Participating in the polkadot auctions is a great way to make a long-term investment approach to crypto, it's an action that requires you to truly believe in the long-term vision of web3.0, and it's a sure fire way to get early exposure to new and successful crypto projects that have already proven themselves.
Participating in one of the many project crowdloan schemes means you first need to own $DOT which is currently ranked #8 of all cryptos on coingecko. You also need the polkadot{.js} extension installed in your web browser, with an active account on the polkadot relay chain which you have transferred some $DOT to. Please make sure you back up your recovery seed password to a secure location, perhaps in a secure password manager like LastPass that has 2FA enabled.
Once you have that sorted, you can hand over your $DOT to be securely locked up temporarily in a wonderful project, I have listed the projects that I recently contributed to below. Read the terms and conditions as you go, but basically if any of these projects win a slot, that means I won’t have access to my $DOT for 2 years, but then I get it all back along with a hefty reward of more tokens for the new project which could end up being worth quite a bit.
How much exactly? Let's look at a really good trading view post a friend of mine did about the success of the Kusama parachain auctions, which have already happened.
Moving on to my picks
Acala — The Ethereum-compatible DeFi and liquidity hub of Polkadot that makes it easy for developers to scale their DAPPs to Polkadot.
Why? Their website's amazing, they have been round for a while and because they are the most popular off the bat and have the best tokenomics in my opinion, with good a good bonus and large chance of winning.
Did I mention they are massive on Defi?
Moonbeam — was created to be an Ethereum compatible
ecosystem that wants to make it easy for existing crypto projects to expand to new markets across different chains. This means all the Ethereum developers out there can simply use their existing skills to build apps that can utilize the polkadot network. Also, their Kusama auction Moonriver did so well, I missed out completely, so here I am now with another great opportunity to get a piece!
Litentry — They want to bring identity to the blockchain, last but not least this smaller fish is trying to do something that I believe is needed in the long term for crypto to go properly mainstream, if we want to pay and do business with our crypto in the physical and governed world. I am all about decentralization, big time, but what I really want is to not need my bank. If I want to do legal things I will need some of my equity mapped to my identity, it stops fraud and is normal outside the crypto world.
There you have it, my three picks… for now. There are so many ways to participate, I chose to go direct for all of them except for Litentry, which had a good bonus scheme through Binance. For Acala and Moonbeamfirst, I contributed a larger sum of $DOT of which I would prefer keeping in the decentralized world, for now.
If you want to see other projects that are applying for a polkadot parachain slot then checkout the current auction leaderboard here
FYI — If you use my link Acala referral link you can get an extra 5% Acala tokens.
I'm new to this, don’t leave me hanging and give us a kind clap (or 50) if you appreciated any of the above, it will give me just the bit of motivation I need to write more.
Many thanks,
Veej
