Why invest in Polygon? What are Polygon Token investment pros and challenges? Here is everything you need to know about MATIC investing.
Polygon is the new and rebranded MATIC network that has shifted its focus to become 'Ethereum's internet of blockchains.' Moving forward, it is aiming to be the one-stop shop for everything Ethereum.
Since the start of 2021, the native token of Polygon, MATIC, has seen a 10x increase in its price. With a growing number of companies and developers adopting Polygon for their dApps, this coin is expected to move further northwards in the market over the course of time.
In this guide, we will explain how to invest in Polygon cost-effectively and straightforwardly using the right online broker. We will also explore how you can craft an investment plan after considering what lies ahead for this innovative digital token.
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- How to Invest in Polygon in 5 Easy Steps - Quick Guide
- How Does Invest in Polygon Process Work?
- Should you Invest in Polygon?
- How to Invest in Polygon - Various Options Available
- How to Choose a Platform to Invest in Polygon
- How to Invest in Polygon Today - Step-by-Step Walkthrough
- How to Invest in Polygon - The Bottom Line
How To Invest In Polygon (MATIC) In 5 Easy Steps
To invest in Polygon, you will first need to find a trustworthy and regulated broker that supports this digital asset, like eToro. This will allow you to set up your brokerage account and enable you to start investing in Poylgon right away.
Step 1: Create an account with a regulated broker.
Step 2: Deposit funds into your account.
Step 3: Specify how much you want to invest in Polygon.
Step 4: Confirm the investment
Step 5: Withdraw and store your Polygon coins in a secure crypto wallet.
This end-to-end process will not take you more than 10 minutes to complete, even for beginners. This is especially true when you are using a regulated broker like eToro, where you can store your MATIC tokens for free.
How Does Invest In Polygon (MATIC) Process Work?
Although MATIC is the governing token of Polygon, outside its native ecosystem, this coin works like any other financial asset.
Put simply, the market value of Polygon goes up or down based on the supply and demand. In this way, this digital token is in no way different from other conventional assets such as stocks or commodities.
To simplify, when the majority of investors are interested in buying Polygon, the demand for the MATIC token will outweigh its supply, leading to an increase in its price. On the other hand, if there are more people looking to cash out on their Polygon investment, this will be reflected by the falling value of the coin.
Here is a practical example that will demonstrate how investing in Polygon will work:
- Your research shows that Polygon is likely to gain more value in the upcoming years.
- You invest a sum of $1,000 into Polygon via your crypto broker - at the price of $1 per coin.
- Over the course of the next four years, the value of Polygon increases to $5.
- You decide to cash out, making gains of 400% on your $1,000 investment.
In other words, your profit on this investment comes to $4,000.
As you can guess, such profits can come to fruition only if the market of Polygon takes a bullish direction after you make the investment. If not, you will be facing losses instead.
Moreover, when thinking of how to invest in Polygon successfully, you should also be clear on your goals. Given the volatile character of cryptocurrencies, it can be easy to get swayed by the market movements of this token.
Crucially, a long-term 'buy and hold strategy’ could help you avoid realizing losses from the short-term volatility of Polygon.
Should You Invest In Polygon (MATIC)?
You might be considering how to invest in Polygon because of the sudden frenzy around it. However, before putting your money in, it is crucial that you are aware of what makes this coin unique and how its future could evolve.
Let's elaborate on some factors that are in favour of the long-term price appreciation of Polygon.
Polygon Solves a Big Problem in the Crypto Industry
Understandably, those who have no tech background or understanding of the crypto industry might be wondering what Polygon is all about. To help you understand this, we should explore the current landscape of this industry.
You might have already heard of Ethereum, which has become the go-to platform for developers to build decentralized applications.
However, there are some integral issues that limit the usage of this system - the main ones being slow transactions and high gas fees. The problem being, if there is no solution to address these, there will not be room for the crypto industry to achieve its full potential.
To tackle this, Polygon serves as a framework that developers can use to create Ethereum-compatible blockchains. In layman's terms, Polygon can help reduce transactional fees by improving the scalability of Ethereum - a feature that will substantially benefit developers.
