Looking into buying Polygon cryptocurrency in Canada? Whether you’re an experienced cryptocurrency enthusiast or you’re just getting started in the exciting world of crypto trading, this guide is for you. We’re excited to teach you about Polygon itself and answer all your questions about buying, storing, and using it!
Polygon, previously known as Matic Network, is a Layer-2 solution (“sidechain”) that runs parallel to the Ethereum blockchain. It’s also referred to as “Ethereum’s internet of blockchains”. It is compatible with the Ethereum Virtual Machine and offers near-zero gas or transaction fees. Well, technically, the Polygon network is more than just a “sidechain” or a single proof-of-stake chain. They are actually a series of blockchains that help improve and scale the Ethereum network.
Before we dive into what is Polygon crypto and its function, let’s first talk about how it all started.
Ethereum has brought many innovations to the cryptocurrency world throughout the years. These include smart contracts and decentralized applications (dApps) that offer high-paying interest rates. However, it has high transaction fees and low throughput issues, handling only 30 transactions per second. This is significantly lower than other blockchains, such as Solana, which can process over 65,000 transactions per second, and Polkadot, which can handle over 1,000 transactions per second. Another problem is Ethereum offers limited options for developers.
In 2016, three developers - Jayanti Kanani, Sandeep Nailwal, and Anurag Arjun - wanted to address the challenges and restrictions of Ethereum. They launched the Matic Network in October 2017, which was later rebranded as Polygon. Since Polygon is a Layer-2 scaling platform, it improves Ethereum-based applications and addresses the issues users experience. It can handle more transactions per second with an average block time of 2.1 seconds and is more affordable to the end-user. This also means that users can test new apps without the fear of losing hundreds of dollars over a token swap.
One of the core ideas behind Polygon is to equip developers with flexible and user-friendly tools to make the DeFi app more popular by connecting different blockchains. Because Polygon works like Ethereum, developers create apps on Ethereum and then move them to other Ethereum Virtual Machine (EVM) blockchains like Polygon and Fantom to increase their usage and reach. By using Polygon, developers can create various scaling solutions similar to Ethereum, with a completely different chain. The best part is it leverages Ethereum’s security.
The Polygon crypto coin is called MATIC and is based on the ERC-20 standard. Polygon crypto tokens are dispersed monthly, with a maximum supply of 10 billion tokens.
During the initial private launch, the developers sold 3.8% of the total supply. A few months later, they sold an additional 19% during the initial exchange. The Polygon Foundation received 21.86% of the MATIC tokens, while 16% was divided among the developers, and 12% was reserved for staking rewards.
MATIC tokens have limited uses compared to other leading cryptocurrencies. It can be used for:
So, how does Polygon work?
Polygon operates as a separate blockchain that runs alongside the main Ethereum blockchain. Its updated proof-of-stake system requires participants to put up their MATIC tokens as a stake. This means they commit to holding onto their tokens within the network and not selling them. In return, they can validate network transactions and add them to the blockchain.
As of August 13, 2024, the MATIC price is around USD 0.4172. MATIC reached an all-time high of USD 2.92 on December 27, 2021. Ultimately, the future of Polygon’s price will depend on its overall crypto market sentiment and use in transactions on the blockchain.
Overall, Polygon’s goal is to enhance Ethereum by adding extra security, flexibility, and control over the blockchain to make it better for users and developers.
If you’re ready to buy Polygon crypto, Coinsquare is ready to help. Here’s the fastest (and easiest) way to dive in. Want more information? Skip this section and keep reading below.
You will need to go through a few sub-steps to open your account; verify your identity and answer a few onboarding questions.
You’ll use these funds to buy your Polygon (MATIC)
In this step, you can check the Polygon price and convert Polygon (MATIC) to CAD or USD as desired.
Welcome to Polygon ownership! The currency is now yours to hold or trade!
When you’re considering investing in something novel like Polygon (MATIC) cryptocurrency, you might automatically think of big trading platforms in the USA or Europe. Here’s why it’s smart to buy from a Canadian source:
Crypto trading platforms that sell Polygon (MATIC) in Canada are just as active as the platforms in any other country or international platform. You don’t need to worry that you’re missing out on key opportunities or that you won’t get the best rates or prices.
Platforms registered with the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) are subject to local regulatory oversight and accountability. Always check with the CSA and CIRO for their list of registered crypto trading platforms as well as their banned platforms.
