7 Things to Know Before You Buy Polygon

India-based cryptocurrency Polygon (MATIC) was designed to make transactions on the Ethereum blockchain sooner and cheaper.

Anybody who has used Ethereum currently understands simply how necessary that’s. It is by far the preferred place for decentralized functions, however that reputation has led to fairly a little bit of congestion. Customers commonly complain of how lengthy transactions take and the hefty charges concerned.

Due to its potential makes use of, Polygon has attracted loads of patrons. It at the moment sits within the prime 20 cryptocurrencies by market cap. Let’s take a look at all of the necessary issues it’s best to know earlier than you buy it your self.

1. Polygon provides expertise to enhance blockchain efficiency

One of many first merchandise Polygon has supplied is known as a sidechain. A sidechain connects to a blockchain and helps it carry out higher. Transactions course of rather more shortly and have decrease charges.

Polygon has been developed to be used with the Ethereum blockchain, however that does not imply it is restricted to Ethereum. Its sidechains can work with all blockchain expertise.

2. It is aiming to offer a framework for blockchain networks

Polygon has bold plans for the longer term. Its aim is to offer a framework for blockchain networks. Customers would be capable of create blockchain networks that interconnect with one another as an alternative of being completely separated.

This might supply builders the very best of each worlds. They’ll create their very own standalone blockchains with all the advantages these present, together with scalability and suppleness. They’d even have the benefits Ethereum provides, together with its safety and the instruments out there via it.

3. It is suitable with the Ethereum Digital Machine

The Ethereum Digital Machine (EVM) is a software program platform that builders can use to construct their very own decentralized apps. Partially due to how user-friendly the EVM is, Ethereum turned the preferred platform for decentralized apps.

Polygon is suitable with the EVM, so builders can simply port their apps to it. A number of well-known Ethereum apps have been deployed on Polygon already, together with Aave and SushiSwap.

4. Potential roadblocks embrace different blockchain networks and Ethereum 2.0

Whenever you’re contemplating investing in a cryptocurrency, it is necessary to know what the cryptocurrency does and what issues it may face sooner or later.

In Polygon’s case, it is not the one blockchain community venture. There are others providing interconnected blockchains, similar to Polkadot and Avalanche. Tasks like these could find yourself coexisting, or one may create a greater answer and go away the remaining behind.

Ethereum has additionally been rolling out a collection of upgrades to Ethereum 2.0, or Eth2. One aim of those upgrades is to make Ethereum extra scalable. If that occurs, it may make Polygon’s efforts there redundant.

5. The Polygon token is used for charges, governance, and staking

We have gone over objectives for Polygon as a venture, however what about its cryptocurrency token? There are a number of completely different makes use of for it:

Fuel charges: These transaction charges on the Polygon community are paid with its cryptocurrency.
Governance: Polygon is a governance token, which means token holders assist affect the way forward for the venture by making and voting on proposals.
Staking: Staking is if you lend a cryptocurrency. With Polygon, you’ll be able to stake your tokens and let the community use them in alternate for curiosity. You’ll be able to at the moment earn an annual price of over 15% staking Polygon, though charges usually change from each day.

6. A number of main U.S. exchanges checklist Polygon

Some cryptocurrencies are laborious to purchase as a result of they are not out there on the large cryptocurrency exchanges. You will not have that drawback with Polygon. It is out there on fairly a number of highly-rated exchanges, together with:

7. The value elevated by over 13,000% to start out the 12 months

Polygon holders have been on a wild experience in 2021. In January, a single Polygon token was value a bit of underneath $0.02. On Might 18, 2021, the worth had gone as much as $2.68, a rise of over 13,000%.

The crypto market normally has cooled off since then, and Polygon’s value proper now’s about $0.90. It reveals how risky this cryptocurrency is, in addition to how worthwhile it may be.

Like each cryptocurrency, Polygon is excessive danger. It has potential, and it may very well be value an affordable funding for those who just like the route it is going. Simply comply with the golden rule when shopping for crypto — do not put in additional than you might afford to lose.