Invest in Polygon in 2022
Polygon (MATIC) is a scaling solution for the Ethereum blockchain. Rather than creating an existing blockchain network, Polygon is built on the Ethereum chain to produce faster and cheaper transactions.
This page covers essential information about investing in Polygon in 2022. We’ll cover topics such as how to buy Polygon and alternative methods to invest.
Best Way to Invest in Polygon in 2022
Polygon is a popular cryptocurrency available to purchase on the top crypto brokers and exchanges. Here are the best platforms for investing in MATIC:
What Is Polygon - Quick Overview
Name and ticker Polygon (MATIC)
Date launched October 2017
Circulating supply | max supply: 10,000,000,000
Blockchain network Ethereum blockchain
Creators Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic
Use-cases Secondary scaling solution for the Ethereum blockchain resulting in cheaper & faster transactions.
Famous backers Mark Cuban
What is Polygon - Explained
The Polygon network was set in motion by four Indian engineers in October 2017. The original idea came from Jaynti Kanani, who saw issues with the Ethereum blockchain in terms of scalability and gas fees. This was evident when the network struggled due to the popular NFT project at the time - Crypto Kitties.
Jaynti Kanani set out to build a team to focus on providing a scalable solution built on the Ethereum blockchain. He introduced Sandeep Nailwal, Mihalio Bjelic, & Anurag Arjun to the project, and together, they became widely successful in their joint venture.
Today, MATIC is able to provide reasonable fees for Ethereum through the utilization of sidechains. The system is safe to use by incorporating the Plasma framework and decentralized proof-of-stake validators. Previously, the Plasma framework was a popular trend among other crypto projects, but Polygon stood out of the pack, beating the competition and becoming one of the most well-known scaling solutions for Ethereum.
Polygon was created to provide a solution for Ethereum scaling. The team set out to transform Ethereum into a multichain system, or the internet of blockchains, similar to cryptocurrencies like Cosmos and Polkadot. However, the difference is that the network uses Ethereum's advantages, such as smart contracts and security.
The purpose of Polygon is to create a platform where people can transfer coins with little fees. This lets users participate in investment opportunities like staking and liquidity pools without paying huge gas fees.
The most notable investor in the Polygon network is Mark Cuban, a billionaire entrepreneur. Mark Cuban is most known for his role in the Shark Tank, where he invests in various businesses. Also, he owns the famous NBA franchise, the Dallas Mavericks.
Mark Cuban has experience in many tech sectors. His involvement can potentially help with MATIC adoption by assisting with anything the founders need like advertisements, crypto integrations with his businesses, etc.
Social Media Followings
Polygon has a huge following in social media where they mostly announce new developments. The best platforms to hear about the upcoming features in MATIC are Twitter, Reddit, and the Polygon Blog.
However, those who want to see the community's feedback can join the Polygon Telegram. Their channel has over 70,000 users that discuss new announcements, how to buy MATIC, and investment options. Also, the chat admins are happy to help users with any questions they have about the project.
How To Buy Polygon
To purchase MATIC, you’ll need to use a platform that offers exchanges for the token. Thankfully, Polygon is a well-known coin available to buy on most crypto applications. Here are the main platforms that offer easy solutions for investing in Polygon.
Brokers: MATIC is available on crypto brokers like eToro. These platforms sell derivative products and do not convey ownership of real cryptocurrency. They are a great way of investing in Polygon without technical skills.
Centralized Exchanges (CEX): Almost all established exchanges offer Polygon with several trading pairs. Crypto exchanges also provide investment options like staking, lending, and liquidity pools. The top platforms for buying MATIC are Binance, CoinBase, Kraken, and KuCoin.
Decentralized Exchanges (DEX): Decentralized platforms connect buyers and sellers like centralized exchanges. They are not controlled by a singular entity and are unregulated. DEXs have a great selection of coins and let investors buy coins anonymously.
P2P: Buying Polygon through person-to-person trades offers the best fee rates since there is no middle man. However, when swapping coins, make sure to wait with the other person until the transaction completes. This is to prevent yourself from being scammed.
Crypto ATMs: Crypto ATMs are getting widespread adoption, with thousands being deployed worldwide. They work like regular ATMs but let you acquire cryptocurrencies instead of depositing fiat money. However, crypto ATMs have larger fees compared to the other platforms we’ve mentioned.
How To Sell Polygon
You can sell Polygon with the same method you used to buy the coin. We’ve mentioned the most popular types of platforms to exchange MATIC above. However, perhaps the easiest platform is a crypto exchange because it offers multiple trading pairs with accurate real-time prices. Here’s a step-by-step guide to sell MATIC with an exchange:
Step 1: Open an account with your selected exchange and verify your account.
Step 2: Then deposit money into the account using your preferred payment method.
Step 3: Navigate to the trading interface and select the relevant trading pair. For example, if you hold Tether, choose the USDT/MATIC pair.
Step 4: Exchanges automatically set the trade to a market order, which takes the best available price for the crypto. Write the amount you want to sell in the required section.
Step 5: After, review the order and click the “sell” button. Now you can see your balance change in the exchange wallet.
Most crypto platforms follow the same steps to sell MATIC, so you can use this as a general guideline. Also, exchanges and brokers require you to verify your identity after creating an account. This is to comply with KYC regulations and prevent illegal activities on their platform.
Moreover, we advise you to check the fee structure of the crypto platform before selling. This is because exchanges and brokers have different rates that can negatively impact your profit.
Alternative Ways to Invest in Polygon
Due to Polygon’s popularity, the coin is available to purchase in various traditional forms of investing like derivatives. This lets investors buy into Polygon without having the technical knowledge of trading. Here are some options of alternative ways to invest in Polygon.
ETFs (Exchange-Traded Fund) is a basket of assets that can be sold on an exchange. They combine multiple assets like commodities, cryptocurrencies, stocks, and more.
An index fund is a portfolio of cryptocurrencies combined into a singular product. This lets you diversify your investment without needing to track and trade multiple coins.
A mutual fund is an investment vehicle that pools multiple clients’ money and invests in various cryptocurrencies. This lets clients diversify their portfolios and reduce their investment risk.
Trusts are legal arrangements that allow investors to place assets in a unique account to benefit another person or entity. They are often used to hold money for younger family members until they reach the legal age to make investment decisions themselves.
Cryptocurrency wallets can store and exchange coins through their application. They automatically connect to exchanges and make trades on your behalf.
Is It Safe to Invest in Polygon Right Now?
Cryptocurrency assets are extremely volatile and have huge risks associated when investing. Therefore, we recommend researching the Polygon project extensively and doing your own due diligence before investing. Also, incorporate an investing plan for Polygon to minimize losses. More than 70% of investors lose money when trading CFDs, so consider if you could financially take the loss.
Currently, Polygon sits as the 14th largest cryptocurrency with a market cap of $13 billion. This results in a price of $1.74 per MATIC. However, Polygon reached a market cap of $20 billion at its peak, resulting in $2.87 per MATIC. While the huge value of Polygon means the price won’t increase significantly, there are still some gains to be made.
Polygon is an amazing investment opportunity because of the solution it provides. The network allows transfers on the Ethereum blockchain to be much cheaper and faster. Also, the team behind Polygon are expert blockchain engineers and marketers, making it a promising investment. Finally, the project has received investments from successful entrepreneurs like Mark Cuban.
Remember that crypto is highly volatile, so invest an amount you’re comfortable with.