EN 
ID The Polygon ecosystem has attracted a lot of attention from traders because the movement of its tokens is very active in the crypto market. After years of operating with the MATIC token, Polygon recently introduced the POL token. So, are these two tokens worth considering as crypto investment assets?
Daftar Isi.
What is Polygon Crypto, MATIC, and POL?
Polygon was born in October 2017 under the name Matic Network. This crypto project was founded by four people who have contributed a lot to the development of the Ethereum system. They are Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic.
Matic Network's initial goal was to be a Layer 2 scalability solution for Ethereum. However, as it developed, the main vision of this project expanded and this ecosystem was then rebranded to Polygon in February 2021. Currently, Polygon aims to become a blockchain internet with a polychain system. The name Polygon itself reflects its vision as a network with many chains.
Since its initial release, Matic Network has used MATIC as their crypto token. However, not long ago, Polygon announced their new token, POL, which is planned to gradually replace MATIC. This token change is part of their system upgrade to Polygon 2.0.
Officially announced only in June 2023, Polygon 2.0 is Layer 2 technology. This upgrade has great potential to increase user privacy and reduce transaction costs. Apart from that, Polygon 2.0 will also facilitate feedback from the community.
Advantages of MATIC Token as Currency
MATIC assets are getting a lot of attention from crypto investors because the Polygon ecosystem itself has great potential to bring huge benefits in the future. Some of these advantages include:
Ethereum compatibility
Polygon's infrastructure is designed to be compatible with the Ethereum ecosystem to make it easier for developers who want to develop their decentralized applications on the Polygon network. This convenience has proven effective with the large number of Ethereum applications entering the Polygon ecosystem. Even though it is not the only network connected to Ethereum, Polygon is one of the best performing and most reliable.
High Scalability
With sidechain technology to improve network stability, Polygon is able to handle large transaction volumes without overloading the Ethereum main network. This capability is a major breakthrough, as scalability is one of the major constraints on the Ethereum network. This capability is certainly very beneficial for users because they can make transactions more efficiently.
Low Transaction Fees
One of the main goals of blockchain technology is to save transaction costs. In this case, Polygon is considered superior compared to various other crypto networks. This economic value certainly makes the adoption of Polygon more attractive for individual users and larger digital platforms. Not to mention, the Ethereum and Polygon networks are also still working on new developments so that transaction costs can be further reduced.
High Security Level
Apart from Proof of Stake (PoS) consensus, Polygon also uses a Plasma mechanism which allows transactions at the side layer. This sophisticated technology has succeeded in increasing user privacy. Cyber attacks will also be increasingly difficult to penetrate the Polygon network, so that the risk of transaction leaks can be further minimized. This level of security is quite high when compared to various other well-known cryptocurrency projects.
News and Market Developments Related to the Polygon Ecosystem
Following news about cryptocurrencies globally and developments in Polygon technology itself is an important step in investing in MATIC tokens. The reason is, every update and certain events can greatly influence price fluctuations on the stock exchange. Because the Polygon ecosystem is compatible with Ethereum, it's a good idea for you to also follow development information regarding this decentralized network too.
The most important news regarding Ethereum and Polygon that has been hot lately is regarding the Dencun upgrade which is scheduled to be applied to the Ethereum network in mid-March 2024. Since February 2024, Polygon developers are very optimistic that this upgrade can reduce transaction costs and improve the experience in the ecosystem.
This hope proved to be a reality as reported on mid-March 2024 when the Dencun upgrade was released on the Ethereum network. It is known that there are many decentralized ecosystems connected to Ethereum, but not all of them show performance improvements after the Dencun upgrade. Of course, Polygon emerged as one of the fastest growing blockchain networks after the upgrade was carried out.
The hottest discussion regarding the Polygon blockchain is about plans to develop Zero-Knowledge technology which has been on their roadmap since 2021. According to news on early February 2024, the success of this technology will be a very significant milestone for Polygon. In fact, many blockchain technology observers believe that MATIC and POL tokens could reach new price records once this technology is successfully applied.
More about Zero-Knowledge is reported in early March 2024. Polygon developers announced their plans to launch Astar ZkEVM, a Layer 2 solution based on Zero-Knowledge technology that can improve the security and performance of the Polygon ecosystem as a whole. This solution is also predicted to speed up transactions and reduce costs. This news proves that Polygon is still developing according to the roadmap and its future can still become a reality as expected.
MATIC Token Exchange Strategy and Analysis
Because it is still relatively new, POL tokens are currently not widely traded on crypto exchanges. However, traders are generally very familiar with the MATIC token, which is very active on global cryptocurrency exchanges. Therefore, we can use MATIC price movement data in our analysis. We can see together that this cryptocurrency is indeed very active on the stock exchange, so it is very reliable for trading.
First of all, let's take a closer look at the MATIC price movement from the beginning of its release until now via the following chart.
In general, a positive trend is visible. So, it can be concluded that this cryptocurrency does have great potential to bring in profits if the investment process is carried out with the right strategy.
If we apply the Elliot Wave and Fibonacci indicators, we can do a more detailed analysis. The graph above shows that there are four waves, which are marked with Roman numerals. This means one more wave is missing to complete it. In fact, the latest price is getting closer to the record high price, namely $3.00 at the end of December 2021. Many investors and observers are optimistic that Polygon will break its own price record soon.
