How and where to Buy Polygon (MATIC) - a Beginner’s Guide
Polygon, previously known as Matic, was built to solve a number of Ethereum-related problems. Because of Ethereum’s high demand, heavy congestion and high gas fees, Polygon founder, Sandeep Nailwal, and his Indian-based team developed a Layer 2 solution, dubbed The Swiss Army Knife of Ethereum scaling, to help resolve these issues.
The best way to visualise a Layer 2 is as a bypass built around a town to ease traffic congestion and prevent structural damage. In tech, this bypass is called a sidechain that assists computational throughput and, in turn, hugely improves transaction speeds. With Polygon, its side chain is EVM compatible, meaning that it is compatible with Ethereum’s Virtual Machine, a special state machine where all of Ethereum’s smart contracts and accounts are contained. It is this compatibility that makes Polygon so valuable.
How long will Polygon be useful to Ethereum in this way, in light of the latter’s upcoming Merge, also known as Ethereum 2.0? The jury may well be out, but those close to the project believe it will retain its value to the smart contract behemoth. Besides, Polygon’s success is not entirely dependent on Ethereum; with more than 7000 dApps built on its network, and counting, Polygon more than holds its own. This article goes into more detail about the platform, its native token, MATIC, plus where and how you can buy Polygon.
Buy Polygon with your Favourite Payment Method on eToro
eToro is one of the first cryptocurrency providers that allow you to buy using many payment methods as well as other services. The actual process is very simple as well and one of the reasons we do recommend eToro for both beginners and experts.
Step 1: Registration
To get started, you'll need to register with eToro. It is free to sign up and you don't need to deposit right away, which means you can get used to the platform before going live.
Step 2: Deposit
Once you're happy with the platform and ready to buy for real, it is time to deposit some money into your account. Click the deposit button in the bottom left, then choose your payment method of choice . Enter the amount you want to deposit, we'd recommend starting low before adding extra over time.
Step 3: Start Trading
Now your account is live and ready to go, the process is like any other CFD provider, you will need to search for the coin you want to buy, be it bitcoin, ethereum or whatever your preferred choice is. Hit the 'Buy' button and then 'Trade', make sure you understand your risk parameters before you jump in.
How to buy Polygon in 3 easy steps
1. Create a free account
Find a good broker or cryptocurrency exchange and sign up for an account. Below are some excellent exchanges to consider. You’ll need some sort of photo ID such as a passport or driver’s licence and you may need to complete a face scan for added security using your phone. This process is known as KYC.
2. Fund your account
Now that your account is set up, you’re nearly ready to buy some MATIC. Before you can do this, however, you’ll need to transfer some funds. In your exchange, go to your crypto wallet and find the section dedicated to deposits and withdrawals. Next, pay in some money with a debit or credit card taking into consideration the platform fees. There may also be an option to make a bank transfer along with other payment methods such as PayPal etc.
3. Buy Polygon (MATIC)
Find the search bar of the exchange and type in MATIC. You’ll see a list of MATIC pairs. Choose the appropriate pair for you. For example, if you have Bitcoin, choose MATIC/BTC. Here, MATIC is the base currency and BTC is the quote currency. If you don’t have the quote currency yet, you’ll need to buy this first. The most popular quote currencies include stablecoins such as USDC and USDT, Bitcoin (BTC), and Ethereum (ETH). Now that you have your quote currency, use it to buy MATIC.
Where to buy MATIC
There are a number of brokers and exchanges where you can buy Polygon. Below are a few of the best options available:
eToro has a user-friendly interface and around 50 cryptos to trade, including Polygon’s MATIC token. With a strong emphasis on support and customer service, eToro is the world’s leading social trading platform. It allows users to copy successful traders and, for this reason, is ideal for beginners.
Coinbase is the first, and currently only, cryptocurrency exchange to achieve a public listing on the New York Stock Exchange. With an excellent academy and crypto-earning quizzes, this highly regulated crypto exchange is also an ideal jumping-off point for beginners.
Nexo leads the way when it comes to earning interest on your holdings. So, if you plan to buy and hold your MATIC tokens for any period of time, use the Nexo platform and earn high yields.
Where is the best place to store Polygon?
If you plan on staking your MATIC tokens you’ll need to keep your tokens on the cryptocurrency exchange. In this case, the tokens would be held in your exchange wallet.
The other option is keeping your MATIC in a non-custodial wallet such as Metamask. This is seen by many traders as a more secure way to store cryptocurrencies.
Undoubtedly, the most secure way of storing your MATIC, however, is in a hardware wallet. These are relatively cheap and are considered an essential investment for all cryptocurrency holders. Think of your hardware wallet as an impregnable vault that only you can access. The most popular hardware wallets are below.
Things to Consider Before Buying Polygon (MATIC)
What makes Polygon a good cryptocurrency to buy?
Polygon’s MATIC is considered one of the most important and best cryptos to buy. Its rapid escalation to top 20 crypto fame by market cap happened in 2021, and it has remained there ever since. What makes it a good crypto to buy is that it solves a thorny problem for the world’s leading smart contract blockchain platform, Ethereum.
