Polygon (MATIC) is a scaling solution that drives development across the Ethereum network.
What is polygon? What is MATIC? And how do they both work?
We'll answer those questions, discuss how to buy the MATIC token, and give you tips for adding this cryptocurrency to your portfolio.
Table of Contents
What is Polygon?
Polygon is a platform that provides scaling, infrastructure development, and L2 solutions for the Ethereum network.
Essentially, the Polygon protocol makes it possible for blockchain networks to connect and scale. This opens up a long list of use cases, including ZK rollups, optimistic rollups, sidechains, stand-alone chains, and enterprise chains on the Ethereum network.
The MATIC Token
The MATIC token is the native cryptocurrency of the Polygon network. It’s issued as an ERC-20 standard-compliant cryptocurrency on the Ethereum blockchain, which means that it’s compatible with other Ethereum-based digital assets.
Owners of the MATIC token can stake it to earn rewards, use it to pay fees on the Polygon network, or leverage it as part of the Polygon governance process.
Owners can also buy, sell, and trade MATIC via platforms such as Binance.US.
History of Polygon (MATIC)
What’s now called the Polygon network was co-founded in 2017 by Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic (its original name was the Matic Network).
In 2019, the Matic Network initiated an initial exchange offering (IEO) of its MATIC token on Binance.com.
During that IEO, the Polygon network set the maximum supply of MATIC at 10 billion tokens. As of this writing, the majority of those tokens — more than 8.7 billion — have already been issued.
Then, in 2021, developers rebranded the network as Polygon, while retaining the MATIC token as the native cryptocurrency.
Since then, the network has implemented major decentralized finance (DeFi) protocols, Mark Cuban has invested in the company, and the MATIC market cap has exceeded $10.5 Billion USD.
How does Polygon work?
Polygon leverages a modified proof-of-stake (PoS) consensus mechanism. This is in contrast to the regular proof-of-stake and proof-of-work (PoW) models.
The modified Polygon PoS mechanism allows the Ethereum blockchain to achieve consensus on every block — a leap up from the traditional proof-of-stake method, which can only achieve consensus after processing many blocks.
Polygon technology also serves as a bridge — or gateway — that makes it possible for existing blockchains to establish compatibility and back-and-forth communication with the Ethereum network.
How to buy Polygon MATIC
1) Partner With a Crypto Platform
To get started buying Polygon (MATIC), find a crypto platform — like Binance.US — that supports the token.
Binance.US offers reasonable fees, gives you resources and tools to help you make the right choices, and provides access to other popular cryptocurrencies on the market.
Partnering with the right platform will make it easier to buy, sell, and trade MATIC (and other cryptos) as you gain more experience.
2) Set Up an Account
Once you’ve chosen the crypto platform that’s right for you, create an account and verify your identity.
Look for an account that comes with advanced security, a range of tokens and coins, low trading fees, advanced trading API, and real-time order books.
Opening an account that offers these features for all of their coins and tokens — not just MATIC — provides benefits down the road when you want to diversify your portfolio (discussed later in this article).
3) Add Funds to the New Account
The next step in buying Polygon (MATIC) is to fund your account with fiat currency (government-backed money, such as U.S. dollars.
Advanced platforms will allow you to do this via several methods, including:
- Established payment services (e.g., ApplePay — check platform for details)
- Debit card
- Credit card
- Bank transfer
- Wire transfer
- ACH debit from an existing bank account
You can also transfer a cryptocurrency you already own from another platform and use those funds to purchase MATIC tokens.
Before you add anything to your new account, we recommend taking the time to verify that the platform you want to use offers a funding method that is convenient for you. This will make it easier to deposit, withdraw, and use your funds later on.
4) Decide When to Buy
Once you’ve funded your account, you’re ready to buy MATIC. To do this, decide how much you want to purchase and when you want to initiate the transaction.
Most platforms allow you to control both of those variables and either initiate the buy order manually or set your account to initiate the buy automatically when the market meets certain conditions (e.g., time and/or price).
5) Store Your Polygon in a Secure Location
When the buy order has gone through and you’ve got MATIC in your account, keep it secure by storing it in a crypto wallet. For that, you have two options: a hot wallet or a cold wallet.
A hot wallet is an online space typically provided by the platform through which you made the purchase. A cold wallet, on the other hand, is an offline space, like an external hard drive.
Tips for Adding MATIC to Your Portfolio
1) Research the Cryptocurrency Market
The first step in successfully adding MATIC to your portfolio is performing thorough research. This article is a good place to start. Further your understanding by delving into other topics, such as:
- The cryptocurrency market
- How the market works
- The factors that affect market movement
- How to read a candlestick chart
- Dollar-cost averaging
- How to spot scams
- Private key vs. public key
- How to perform a technical analysis
- The difference between coins and tokens
- HODLing
- Proof-of-work vs. proof-of-stake
While you don’t have to understand all of the topics listed above before buying, selling, trading, or staking MATIC, they act as a solid framework to further you to make more informed purchase decisions.
2) Research Platforms
As part of the process of learning about Polygon, take the time to research the crypto platforms you’re considering using to access the market.
Doing so before you commit can help you choose the ecosystem that works best for your needs — both now, and in the future.
As you research, make a list of questions about the various platforms, such as:
- What problems does the platform solve?
- What benefits does the crypto ecosystem offer?
- How many users does the platform have?
- What do users have to say about the platform?
- How cryptographically secure is the platform?
- What are the fees involved in buying MATIC and other cryptos?
- Will this platform still be useful as my portfolio grows?
With those questions in mind, examine the options with a critical eye, weigh the pros and cons, and decide on the one that will grow with you as you gain experience.
3) Develop a Strategy
Before initiating any transactions with MATIC (or any cryptocurrency, for that matter), it’s always a good idea to develop a strategy.
Doing so can protect you from making costly mistakes and can mitigate the risks of rushing headlong into the cryptocurrency market. Take things one step at a time.
Then, depending on what you want to get out of buying MATIC (your strategy), you might make a plan to buy and stake. Or, perhaps, buying and then day trading is more in line with your goals.
Whatever strategy and plan you develop, do your best to stick to it as closely as possible. As you go, resist the urge to follow temporary hype into a losing situation.
4) Diversify
At the start, focusing on buying, selling, trading, and staking MATIC can help you learn about the market and how it moves.
However, when you feel comfortable handling one cryptocurrency, it can be useful to diversify into other coins and tokens as well.
Buying a lot of one coin or token can expose you to more risk than you might be willing to handle. Diversifying can help mitigate that risk.
Consider adding a second or third option to some of your MATIC buys to add a bit of stability to your portfolio in case one of the cryptocurrencies in your wallet drops sharply in value.
Access Polygon With Ease
With answers to the questions, “What is polygon?”, “What is MATIC?”, and “How do they work?”, you’ll be primed and ready to navigate the world of cryptocurrency more successfully.
But you’ll need more than just knowledge to make things work.
You’ll need to partner with a robust cryptocurrency platform — such as Binance.US — that gives you access to the tools that can help you make timely and informed decisions about when to buy, sell, and trade.
To get started, register for a Binance.US account online or download the Binance.US app.
You can buy MATIC, BTC, LTC, ETH, and over 150 other cryptocurrencies with a debit card, credit card, or via bank transfer, and get your crypto journey started today.
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