Trading the MATIC token with a crypto broker
The Polygon network is an infrastructure used for the scalability of decentralized applications (DApps). For traders wishing to trade MATIC, a Polygon (MATIC) trading platform is an option. Before committing the slightest capital, it is advisable to study how cryptocurrencies work overall in order to examine the characteristics and risks inherent in these digital financial markets. The world of blockchain evolves quickly, and staying informed helps to understand it better.
From Matic Network to Polygon: History and fundamentals of the project
To properly understand the scale of this technology company, one must go back to its starting point. The Polygon, formerly Matic Network project was launched in 2017. At that time, the congestion of the Ethereum network was becoming a major obstacle to its large-scale adoption.
The creation of this solution is the result of the work of four co-founders: Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and later Mihailo Bjelic. Their initial objective with Matic Network was to offer a side chain (or sidechain) capable of relieving congestion on the main chain by relying on Ethereum. The name change to Polygon in 2021 marked an evolution in the company's vision: developing a network of blockchains interoperable with Ethereum.
- A defined total supply: The MATIC token has a total supply capped at 10 billion units, which defines its maximum supply.
- A capitalization: The project appears in the list of global crypto currencies and presents various uses.
- A developing ecosystem: Polygon is used by web developers and companies to launch products, with variable fees.
How does the technology of this blockchain work?
The innovation of Polygon rests on a complex but purpose-built architecture. The network acts as a secondary layer (Layer 2). It processes transactions in parallel before validating them and anchoring them on the Ethereum blockchain.
The consensus mechanism: Proof of Stake
Unlike the Proof of Work initially used by Bitcoin, the Polygon network uses a consensus algorithm called Proof of Stake (proof of stake). This protocol is much less energy-intensive. In this staking system, users lock their tokens to secure the network.
MATIC holders can thus take part in the validation of each block of data. In exchange for this immobilization, they may receive a reward in tokens. This annual reward rate (APR) for Polygon MATIC staking varies depending on the total number of tokens locked on the network.
The infrastructure and development tools (API & SDK)
To win over the world of developers, the team deployed the Polygon SDK (Software Development Kit). This modular framework makes it possible to create and easily connect new blockchains compatible with Ethereum. Integration is simplified thanks to a robust API, offering valuable technical support for the creation of a decentralized application or the setup of a wallet infrastructure (infrastructure for wallets).
The platform also integrates advanced technologies such as Plasma chains and rollups, which contribute to the operation of the network. These technological elements are used by projects from the world of decentralized finance (DeFi) and Web3.
Why trade Polygon (MATIC)?
Polygon offers a solution to the technological challenges encountered by Ethereum, through a hybrid ecosystem.
Here are a few characteristics of this asset to know before any trade:
- Native integration with Ethereum: Polygon is designed to be fully interoperable with Ethereum (ETH), while facilitating the processing of transactions.
- The appeal to developers: The ecosystem favors the creation and deployment of smart contracts at lower cost, stimulating innovation.
- Variable volatility: Like other altcoins (such as XRP or POL), MATIC can experience price variations.
- Diversified uses: Brands from different regions have used Polygon for NFT or loyalty initiatives.
Open a demo account to discover the trading conditions on MATIC and observe the charts in real time.
Buying Polygon (MATIC) spot vs CFD trading
To gain exposure to the price of Polygon, a retail client has mainly two methods: physical purchase on a centralized exchange or trading derivatives such as CFDs (Contracts for Difference) via a broker.
Classic physical purchase
If you wish to buy physical MATIC, you must go through exchange platforms. This purchase path involves technical constraints. You need a tutorial to understand how to store your MATIC. Managing a private key and handling a personal wallet infrastructure can prove complex for a beginner. Moreover, when buying Polygon MATIC spot, the value of the position varies with the price.
Our CFD offer (RaiseFX)
We offer a CFD offer, which makes it possible to trade on the price variation. It is essential to understand how CFDs work: you speculate on the price variation without holding the MATIC tokens.
| Evaluation criterion | Spot purchase | RaiseFX CFD |
|---|---|---|
| Trading direction | Buy only (except complex margin) | Buy (Long) and Short selling (Short) |
| Asset storage | Requires a wallet | No wallet required |
| Execution fees | Variable commissions + network fees (Gas) | Variable spreads |
| Deposit methods | Availability varies depending on the region | Bank transfer, card, electronic wallets (PayPal, Apple Pay depending on availability) |
| Customer service | Terms vary depending on the provider | Customer support |
CFDs carry a risk of rapid capital loss due to market movements. Risk management may include protective orders (Stop-Loss).
How to get started on the markets with this token?
To become a user of our platform, the procedure breaks down into a few steps.
- Opening and registration: Enter your information via our online form.
- Identity verification: Provide your documents to validate your profile. This is a legal obligation for any broker regulated by the FSCA.
- Funding the account: Make your first deposit. You can use bank transfer, bank card or other payment solutions depending on your jurisdiction.
- Searching for the asset: From your web or mobile terminal, type the MATIC ticker (or its pair MATIC/USD, MATIC/USDT) in the search bar, alongside other popular solutions such as Avalanche (AVAX).
- Setting up the trade: Define the volume and set your Take Profit and loss limitation (Stop Loss) levels.
