Polygon, originally Matic Network, is a scalability platform as well as a comprehensive framework that is used for connecting and constructing Ethereum-compatible blockchain networks. Polygon is often referred to as the internet of blockchains for Ethereum, attributable to the primary purpose that Polygon serves, which is to allow a multichain environment on Ethereum.
The Polygon network is native to Ethereum, subsequently designed to be compatible with all Ethereum's present and future infrastructures while also providing a foundation for layer-2 solutions, sidechains, and sovereign blockchains.
Thus, the Polygon network is also a layer-2 aggregator. Polygon works to develop a multichain ecosystem that consists of several Ethereum-compatible blockchains, ensuring improved interoperability.
A layer-2 solution is a framework that is placed on top of the base chain to alleviate some of its key pain points. Polygon is an aggregator built on the Plasma platform.
This means that it is a layer-2 solution for Ethereum that enables the development of off-chain decentralized applications (DApps) with enhanced security, scalability, and speed. Plasma is one of the key technologies that has accelerated the adoption of blockchain technology.
Polygon has developed its own version of Plasma, dubbed Polygon Plasma Chains. Apart from providing a foundation for decentralized applications, Polygon Plasma Chains offer transaction offloading from the primary blockchain to secondary chains, resulting in cheaper and quicker transactions.
Additionally, the Polygon network has its own native token, $MATIC, which is now trading at US$2.35, with a market value of US$16.1 billion, making it the 14th biggest cryptocurrency. MATIC has a maximum quantity of ten billion coins and a circulating supply of around six and a half billion coins, or approximately 63% of the maximum supply.
MATIC is utilized to power the network and serves as the Polygon utility token. It serves as the primary transaction currency for the network and as a financial incentive for individuals willing to contribute to the ecosystem. Additionally, it serves as collateral in a process known as staking, which lets users participate in Polygon's consensus mechanism in exchange for MATIC tokens.
Before traders purchase MATIC, they need to know the following:
- Polygon is an innovative project that attempts to improve the performance of blockchain. Sidechain technology is one of the first things that Polygon developed. A sidechain is a network that links to a blockchain and aids in its performance. Transactions are processed much faster and with cheaper costs. Although Polygon was built for use with the Ethereum blockchain, it is not Ethereum-specific. Its sidechains are compatible with any kind of blockchain technology.
- Polygon aims to develop a framework for blockchain networks. This is an extremely large advantage to developers who can create standalone blockchains connected to Polygon, ensuring that they have flexibility and scalability. They would also have the advantages Ethereum offers, including its security and the tools available through it.
- Polygon is compatible with Ethereum’s native Virtual Machine or EVM. Developers who use Polygon can easily access Ethereum's Virtual Machine, allowing them to create their own decentralized applications.
- There are several roadblocks for Polygon, such as other blockchain networks and the launch of Ethereum 2.0. Polkadot and Avalanche are examples of interconnected blockchains that operate in the same manner as Polygon. These projects can coexist, or one may find a superior solution and abandon the others. Ethereum has also begun upgrading to Ethereum 2.0, or Eth2. These changes aim to make Ethereum more scalable. If that occurs, Polygon's efforts might be superfluous.
- MATIC can be used to pay fees, stake tokens, and overall governance.
- MATIC is listed by several reputable exchanges.
- MATIC’s price increased by more than 13,000% in the past year.
To purchase Polygon, you must follow these steps:
- Evaluate and choose a Polygon Exchange Trading Platform that suits your unique objectives and needs.
- Connect your payment option to the exchange and transfer funds.
- Analyse the price on Polygon and wait for the opportune moment to enter the market.
- Perform a buy order on Polygon
- Store your funds in a safe, secure wallet.
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1. Choose a Polygon Exchange Platform
Cryptomania has not subsided in 2023, and everybody remains eager to learn more about the potential of this remarkable technology, from ambitious millennials to huge financial organizations. More significantly, they are curious about how they may profit from the mania. This necessitates the selection of a crypto exchange.
As cryptocurrency acceptance expands, more consumers may wonder which platform to use to begin buying and trading these assets. There are lots of features to compare across exchanges, and consumers possess varying degrees of cryptocurrency and financial market understanding.
Geographic location and limits are at the heart of a user's crypto exchange experience and use. The bulk crypto exchanges serve a small geographical area. The accessibility of exchanges in a nation is determined by two factors, namely, whether the exchange has obtained the necessary licenses and certifications, as well as the country's specific blockchain and cryptocurrency laws and regulations.
