kusama
The team behind Polkadot and Kusama is one of the strongest in cryptocurrency. The project is being built by the Web3 Foundation, which Ethereum co-founder Dr. Gavin Wood founded. The team also includes Robert Habermeier (co-founder and COO), Peter Czaban (co-founder and CEO), and Layla Doyle (director of communications) who have a wealth of experience in blockchain, cryptography, and software development.
Polkadot and Kusama are well-funded
Polkadot and Kusama are well-funded projects. They have raised over $100 million from some of the biggest names in cryptocurrency, including Andreessen Horowitz, Polychain Capital, and Parity Technologies.
The funding enables the team to hire the best talent and pay development costs. It also gives the project a safety net in case things go wrong. When staking DOT and KSM, you can be confident that the team has the resources to continue developing the project even if the price of the tokens falls.
Polkadot and Kusama have a strong community
The Polkadot and Kusama communities are both large and active. There are thousands of active members on the official Polkadot Discord server, and the Kusama subreddit has over 10,000 subscribers.
The community assists new users in getting set up and supports those who run into problems. They also contribute to the project's development by testing new features and providing feedback.
Polkadot is designed to be scalable and compatible
Polkadot is designed to be highly scalable. The project uses a unique "sharding" mechanism that allows the network to process multiple transactions simultaneously. This makes Polkadot much more scalable than Ethereum, which can only process a limited number of transactions per second.
Polkadot is also compatible with Ethereum. This means that any Ethereum dApp can be easily ported over to Polkadot. This gives Polkadot a massive advantage over other protocols incompatible with Ethereum.
DOT and KSM are both inflationary tokens
DOT and KSM are both inflationary tokens. This means that new tokens are created annually and distributed to those staking the tokens. The inflation rate is set at 7.56% per year, decreasing over time.
The inflation rate rewards users for staking their DOT and KSM, as they will earn more tokens. This also increases the network's security, as there are more users with a financial stake in the project's success.
Polkadot and Kusama are secured by Proof of Stake
Polkadot and Kusama both use a Proof of Stake consensus algorithm. Users can earn interest on their DOT and KSM tokens by staking them. The interest rate is currently set at 4.17% per year.
Proof of Stake is a more energy-efficient way of securing a network than Proof of Work. It also gives users a financial incentive to participate in the network and helps decentralize power.
DOT and KSM are both tradable on major exchanges
DOT and KSM can be bought and sold on major cryptocurrency exchanges. They can also be stored on mobile, web, desktop, and hardware wallets.
The versatility of DOT and KSM means you can use them in various ways. For example, they can be traded on exchanges, used to pay for goods and services, or even staked to earn interest.
Final thoughts
Polkadot and Kusama are two of the most promising projects in the cryptocurrency space. They help to solve many of the problems that plague other protocols, such as scalability and compatibility.
If you're looking for a project to invest in, Polkadot and Kusama should be at the top of your list.
This is general information only. Obtain specialist investment advice from a licensed professional advisor prior to making decisions.