Polygon has Rebranded
Polygon was launched as a small start-up in Mumbai, India, in 2017 - named the MATIC network. It was originally designed to be a blockchain agnostic - meaning any cryptocurrency network can serve as the parent chain.
The aim was to provide a scaling solution to Ethereum's limits.
MATIC was built on a customized version of the Plasma Network. However, this fascination with the system soon faded, and the Ethereum community had shifted its attention to other frameworks.
This forced the team behind MATIC to rethink and redesign its venture. The result is an exponentially scalable and multi-chain system that has the potential to keep up with the ever-changing demands of Ethereum networks.
The team soon rebranded MATIC as Polygon, and this has turned things around for the project, sending the price of the digital token northwards.
Polygon has since been drawing in collaborations and promotions, which is a promising aspect for investors - including support from Mark Cuban.
Polygon has Just Started its Bullish Movement
Although Polygon has experienced high trading volumes in previous years, this demand was not reflected in its price. Throughout 2020, the value of MATIC tokens has remained well below $1, and it was only in January 2021 that its value started rising.
After starting 2021 at $0.017, the price of Polygon jumped by over 15,000% in the first half of the year. Trading volumes also increased at the same time. As it reached its all-time-high price in May of this year, the market seemed to be in favour of this token.
The following bearish movement was in line with the wider cryptocurrency industry in general.
All things considered, Polygon has performed extremely well in recent times. If this trend continues, the coin experience considerable growth in the upcoming years.
Another advantage to investing in digital coins for the long term is that you can benefit from the staking rewards. Those who own MATIC tokens can stake their assets and let the Polygon network use them in exchange to earn interest.
Currently, you can earn an interest rate of around 15% by staking this coin - although this is susceptible to change. Regardless, this offers a way for investors to make additional profits on their Polygon holdings.
All that being said, it is also important to be aware of the fact that Polygon is not the only blockchain network project. If one of its competitors gains traction, it could affect the price of Polygon.
In addition, Ethereum might also address its current issues when its Eth2 version goes live - which could make Polygon redundant.
As such, before investing your money into Polygon, you should perform thorough research to understand the risks you are taking.
How To Invest In Polygon (MATIC) - Various Options Available
When it comes to investing in Polygon, your options are limited to online platforms. However, this comes as an advantage, as it is easier than ever before for you to invest in this digital token from the comfort of your home.
Online providers available today can be categorized into cryptocurrency exchanges and brokers. In this section of our How to Invest in Polygon Guide, we will look at these two options in detail.
Cryptocurrency exchanges are online platforms where you can obtain Polygon by swapping it for another asset. Such providers are considered one of the most popular and easiest ways to invest and trade digital tokens.
That said, if you pick this option, you will likely need to fund your account in another cryptocurrency. Meaning, you will not be able to invest in Polygon directly with a fiat currency like US dollars or euros.
Instead, you will first have to acquire another digital asset and exchange it for Polygon. Then again, when you are cashing out your Polygon investment, you will not be able to sell it for fiat currency but only swap the MATIC tokens for a different digital asset.
For those who have already built a crypto portfolio, this might not seem like a difficult process. But for beginner traders, this is an unnecessary step that can easily be avoided.
Another thing to be aware of when using crypto exchanges to invest in Polygon is that a majority of them tend to be unregulated. Put simply, this means that these platforms operate without having to adhere to any guidelines set by financial authorities.
As such, if you encounter any problems when making Polygon investments, you are unlikely to have any recourse. This is why you might want to consider regulated crypto brokers - as these are not only more convenient but also more secure.
For the vast majority of people, the objective of learning how to invest in Polygon in order to make financial gains. So why risk your capital by investing using a third-party exchange when you can find a secure and licensed crypto broker for your investments?
When using the services of a regulated online broker, you will be able to benefit from identity verifications, investor protection, and above all, a more secure environment for your Polygon investments.
Furthermore, if your broker is regulated by respected financial bodies, you will also be able to invest directly in Polygon using a fiat currency like US dollars.
For example, eToro is a prominent social trading platform licensed by the FCA, ASIC, and CySEC - as well as registered with the SEC and FINRA in the US.