In addition, even though the United States has spent years developing and carving out its own cryptocurrency and blockchain rules, several exchanges remain unwilling to accommodate US consumers and users.
While ground-breaking work is being done in the United States by companies like Bakkt (financed and managed by the owners of Nasdaq), investment firms are still waiting for the SEC to adopt more crypto-friendly laws.
Because the crypto market is such a volatile and young sector, there are several hitches to iron out. It is very uncommon for cryptocurrency exchanges to withhold or completely seize a user's cash, which is why users are urged to choose an exchange situated in a region where they have some experience or may pursue legal redress.
Depositing BTC, ETH, or other altcoins on an exchange based in a highly political or anti-crypto nation is not the wisest course of action, as it might result in more trouble and friction in the future than it is worth.
A high trading volume is often indicative of a crypto exchange's liquidity and general capacity to complete a user's order at any time of day – regardless of how large or little it is. Liquidity is critical regardless of the sort of trading users want to perform. It is critical to the user’s overall ability to acquire or sell cryptocurrency at all.
If users want to trade one of the most popular cryptocurrency pairings (BTC or ETH), their best chance is to sign up with a big, centralized exchange – since the capabilities of a large, centralized exchange are unmatched in today's market. Not only are these centralized exchange trading platforms incredibly liquid, but they are also extremely fast-paced, with users often able to place orders within seconds.
If, on the other hand, users are trying to acquire and trade smaller currencies, such as less popular ERC20 tokens, they will need to use a smaller exchange trading platform or decentralized exchange. Because not all projects can pay the very high listing costs paid by centralized exchanges, they typically elect to list on smaller ones.
With losses and thefts totalling billions of dollars only this year, security should be a key priority when selecting a cryptocurrency exchange.
While centralized exchanges facilitate greater volume and liquidity, they also make them an attractive target for phishing schemes and other hacking attempts. The incentive is enormous if a hacker gains access to an individual's cash. Additionally, individuals have a plethora of choices for liquidating or trading their cryptocurrency.
Security and anonymity are paramount in decentralized exchanges. They enable users to join up anonymously and generate a private recovery seed. Decentralized exchanges eliminate the very fragile and centralized intermediaries that centralized exchanges rely on. Instead, it links users directly to place and fulfil orders.
Common mistakes that users make when they evaluate and choose an exchange include the following:
- They do not conduct thorough research, and they choose an exchange that is not suited to their objectives or needs
- They fall for a scam because they do not validate the exchange
- They deposit all their funds into the native wallet of the exchange, which makes it vulnerable to hacking
- They do not ensure that the security features of the exchange are adequate
- Users do not educate themselves before they start trading
2. Choose a Payment Option Buying Polygon
After registering with a Polygon-compatible cryptocurrency exchange trading platform, users must connect a payment method, allowing them to make deposits and to purchase MATIC. Notably, different exchanges take payments in diverse ways.
So, while choosing an exchange, consider the payment choices offered to save money while also assuring deposit convenience.
Users should also be aware that not all crypto exchanges allow fiat deposits, so they should register with one that does.
Common mistakes that users make during this step are:
- Not researching the payment processing and transaction fees.
- When traders fail to research the basic operations of the exchange and the payment methods that are provided.
- Falling for scams that pose as legitimate exchanges.
- When users place all their funds in an online wallet or the exchange’s native wallet, these wallets are compromised by a cyberattack because of their vulnerability.
3. Follow the Polygon Prices and Analyse them.
Reading cryptocurrency charts is critical for traders to discover the market's finest opportunities since technical analysis enables investors to spot market patterns and forecast an asset's future price movements.
Technical analysis is the study of historical data patterns to determine how the supply and demand for a particular asset affect its future price variations. The ability to read market charts is a skill that traders can develop to help them make improved trading decisions, especially when positive and negative moves end.
Bullish movement is a term that refers to an upward price movement propelled by bulls or the purchasers of an asset. A bearish trend is a downward price movement that is fuelled by the bears or the asset's sellers.
Technical analysis could assist traders in determining trading opportunities by evaluating price movements and patterns on charts. While the finest cryptocurrency charts assist in monitoring market fluctuations, they do come with certain drawbacks.
As with technical charts, which are used to aid traders in selecting stocks and commodities, crypto charts are used to assist traders in making more informed investment choices when dealing with cryptos.
