Where to Buy Polygon (MATIC)

Polygon, previously known as the Matic Network, is a scaling solution that seeks to give various tools to improve the speed, lower the cost, and simplify transactions on blockchain networks. At the core of Polygon’s idea is Ethereum, a platform that houses a variety of decentralized applications, including those that allow you to join virtual worlds, play games, buy art, and participate in a variety of financial activities.

However, Ethereum’s blockchain activity has rendered it nearly unworkable, as transmission costs are growing and traffic is becoming choked. Polygon bills itself as a layer-2 network, an add-on coating to ETH that does not change the original blockchain layer. Like its geometric namesake, Polygon has numerous sides, shapes, and applications, and it promises a simpler structure for developing interconnected networks.

Polygon aims to assist ETH in growing in size, security, efficiency, and utility and encourage developers to bring appealing products to market faster. After the rebranding, Polygon kept its MATIC cryptocurrency, the digital coin that powers the network. MATIC is utilized as a payment and settlement unit amongst network participants.

How to Buy Polygon Crypto – Quick Guide

Best Exchange to Buy MATIC in January 2022

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How to Sign Up at eToro

The first step in to buy MATIC is to look for a MATIC crypto supporting platform. Although there are several cryptocurrency platforms, we will focus on a few of the most prominent platforms that traders utilize.

The platforms we review in this guide were selected based on their ease of use, fees, regulation, and overall trading experience.

Step 1: Open an Account

To open a new trading account, please follow the steps outlined below. 

1. Locate and click the “Join Now” or “Trade Now” option on the eToro website.
2. You will find an electronic form on the following web page where you can enter all of your personal information required to open a new trading account.
3. Please complete this form with all of the necessary information.
4. You may log in with either Facebook or Gmail.
5. Please read eToro’s Terms & Conditions and privacy policy before submitting your information for consideration.
6. Please indicate your acceptance of the terms by clicking the appropriate box after carefully reading them.
7. Click the “sign-up” button to enter your information.

eToro website homepage

If you’d instead use the eToro mobile app for iOS or Android, check out our guide to the eToro app.

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Step 2: Upload ID

eToro, being a regulated platform, requires its users to go through a documentation process for verification. To do this, upload a copy of your driver’s licence or government-issued ID card. You must also include a current copy of your electricity bill or bank statement.

Step 3: Make a Deposit

Once you’re ready, go to the ‘Deposit Funds’ tab and input the amount you want to deposit. The minimum deposit to start an eToro account is $50, which can be made using a variety of deposit methods such as debit cards, credit cards, bank transfers, Skrill, PayPal, and Neteller.

eToro has no deposit fees, making it less expensive than other big competitors in the market, such as Coinbase, which costs 3.99 percent when purchasing Bitcoin with a debit card. Once you’ve decided on a payment method, click the ‘Deposit‘ button to finish the transaction.

Deposit methods on eToro

On June 19, 2021, eToro listed Polygon (MATIC). Polygon, formerly known as Matic Network, is an easy-to-use platform for Ethereum scaling and infrastructure development that aims to increase cryptocurrency acceptance by tackling scalability issues on numerous blockchains.

Polygon SDK is a modular, adaptable framework that enables the development of various types of apps. Polygon effectively converts Ethereum into a full-fledged multi-chain system (aka the Internet of Blockchains) by leveraging Ethereum’s security, ecosystem, and openness.

Step 4: Buy Polygon

Once the deposit is made, the next step is to buy Polygon. All you need to do is to type “MATIC” in the search bar and click on the “Trade” button to open a trade pop-up.

MATIC is listed on eToro

Step 5: Review MATIC Price

After clicking on the Trade button, you will be taken to an order page. Here you can input how much Polygon crypto you want to purchase. Then click on ‘Open Trade’ to send the Polygon to your portfolio. 

Polygon Price Chart on eToro

Surprisingly, eToro does not charge maker or taker fees because they solely profit off the buy/sell spread.

Step 6: Buy MATIC

When you’re ready to make a purchase, click the ‘trade’ option. You can input the amount in this pop-up box. You have the option of adding numbers in terms of units or amounts. Furthermore, you can place a pending order (buy limit) that will trigger your trade once the price of 1 inch reaches a predefined threshold.

Second, you can conduct an instant trade by clicking on ‘Open Trade’ at the current buy price. At the same time, you will possess the underlying asset in your portfolio and will be able to decide whether to keep or sell it when the profit/loss matures.

Buy MATIC on eToro

Read more about how to buy cryptocurrency in 2022 here.