Customer service operates within Canadian time zones and provides service in both official languages to answer any questions about your Polygon (MATIC) transactions.
Polygon (MATIC) transactions can be done in CAD, which saves money on currency exchange rates and makes it less complicated to see the value of your assets.
Local funding options like Interac e-transfers can be used to purchase Polygon (MATIC). There’s no need to set up offshore accounts or use payment services that you’re not familiar with.
There are no deposit fees when you use local banks and local payment methods like Interac e-transfer, giving you security and peace of mind that your money isn’t going through offshore financial institutions.
Deposit and withdrawal times are faster because you’re not relying on international transfers. You want your valuable assets working for you full-time without delay!
Legal recourse and dispute resolution are easier. It’s much simpler to research Canadian regulations and laws concerning your crypto assets and to find local representation for your concerns.
Tax reporting of your Polygon (MATIC) profits is simpler, and the platform you use may help you with reporting requirements. You only have to concern yourself with Canadian taxation rules.
Now that you’ve got them, what do you do with them? Here are some common uses for cryptocurrency:
If you need to transfer money internationally, you may be able to do it more quickly and with lower fees compared to going through your bank. Peer-to-peer transactions can also be simpler with Polygon (MATIC) cryptocurrency.
Some online retailers might accept Polygon (MATIC) along with other cryptocurrencies as payment for goods and services, and some physical stores also accept crypto. You may also be able to pay utility bills, rent, or other recurring expenses, as well as use Polygon cryptocurrency for travel expenses.
Additionally, you might be able to use cryptocurrency for in-game purchases and other digital assets in some platforms, such as NFTs.
It’s become mainstream for investors to hold cryptocurrency in anticipation of a price increase, the same way you might hold stocks or bonds. This requires knowledge and familiarity with the way crypto markets work, including their inherent and dynamic risks.
You can also trade Polygon (MATIC) for other cryptocurrencies, such as Bitcoin, Ethereum, XRP, Dogecoin and many other crypto coins. These transactions are straightforward on the Coinsquare platform.
Staking your cryptocurrency is another way to use it and earn rewards. Staking allows you to participate in the validation of transactions on a blockchain network, for which you are awarded additional crypto assets. Here’s how it works:
You lock up (stake) part of your crypto as a way of ensuring your commitment to the validation process.
Validators are randomly selected to validate transactions and create new blocks on the chain. The probability of being chosen can depend on the amount of cryptocurrency you stake.
You earn rewards in the form of additional cryptocurrency for your contribution to the network’s operations.
Staking your Polygon cryptocurrency can be very rewarding; it helps you earn passive rewards and contributes to the security and efficiency of the blockchain network. Staking comes at the cost of locking your assets up for a specific period so be certain of your timeline for holding or selling before you stake your Polygon holdings!
Decentralized finance (DeFi) involves financial services and applications that operate on blockchain networks without relying on traditional financial organizations such as banks or individuals like brokers.
As cryptocurrencies become increasingly accepted as currency, their uses will continue to grow. If you’re a cautious investor, you can always start small and continue to educate yourself on the ins and outs of trading Polygon (MATIC) and other cryptocurrencies. Coinsquare offers you the opportunity to get into crypto investing and trading in an easy, accessible way, with plenty of support!
You have plenty of options for buying Polygon (MATIC) cryptocurrency. Here are some places you can make your first purchase:
There are Canadian-based platforms as well as international ones. Some international crypto platforms offer support for Canadian dollar transactions; check on this before you sign up if you plan to use Canadian funds. Look for a platform that has a user-friendly interface high security, and that allows you to make your purchases in the currency of your choice. Keep in mind that transacting on non-Canadian platforms can involve additional fees and mark-ups on exchange rates, as well as investor protection risks. Choosing a Canadian platform like Coinsquare means that you can avoid these currency exchange fees and mark-ups, and make sure that your accounts are safely maintained to the highest security standards as any other financial institution in Canada.
P2P platforms allow you to buy, sell, and trade digital assets like Polygon (MATIC) crypto directly with other people without the involvement of an intermediary like a bank or a centralized platform.
To use a P2P platform for trading cryptocurrencies like Polygon, you may need to invest time to learn how they work, and you should be prepared to spend more time on each transaction due to the manual work involved.