Cryptocurrency charts are graphical representations of price, volume, and time intervals in the past. The charts create patterns based on the digital currency's previous price movements and are used to identify investment opportunities.
The term “technical analysis” refers to the process where traders consider the previous speculative trading activity and subsequent price changes of a specific asset. Technical analysts believe that these factors could be valuable predictors of an asset's future price movements. It works with any asset that has historical trade data, including stocks, futures, commodities, currencies, and cryptocurrencies.
Charles Dow is both the creator and the editor of the Wall Street Journal, who co-founded the Dow Jones & Company. In addition, Dow pioneered the technical analysis in addition to adding to the overall development of the first stock index, the Dow Jones Transportation Index (DJT).
Dow's thoughts were expressed in a series of Wall Street Journal editorials and were combined upon his death to form what is now known as the Dow hypothesis. It is worth mentioning that technical analysis has grown over the years to incorporate the patterns and signals that traders now recognize.
Technical analysis is only valid if the market has priced in all available information about a particular asset, meaning that the item is valued based on this specific information. Traders who apply technical analysis and market psychology think that history will repeat itself eventually.
Technical analysts may combine fundamental research into their trading strategy to decide if an asset is worth approaching and may supplement their study with trading signal analysis to predict when to buy and sell to maximize profit. Fundamental analysis is the examination of financial data impacting the price of an asset to forecast its future growth. Fundamental study of a company's shares may involve an examination of its profits, industry performance, and brand value.
Technical analysts seek for optimistic and negative price fluctuations to assist traders in making better-educated selections.
Common mistakes that traders make when they analyze prices on Polygon include:
- Not understanding how to read price charts to identify patterns
- Following trends that might end soon
- Not using fundamental and technical analysis in combination
- Only using a single technical indicator and not comparing different metrics or data
4. Perform a Polygon Order
Before anyone can begin trading MATIC coins, it is necessary to understand the words market and limit orders. How traders determine whether they should use a market or a limit order will depend on their overall trading objectives.
Traders can either buy or sell MATIC at a defined price when they use a limit order. In addition, traders could get a better price if the market moves in favor of the trader.
There are several advantages to using limit orders, but the most important one is that they assure that the trader's price will not go below what they indicated at the start of their trade.
In addition to waiting for the market to achieve a certain price objective, limit orders can also be used to simply take what is already available in the market.
As a limitation, limit orders are not guaranteed to be filled, and there are instances where they might not be filled at all. Orders placed on the market are meant to be executed instantly. To purchase or sell MATIC at the best price in the order book, this feature is provided with the advantage that traders can view it before opening a trade.
However, traders must note that this is a different value than the most recent transactional value. When placing a market order, many people make the mistake of assuming the most recent traded price is the one that they will inevitably receive. In less-frequently traded trading pairs, the order book might see considerable price fluctuations since the previous deal.
Using a market order has the downside of not ensuring that traders will receive the precise price that they are hoping for when buying or selling MATIC. The availability of items in the order book will determine whether the order of the trader will be completed.
The common mistakes that traders make when they trade Polygon include the following:
- Not knowing the basics and not using a demo account before trading in a live environment where capital is at risk.
- Falling for the hype instead of conducting thorough research on price analysis.
- Trading without a strategy.
- Failing to read Polygon charts.
- Investing large sums into only one type of asset.
- Using leverage incorrectly or abusing it.
- Not using risk management tools such as stop-loss and take-profits
5. Store Polygon Safely
A straightforward explanation of the function of a Polygon (MATIC) wallet is that it is an app that facilitates the storage and retrieval of digital assets for those who utilize cryptocurrencies.
There are different types of Polygon wallets, namely:
- Hardware Wallets are USB devices that store funds offline.
- Mobile wallets can be downloaded and installed on mobile devices that use iOS or Android.
- Desktop wallets that run on computers.
- Paper wallets that are QR codes printed on physical paper.
- Web-based wallets are an extension to a browser.
- Hot/Cold wallets refer to Online/Offline wallets.
Common mistakes for this step include:
- Only using a hot or online wallet
- When users do not keep their private key safe, or they forget their recovery phrase.
- Forgetting the seed phrase.
- When users keep large amounts of funds in an online wallet, or they trust an exchange to take care of funds.
- Using unverified wallets or wallets from unknown sources.
- Not using enough security features to secure the wallet.
Hardware and offline wallets are the best options overall, while hot and other wallets are best for small transactions and payments.