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Where to Buy Polygon Crypto – Best Platforms

Polygon (MATIC) is an Ethereum protocol aspired at “creating, issuing, and managing digital assets on the blockchain.” Polymath aims to “tokenize and trade old and new kinds of assets” by developing a compliance-focused standard (ST-20) for issuing and managing security tokens.

Before we go into how to buy MATIC in the UK, you must first locate the appropriate broker or exchange. Below, you can compare the finest cryptocurrency brokers and exchanges, as well as their features, fees, and payment options in 2022. You may even modify your investment amount and cryptocurrency to check how much each broker costs!

Best Brokers to Buy Polygon

eToro is a well-known Israeli fintech firm and social trading broker founded in 2007. eToro provides UK clients through a unit registered by the Financial Conduct Authority (FCA) and Australians through a business regulated by the Australian Securities and Investment Commission (ASIC).

All other customers are served by a Cyprus-based subsidiary governed by the Cyprus Securities and Exchange Commission (CySEC). eToro does not have a stock exchange listing, publishes its annual report on its website, and has a bank parent. The fact that eToro is regulated by the top-tier FCA and ASIC is favorable for its security.

Over the last 14 years, eToro has expanded to provide retail investors Stocks trading, Commodities trading, Forex trading, CFDs trading, Social trading, Indices trading, Cryptocurrency trading, Index-Based Funds trading, and Exchange Traded Funds (ETF) trading. eToro is an international brokerage with offices in Cyprus and the United Kingdom.

It now offers stake rewards if you buy Ethereum and retain it in your wallet, as well as Cardano and Tron.

Read more about how to stake crypto.

Copy-trading: CopyPortfolios is an innovative concept in which eToro gathers traders into a single fund that you may imitate trade. CopyPortfolios bridge the gap for investors who want to use eToro passively by allowing them to build a portfolio entirely on one or more CopyPortfolios. On the other hand, self-directed traders can utilize CopyPortfolios to diversify their trading, making it potentially valuable for all eToro clients.

Pricing –  Overall, eToro’s price for trading cryptocurrency is close to the industry norm, such as 0.75 percent for buying or selling bitcoin, but its fiat to crypto conversion charge is exorbitant at 5 percent. Meanwhile, converting from crypto to crypto at eToro costs only 0.1 percent on top of the current spreads. eToro is our top one broker for Crypto Trading in 2021, with a big selection of crypto assets and both CFDs and the underlying.

Minimum Deposit – The minimum deposit requirement varies region-wise. For instance, the United Kingdom and much of Europe must deposit up to $200 to start trading. While the traders in the United States must deposit a minimum of $50. eToro also supports Bitcoin, Ethereum, Aave, Ripple, Graph, and other popular cryptocurrencies.

You can execute buying and selling trades online via the eToro mobile app. while the account opening just takes a few minutes.

eToro Minimum Deposit 

Pros & Cons of the eToro platform:

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2 – Binance

Binance, founded in 2017 by software developer Changpeng Zhao, is a decentralized cryptocurrency exchange based in China.

While Binance is currently the world’s largest cryptocurrency exchange by trading volume, it also deals with regulatory concerns in various nations. Binance provides global users with access to hundreds of cryptocurrencies. The worldwide Binance platform differs from its US version, Binance.us, only about 60 cryptocurrencies.

Although experienced traders may appreciate the variety Binance provides, new users may find this platform confusing due to its numerous features. Furthermore, its continuous investigations and a growing list of regulatory difficulties cause concern.

Binance’s platform supports the trading of over 365 coins. 1 It also accepts fiat currencies such as USD, EUR, AUD, GBP, HKD, and INR. Binance provides various trading tools, including real-time charting with moving averages and exponential moving averages. Users can execute transactions using the Binance app, the Binance website, or the Binance desktop app.

Traders can also utilize the Binance platform to check their order book and price charts and access their portfolios and transaction history. Binance also offers a variety of order types, including stop orders, limit orders, stop-limit orders, stop-market orders, and trailing stop orders. You can also select from various trading perspectives, ranging from classic to margin and OTC.

Binance uses two-factor authentication (2FA) verification and FDIC-insured deposits in US currencies (USD). Binance also uses device management in the United States, IP whitelisting, and cold storage to protect its customers.

Fees: When it comes to commission structure, Binance stands out. Fees usually start modest and only become lower from there. Binance employs a volume-based pricing approach and offers further discounts using its proprietary coin. However, if you’re used to the uncomplicated world of typical brokerage prices, you’ll have to say goodbye to such fantasies here.