Next, let's do another analysis on a graph with a shorter period, namely about one year.
Bearish prices may seem uncomfortable for some investors, but you just need to be patient through it. It can be seen that MATIC fluctuations have broken the neckline in the Cup and Handle indicator which is wider and longer term. Trading volume also seems to be in line with the price increase. If everything goes smoothly, we can harvest huge profits in just the next few weeks. It can be seen that the price is predicted to touch the number $1.7.
Even if we drag the chart to a slightly longer period like the chart above, the bullish potential in the near future can still be clearly seen. With market capitalization continuing to increase, the prediction of price increases in the next 4 months looks quite convincing. Indeed, the speed of movement was not very fast. Therefore, you need to be a little patient at this stage.
Interested in trading in a shorter period? Let's look at the following graph which shows price movements in just one month. It appears there is great potential for take profit. However, you still need to be aware of the possibility of a stop loss that is not too big. It's best to set the stop loss automatically to prevent you from the risk of much worse losses.
From the various analyzes above, it can be concluded that the Polygon MATIC token has much more promising profit potential if we make long-term investments rather than short trading. But of course, return to your investment goals and the results of your own analysis to confirm this.
Polygon MATIC and POL Investment Tips
The Polygon ecosystem can be said to be quite promising, especially after upgrading to Polygon 2.0. However, make sure you apply the following tips if you want to buy and sell MATIC or POL tokens safely and still make a profit.
Do In-depth Research
Understand the technology behind this project, the vision and mission of the development team, the uniqueness and advantages it offers, as well as its long-term potential. Also compare it with various other blockchain projects, both similar and with big differences. Understanding the fundamentals of each project will help you make better investment decisions.
Diversification of Assets in a Portfolio
While MATIC and POL may offer attractive growth potential, risks remain. Therefore, remain wise by diversifying your investment into several other crypto assets. This will help protect your portfolio from extreme market fluctuations. Of course, you also have to do in-depth research to choose which other digital assets you can invest in together with Polygon tokens.
Use a Secure Wallet
Store your MATIC tokens and other digital assets in a secure wallet. Prioritize storing it in a trusted hardware wallet or crypto wallet. Avoid storing your crypto assets on exchanges or platforms that are vulnerable to cyber attacks. A quality wallet is a bit expensive, but that price is nothing compared to the risk of losing all your assets due to hackers.
Monitor the Latest News and Developments
In a very dynamic crypto market, it is important to stay up-to-date with the latest news and developments about the Polygon project and crypto in general. Regulatory changes, important announcements, or technological developments can significantly affect the price and value of crypto assets.
Stay Calm and Be Patient
Crypto investments are often characterized by high price volatility. In fact, it is not uncommon for this movement to occur suddenly. It is important to remain calm and patient, especially in the face of extreme price fluctuations. Focus on your analysis so as not to make impulsive transactions based on emotions.
Crypto Exchange Choice for Trading Polygon Tokens
Indeed, there are many crypto exchanges that offer Polygon as an investment and trading asset. However, you still need to be careful in choosing. It is best to prioritize using a platform that is trusted and comfortable to use, for example:
Binance
The many types of digital assets available on the Binance platform are the reason why many people choose to use it to buy and sell MATIC coins. High liquidity also makes it very easy for investors to ensure that transactions can be carried out whenever they want. This platform is also known for offering many types of digital assets, making it easier for you to diversify.
Bybit
With an application that is easy to operate, trading and investing in Polygon currency on Bybit becomes comfortable and effective. The features are complete, both for beginner traders and experienced investors. On its platform, Bybit also offers various Web3 and other blockchain products, such as NFTs, staking, and wallets.
Kucoin
In terms of transaction and investment security, Kucoin can be said to be one of the best crypto exchanges. With Halo Wallet technology, Proof of Reserve, and high system security, you don't need to worry about the MATIC coins you sell, buy and store here. Uniquely, Kucoin also provides trading bots for traders who hope for passive income.
MEXC
The MEXC platform is known to be superior when it comes to the security of investing in crypto. The types of digital assets provided are very diverse, not limited to well-known tokens such as Polygon. In its application, MEXC also provides various trading features that can make it easier for you to carry out analysis and make decisions.
HUOBI
For traders who are also interested in various types of newly listed coins, HUOBI could be a crypto exchange option worth considering. This is because this platform is active in presenting various innovative blockchain projects, including Polygon. Apart from that, high liquidity also often makes it easier for traders to quickly complete buying and selling according to their individual needs.
BingX
Not only Polygon and other crypto assets, BingX also offers the convenience of investing from traditional exchanges too. Traders especially like this platform because of the integration of blockchain technology which provides a high level of security and speed of buying and selling transactions. Of course, this platform also provides many trading features that can help you increase your profit potential if applied correctly.
Etoro
Combining the concepts of crypto exchange and social media, eToro gives you the opportunity to trade Polygon while interacting with fellow traders and investors. Equipped with an intuitive interface and a large number of crypto assets to trade, eToro is one of the most reliable crypto exchanges.
If executed with careful consideration, Polygon trading can indeed be very profitable. The current transition period from MATIC to POL is also an interesting timing option. How about you? Ready to add this token to your portfolio?