How to understand which Polygon Storage is safer
To keep MATIC safe, users need a digital platform where their private keys can be kept safe. Like users would keep their cash safe in a wallet and have a bank account secured by a PIN, traders keep their MATIC coins safe by employing a software app or physical device that keeps their private keys secret.
Where MATIC wallets are concerned, users can distinguish between the following:
- Cold Wallets – which are offline wallets that store funds in an application that is not connected to the internet.
- Hot Wallets are online applications that require an internet connection.
- Physical wallets are physical devices that can resemble external hard drives or USB devices where crypto funds are kept in cold storage.
- Web wallets are web browser ad-on wallets.
- Desktop wallets – which are applications that allow users to manage their finds on macOS, Microsoft Windows, or Linux.
- Paper wallets which is a piece of paper with a code or QR code on them. To access the assets, the user enters the key or scans the code to access their account.
The Best Polygon Wallets are:
- Ledger Nano X
- SafePal S1
- Trust Wallet
1. Ledger Nano X: The Ledger Nano X is a well-known and well-respected piece of hardware. The USB cable may be used on a desktop computer running Windows, Linux, or macOS, as well as mobile devices running Android or iOS, through Bluetooth or OTG.
A desktop and mobile version of the Ledger Live software is available for the Ledger Nano X, so users may synchronize their accounts across devices. In addition, the Ledger Nano X has more than 1,600+ currencies and tokens supported by it.
Ledger Live allows users to install cryptocurrency applications (wallets) on their Ledger device, enabling them to safely manage, buy, sell, stake, swap, and lend several different crypto assets.
2. SafePal S1: For iOS and Android devices, SafePal S1 is a USB-based hardware wallet. It is compatible with the SafePal mobile application. More than 10,000 coins and 20 blockchains are supported.
ERC20, BEP2, and BEP20 versions of MATIC may be used to receive, manage, and utilize MATIC on the Polygon network as well as on Ethereum. There are no third-party wallets required when users utilize SafePal S1.
3. D’CENT: MATIC users can connect the innovative D'CENT hardware wallet on both Android and iOS platforms. There is a secure Bluetooth connection between the two devices thanks to the D'CENT app. Using Bluetooth connection, the D'CENT app receives a Bluetooth signal from the user’s device.
4. Metamask: MetaMask is a software crypto asset, token, and coin wallet that uses the Ethereum network to communicate with the blockchain where funds are held. It enables users to access their Ethereum wallets through a browser extension or an innovative mobile application, from which they may engage with decentralized apps.
5. Trust Wallet: Trust Wallet is a widely used mobile wallet application that is compatible with both iOS and Android devices. It is very well-designed and compatible with a large range of networks, currencies, and tokens. It may be used to receive and manipulate MATIC data from Polygon networks.
In addition, Trust Wallet also offers an integrated DApp browser, which enables users to pick from 15 supported networks, including Polygon, and simply access and connect to DApps.
What are the ways of buying Polygon?
You can purchase Polygon in the following ways:
- Debit Cards
- Bank Account
- Credit Card
- P2P Exchanges
- Low Fees
1. Buying Polygon with Debit Cards: When users purchase Polygon with a debit card, they use the card that is linked directly to their bank account, given that their card type supports online purchases.
Advantages of using a debit card to purchase Polygon include:
- Fast and secure transactions
- Instant transaction execution
- Assistance in retrieving funds if anything goes wrong
Disadvantages of using a debit card to purchase Polygon include:
- High transaction and processing fees
- Security risk if the information is saved online
In terms of legal issues, exchanges that accept payment in debit cards will require that users complete a KYC procedure as part of anti-money laundering procedures.
Buying with a debit card is safe if you use a legitimate cryptocurrency exchange that uses SSL technology to encrypt client data and information.
2. Buying Polygon with Bank Accounts: When users purchase Polygon with a bank account, it involves a bank transfer from their bank account into their exchange trading account or broker account. Once funded, they can use the trading account to purchase Polygon.
This will only work with exchanges that accept fiat currency. Exchanges that are crypto-to-crypto do not accept fiat deposits. The user must first convert their fiat to crypto, for instance, USDT, which can then be used to purchase Polygon.
The benefits of buying Polygon with a bank account involve the fact that bank transfers are some of the most secure ways to transfer funds. With a bank transfer, there are no chargebacks, and the processing fees are lower than with credit/debit cards.