In general, you’ll pay a 0.1 percent commission when you trade. However, the exchange’s volume-based pricing approach, which is based on your 30-day trading activity, can help you save money. Binance has 11 price levels, denoted as VIP 0 through 10, based on your 30-day volume. Furthermore, Binance employs a maker-taker mechanism, which rewards those who add liquidity to the market (makers) and penalizes those who diminish liquidity (at greater trading volumes) (takers).

Binance listed the Polygon (MATIC) token back on July 28, 2021, and it offers to trade on Polygon (MATIC). Moreover, Binance has opened trading for MATIC/BTC, MATIC/USDT

Pros & Cons of the Binance platform:

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3 – Coinbase 

Coinbase exchange was founded in 2012 as a platform for sending and receiving bitcoin. The company has expanded to accommodate dozens of unique cryptocurrencies and now employs over 2,700 people worldwide.

Coinbase is a decentralized organization with no central offices. Coinbase has users in over 100 nations, and clients trade about $327 billion per quarter. In addition, Coinbase oversees a thriving bitcoin ecosystem that serves 9,000 financial institutions.

Coinbase operates two distinct trading platforms and a standalone cryptocurrency wallet service. As previously stated, the company operates two platforms: Coinbase and Coinbase Pro. Each allows you to purchase, sell, and exchange cryptocurrencies, but each has its own set of features.

Coinbase – Coinbase trading is beginner-friendly and simple to use for anyone with basic computer abilities. Coinbase is accessible via the web and mobile devices running Android and iOS. You’ll have a similar experience if you’ve ever traded stocks through an online brokerage.

Coinbase Pro – Coinbase Pro appears to be designed specifically for professional traders, yet anyone with a Coinbase account can access and utilize the pro version. In addition, it provides a variety of trade types, such as limits and stop orders, which are not available on the main Coinbase platform.

Mobile App: Coinbase has an easy-to-use and highly functional mobile software that allows users to buy, sell, and manage bitcoins from anywhere. It has 4.7 ratings in the Apple App Store and 4.4 stars in the Google Play Store.

A platform for advanced trading: For most people who want to buy, sell, and spend cryptocurrency, Coinbase’s ordinary desktop site is sufficient. On the other hand, advanced traders access the Coinbase Pro desktop trading interface. Customers can browse real-time order books, use graphing tools, and place orders quickly on that website.

Creating a Coinbase account: This is as simple as opening a new bank or brokerage account online. To create a fully verified account, you must include your contact information, particularly your Social Security number. To show that they are who they claim they are, new account holders must present a photo of a government ID.

After you’ve opened an account and verified your information, you’ll be able to buy and sell cryptocurrencies up to the limits of your Coinbase account.

Fees: Coinbase presents its fee on the trade screen before you make a transaction, so you know exactly how much you’re spending before you enter a deal. The following are the fees you should expect to pay on the main Coinbase platform:

Trade Size          Coinbase Fee

$10 or less            $0.99
$10 to $25            $1.49
$25 to $50            $1.99
$50 to $200          $2.99

Trades above $200 have a percentage-based fee rather than a flat fee.

Coinbase listed the Polygon (MATIC) token back on March 09, 2021, and it offers to trade on Polygon (MATIC). Moreover, Coinbase has opened trading for MATIC/USD, MATIC/BTC, MATIC/EUR, and MATIC/GBP.

Pros & Cons of the Coinbase platform:

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4 – Bitfinex

Bitfinex is a well-known cryptocurrency exchange. iFinex Inc, its parent firm, is situated in Hong Kong and registered in the British Virgin Islands.

The site has been online since 2012 and has a sizable fan base, but as many Bitfinex reviews will point out, there have been some teething issues along the road.

Bitfinex is a premier destination for seasoned traders worldwide, and it is one of the top exchanges in terms of recognition and trading volume. Except for a few countries, it serves the entire world and supports both fiat-to-crypto and crypto-to-crypto exchanges.

It offers margin trading, limit and stop orders, over-the-counter (OTC) trades, and other notable features. While there are numerous options, everything is laid out in an amazingly intuitive manner, with simple dashboards and menus.

Fees – Bitfinex charge a 0.1% fee on deposits and withdrawals via bank transfer. If you require funds within 24 hours, you can pay a 1% expedited fee. Alternatively, bitcoin withdrawal costs differ by coin.

Bitfinex listed Polygon (MATIC) back on Oct 21, 2021, and enabled trading against USD and USDt.

Pros & Cons of the Bitfinex platform:

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5 – KuCoin

KuCoin Exchange is based in the Seychelles and launched cryptocurrency trading in September 2017. Based on a research department that scours the blockchain industry for quality projects, the KuCoin Exchange emphasizes the quality of the projects listed.

