Crypto markets have taken off over the past few years. While all investment carries a certain amount of risk, various cryptocurrencies carry higher risks than some traditional investments. However, that risk is balanced out with huge potentials for gain.
Ripple, or XRP, is one cryptocurrency that returned 373 percent in May 2017. That turned into a negative 36.1 percent return just two months later.
But every crypto is different, and you should know what you’re getting into before you invest. One of the biggest coins right now is Polygon, or MATIC, currently ranked #12 in market cap. If you find yourself asking “what is polygon crypto,” read on for more answers!
What Is Polygon Crypto?
Polygon crypto is a coin that was built to scale Ethereum and the #2 crypto by market cap. It’s designed to complete transactions quickly, something that larger traditional cryptocurrencies like Bitcoin, and Ethereum now struggle to do. MATIC make this through proof-of-stake (POS) consensus, instead of proof-of-work.
POS means that users cannot mine MATIC as they can with other proof-of-work cryptos. POS instead allows coins to validate other coins on the blockchain. This means that you don’t have to worry about computing power to validate additional transactions on the blockchain.
Instead, coins are literally ‘staked’ into nodes on the blockchain. There, those who stake their crypto are given a chance to be the next ones to validate a transaction on the blockchain. This means that transactions do not have to increase in difficulty as they do for other cryptos.
Polygon crypto, built into the Ethereum blockchain, allows for users to use Ethereum’s features, like smart contracts, without having to wait long times for transactions to complete. This also reduces ‘gas,’ or the fee associated with sending crypto on the blockchain.
How To Buy Polygon Crypto
As one of the largest cryptocurrencies by market cap, and built into the Ethereum ecosystem, MATIC can be bought on most exchanges. You can check the Matic price and purchase polygon crypto on VirgoCX.
How to Earn Polygon Crypto
After you buy Polygon crypto, you’re able to make interest on your holdings by staking it. You can do so directly within the Polygon website by downloading MetaMask or a similar digital wallet, and depositing your MATIC in a node.
You’ll be able to see all the possible nodes you can choose from in a list before staking. You’ll want to choose one that has a low commission, has a large amount of MATIC already staked, and has signed past checkpoints at a rate close to 100 percent. Larger volumes and a high percentage of checkpoints signed mean that the node is more likely to be trustworthy and won’t disappear overnight.
You can use the calculator on MATIC’s website to see just how much you can expect to earn over time.
Start Investing In MATIC Today
Now that you know the answer to the question “what is polygon crypto” thanks to this polygon crypto guide, you can get started investing and staking MATIC today.
For more information about crypto and investing, check out our website.