The disadvantages of buying Polygon with a bank account are:
- Transaction processing time is longer than other payment options, between 24 hours up to several days.
- Bank Accounts are not an anonymous way to purchase Polygon, and transactions can be traced.
Where legal issues may arise regarding bank account purchases of Polygon, users must ensure that they have a verified trading account, either with an exchange or a broker. This may involve completing the KYC process as part of AML policies.
Bank Accounts are one of the safest options to purchase Polygon alongside credit or debit cards, given that the user makes use of a legitimate and verified exchange and regulated broker.
The cryptocurrency market is a financial market that is not regulated because of its decentralized nature. This means that traders, crypto enthusiasts, and investors may struggle to find the necessary support that they need if they run into issues with an exchange or a broker.
3. Buying Polygon with Credit Cards: This process is the same as buying Polygon with a debit card. The user must provide their credit card details to purchase Polygon through an exchange that allows for fiat payments.
The advantage of using a credit card to purchase Polygon is that transactions are carried out faster. The disadvantage of using credit cards to purchase Polygon relate to high transaction and processing fees, strict KYC policies, and security issues with a credit card and personal information that can be stolen.
The legal issue involved with buying Polygon with a credit card is that hackers can access the credit card information of the user, and it can lead to a significant loss.
Credit cards are not a recommended payment method because there are cheaper, more secure ways to buy Polygon.
4. Buying Polygon via P2P Exchange: Polygon can be bought from a peer-to-peer cryptocurrency exchange that offers over-the-counter (OTC) trading of Polygon between users.
These exchanges allow users to create a posting that others can respond to. When using a P2P exchange, users can be assured of the following advantages:
- There are strict AML and KYC policies that protect all users
- Users on the exchanges have ratings and trust scores
Disadvantages of purchasing Polygon using a P2P Exchange include:
- P2P exchanges are not always decentralized, and they do not always offer anonymous transactions.
- Malicious entities can use and exploit these exchanges for personal gain.
In terms of legal issues, these P2P Exchanges are not always regulated, and malicious activity is not eliminated.
5. Buying Polygon via Cash: Polygon can be purchased with paper money through exchanges such as eToro, Bitstamp, Kraken, KuCoin, and many others that allow users to purchase Polygon directly.
There are also P2P exchanges that accept fiat payments for Polygon.
The advantages of using cash to purchase Polygon include:
- It is a straightforward way to purchase Polygon
- It is a secure way to purchase Polygon
Disadvantages of purchasing Polygon with cash include:
- There are higher transaction fees
- Users may not get the best possible price, depending on market conditions
- There are time-consuming verification processes involved with buying Polygon with cash
6. Buying Polygon with Low Fees: Buying Polygon with lowered fees can be done by using an exchange such as Coinbase, which has some of the lowest fees in the industry.
The advantages of buying Polygon at lower fees include:
- The ability to trade higher volumes
- The ability to use leverage to maximize returns
The disadvantages of buying Polygon at lower fees include:
- The exchange may charge other non-trading fees to gain its service fee
7. Buying Polygon with Metamask: Metamask is a cryptocurrency wallet in addition to being a gateway to different DApps. Metamask allows users to buy, store, swap, and send different tokens.
The process involved with buying Polygon through Metamask is simple, and users can select the “buy” option from their mobile app to obtain a link to a service provider in the user's location and proceed with the transaction.
The advantages of using Metamask to purchase Polygon include:
- It is an open-source project that is reputable and trusted
- Private keys are encrypted and kept on the browser of the user
- Metamask is user-friendly
- Metamask can be used to easily access the Polygon blockchain
The disadvantage of using Metamask to purchase Polygon include:
- Metamask is a hot/online wallet that has some security risks
Some issues with regards to security and legalities revolve around the fact that Metamask is an online wallet and the fact that private keys are kept by the provider on the browser. This could lead to hacking attempts where users can lose their keys, funds, or both.
What are the necessities for buying Polygon?
Before buying Polygon, the following is necessary:
- A Polygon compatible wallet
- Connection to a Polygon exchange or a broker that offers Polygon
- Completing registration and passing the security checks, which need identity documentation (Driver's license, passport, government ID, and so on, as well as proof of residence such as a utility bill or credit card statement that is not older than 3 months).
- A valid payment method, either a debit or credit card, Paypal account, bank account, or so on.
Is there an age limit for buying Polygon?
No, there is no age limit for buying Polygon.