KuCoin offers an exchange service that allows customers to perform digital asset trades securely and fast. KuCoin’s long-term goal is to deliver long-term, increasing value to its more than five million registered users in over 100 countries. ‘The People’s Exchange’ formally collaborated with IDG Capital and Matrix Partners in November 2018.

KuCoin claims to offer the highest level of security and a cryptocurrency selection of about 400. Despite its considerable features, it is a user-friendly exchange with a basic layout. Furthermore, the exchange boasts some of the lowest costs in the bitcoin industry. KuCoin claims that one out of every four cryptocurrency holders globally uses its service. The main benefit of such a large customer base is that it increases market liquidity; you’re more likely to make the deals you want because more individuals are trading.

It offers bank-level security, a sleek interface, a user-friendly UX, and a wide range of crypto services, such as margin and futures trading, a built-in P2P exchange, the ability to purchase crypto with a credit or debit card, instant-exchange benefits, the ability to earn crypto by lending or staking via its Pool-X. Last but not least, the ability to participate in new initial exchange offerings (IEOs) via KuCoin Spotlight.

Deposits – Only cryptocurrency deposits and withdrawals are accepted. 

Trading Fees – The platform charges 0.1 percent to both makers and takers, making it one of the cheapest cryptocurrency exchanges online. 

KuCoin listed Polygon (MATIC) back on May 21, 2021, and supported trading on MATIC/USDT and MATIC/BTC.

Pros & Cons of the KuCoin platform:

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6 – Bybit

Bybit is a cryptocurrency derivatives exchange that offers a comprehensive set of advanced trading tools.

It provides excellent security and a zero-downtime commitment, though it is currently unavailable in the United States.

Bybit is a trading platform for cryptocurrency derivatives situated in Singapore. These are contracts that offer you the right to buy or sell crypto assets at specific prices in the future. But before we get any further, there are a few things we need to clarify. Bybit has not been authorized by the Financial Conduct Authority.

Founders – Ben Zhou co-founded Bybit in 2018 after seeing the immense potential of cryptocurrency trading two years prior. Zhou was the general manager for Greater China at forex brokerage business XM before becoming the exchange’s CEO.

He assembled an A-team of investment banking and fintech professionals who previously worked for Alibaba, Tencent, Morgan Stanley, and other well-known companies to build the platform. The Bybit exchange also consists of blockchain experts and veteran forex talents.

Bitcoin, Ethereum, and USDT, as well as 45 fiat currencies, are accepted by the Fiat Gateway. Market takers pay 0.075 percent, while market makers pay -0.025 percent.

Pros & Cons of the Bybit platform:

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What is Polygon (MATIC)?

Polygon SDK is a modular, adaptable framework that facilitates the creation of various sorts of apps. MATIC, Polygon’s native token, is an ERC-20 token based on the Ethereum platform. Furthermore, the tokens are used for payment services on Polygon as well as a settlement currency between Polygon marketplace members.

Polygon (formerly Matic Network) is the first well-structured, user-friendly Ether scaling and infrastructure development platform. Check out our in-depth look into Polygon Matic to discover more about it. Polygon can be used to generate optimistic aggregate functions chains, ZK rollup chains, stand-alone chains, or any other type of infra that the developer requires.

Polygon successfully converts Ethereum into a complete multi-chain ecosystem (aka Internet of Blockchains). This multi-chain system is identical to Polkadot (DOT), Cosmos (ATOM), Avalanche, and others, but it benefits from Ethereum’s security, active ecosystem, and openness. The $MATIC token will continue to exist and play a growing role in protecting the system and allowing governance.

Polygon is a Layer 2 scaling mechanism. The project aims to increase cryptocurrency acceptance by addressing scalability issues on several blockchains. Polygon is a blockchain architecture that combines the Plasma Framework and proof-of-stake. Polygon’s Plasma framework, which Ethereum co-founder Vitalik Buterin suggested, enables the simple execution of scalable and autonomous smart contracts.

The existing ecosystem based on the Plasma-POS chain will remain unchanged. Polygon is expanding its capacity to cater to needs of developers and build new features around current established technology. In addition, Polygon will continue to improve its fundamental technology for it to scale to a bigger ecosystem.

Polygon can process up to 65,000 transactions per second on a single side chain and has a block confirmation time of fewer than two seconds. On top of that, the architecture enables the development of globally accessible decentralized financial apps on a single underlying blockchain.

