Is matic Coin a Good Investment? Find Out Here

In the ever-growing list of cryptocurrencies, a prominent name MATIC has emerged as a major player. The native currency of the Polygon blockchain network, MATIC is used as a token for governance on the platform. It allows users to participate in the way Polygon is run, and it can also be used to pay gas fees on the Ethereum network or be staked to earn interest from it.

The best way to understand what MATIC is by understanding what problem it solves. For the uninitiated, MATIC coin is the native currency of Polygon, a blockchain scalability platform that connects and builds blockchains compatible with Ethereum.

In simpler terms, Polygon is a blockchain that processes transactions real quick for a fraction of the penny and sits on the top of the Ethereum network. You can consider Polygon to be an expressway that takes the traffic away from small roadsides to ease congestion. Such blockchains that are placed on top of another blockchain are called layer-2 blockchain, and it is exactly what Polygon is.

Now, if you’re wondering if you should consider investing in MATIC or not, you should have a clear understanding of the coin along with its brief history and other related details. Only then you’ll be able to make an informed crypto buying decision. To ease things for you, we have shared all essential information related to Polygon (MATIC) that one should know before investing in it. So let’s head quickly to the points shared below.

Is Polygon Solving a Real Problem?

Ethereum is the top, second most popular cryptocurrency worldwide, known for its ability to create dApps using smart contracts. Using these smart contracts, developers can create advanced applications across a range of industries that provide direct value to end-users by removing the need for any third-party transaction authentication. Consider it like creating an insurance app that gives insurance without involving an insurance company. Several dApps can be created along the same line. But to build these apps, developers have to pay transaction fees in terms of gas, which is pretty high and not sustainable.

As Ethereum has failed to keep up with its success and will continue to do so till it is updated to Eth 2, developers will have to depend on alternate platforms or means to put up with the congestion or hefty transaction charges. It is where Polygon (MATIC) comes into the picture. Polygon claims to solve Ethereum’s scalability issue by fortifying the platform’s transaction speed, cost, and security.

It will help hundreds of developers who rely on Ethereum compatible blockchains to run their apps in a cost-effective way. This is one reason why the MATIC coin price in India has mostly been on the positive side.

Polygon’s Future: Things You Should Know

Investors who make the most money from the cryptocurrency market are the ones who analyze both the positive and negative of any crypto coin. Now that you’re aware of what problem Polygon solves or what purpose it serves, it’s time you also know about its limitations and future prospects.

A probability investors willing to buy Polygon should consider is the speed with which the cryptocurrency market is changing. If you take a look at the past few years’ development, you’ll be surprised at how quickly things change, especially in terms of the launch of more advanced altcoins. Seeing this trend, one can expect this space to change for the better in the next decade or so. And this is where the risk for Polygon exists.

Polygon is already facing heated competition from cryptocurrencies like Cosmos, Polkadot, etc., and it also stands at risk of being obsolete. As the current Ethereum form gets upgraded to Eth 2, the need for Polygon might not even exist. Although Polygon is trying its best to develop more robust scaling solutions, its primary drawback is its focusing entirely on Ethereum. Polygon can quickly become irrelevant if some other cryptocurrency like Cardano or Solana overtakes Ethereum in the coming years.

The positive note, however, for most Polygon enthusiasts is the likelihood of a cryptocurrency taking over Ethereum is thin. And as long as Ethereum remains, Polygon will continue to stay relevant among retail and institutional investors alike.

Should You Invest in Polygon (MATIC)?

Even though Polygon has a good track record over the years, one should bear in mind that all cryptocurrencies are subject to volatility, and Polygon is no exception. Last year in 2021, its prices fell significantly during May, but it was quick enough to pick up in the following months, covering much of its investors’ losses. Polygon has performed pretty well compared to various other cryptocurrencies, and with business titans like Mark Cuban backing it, one can be hopeful of its promising future. Now that you’re also aware of Polygon’s current standing and its future prospect, you should be able to make an informed, wise decision.

You should invest in Polygon or any other cryptocurrency if you’re comfortable handling the sudden, wild price swings. To be safer, invest in Polygon an amount you’ll be comfortable losing, as cryptocurrencies are highly speculative asset classes, and you wouldn’t want to spend your money in overconfidence. Once you’ve got hold of the market understanding, scale your investment in Polygon accordingly. Start small, scale big – it should be your mantra while investing in Polygon.