There are no restrictions on age when purchasing Polygon. However, many exchanges such as Coinbase and payment gateways such as Paypal require that users be 18 years or older.
What are the best cryptocurrency platforms to buy Polygon?
The best cryptocurrency platforms where Polygon can be purchased are:
- Jelly Swap
1. Uphold: Uphold is a fee-free desktop and mobile trading platform that provides access to and trading Polygon (MATIC) and a wide range of other cryptocurrencies. They have been in business for several years and have acquired a very trustworthy reputation with over 1.5 million users globally.
2. Gate.io: Gate.io, founded in 2013, is a respected trading platform featuring an easy-to-use interface for novices and sophisticated charts for technical traders. In addition to Polygon (MATIC), they are one of the first crypto exchanges to add new tokens because of the innovative ICO features it offers. Best of all, they are strongly opposed to market manipulation.
3. WazirX: WazirX is India's largest cryptocurrency exchange, with over 400,000 members. They are an extremely respected exchange that presently accepts customers from all around the globe. The Binance Group assures a high degree of quality.
4. SushiSwap: SushiSwap – a fork of Uniswap That offers AMM features for decentralized exchanges. It makes use of order book-free swaps between various assets, relies on liquidity pools, and has no direct sellers. By offering assets to pools, users receive liquidity fees.
It utilizes a smart contract-based pricing system, removes both custody and insolvency risk, and is currently accessible on Polygon MATIC, allowing users to benefit from minimal costs and rapid processing.
5. Jelly Swap: Polygon MATIC and several other blockchain projects are supported by Jelly Swap, a cross-chain AMM DEX. Jelly Swap is a non-custodial, atomic-swap-enabled platform that is becoming increasingly popular among crypto users.
Do Forex Traders sell Polygon?
Yes, forex traders sell Polygon.
- Forex Traders have the opportunity of purchasing Polygon at a lower price and selling their tokens once the price peaks, either long-term or within a trading day (day trading).
- Forex Traders buy Polygon and hold their coins until the value has risen, after which they sell their Polygon to make profits.
- Forex Traders can use several different, innovative algorithmic trading strategies when they buy Polygon, allowing them to open trades at the ideal time and sell it automatically according to certain technical indicators.
What are the Buying Methods for Polygon?
Polygon can be bought using the following different methods:
- Credit/Debit Cards
- Bank Account
- P2P Exchanges
When users trade Polygon, there are several different orders that they can use when they buy Polygon through exchanges and brokers. These follow certain buying/selling strategies, and they relate to:
- Limit Buying
- Leverage Buying
- Market Orders
- Take-Profit Order
1. Stop-Loss for Polygon Buying: Stop-Loss orders are extremely important for traders, especially when mitigating and managing risks in a volatile market. A stop-loss order is like a limit order because it is an order that executes automatically to either buy or sell Polygon at a specified price or better.
Stop-loss orders have some potential risks because they may guarantee a price limit, but they cannot guarantee that the trade will be executed. Stop-loss orders can prevent future gains, incur taxes, trigger taxes, and could lower the profit threshold of traders.
Stop-loss orders are ideal for beginners if they are used correctly.
2. Limit Buying Order for Polygon: A limit order refers to an order to either buy or sell Polygon according to a restriction to the maximum price that must be paid or the minimum price that must be received.
The risk involved with Limit orders is that there is no assurance that the order will be executed. Limit orders are best used when the trader believes that they can buy Polygon at a lower price than the current quote.
Beginners can use limit orders to save money on commissions that their broker or exchange charges, especially on liquid coins such as Polygon.
3. Leverage Buying for Polygon: Leverage is a useful tool that is considered a loan where the trader can open larger positions despite their initial deposit. In return, the broker or exchange requires a certain percentage as collateral for the trade.
Leverage ratios offered by brokers and exchanges on Polygon will not be as high as those offered with forex. This is attributable to the inherent risks involved with leverage.
Polygon can be traded using a leverage ratio of 1:1, 1:2, and even up to 1:5 and 1:10, depending on the exchange or the broker.
The risks involved with using leverage when purchasing Polygon is that loss can be magnified, traders can clear out their entire account, or their account could go into a negative number.
Leveraged trading on Polygon is not recommended for beginners until they understand the risks and they can mitigate and manage them effectively.
4. Market Orders for Polygon: Market orders can be used when traders purchase Polygon instantly at the current market price instead of waiting for a better price. Market orders are executed instantly or as close to instantly as possible.