Polygon can host an infinite number of decentralized applications on its infrastructure thanks to the Plasma framework, which eliminates the usual limitations associated with proof-of-work blockchains. In addition, Polygon has attracted over 50 DApps to its PoS-secured Ethereum sidechain so far. MATIC, Polygon’s native token, is an ERC-20 token that runs on the Ethereum blockchain.

The tokens are used for payment services on Polygon and as a settlement currency amongst Polygon ecosystem users. On Polygon sidechains, transaction fees are likewise paid in MATIC tokens.

What Is the Process of Polygon?

Polygon is a multi-level platform that tries to grow Ethereum through a slew of sidechains, all of which strive to unclog the main platform efficiently and cost-effectively. If you’re not familiar, sidechains are distinct blockchains linked to the main Ethereum blockchain and can implement many of the Ethereum Decentralized Finance (DeFi) protocols. Polygon has a proof-of-stake consensus technique to generate new MATIC and protect the network, which implies that staking is one way to earn money on MATIC you own.

Validators undertake the heavy labor, verifying new transactions and adding them to the blockchain. In exchange, they may obtain a charge reduction and freshly developed MATIC. Becoming a validator entails operating a full-time node (or computer) and staking your private MATIC. If you make a mistake or act deliberately (or even if your internet connection is unstable), you may lose some of your staked MATIC.

Delegators stake their MATIC indirectly through a trusted validator. This is a significantly lower-risk variation of staking. However, the investigation is still required since if the validator you choose acts maliciously or makes errors, you may lose some or all of your staked MATIC.

Is it Worth Buying Polygon in 2022?

What do cryptocurrency experts predict for Polygon in 2022?

Polygon stand-out during 2021 and reached new heights in the previous 12 months. After two years of modest growth, the price of MATIC stayed below $0.02. Its current ATH is $2.68, which it will reach on May 18th, 2021. Although it has declined to $1.94, it is still significantly higher than its pre-bull run values.

But what will happen to MATIC in 2022?  The MATIC price predictions for 2022 are favorable, with MATIC expected to rise at a very linear pace throughout the year, implying less volatility.

Will the Price of Polygon Up in 2022?

After witnessing substantial dapp adoption in 2021, the price of MATIC skyrocketed. The agreements and alliances will increase the network’s scalability to 100,000 transactions per second. The Polygon ecosystem is quite popular, with several projects built on it; if improvements continue, we may expect the MATIC price to reach $3, violating a new all-time high of $2.68.

MATIC Weekly Price Chart 

Wallet Investor’s – According to our projections, long-term growth is projected; the MATIC price forecast for 2021 is $1.5, while it may reach the $7 level in 2025. The revenue is estimated to be around +1518.96 percent after a 5-year investment.

Reddit – The most significant milestone success for MATIC is that it will cross $1, and the calculated ROI percentage will be around 4730 percent, therefore with a 5-year HODL, it will be worthwhile to invest in Polygon. We believe MATIC is a reasonable short-term investment despite the higher risk of loss.

Trading Beasts- MATIC’s maximum price is predicted to be around $0.89 by the end of the year. MATIC prices are expected to return by June following the pandemic and increased vaccination availability worldwide, resulting in a solid peak and a minimum price of $0.99 by the end of 2022, which is certain to scale.

GoodTime Nation – MATIC is venturing into a fiercely competitive and unforgiving market: off-chain scaling. Given the listing on prestigious platforms and the creation of attractive tokens, a price increase in MATIC is unavoidable.

GOV Capital – According to our statistics, the asset price has risen over the last year. However, Polygon has been trending upward; thus, we believe that similar market categories were quite popular throughout the period in question. After a year, the asset is expected to be worth $1.976671 (364.007 percent).

When you’re considering an investment, follow these things:

Do you want to buy MATIC but aren’t sure how cryptocurrencies work? Put an end to it!

Cryptocurrencies can be an exciting investment opportunity, but novice investors run the danger of losing money if they are deceived by scammers or back a new coin with no track record. This section will go over what you should know before investing in the bitcoin market.

1. Do not put all of your eggs in a single basket

If you put your entire deposit into one cryptocurrency and it suddenly dropped by 50%, you’d lose half of your money. But, if you had ten assets and MATIC was just 10% of your total deposit, your loss would be less severe. Therefore, never overlook risk diversification!

Instead, always conduct market research and invest in several cryptocurrencies.

2. Calculate the size of the transaction

Traders are frequently led by emotions rather than logic or serious calculations. This behavior is also described with a specific word. It’s referred to as FOMO or fear of missing out. Beginner traders are influenced by the buzz and put 30–40% of their deposit into a single transaction, resulting in significant losses if the transaction fails. As a result, don’t overlook the 6 percent and 2 percent rules.