A lot of people wonder what will happen after Eth 2, aka The Merge, when Ethereum makes the final transition from Proof of Work (PoW) to Proof of Stake (PoS). At this point, through sharding technology, it is believed by many that Ethereum will have solved its own congestion issues? However, it’s important to debunk the myth that The Merge is a Layer 2 killer. In short, it certainly won’t make Polygon redundant.
For a start, Ethereum’s sharding technology, which increases transactional throughput, won’t be ready until at least a year after The Merge happens. And Ethereum’s transposition to PoS won’t immediately solve its scalability issues or significantly reduce the network’s transaction fees, either.
The Polygon sidechain, however, is insanely fast—up to 65,000 transactions per second—and incredibly cheap, trumping Ethereum on both counts. For this reason, for the foreseeable future, Ethereum’s developers and users will still need to use Polygon and other blockchains like it.
When is the best time to buy Polygon?
The best time to buy Polygon is usually when the price is starting to go up. It’s notoriously tricky to time bottoms and tops, so buying the token at regular intervals in a downtrend is one of the safest options, and is also one practised by seasoned investors.
If you’re not sure which direction the trend is, look at long term charts including monthly, weekly and daily charts and this should help you get a good idea of the general direction of price.
To increase your chances of buying MATIC at a discount, wait for downtrends to stabilise. This is known as buying the dip. These are the safest times to accumulate any digital asset as the likelihood of the cryptocurrency being oversold and ready to move in the opposite direction, ie up, is greatly increased.
Are there other ways to make money from Polygon?
Many traders make money speculating on the price of MATIC. They do this by using technical indicators to decide when the market will move up or down, and they either go long (buy) or go short (sell) respectively. There are no hard and fast rules about the best way to do this and make consistent profits (there are as many strategies as there are traders) but if this is something you would like to do, it’s well worth buying a few books on technical analysis.
Another way to profit from your MATIC tokens is to stake them and earn a yield on a staking platform. Staking is where you add your MATIC to a staking pool in return for regular rewards, usually paid to you in the same token. The rewards are paid for your contribution to securing the network and providing computing resources.
3 Things to avoid when buying Polygon (MATIC)
When buying Polygon (MATIC), there are a few things to consider. Here are the top three:
Understand your personality type. Are you compulsive with a large risk appetite, or are you cautious and risk-averse? The reason you should know this is so you can get an idea of how you will trade or invest in crypto. Some people like to use leverage on short timeframes and jump in and out of markets to maximise their returns. Others prefer to buy slowly and hold, spreading their risk across a wider portfolio. Knowing yourself and understanding your emotions and what drives you will help you develop the right trading strategy and prevent you from making costly mistakes.
Don’t believe the hype. Before buying MATIC, do your own research. For every cryptocurrency, there is a YouTuber rattling on about it's about to 100x or ‘moon’. If you listen to these people, many of whom get a kick out of shilling their own holdings, you will most likely miss out on the pump and buy in on the dump. To avoid this happening, study the token you want to buy for yourself, understand its value and utility then be patient, invest only when you’re ready, and never, ever FOMO in.
Don’t put all of your capital into one crypto. Similarly, don’t put all of your crypto tokens into one exchange. Even the best cryptos can turn out to be fundamentally flawed and go ‘to zero’, and even the most liquid exchanges can run into trouble and fold. To avoid the possibility of your entire fund being flushed out in a bear market, spread your risk across cryptos and other assets, and spread your capital across exchanges. If you’re not staking, keep your crypto in a hardware wallet.
Key Takeaways (our conclusion)
Polygon is an EVM compatible sidechain that brings true scaling capabilities to users of Ethereum. It helps increase transactional throughput, reduces gas fees for users and leverages Ethereum’s existing security. By connecting blockchains together, Polygon encourages the increased usage of decentralised applications and tools by providing wider channels for more data to flow through.
Ultimately, by providing developers with flexible, user-friendly tools, Polygon is helping Ethereum achieve its transformation into becoming a multi-chain, cross-chain platform. And with more than 7000 dApps available on Polygon and many businesses migrating from Ethereum’s Layer 1 to Polygon’s EVM compatible layer 2 to take advantage of its speed and low cost, Polygon's future seems assured.
Frequently Asked Questions
Since its launch, Polygon has been on a mammoth uptrend moving up from just a $0.003 to print an all-time high of $2.92 an increase of 97,233%. Since then, the token has fallen back to more modest levels but is still far above its initial value.
While nothing is certain, the top 20 leading performers by market capitalisation, of which MATIC is one, have a high probability of surviving a bear market.
Polygon has more than 7000 dApps built on its platform with around 100 that have migrated from Ethereum to take advantage of Polygon’s high speed and low fees.
Yes, Polygon’s wallet is known as the Matic wallet. Users can store their MATIC tokens here and also stake their tokens from the wallet.