The risks involved with purchasing Polygon using a market order involve agreeing to the exchange or broker filling the order at what is considered the best possible price, which limits traders because they could be agreeing to higher prices.
Market orders can be used by beginners with great caution. Beginners must analyze the market to identify what the best price is to avoid them paying a higher price than they would have using other orders.
5. Take-Profit Orders for Polygon: Take-profit orders are another risk management tool that allows traders to maximize their profits without risking funds. The Take-profit order is above the purchase price chosen by the trader, and when the price on Polygon reaches this predetermined limit, the trade will be closed.
The risks involved with these orders is that traders might set them too high/low, and it could mean that the trader either loses out on gains, or they may cause loss.
Beginners are urged to use Stop-loss and Take-profits in combination to ensure that they can maximize their profits while minimizing their risks.
What are the alternatives of Polygon?
These are the competitors of Polygon:
1. Corda: Corda is an open-source and decentralized blockchain project that was created specifically for commercial use. With Corda, users can create private, interoperable blockchain networks. Companies can deal directly and with value because of Corda's innovative smart contract technology.
2. OpenSea: OpenSea is a comprehensive peer-to-peer marketplace for a wide range of digital goods. There are several types of virtual products that may be traded on OpenSea, including collectables, video games, and other blockchain-backed virtual commodities. In addition, OpenSea features smart contracts, allowing anybody to purchase or trade these products.
3. Meter: Meter is an innovative blockchain project that works towards a multi-chain future, which requires a high-performance infrastructure to grow and link the financial Internet. Meter's three key services enable smart contracts to grow and transit easily across different blockchains.
- Using Meter Passport, which serves as the bridge for technologies such as Ampleforth, Moonbeam, Theta, and several others, cross-chain interoperability becomes possible.
- Meter ensures scalability using HotStuff PoS consensus for a Layer-1/2 chain compatible with Ethereum.
- Meter represents money that cannot be censored. The native MTR token is mined using the SHA-256 Proof of Work algorithm but can be mined using very little electricity.
4. zkSync: For the Ethereum blockchain, zkSync aims to create a trustless and compromise-free Layer 2 scaling method. As a result of this, the team utilizes on-chain data availability and the ZKRollup technology. When using zkSync, customers do not have to worry about moving layers, creating new deposit addresses, or experiencing any additional friction.
5. Flow: Flow (FLOW) is an extremely popular and high-performance blockchain project and platform optimized for the development of NFTs, huge crypto games, and applications. Unlike other programmable blockchains, such as Ethereum, Flow was created to ensure infinite scalability, making it possible for millions of users to interact with a wide range of features on the platform.
Why should you invest in Polygon?
Due to its low prices and immediate finality, Defi has become a popular Polygon network service. Polygon stands to benefit from this move. The simplicity of use, speed, and price of Polygon make it a strong contender in this market. Among the most popular DeFi applications on Polygon are:
- Quick Swap, an extremely popular DEX
- Aave – a platform where users can lend, borrow, and earn interest on their crypto holdings.
- Curve Finance – which is characterized by its liquidity pools and stablecoin trading.
- Adamant Finance is a yield farming optimizer as well as an auto-compounder.
- Autofarm, a yield farming optimizer, and auto-compounder.
- Beefy Finance, another yield farming optimizer, and an auto-compounder.
- 1inch is a popular DEX that has several liquidity pools allowing users to earn interest.
- SushiSwap is a DEX that features native liquidity pools
- DFYN is another DEX that offers deep liquidity pools to users.
It is already clear that Polygon (MATIC) is a viable scaling option for Ethereum; adding ZK-Rollups to its armoury will further boost scalability capabilities. As a premier Layer 2 scaling solution that is constantly developing and making new acquisitions, Polygon (MATIC) is an excellent investment for any serious investor.
How to sell Polygon
Polygon can be sold in the same way that users purchase Polygon, namely:
- A PayPal Account
- Credit/Debit Cards
- Bank Account
- P2P Exchanges, and others.
Selling Polygon is different to purchase because the trader is converting their Polygon for either fiat currency or other cryptocurrencies. The reasons why users sell them Polygon relate to:
- Having reached a certain profit target
- According to selling signals that were triggered, indicating the perfect time to exit a trade.
- According to stock chart patterns that signal price volatility and repetitive patterns, showing that a trend is about to end.
- According to Fibonacci ratios and geometric price patterns.