According to the latter, you should open a position with no more than 2% of your total investment. Some even advise investing no more than 1% of the total amount. However, you will never lose your entire deposit if you use this strategy. According to the 6 percent rule, if you continue to lose money in crypto trading and are unable to stop a string of bad trades, you should stop trading if you lose more than 6% of your investment. In this instance, it is advised to take a 1.5–2 week sabbatical from trading to recover and avoid making rash decisions psychologically.

This principle is intertwined with the stop-loss order. When you open a trade, make sure that the overall risk for all orders is less than 25%. This ensures that even if all of your transactions are unprofitable, you will still retain at least 75% of your deposit.

3. Calculate the transaction’s profitability

Just keep in mind that not every trade will be profitable. Professional traders also lose money. Loss is an unavoidable element of trading; you have to accept it. The profit/loss ratio is the most crucial factor to consider and should ideally be 3 to 1, or at least 2 to 1.

How to Buy Polygon (MATIC) as a CFD Product

Contracts for difference trading, often called CFD trading, is a strategy that allows investors to trade and engage in an asset by engaging in an agreement with an exchange or a broker instead of opening a trade directly on a specific market.

When the position closes, the trader and the broker agree to mimic market circumstances and settle the difference between themselves. CFD trading has several advantages that direct trading does not, such as exposure to international markets, leveraged/margin trading, short selling an asset that does not typically offer that option, and more.

How do classic CFDs function?

Traders select an asset offered by the broker as a CFD. For instance, it might be a stock, an index, a cryptocurrency, or any other investment in the broker’s portfolio. Traders open the position and specify characteristics such as a long or short position, leverage, amount invested, and other criteria specific to the broker. The two sign a contract in which they agree on the opening price for the position and whether or not any additional expenses (such as overnight fees) are involved.

The position is executed and remains open until the trader decides to close it or it closes automatically, such as when a stop loss or take profit point is reached or the contract expires. If the trader’s position closes in profit, the broker compensates him. If it matures at a loss, the broker deducts the difference from the trader’s account.

Lately, CFD trading has made its way into the cryptocurrency market. Having said that, MATIC is also accessible as a CFD product. So if you’re having trouble tracking bitcoin trading with the exchange where you keep your crypto assets, you can profit from MATIC by using CFDs.

We recommend using Binance or CryptoRocket to trade cryptocurrencies with leverage. More cryptocurrencies, including MATIC, are supported by Binance. CryptoRocket, on the other hand, supports fewer altcoins – currently 40.

Cryptorocket does not allow leveraged trading on MATIC, but they are constantly launching new coins.

We also recommend the derivatives broker Capital.com, which has a MATIC/USD trading pair. You have more flexibility when you trade with CFDs because you are not tied to the asset; you have bought or sold the underlying contract. CFDs are a more established and regulated financial product. However, it is worth noting that when coupled with leveraged trading, the increased volatility of cryptocurrency might result in exaggerated gains and losses. Instead, use stringent risk management measures and stop and limit orders.

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Taxation on Polygon Earnings

Crypto traders and enthusiasts may have severe tax concerns as the value of various cryptocurrencies, such as Bitcoin and Ethereum, has skyrocketed. However, with the Internal Revenue Service (IRS) ratcheting up enforcement operations, even people who simply hold the currency instead of trading it must be careful not to break the law. Given how the IRS views cryptocurrency, this may be easier than you think.

Additionally, the Internal Revenue Service (IRS) has attempted to establish a cryptocurrency taxing framework. Currently, the agency treats digital assets as real estate, putting them in the capital gains tax category. Furthermore, there are some instances where virtual currencies are recognized as income, resulting in the imposition of income tax by the taxation authority.

1. You will be asked if you own or utilize cryptocurrencies.

You must indicate whether you have dealt with cryptocurrencies on your 2022 tax return. For example, form 1040 asks, “Did you receive, sell, send, swap, or otherwise acquire any financial interest in any digital currency at any time during 2021?”

As a result, you’re on the hook to answer definitively whether you’ve transacted in cryptocurrencies, perhaps placing you in a position to lie to the IRS. If you do not answer truthfully, you may face additional legal consequences.

There is, however, a footnote. The IRS recently clarified that taxpayers who solely acquired virtual currency with actual currency were not required to answer “yes” to the question.

2. You are not exempt from taxation simply because you did not receive 1099.

You (and the IRS) will typically receive a Form 1099 from a bank or brokerage reflecting the income you received throughout the year. Nonetheless, It may not be the case with cryptocurrencies.

