Staking basics

How to buy MATIC - A Comprehensive Guide

Zainab Saberi

Apr 12, 2023 • 5 min read

What is MATIC?

Polygon, formerly known as the MATIC network, is a solution designed to address the scalability challenges of the Ethereum network. Its primary goal is to enhance transaction speed, reduce costs, and simplify the complexities associated with blockchain transactions.

At its core, Polygon focuses on Ethereum, the leading platform for smart contracts in the blockchain industry, with numerous cryptocurrency projects utilizing its blockchain infrastructure. Smart contracts are self-executing agreements defined by computer programs, employing immutable code, and recorded on a blockchain. However, the Ethereum network has experienced increased congestion over time, resulting in higher gas fees and slower processing times.

Polygon is a Layer 2 network and sidechain solution for Ethereum, allowing developers to build decentralized applications compatible with Ethereum. These applications, often utilized for decentralized finance purposes, operate on separate blockchains that connect to the Ethereum main chain.

The primary objective of Polygon is to promote the widespread adoption of cryptocurrencies and facilitate network interoperability by enhancing Ethereum's transaction fees, throughput, and speed.

Why buy MATIC?

Reasons to consider buying Matic include:

Supporting Ethereum's Scaling Solution: By purchasing MATIC, you contribute to developing and adopting a prominent scaling solution for the Ethereum network. This support helps address the scalability challenges faced by Ethereum, enhancing its overall performance.
Going for a Scalable Blockchain: MATIC is a crypto-asset that powers a scalable blockchain infrastructure. Going with MATIC allows you to be part of the ecosystem that aims to improve transaction speed, reduce costs, and streamline blockchain transactions.
Diversifying Your Crypto Portfolio: Including altcoins like MATIC in your cryptocurrency portfolio can help diversify your holdings. MATIC exposes you to a different segment of the crypto market, potentially mitigating risks and maximizing growth opportunities.
Earning Block Rewards by Delegating MATIC: If you delegate your MATIC tokens to nodes, you can participate in the network's consensus mechanism and earn a portion of the block rewards. This allows you to generate passive income from your MATIC holdings.

Steps to buy MATIC

To purchase Matic, one should know where to buy it from.

Utilize Centralized Exchanges: Several centralized exchanges such as Coinbase, Kraken, and Binance facilitate the buying and trading of MATIC. These platforms offer various trading pairs, enabling customers to acquire MATIC using popular stablecoins like Tether (USDT) or US dollars and fiat currencies.

Although centralized exchanges are user-friendly and provide access to a wide range of coins and tokens, it's important to note that fees may apply when buying or selling.

Consider Decentralized Exchanges: If you prefer a more peer-to-peer approach, decentralized exchanges (DEXs) allow you to purchase MATIC directly from other users. While this option may involve a slightly more technical process, it often entails lower fees than centralized exchanges. Uniswap is an example of a decentralized exchange where you can acquire MATIC tokens.

Remember to conduct thorough research and choose a reputable exchange that aligns with your requirements. Additionally, it's crucial to consider factors such as security, liquidity, and regulatory compliance when engaging in cryptocurrency transactions.

Here are the steps to buy MATIC:

To invest in Polygon's native currency, MATIC, you can follow these steps:

Select a Cryptocurrency Exchange:

Choose a suitable cryptocurrency exchange that aligns with your needs. Consider factors such as user-friendliness, available features (e.g., crypto staking, margin accounts, futures trading), and the required experience level.

Purchase MATIC:

After creating an account and linking it to a funding source like a bank account or debit card, place an order to buy MATIC. Enter MATIC's ticker symbol (MATIC) and specify the desired amount (e.g., $50). Most exchanges offer different order types to choose from.

It is advised to avoid using a credit card for MATIC purchases due to high transaction fees and potential cash advance charges. Credit card transactions on crypto exchanges often have higher interest rates than regular charges.

How to store your MATIC

Like other cryptocurrencies, it is your responsibility to store your MATIC securely. Here are a few storage options to consider:

Hardware Wallets: Hardware wallets resemble flash drives or USB drives. They provide "cold storage" by storing your private and personal keys offline, ensuring enhanced security.
Paper Wallets: Paper wallets involve writing down your keys or using an app to generate a printed QR code for accessing your cryptocurrency. However, it's crucial to note that paper wallets carry a risk of loss since losing the paper can result in the inability to access your assets.
Software Wallets: Software wallets are programs or apps that can be downloaded onto your computer or other devices. They allow you to store your cryptocurrencies and provide easier accessibility for buying and selling. However, they are generally considered less secure than hardware wallets.
Crypto Exchanges: Some cryptocurrency exchanges, such as Coinbase and Binance, offer the option to store your crypto assets. However, relying on exchanges for long-term storage may pose security concerns.

What can you buy with MATIC?

Within the Polygon ecosystem, MATIC tokens have various utility functions. They can be used to pay transaction fees, stake cryptocurrency, or participate in network governance.

Before buying MATIC or any other crypto asset, carefully assess your financial situation, goals, and overall portfolio. It's important to note that cryptocurrencies are volatile and carry inherent risks, so only go for an amount you are comfortable with and willing to risk.

FAQs

Do I need to go through KYC (know your customer) verification to buy MATIC?

Yes, most platforms require users to complete KYC verification as a part of their registration process.

2. What payment methods are accepted for buying MATIC?

The payment methods vary depending on the platform, but generally, platforms accept both fiat and cryptocurrency deposits.

3 How much MATIC can I buy at once?

There's usually no set limit to the amount of MATIC you can buy simultaneously. However, the purchase amount may be limited by the amount present in your account or the exchange’s liquidity.

4. Can I buy MATIC with other cryptocurrencies?

Most platforms allow users to purchase MATIC using other cryptocurrencies, most commonly Bitcoin (BTC) and Ethereum (ETH).

5. How long does it take to receive my MATIC after I buy it?

Typically, transactions are processed quickly, and you should receive your MATIC almost instantly after the purchase. However, transaction times can vary based on network congestion.

6. What is the current price of MATIC?

The price of MATIC fluctuates due to market dynamics. Check a reputable cryptocurrency exchange or financial news site for the current price.

7. Do I need a special wallet to store MATIC?

You need a digital wallet that supports MATIC. This could be a software wallet (on your computer or phone) or a hardware wallet.

8. Is it safe to buy MATIC online?

Buying MATIC online from a reputable platform is generally safe if you take necessary precautions like using secure networks, enabling 2-factor authentication, and storing your tokens securely.

9. Are there any fees associated with buying MATIC?

Yes, most platforms charge transaction fees for buying cryptocurrencies, including MATIC. The fee structure differs from platform to platform.

10. Can I sell my MATIC back for fiat currency?

Yes, most platforms allow you to sell your MATIC tokens back for fiat currency.

11. What is the best way to buy MATIC for the lowest fees?

The fees vary by platform, so it’s advisable to research different platforms to find the one with the lowest fees.