- Confirmation: Click on Buy or Sell according to your analysis of the market.
Technical analysis: understanding the price and the quote of Polygon
Building a strategy on MATIC requires methodical observation of the market and of the news. Technical analysis makes it possible to identify the major supports and resistances. The Polygon price is continually influenced by the overall dynamic of the sector.
Trends in assets such as BTC can be associated with variations in the crypto currency market. Moreover, announcements concerning technological updates, new corporate partnerships or changes in trading volumes are powerful catalysts. Trend indicators (such as moving averages) and oscillators (such as the RSI) are among the technical analysis tools.
Chart reading can be combined with fundamental monitoring. Following macroeconomic information (interest rates in USD, inflation) is crucial, as global liquidity can influence risk assets.
Log in to your client area, open an advanced chart and start drawing your first trend lines on MATIC.
Factors likely to influence the price of Polygon (MATIC)
The price of Polygon (MATIC) may react to the activity of its network: number of transactions, use of applications and demand for processing. A change in fees or in the user experience may also change the perception of the ecosystem. These indicators describe an activity, but do not by themselves make it possible to deduce a future evolution of the price.
Announcements concerning upgrades, governance changes or roadmap developments may attract the attention of market participants. Their reception depends in particular on their content, their timing and the way they are implemented. It is therefore useful to distinguish an announcement from a change that has already been deployed.
MATIC also operates in an environment broader than that of Polygon. General sentiment toward crypto-assets, variations in liquidity and economic or regulatory news can influence market movements. An observed rise or fall may result from several simultaneous factors, without a single cause always being identifiable.
Order types for a CFD exposure on Polygon
A market order requests execution at the price available at the time it is processed. The price obtained may differ from the last displayed price, notably if the market moves quickly or if the available liquidity changes. This difference between expected price and executed price is called slippage.
A limit order indicates a price at which the opening or closing of a position is desired. It may remain pending if the market does not reach the defined level, and its execution is therefore not automatic. A stop order is triggered when the price reaches a determined threshold, according to the terms offered by the trading service.
Protective orders, such as a stop loss or a take profit, can be used to define closing conditions. They do not eliminate the risk of loss and their execution depends on market conditions and on the rules applicable to the account. Before using them, it is advisable to understand their validity period, their triggering mode and possible price gaps.
Risk management and position size
The size of a CFD position determines the effect of a price variation on the result, positive or negative. To estimate it, you must understand the value of a price movement for the contract concerned and take possible costs into account. Leverage, when applied, amplifies gains as well as losses.
The distance between the opening price and an envisaged closing level helps to measure exposure to an unfavorable variation. A stop loss can help frame a scenario, but it does not guarantee a precise exit price in the event of a rapid movement or a lack of liquidity. Losses may also exceed the anticipated level depending on execution conditions and the rules of the product.
Diversification consists of not concentrating all of one's exposure on a single asset or a single market factor. It does not eliminate the risk, as several assets may move in the same direction during an episode of volatility. Noting the reasons for a trade, its parameters and its result also makes it possible to examine the decisions taken without presuming future movements.
Quotation hours and market calendar
The spot market for crypto-assets generally operates continuously, including weekends and public holidays. The quotation of a CFD on MATIC may however follow hours specific to the service offering it, with interruptions or maintenance periods. It is therefore necessary to consult the trading hours displayed for the instrument concerned.
Hours have a practical impact on the monitoring of positions and the availability of orders. When a quotation is interrupted, it may be impossible to modify or close a position until it resumes. Price conditions may also change during a closing period, which exposes to a gap between the last available quotation and the next one.
A useful calendar to monitor may include announcements related to the Polygon network, announced technical changes and economic events likely to affect crypto markets. These dates do not mechanically determine the price reaction. Checking the quotation hours, the rules applicable to pending orders and possible interruptions helps to understand the operational framework of CFD trading.
FAQ on the ecosystem and trading of this digital currency
To use this network, internet users must configure their digital wallet (such as MetaMask) so that it communicates with the Polygon RPC network. This allows them to interact with thousands of decentralized applications (DApps), buy NFTs or take part in decentralized finance protocols with variable fees.
Physical purchase goes through an exchange platform (crypto exchange). The user deposits fiat currencies (euros or dollars) and exchanges them for MATIC tokens. To trade CFDs, going through a broker such as RaiseFX avoids holding a computer wallet.
This network acts as an overlay on top of Ethereum. The two ecosystems communicate permanently thanks to bridges. Developers who deploy a program on one can easily port it to the other, with interoperability between the two ecosystems.
CFDs on extremely volatile assets carry a high risk of total liquidation (loss of the initial investment) in the event of an adverse market movement.
Yes, unlike traditional stock markets (which close in the evening and on weekends), the digital asset market is open continuously, 24 hours a day, 7 days a week. The associated CFDs therefore make it possible to intervene at any time, day or night.
Our fees mainly take the form of a spread (the difference between the buy price and the sell price displayed on screen). To this may be added overnight financing fees (also called swap) if the trader decides to keep their position open beyond a full daily session.
Polygon MATIC staking consists of locking one's tokens in a smart contract to contribute to the operation of the network (Proof of Stake mechanism). In exchange for this locking, validators and delegators may receive rewards in new MATIC tokens.