“There isn’t the same amount of reporting for cryptocurrency yet, compared to standard 1099 forms for stocks, interest, and other payments,” Harris explains. “Coinbase and other exchanges don’t provide the IRS with good reporting.”

However, beginning on January 1, 2023, a law passed in November 2021 will demand higher tax reporting for those in the industry. Anyone who transacts digital assets for another is required by law to report such information to the IRS on a 1099 or similar form.

3. Simply using cryptocurrency exposes you to potential tax obligations.

You may believe that you are not subject to taxation if you merely use – but do not trade – cryptocurrencies. That is not necessarily the case.

You may be exposed to a tax penalty when you sell virtual currency for real currency, products, or services, which is a part of trading alongside buying and holding – those are not usually taxed.

4. Crypto trading profits are taxed in the same way as normal capital gains.

So you made a profit on a profitable transaction or purchase? The IRS typically treats bitcoin gains the same way it considers any other type of financial gain.

That is, for assets held less than a year, you will pay conventional tax rates on short-term capital gains (up to 37 percent in 2021 and 2022, depending on your income). However, if you hold assets for more than a year, you will be subject to long-term capital gains tax, most likely at a lower rate (0, 15, and 20 percent).

5. Crypto miners may face different treatment than others.

Do you mine cryptocurrencies for a living? Then you may be able to deduct your expenses in the same way that a conventional firm would. Your income is the monetary value of your output.

“If you mine cryptocurrencies, you earn income at fair market value, so that’s your basis in cryptocurrency,” Harris explains. “Your expenses may be deductible if this is a trade or enterprise.”

But it’s that last bit that’s important: you have to be in the trades or manage a business to qualify. For instance, you cannot operate your mining rig as a hobby and claim the same tax benefits as a legitimate business.

6. A crypto gift is handled the same as any other gift.

If you gave bitcoin to someone, say a younger relative, to pique their interest, your present will be treated the same as any other such gift. As a result, it may be subject to gift tax if it exceeds $15,000 in 2021 (or $16,000 in 2022). However, if the recipient decides to sell the present, the cost basis stays the same as the giver’s cost basis.

However, even if you exceed the annual level, there are certain ways to avoid the gift tax, such as using the lifetime exemption.

7. Inherited cryptocurrency is treated the same way as other inherited assets.

Inherited cryptocurrency is regarded similarly to other capital assets passed down from generation to generation. For example, if the estate exceeds specified levels ($11.7 million and $12.06 million in 2021 and 2022, respectively), they may be subject to estate taxes.

Cryptocurrency, like stock, has a stepped-up cost basis to the fair value on the day of death. According to Harris, bitcoin is widely regarded as a type of capital asset by most people.

Automated Trading With Robots

Cryptocurrencies are infamous for their tremendous volatility, with prices fluctuating dramatically even within minutes. Traders can also trade bitcoins from anywhere in the world and at any time of day. When these variables are combined, they reduce the effectiveness of human bitcoin trading in several ways.

Many investors cannot react quickly enough to market movements to react to the best deals that are potentially available to them. Second, traders do not have the time to devote to the cryptocurrency markets to make the best trades consistently. To accomplish this, bitcoin exchanges throughout the world would need to be watched 24 hours a day, seven days a week.

Fortunately, many investors can find solutions to these issues. One of the primary answers is bots or automated programs that conduct trades and execute deals on behalf of human investors. Bots are undeniably a contentious market component, with justifications for using them and reasons to avoid them.

• Cryptocurrency traders use bots to take advantage of the cryptocurrency markets, which are open 24 hours a day, seven days a week.
• Trading robots have an advantage over investors in responding more quickly. 
• Most investors do not have the time to search for the ideal transaction, which bots can accomplish continuously.
• A bot that aims to profit from price disparities between exchanges is known as an arbitrage bot.

Risk Reduction in Polygon (MATIC) Investment:

Every investor should look out for strategies to protect oneself from significant losses. If you wish to limit your risks, follow these guidelines:

By using a firm stop loss, you can avoid mental stops.

One of the best tactics for traders to reduce their risk exposure in the markets is to use a hard stop loss with each transaction. Don’t just consider a stop-loss; execute the order to prevent a minor loss from becoming a long-term losing position.

Higher leverage 

A high leverage strategy can help a trader make a lot of money in a short period of time. However, if the market moves against your trade, it can result in considerable losses that wipe out your trading cash.

Volatility in the market

To begin with, some volatility is advantageous since it helps traders profit from little price swings. For example, if a market does not move, no one will trade it. As a result, trading in a market with little volatility might occasionally result in losses. Not only from the market but also from the high transaction costs.

