Is Polygon Still a Good Buy?

A popular altcoin, Polygon has made its place in the list of top cryptocurrencies owing to its utility. If you’ve ever used Ethereum, you would know how painstakingly slow the transactions are and how expensive the transaction fee is. Both these reasons have affected many developers that were creating decentralized applications on the network.

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Hence, to overcome these challenges, Sandeep Nailwal created Polygon. This sidechain or level-two scaling solution ensures people working on the Ethereum platform get speedy transactions and reasonably lower transaction fees. The offered solution made Polygon quickly ride the popularity ladder, and it is still among the most lucrative altcoins to invest in this calendar year.

Investors willing to diversify their portfolios often consider Polygon a viable investment option. Studying the Polygon chart will show how much improvement this cryptocurrency has made over the years. But should you add Polygon to your portfolio? To help you decide whether Polygon is the right cryptocurrency for you or not, we’ve listed below some crucial points you should know about Polygon before investing in it. So let’s quickly check the points shared below.

Polygon is Compatible with Ethereum Virtual Machine

For the uninitiated, Ethereum Virtual Machine (EVM) is a user-friendly software platform that developers use to create decentralized applications. Since this software is easy to use, many developers use it for convenience. Polygon is highly compatible with EVM, making it easier for developers to port their apps to it.

As an investor, you should cautiously note that the higher the demand for a cryptocurrency network, the better it is. Various Ethereum apps have already been deployed on this network, including SushiSwap and Save. And many more are expected to join the list.

Polygon Aims to Improve the Blockchain Technology

Some people have a misconception about Polygon that the network is limited to Ethereum. In reality, Polygon can be connected to any blockchain technology network to improve its functions. It is widely being used with Ethereum to tame down the transaction costs and speed up the transaction.

It even allows people to run multiple transactions simultaneously without causing network congestion. For those who aren’t aware, Polygon offered a sidechain as one of its first products. A sidechain seamlessly connects to a blockchain network, helping it perform better. The product and its use made crypto prices like bitcoin price competitive in the market.

MATIC Has Various Uses

Polygon is an advanced blockchain network that uses MATIC as its native cryptocurrency. What makes MATIC distinct from other crypto tokens is its wide array of uses. It can be used as a gas fee, governance token, and even staking. Gas fees refer to the transaction fee one has to pay on the Polygon network. Staking is when you earn interest from a network by lending your cryptocurrency.

Some networks allow you to earn around 15% annually by staking Polygon, but this rate can change drastically from day to day. Besides being used as a gas fee and staking, Polygon is also used as a governance token. It implies Polygon token holders get to influence the project’s future plans by voting on proposals.

Supported by Various Crypto Exchange Platforms

One of the best things about Polygon (MATIC) is it’s supported by a vast number of crypto exchange platforms. Since many exchanges support Polygon, people have easy access to this cryptocurrency. It makes it relatively easier for people to buy and sell Polygon (MATIC), which often indirectly pumps its price.

From reputed crypto exchange platforms to crypto brokers, you can reach out to anyone to buy some MATIC. The cryptocurrency buying process is simple and gets completed in a few seconds. Although the transaction approval may take some time, it is generally pretty fast.

Ethereum 2.0 Can Become a Roadblock to Polygon’s Growth

Polygon has tremendous potential as a cryptocurrency network, but its growth can get severely impacted after the release of Ethereum 2.0. Polygon (MATIC) has garnered attention, demand, and popularity as it filled the gaps in the Ethereum network.

But Ethereum 2.0 proposes eliminating all those gaps, i.e., slow transaction speed and high transaction cost. If this network’s founders don’t develop an innovative roadmap, Polygon may face an imminent downfall.

Invest Wisely for Best Returns

Cryptocurrency investment has been a boon for some and a disaster for the remaining. Irrespective of your current trading or investing stage, you must proceed with extreme caution to fight the sharp price swings. If you’ve always been keen to add Polygon to your portfolio but didn’t know much about this cryptocurrency, this guide would have answered your fundamental doubts. Considering all the points discussed above before making any investment can reduce your chances of making a wrong move.

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