Polygon is a protocol and framework designed to enhance the Ethereum network by enabling cross-chain compatibility. It addresses core issues such as low throughput, high gas fees, and reduced sovereignty. Often referred to as "Ethereum's Internet of Blockchains," Polygon advocates for a network of interconnected Ethereum-compatible blockchains to solve these challenges.
While Polygon faces competition in achieving its goals, many believe it has significant potential for value appreciation. Its relatively low market capitalization suggests room for growth, and the gap between MATIC and its competitors indicates possible upward momentum.
This guide covers everything you need to know about trading Polygon, including where and how to buy it, along with essential tips.
Key Takeaways
- Polygon's primary use case is to connect blockchains, reduce fees, and improve throughput.
- You can purchase Polygon directly or through derivative products like CFDs via brokers such as eToro.
- Acquisition methods include exchanges, brokers, decentralized exchanges (DEXs), and peer-to-peer (P2P) marketplaces.
- Polygon is generally considered a long-term hold.
- Beginners may prefer exchanges, while experienced traders might opt for DEXs.
Understanding Ownership vs. Derivative Products
There are two primary ways to acquire cryptocurrency:
Physical Ownership: You buy the asset at a specified price and store it in a wallet, meaning you own and hold the asset directly.
Derivative Products: These include contracts for difference (CFDs), futures, and ETFs. With derivatives, you agree to a contract that pays rewards if the asset's price rises or incurs losses if it falls. You do not own the underlying asset.
Most derivative products are available only for major cryptocurrencies, so altcoins like Polygon may not be supported. Always check with your brokerage for availability.
How to Acquire Polygon
You can purchase Polygon through various platforms:
Brokerages: Platforms like eToro and Libertex offer Polygon trading.
Exchanges: Most major exchanges, such as Binance and Coinbase, list Polygon due to its popularity. Exchanges typically have lower fees but can be more complex.
Decentralized Exchanges (DEXs): Unregulated platforms like PancakeSwap and UniSwap operate without a central authority.
P2P Marketplaces: Services like Paxful or Binance's P2P feature allow direct swaps between users, often with favorable rates.
Here are two recommended platforms for buying Polygon:
Binance
As the world's largest cryptocurrency exchange, Binance offers over 500 cryptocurrencies and advanced trading tools.
- Competitive fees
- Specialized crypto trading platform
- Insurance on certain purchases
- Centralized
- Costly external wallet transfers
- Less regulated than some brokers
eToro
eToro is a well-regulated brokerage accessible to beginners and experienced traders.
- Highly regulated and trusted
- Easy fund storage without external wallets
- Available in over 100 countries
- High non-trading fees
- Wider spreads than exchanges
- Below-average customer support
Step-by-Step Guide to Buying Polygon Online
Buying cryptocurrency can be daunting for newcomers. Follow these steps to purchase Polygon on Binance:
Step 1: Create an Account
Visit Binance's official website and sign up with an email address and password.
Step 2: Complete KYC Verification
Provide identification documents, including an official ID, proof of address, and a selfie, to comply with regulations.
Step 3: Deposit Funds
Use a credit/debit card, bank transfer, or cryptocurrency to deposit funds into your account.
Step 4: Select a Trading Pair
Navigate to the "Trade" tab, search for "MATIC," and choose from available trading pairs.
Step 5: Execute the Purchase
Decide between a limit order (set price) or market order (current price), enter the desired amount of MATIC, and click "Buy."
👉 Explore advanced trading strategies
How to Trade Polygon
Trading Polygon involves selling it for other cryptocurrencies or fiat currencies. The process is similar across platforms, though beginners may prefer brokers for simplicity, while exchanges offer better rates.
Using Binance as an example:
Step 1: Choose a Trading Pair
Go to the "Trade" tab, search for the pair you wish to trade, and select it.
Step 2: Place a Sell Order
Set a limit or market order for the amount of Polygon you want to sell, then click "Sell MATIC."
Step 3: Confirm the Transaction
Check your wallet or account to ensure the new cryptocurrency is reflected.
Investment Strategies for Cryptocurrency
Two main strategies apply to cryptocurrency investing:
Long-Term Holding (HODLing): This involves holding assets for extended periods, ignoring market volatility, and waiting for significant appreciation. It is popular among bullish investors.
Short-Term Trading (Swing Trading): This strategy capitalizes on market volatility by buying lows and selling highs. It requires analytical skills to interpret market trends.
Storing Your Polygon
After purchasing Polygon, store it in a wallet. Your choice depends on trading volume and holding duration.
Hot Storage
Hot wallets are accessible via apps or websites, ideal for short-term trading. Examples include native wallets on Coinbase and Binance.
- User-friendly
- Suitable for active trading
- Prone to hacking
Cold Storage
Cold wallets require offline verification, offering enhanced security for long-term holdings or large amounts. Ledger is a popular example.
- Highly secure
- Ideal for large balances
- Inconvenient for frequent trading
- Password-dependent access
Payment Methods for Buying Polygon
Common deposit methods include:
Credit/Debit Cards: Direct purchases with convenience fees.
Bank Transfers: Direct transfers from linked accounts, often with higher fees but beginner-friendly.
Cryptocurrency Transfers: Using existing crypto funds, cheapest but complex for newcomers.
PayPal: Supported on some platforms for wallet top-ups, now with crypto acceptance.
Factors to Consider Before Buying Polygon
Evaluate these market factors before purchasing MATIC:
Fee Structures: Platforms charge varying fees for deposits, withdrawals, maker/taker roles, and commissions. These impact overall returns.
Volatility: Cryptocurrency prices can fluctuate dramatically. MATIC has seen highs of $2.90 and lows of $0.03, influenced by market cycles.
Investment Strategy: Use trends and analysis to navigate market peaks and troughs effectively.
Regulations and Taxes: Crypto regulations evolve continuously. Stay informed about local laws, including potential bans or tax implications like double taxation.
Safety Tips for Buying Polygon Online
Ensure security by:
- Using regulated platforms like Coinbase or Binance
- Enabling two-factor authentication
- Storing assets in cold wallets
- Completing KYC for insurance access on hot wallets
How to Sell Polygon
Selling Polygon mirrors the buying process:
Step 1: Select a Trading Pair
Choose the pair you wish to trade under the "Trade" tab.
Step 2: Set a Sell Order
Opt for a limit or market order, specify the MATIC quantity, and click "Sell MATIC."
Step 3: Verify the Transaction
Confirm the new cryptocurrency balance in your account.
Is Polygon a Good Investment?
Polygon ranks as the 13th largest cryptocurrency by market cap, with significant potential to reshape on-chain interactions. Its technical complexity requires thorough analysis, but its growth trajectory remains promising. However, its success is tied to Ethereum's performance, so conduct personal research before investing.
Conclusion
Your experience level determines the best platform for buying Polygon. Beginners should opt for exchanges like Binance, while experienced traders may prefer DEXs for lower fees.
Frequently Asked Questions
Can I purchase MATIC in the US?
Yes, but availability depends on the platform you choose.
What is the minimum age to buy cryptocurrency?
You must be 18 or older to verify an account with a regulated broker or exchange.
Can I buy MATIC without identification?
Yes, if you use a decentralized exchange (DEX).