Determine your level of risk tolerance.

The amount of money at stake in each transaction is a personal preference that involves placing a stop-loss order. However, we favor a rigorous 1% or 2% standard. We believe that a trader should examine the size of his trading capital, how much money he is willing to risk, and then compute the percentage of the trading account. 

Polygon Price Predictions: Where Does MATIC Go From Here?

Matic Network has provided investors with more than 60% returns before the start of the new year. MATIC is a precious asset for traders who may profit from these price swings by taking a long or short position. CoinMarketCap now ranks 15th, with a live market cap of $13,460,290,644 USD.

There are 7,081,682,963 MATIC coins in circulation, with a maximum supply of 10,000,000,000 MATIC coins. Here is what industry experts predict for investment over the next five years:

Polygon Price Prediction 2021

After witnessing substantial dapp adoption in 2021, the price of MATIC skyrocketed. The agreements and alliances will increase the network’s scalability to 100,000 transactions per second. The Polygon ecosystem is quite popular, with several projects built on it; if improvements continue, we may expect the price of MATIC to reach $2.40.

Polygon Price Prediction 2022

With partnerships and alliances and community investment, the market expects MATIC to perform, reaching a level of $3.4, which is pretty optimistic but undoubtedly achievable.

Polygon Fibonacci Extension – Daily Chart

MATIC Price Prediction 2023 – 2024

The polygon may experience foggy days if government laws and regulations shift. MATIC should sail comfortably at $3.5 or max bow down to $1.9 to avoid a drop but play consistently.

It would not be an exaggeration to predict that the MATIC price will reach a peak of $3 eventually.

Should I Buy Polygon Crypto?

MATIC is expected to be among the top ten cryptocurrencies in five years if its existing price records are broken. In addition, several inbound innovations and alliances may contribute to its expansion. For example, if the network can continue to work on TPS, it may eventually benefit ETH holders, causing the price to rise to $10.941.

However, the token may crash if bears continue to drive down prices due to a hypothetical market meltdown or any external controversies involving Ethereum. As a result, the price may drop to $8.511. With better scalability and the long-term success of layer-2 blockchain, Matic might be trading at $12.241 by the end of 5 years.

Summary

Polygon (MATIC) is an Ethereum protocol used to ‘produce, issue, and manage digital securities on the blockchain.’ Polygon SDK, a platform that allows individuals to construct various types of blockchain applications and decentralized finance (DeFi) services, lies at the heart of the protocol.

Utilizing the Polygon framework makes it feasible to gain access to the Ethereum blockchain while avoiding some of its existing drawbacks, such as high transaction fees and limited processing capacity. This means that Polygon effectively converts Ethereum into a multi-chain system known as the ‘internet of blockchains.’ The platform can theoretically process up to 65,000 transactions per second on one side-chain, and it takes less than two seconds to create a new block.

Our recommended regulated broker, eToro, can assist you if you’re ready to invest. It only takes three minutes to create an account and purchase Polygon safely.

It would be best if you also kept the following in mind:

• Polygon is an extremely risky cryptocurrency, therefore investing in and trading Polygon necessitates substantial research and effort.
• You should only use registered brokers and exchanges when investing. Furthermore, only invest what you can afford to lose.
• You should also get information regarding Polygon from review sites and web specialists.

FAQs

Any risks in buying Polygon now?

Matic Network has provided investors with more than 60% returns before the start of the new year. MATIC is a precious asset for traders who may profit from these price swings by taking a long or short position. However, If you're thinking about buying MATIC, keep in mind that cryptocurrencies are volatile investments, so you should be prepared for large price swings. It's best to invest only money you can afford to lose, and to start with emergency savings and a retirement fund.

Should I buy Polygon?

MATIC is now ranked at #15th, with a live market cap of $13,460,290,644. There are 7,081,682,963 MATIC coins in circulation, with a maximum supply of 10,000,000,000 MATIC coins. There's a strong potential for an upward trend continuation.

Where can I spend my Polygon?

MATIC can be used to buy and sell products and services via e-commerce or retail, but unlike credit or debit cards, the payment is actually instant. As a buyer, the crypto-currency (MATIC) exits your wallet and is instantly transferred to the seller's wallet, at absolutely no cost.

Is it safe to buy Polygon?

The Polygon ecosystem is quite popular, with several projects built on it; if improvements continue, we may expect the MATIC price to reach $2.40.

Will Polygon ever hit $10?

In the next five years, if the network can continue to work on TPS, it may eventually benefit ETH holders, causing the price to rise to $10.941.