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Cryptocurrency is always at risk of serious fluctuations. That’s especially true for Polygon’s native currency, MATIC.
But some investors see that as an opportunity, especially because Polygon is still one of the top cryptocurrencies based on its market capitalization of $4.6 billion. Here’s what you need to know about Polygon.
What Is Polygon (MATIC)?
While Ethereum is the go-to platform for smart contracts, its popularity means users may end up paying high gas fees.
That’s where Polygon comes into play. It’s an Ethereum Layer 2 scaling solution. For those new to the crypto lingo, a Layer 2 crypto is built on top of an existing blockchain. In this case, Ethereum is the Layer 1 crypto and Polygon is the Layer 2.
Polygon is designed to scale the Ethereum network and improve its functionality. And it has become popular among decentralized finance platforms, with a strong, rich DeFi and non-fungible token (NFT) ecosystem. The network also claims that it can handle thousands of transactions per second (TPS)—which is pretty quick in comparison to Ethereum’s TPS of around 15.
With its increasing utility, the overall network health and valuation should grow stronger, says Dion Guillaume, global head of public relations and communications with Gate.io, suggesting there is a bright path ahead for this crypto. Currently, Polygon trades for less than a dollar.
MATIC is Polygon’s native token. MATIC can also be used for crypto staking and paying transaction fees. Unlike some other cryptocurrencies with unlimited supply, MATIC is limited, and there will never be more than 10 billion coins in circulation.
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Where Can I Buy Polygon?
Polygon’s MATIC token can be purchased through decentralized exchanges like Uniswap, but it can also be purchased with U.S. dollars or other fiat currency through exchanges like:
- Coinbase
- Kraken
- Crypto.com
There are some cryptocurrency exchanges that offer trading pairs, allowing customers to trade and purchase MATIC with Tether (USDT), a popular stablecoin.
Exchanges that pair MATIC and USDT include:
- KuCoin
- Binance.US
How to Buy Polygon
To invest in Polygon’s native currency, MATIC, follow these steps:
1. Choose a Crypto Exchange
Crypto exchanges act as marketplaces that facilitate buying and selling cryptocurrencies. Although some exchanges are fairly simple, others are intended for more advanced investors, offering features like crypto staking, margin accounts and futures trading.
When shopping for an exchange, evaluate the platform’s security, and look for one with low fees and low account minimums.
2. Buy MATIC
If you open an account and connect it to a funding source—such as a bank account or debit card—you can place your first order for Polygon. Enter Polygon’s ticker symbol—MATIC— and the amount you want to invest, such as $50. Most exchanges allow you to designate an order type.
While you may purchase MATIC with a credit card, we strenuously advise against it. That’s because credit card transaction fees on crypto exchanges often run high. If you use a credit card to buy cryptocurrency, it generally will count as a cash advance and be subject to a higher interest rate than you pay on regular charges.
3. Store Your MATIC
As with other cryptocurrencies, you’re responsible for storing your MATIC investment. There are multiple storage options to choose from:
- Hardware Wallets. A hardware wallet resembles a flash drive or USB drive. It’s a physical device that stores the private and personal keys to access your cryptocurrency. These wallets are not connected to a network or the internet, providing “cold storage,” which is more secure.
- Paper Wallets. With a paper wallet, you can write down the keys or use an app to get a printed QR code to access your cryptocurrency. But paper wallets can be risky—if you lose the paper, you won’t be able to access your cryptocurrency. That means you could lose a significant amount of money.
- Software Wallets. Unlike hardware wallets, which are physical devices that can be disconnected from the internet, software wallets are programs or apps you can download onto your computer or other devices to store your cryptocurrencies. They are less secure than hard wallets, but you can easily access your holdings to buy and sell other cryptocurrencies.
- Crypto Exchanges. Some cryptocurrency exchanges will store your crypto, such as Coinbase and Binance.US. However, using an exchange for your cryptocurrency shouldn’t be a long-term solution due to security concerns.
What You Can Purchase With MATIC
The MATIC token can be used within the Polygon ecosystem. You can use MATIC to pay transaction fees, stake cryptocurrency, or participate in network governance.
Whether it makes sense to invest in MATIC is dependent on your finances, goals and overall investment portfolio.
As with any crypto asset, Polygon is risky and volatile. So only invest an amount that you are comfortable with, as cryptocurrencies are risk assets.