Along with this heavy regulation comes the convenience of access to multiple payment methods - including debit/credit cards, bank transfers, and even e-wallets like PayPal.
And the best part is that you can invest in Polygon without having to pay any commission via eToro.
And if all this wasn't enough, when choosing eToro - you will not have to spend time looking for a safe digital wallet for your Polygon coins. The platform allows you to store your MATIC tokens for free until you are ready to cash out your investment.
By now, it should be obvious to you why we suggest choosing a regulated broker like eToro instead of going with an unregulated cryptocurrency exchange for your Polygon investments.
How To Choose A Platform To Invest In Polygon (MATIC)
Although online brokers are the better choice, not every brokerage platform is the same. Each varies in terms of the features provided, its trading interface, as well as the fees charged to investors.
Therefore, before you start searching for an ideal crypto broker for your Polygon investments, you should know exactly what you are seeking.
Here are the key factors that can determine which platform will be the best fit for your financial goals.
Licensing and Reputation
As we have established already, if a broker does not hold a valid license from a respectable financial authority, that is your first sign to look elsewhere. Let us elaborate a bit more on why regulation is the most crucial factor.
Financial authorities pursue a variety of objectives - the most important one being the need for preserving stability and preventing fraud. To achieve this, these bodies have several guidelines that are designed to protect investors and mitigate the effects of an economic crisis.
For example, a regulated broker is required to comply with the following conditions:
- To keep company funds segregated from the clients' money.
- To apply KYC controls on all registered users.
- To submit its books for regular audits.
- To clearly display the risks associated with cryptocurrency investments.
Using a regulated broker will thus ensure that your Polygon investments are safe and that your funds are not meddled with.
On the other hand, if you choose an unlicensed platform to invest in Polygon, you will not have any such protection and will thus be putting your capital at risk.
Fees to Invest in Polygon
After regulation, the next factor you want to carefully evaluate is the fees you are liable to pay when making a Polygon investment. Ultimately, brokerage platforms are business establishments that are looking to make profits. And these charges enable them to do that.
It is practically impossible to avoid investment fees altogether. However, you can find a platform that offers the most value for what you are paying.
On that front, the most important fee you need to be informed about is the commission. Most brokers charge this as a percentage of the amount you are investing.
For example, on the cryptocurrency exchange Coinmama, you will have to pay a 3.90% commission when you invest money into Polygon. So if you are staking $1,000 on this asset, it will cost you $39.00 in fees.
Then again, suppose that your Polygon investment is worth $3,000 when you are selling. This will incur an additional 0.90% in fees at Coinmama - costing you another $27.00 in commission.
Considering this, you can see why you would want to choose a brokerage that offers low rates, or even better, no commission at all - such as eToro, allowing you to save some heaps of money when investing in Polygon.
Then again, the commission is not the only fee you should consider. It is also common for brokers to charge you a variety of transactional costs that will apply every time you make a deposit or withdrawal.
This fee will also change depending on the type of payment method you choose - especially when using debit and credit cards.
Comparing the many brokerage platforms available today, we found that eToro is the charges no fees for processing payments - as long as you fund your account in USD. If you pay in another currency like euros or Canadian dollars, you will only have to pay a 0.5% exchange charge.
Minimum Polygon Investment and Payments
If you are a beginner, one of the most important aspects to consider is that you should always start slowly by only investing small amounts. This takes into account all the risks involved.
However, in most cases, the minimum amount you have to invest will depend on your chosen broker.
For example, many brokers have a minimum investment amount that you need to meet in order to access the cryptocurrency markets. Needless to say, the lower this requirement, the better for you.
On eToro, this minimum amount is set at $25 - allowing you to invest smaller sums into Polygon - meaning you are not taking too much risk.
The same might apply to funding your account as well. Some platforms might have a minimum deposit amount you have to meet in order to start making investments.
While on the subject, you might also want to check what payment methods are supported by your chosen brokerage. Make sure that the platform supports your preferred option, be it a debit/credit card, PayPal, or traditional wire transfer.
Storage and Cashing Out
It is crucial that you think about what you are going to do with your Polygon coins once you have purchased them. If your goal is a long-term investment, then you will want to find a secure wallet to move your tokens to for safekeeping.