You can find cryptocurrency ATMs in major cities across Canada. You can use these machines to buy Bitcoin and other cryptocurrencies using cash or debit. There are numerous websites and smartphone apps that you can use to locate these machines.
Cryptocurrency brokerage services serve as intermediaries between buyers and sellers. They provide services for both beginning traders, experienced traders, and everything in between.
Brokerage companies are designed to be user-friendly, and many of them provide educational resources such as tutorials and customer support. They can be a valuable resource for people who are short on experience, knowledge, or time.
These services also offer custodial functions such as storage and insurance for assets they hold for their clients. They may also offer portfolio management, similar to other investment service providers.
Unsurprisingly, it can be more expensive to use a brokerage than to trade directly on a trading platform. Users also relinquish some control over their funds and their private keys.
Crypto apps are smartphone applications that give you access to trading platforms but also provide additional functionalities to help you manage your holdings and stay up to date when you’re on the go. Many of these apps also have desktop versions for your convenience. Some of the additional functions of crypto apps are wallet services, portfolio management, and news alerts.
Exchange-traded funds (ETFs) are pooled investments that can be bought and sold the same way stocks can. ETFs are not actively managed the way mutual funds are because their function is to track the performance of the underlying group of assets rather than trying to outperform it. You might think of it as similar to an index fund, but ETFs can be traded throughout the day, whereas index funds can only be traded once a day after the market closes.
Crypto ETFs use one or more cryptocurrencies, such as Ethereum or Bitcoin, as the underlying asset. They are traded on regular stock exchanges and, therefore, subject to the same regulatory oversights as other assets traded on that exchange.
Although you don’t directly own the cryptocurrency when you invest in an ETF, the additional liquidity, ease of tax reporting, regulatory oversight, and added security make them an attractive option for many investors.
As of August, 2024, Polygon is not approved for ETFs. Fortunately, there’s always Coinsquare when you want to purchase MATIC in Canada.
Storing cryptocurrency securely is crucial for protecting your digital assets from theft, hacking, and loss. With the increasing use of cryptocurrencies, these threats are ever more prevalent.
When you store cryptocurrency yourself, you are given two keys. The first is your public key, which is used to generate your public address. This key can be shared with others, like an account number. The second key is your private key, a secret alphanumeric code that allows you to access your cryptocurrency. Your private key is similar to a password. The private key is what you are safeguarding in storage because access to your private key means access to your funds.
Storing your Polygon in your Coinsquare wallet is easy and straightforward. Coinsquare does all the heavy lifting in terms of security and keeping your crypto safe in cold storage. You’ll even benefit from a comprehensive insurance policy on your crypto holdings.
Hot wallets store private keys on devices that are connected to the Internet. Hot wallets are suitable for frequent transactions, but they are more vulnerable to hacking and malware and should not be used exclusively. Hot wallets can be web-, app-, desktop- or hardware-based (held on an external storage device such as a USB).
Cold wallets are offline and, therefore, more secure. They are also called offline wallets or hardware wallets. In general, the safest way to transact with your Polygon holdings is to keep them in a cold wallet and transfer the amount you need to a hot wallet just before you plan to use it. A special type of cold wallet is the paper wallet, which entails recording your private key manually on a piece of paper (carved in a rock, engraved in a ring, etc), but this has obvious vulnerabilities. Paper wallets should be securely stored in multiple locations.
Custodial wallets are provided by third-party services that store your cryptocurrency on your behalf. Custodial wallets make it easy to buy, sell, and store your Polygon cryptocurrency, but it means giving a third party your private key. You must be certain of the security measures the third party uses before storing your cryptocurrency with them.
Non-custodial wallets, in contrast, are wallets that don’t involve a third party. Non-custodial wallets can be either hot or cold.
If you choose not to store your MATIC in your Coinsquare wallet where it is protected in cold storage and insured, there are a few things you’ll need to do to increase the security of your digital assets.
Here are some important tips that will help keep your Polygon holdings safe and secure:
Ready to dive in with your first Polygon purchase? Coinsquare offers a user-friendly platform that gives you access to over 53 cryptocurrencies, no fee deposits, free withdrawal options, and unmatched customer support. We are the most trusted crypto trading platform in Canada, built by Canadians for Canadians.
With the Coinsquare trading platform, you can start transacting with cryptocurrency in as little as five minutes. Download our app from the Apple App Store or Google Play today and join the exciting world of cryptocurrency trading!
