How to buy Polygon online
This guide explains what Polygon is and why it rebranded away from Matic Network. It teaches you about the MATIC coin and helps you decide whether now is a good time to invest.
Compare where to buy Polygon, and open an account
To buy MATIC coin now, use one of the brokers below. If you want to learn more about Polygon before you buy, keep reading to find out all about it.
What is Polygon?
Polygon is a framework for building and connecting applications built on the Ethereum network. Formerly known as Matic Network, Polygon is like an extension to Ethereum that makes it easier to use. Developers get faster, cheaper access to the benefits of Ethereum without compromising on security.
The MATIC token is the cryptocurrency that powers apps built on Polygon. It’s used to build and pay fees on the network, while holders can use it to earn rewards or vote on governance issues.
Formed in 2016 and originally Matic Network, the company rebranded as Polygon in 2021. As part of the rebrand, it brought on board some of the Ethereum development team, binding it ever closer to one of the largest blockchain platforms around.
How does Polygon work?
Polygon works by creating smaller blockchains that connect to the main Ethereum chain. In many ways it’s like a blockchain template, used to create applications that can communicate with any other app built on the Ethereum network.
By splitting the required work among many blockchains, they can all run and process transactions independently. This is crucial to increasing the network’s speed, as otherwise adding new transactions to a blockchain one at a time creates a bottleneck and slows everything down.
How to buy Polygon online – a step-by-step guide
Step 1. Find an exchange to buy Polygon
To buy Polygon you need to find a cryptocurrency exchange. As MATIC is a smaller coin, it’s only available with the top exchanges and you need to use another cryptocurrency to buy it. Here are two of the top exchanges around:
- Binance: With Binance you can trade more than 100 cryptocurrencies. Binance has more trading volume than any other exchange and so is a great place for most crypto trading. Sign up for Binance >
- Bittrex: Bittrex is a user-friendly, intuitive exchange that’s ideal for beginners. It offers a wide range of cryptocurrencies for trading. Join Bittrex now >
Step 2. Sign up and fund your account
Before you can buy crypto on an exchange you need to create an account. To do this you need some contact details and a form of photo ID to use as verification. As for funding your account, the biggest exchanges let you use fiat currency (like GBP or USD), while others might only accept deposits in a cryptocurrency like Bitcoin.
Step 3. Buy Polygon
To buy Polygon you need to find its ticker. As it used to be known as Matic Network, the ticker is still MATIC at the moment, but note that it could be updated at any time. The easiest way to buy it is to use Bitcoin. Buy some of that first and then look for the MATIC/BTC pair to execute your trade.
Step 4. (Optional) Get a suitable wallet
The best place to store your coins is in a wallet. You don’t have to do this, as you can leave your coins in an exchange account without much concern. If you have a bigger holding or just want some more security, wallets are the way to go. They come in different forms – desktop, mobile, or hardware to name three – depending on the level of security you’re looking for.
Here are two of the top wallet providers available:
- Infinito Wallet: Infinito is a mobile wallet that lets you store coins on your phone. It also includes lots of features so you can buy, sell, and earn interest on your coins. Sign up with Infinito Wallet now >
- Trezor: As a hardware wallet, Trezor is a small, key-sized device with a limited USB connection feature to keep your coins secure. They’re safe even if you connect to a malware infected computer. Get a Trezor Wallet >
How to trade Polygon – a step-by-step guide
Step 1. Find a broker
To trade MATIC you want a broker that charges low trading fees. Fees can be a real drain on your finances if you plan on trading a lot and your choice of broker should reflect wanting them to be as low as possible.
There aren’t many brokers that offer MATIC trading yet. As coins grow in value and market cap, they usually become available with the top brokers. When that happens, eToro and Plus500 should be your first ports of call.
Step 2. Deposit money
Brokers only accept deposits in fiat currency. They might also charge for every deposit, as well as for withdrawals. Keep track of the charges and use that to influence your choice of broker as well.
Step 3. Decide how you’d like to trade
Contracts for difference are the most popular way to trade cryptocurrency. Trading CFDs is a way of speculating on the price movements of your chosen coin without owning the underlying asset. Spread betting is another common option that you can use to try to predict market moves.
Step 4. Start trading
As a beginner you want to consider a demo account before you start trading for real. Your broker will offer a way of trading with pretend money first, so you can learn how everything works before putting your own money at risk.
When it comes to trading, you need to decide whether to go long (buy) or short (sell). That means deciding if MATIC is going to go up or down. If you think it’s going to go up, then take a long position. Otherwise, go short.
More experienced traders can think about using leverage. Beginners are best leaving leverage alone, but it’s a way of making big trades with only a small fraction of the overall value. When you use leverage you essentially borrow the rest from your broker, so while it opens up the possibility of big wins, you can lose big as well as you’re always liable for the whole amount.
Not sure whether to buy MATIC yet? Don’t worry. Here are some of the Polygon platform’s pros and cons along with some things to think about before you dive in.
- Close links to the Ethereum project make it more trustworthy
- You can earn rewards from your MATIC tokens
- Some applications already run on its software
- There’s lots of competition from similar platforms
Below are three more questions for you to think about. They can help you come to a final decision over whether to invest in Polygon.
1. Is it a good time to buy Polygon?
Whether now is the right time to buy MATIC depends on your goals. If you like Polygon and want to be an active user, staking coins and earning rewards, then buying Matic now might be the best move.
As a long or short term investment, however, there’s a bit more to it. You need to decide if the current MATIC price looks good, see whether there’s any recent news that could impact it, and find out if there’s a broader market move taking place. You can use our cryptocurrency market analysis to help you:
2. What problem does Polygon solve, and what are the coin’s investment prospects?
Polygon solves some of the problems of the Ethereum network. It makes it faster and more user-friendly, and offers a way around some of its limitations. Crucially, though, it lets apps maintain ties with the Ethereum blockchain as well.
As an investment prospect, MATIC is now closely tied to Ethereum. This could make it MATIC a low-priced bet on Ethereum’s success, but similarly might mean it struggles to stand out from the crowd as offering anything different.
One thing in particular to look out for is the release of Ethereum 2.0, as that is Ethereum’s own attempt at solving the problems with its network. If that proves to be a success, it might have a big impact on Polygon’s ability to be an extension that fixes Ethereum. It’s a reminder too that you should do your research, starting with the latest news:
3. Do you want to hold Polygon for the long term?
Polygon could be a good long term hold if you’re bullish on it or Ethereum’s future prospects. For other traders who might be more sceptical, there still could be opportunities created by short term swings in price. Here are a couple of final considerations depending on which camp you fall into.
Considerations for a long term investment strategy
A long term strategy means you want to buy now and see growth in the MATIC price over time. You want to be patient but also keep your eye out for signs of the outlook changing. The best way to invest long term is to find an exchange and buy MATIC now, then think about getting a wallet to store your coins.
Considerations for a short term trading strategy
A short term strategy relies on understanding technical analysis and using it to try to predict price moves. Keep track of the news, but the most important thing is to find a broker with low trading fees.