Alternatively, you can also choose a broker like eToro - so you do not have to transfer your Polygon tokens. This also comes at an advantage when cashing out your investment, which you will be able to do easily and directly from your eToro portfolio.
If you are storing your Polygon coins in an external wallet, you will have to transfer them to your chosen brokerage first in order to cash them out.
The proceeds from your sale will be available for you to withdraw back to your original payment method.
How To Invest In Polygon (MATIC) Today - Step-by-Step Walkthrough
Our How to Invest in Polygon Guide has provided you with all the basic information that you need to know about before dipping your toes in the crypto market space.
To help you begin, we have simplified the process into five easy steps here. In this section, we will explain how you can create an account and make your first Polygon investment through regulated broker eToro.
Step 1: Open an Account
Head over to the eToro website to create your investment account. You will find the 'Join Now' button on the home page, and upon clicking it, you will be required to provide your email address and set a username and password.
You will also have to provide some basic information such as your full name, home address, date of birth, and such.
After confirming your email address, you will have to answer a series of questions that will let eToro understand your experience level in the crypto and investment industry.
Step 2: Provide Some ID
Earlier in this guide, we mentioned that all regulated brokers like eToro have to complete a KYC process for all its registered users.
Here is where this step comes in. However, it is easier than you think. You will be required to provide a valid ID, along with a document as proof of address. You can do this by submitting a copy of your passport/driver's license and a utility bill/bank statement, respectively.
Step 3: Make a Deposit
On eToro, the minimum deposit required is $200. You can make the payment through one of the following payment methods:
- Credit/Debit card
- Bank Transfer
After your first deposit, you will also be able to make payments via e-wallets like Skrill and Neteller.
If you are looking to make a Polygon investment right away, you will want to choose a payment method other than a bank transfer - which could take a couple of business days to complete.
Step 4: Search for Polygon
Are you ready to make your first Polygon investment?
You can find Polygon listed under - 'Trade Markets' > 'Crypto' > 'Polygon'.
Alternatively, you can also simply search for Polygon or MATIC in the eToro search bar.
Step 5: Complete Polygon Investment
When you are on the Polygon trading page, you can select a buy order and enter how much money you want to invest. Finally, click on the 'Open Trade' button to complete your first commission-free investment on eToro.
Step 6: Cash Out Your Polygon Investment
Similar to making your Polygon investment, selling it also is extremely easy via eToro.
You will be able to find Polygon listed in your eToro portfolio, along with a 'Sell' button next to it. You can click on it when you are ready to cash out your investment. The proceeds will be deposited into your eToro account right away, which you can withdraw upon request.
How To Invest In Polygon (MATIC) - The Bottom Line
Every investment comes with its own share of risk and reward. After doing the required homework, you will be able to find out whether Polygon is suitable for your financial portfolio.
If it is, as our How to Invest in Polygon Guide points out - you should start with a proper strategy and then find a trustworthy online broker that can facilitate your investments.
We suggest that you check out eToro for this purpose. The platform - which is used by over 20 million people, allows you to invest in Polygon in a commission-free manner, and store the MATIC tokens for free. Most importantly, eToro is regulated by several financial authorities.
How do I invest in Polygon?
Polygon is readily available to buy on popular cryptocurrency exchanges and brokers. But we suggest that you use only a regulated brokerage platform like eToro - which allows you to make Polygon investments at 0% commission.
Does Polygon have a fixed supply?
Yes, Polygon has a fixed supply of approximately 10 billion MATIC tokens.
Is Polygon a good crypto to invest in?
Polygon has proved to be a useful and innovative cryptocurrency, which is expected to perform well in the future. However, it is best to start investing only small amounts in order to reduce your exposure to this single asset.
How to store my Polygon?
You can store Polygon in a secure digital wallet or choose a regulated broker like eToro that will safely keep your MATIC tokens for free.
What is the minimum amount I can invest in Polygon?
The minimum investment amount will be decided by your chosen Polygon broker. On eToro, you can start purchasing Polygon from just $25.
eToro – Best Platform To Buy Polygon
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
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