While the world is moving from mobility to NFC and IoT, there was speculation that this might influence the world of blockchains too. And it did. The Ethereum driven Internet of Blockchain, Polygon, has made a grand entry, which promises to revolutionize blockchain in a manner unheard of.
What is Polygon?
Polygon, formerly known as Matic Network, was founded in 2017. The company is based in Mumbai, Maharashtra, which is in India. The company’s vision is to hasten the adoption of blockchain in the mainstream and elevate the user experience by assisting blockchain to reach its true potential.
Why should I invest in Polygon?
This is indeed a pertinent question and might be too early to answer. Still, given the rapid rise of blockchain and the transformation within the community itself, it is inevitable that the technology is here to stay and will further improve in the future. However, there are also a few reasons why one should be investing in Polygon:
- Contains the best of Ethereum and is built by developers who have spent a large part of their professional lives working on the Ethereum Blockchain.
- Polygon aims to solve the pain points associated with Ethereum, namely high Gas fees and an ever-slowing speed.
- More secure compared to similar systems like Polkadot, Cosmos, Avalanche, etc.
- Polygon follows the open architecture and thereby is receptive to contributors.
These features help users overcome the limitations imposed by Ethereum, which is expected to attract a large community of enthusiasts and investors. Polygon is undoubtedly the rising star in the rarefied field of the Internet of blockchains, and investing in it will be beneficial in the long run. MATIC has faced some volatility after losing 14% on December 9 after surging almost 48% in the past two weeks. However, the world of crypto is volatile, and one should be wary while investing. But given the interoperability it provides, it is indeed a fantastic investment.
How can I invest in Polygon? What are different ways of investing?
Investing in Polygon is a breeze. Here are five steps in which one can invest –
- Step 1: Create an Account with a broker who is authorized.
- Step 2: Deposit funds into that account.
- Step 3: How much will have to be invested needs to be specified?
- Step 4: Confirm the investment.
- Step 5: Withdraw and store MATIC in a secure wallet.
How risky/volatile is it – Can I lose all my money?
It is not just about Polygon, but the entire cryptocurrency ecosystem is volatile and does experience extreme price swings. This is also true for the platform and its coin, MATIC. Therefore, it is advisable to investors that they should always put in money only when they are ready to lose and play the long game. Polygon has a proven record, and one of the most significant votes of confidence was Mark Cuban investing in it.
The Polygon Wallet
The features with which the Polygon wallet comes promises to transform crypto trading.
- The Polygon wallet is among the secured wallets and allows users to send and receive coins on the Polygon Network.
- One of the path-breaking features that the Polygon wallet provides is the Polygon Bridge. This enables the wallet to deposit and withdraw between networks.
- Through the wallet, the user can stake MATIC to earn rewards.
- A one-stop-shop dashboard enables the user to manage all the Polygon widgets in one place. This is an incredible ability since too many tools become unwieldy and confusing for the user.
- Other than MetaMask, there are numerous other wallets on the platform’s network that serve a wide range of purposes.
- It is pertinent to know that Polygon does not have a native wallet. However, as mentioned in the previous point, it provides a host of wallets. The highest regarded wallets on the Polygon Network are MetaMask and Alpha Wallet. These wallets assist the user in interacting with the Ethereum Blockchain.
Things to consider before investing
Before investing in Polygon, it is vital that the user has sufficient knowledge of the network one will be putting money on. Here are a few points regarding Polygon that might help:
- Technology: The technology offered is novel, and its primary aim is to improve blockchain performance. It has developed a technology called sidechain that helps blockchain perform better. The time to process transactions is reduced, and so is the gas fee.
- Building the framework for blockchain networks: The platform’s aim is ambitious. It wants to build the Internet of Blockchains, and towards this, they are building a framework that would enable users to interact between networks. This will help remove silos and the isolation of networks.
- It is on most US Exchanges: The cryptocurrency is a respectable network listed on most major US exchanges like Coinbase, Binance, and eToro. These are highly rated exchanges. The list also removes any integrity issues that might impact investors’ minds while investing money in the network.
- Rise of the MATIC: Holders of the Polygon token have experienced a wild ride lately. In January, a single token cost $0.02, while the same was worth $2.68 on May 18, 2021. That is a rise of 13,000%. However, the current price of a Polygon token is under $0.90. This reflects more on the volatility linked with cryptocurrencies than Polygon itself.
Why was Polygon in the news recently?
Recently, it was in the news because of the wild price rise and the subsequent cooling off. Over five months, the Polygon token saw an increase of 13000 % in its worth. However, it fell back and returned to below $0.90. With many Non-Fungible Tokens available in the market, crypto enthusiasts may find it easy to trade in the Metaverse.
Polygon is not just another network attracting investors through its coins and wallets. It is at the forefront of transforming the concept of cryptocurrency by building the Internet of blockchain. The price surge and subsequent cooling off are symptomatic of cryptocurrencies like Bitcoin, Solana, Tether, Cardano, Dogecoin, etc., that warrant users’ due precautions.