Today, Coin98 will show you how to:
- Purchase and store MATIC.
- Transfer funds to Polygon Network by transferring MATIC coins from an exchange (CEX) or using a cross-chain bridge.
- Seek Investment Opportunities on Polygon.
Let's jump right into Polygon Network!
About Polygon Network
Polygon is a collection of Ethereum Layer 2 scalability solutions that aims to help scale and improve the Ethereum network's existing issues such as network congestion, limited scaling, and chopping fees. Polygon Hermez, Supernets, and other L2 scalability solutions will be integrated into Polygon, making it the hub for all future L2 scalability solutions.
Similar to other blockchains, to participate in DeFi on Polygon, you also need the native token of the corresponding chain for a fee, also known as "gas fee" (the fee you need to pay to the network). The gas gwei level on the Polygon Network is currently around $0.002 - $0.004/transaction. So, to make transactions, only 5 MATIC ($6.5) can go a long way.
Step 1: Prepare tokens
Since nearly all CEXs currently support MATIC, you have complete freedom to choose where to make your MATIC purchase(s). The most popular Polygon-supported exchanges include Binance, Huobi, Gate.io, KuCoin, and many more.
In the following section, I'll go into greater detail about which exchange you should use to purchase MATIC.
Step 2: Prepare your PRC-20 wallet to store tokens
It is necessary to have a non-custodial wallet after you buy tokens on CEXs to store tokens and interact with DeFi. At this time, many different wallets, including the Coin98 Super App, can store MATIC coins.
First, you should have a Polygon Wallet to store your MATIC, this article will be usefull for you: How to create & use Polygon Wallet
Following these simple steps, you can store MATIC and other PRC-20 tokens.
- Step 1: Click on the Polygon wallet on the main screen.
- Step 2: Select "Receive".
- Step 3: Copy the wallet address or scan the QR code address and send your assets to this address.
Step 3: Transfer tokens from other Blockchains to Polygon Blockchain (PRC-20)
After buying MATIC and having a Polygon wallet (PRC-20), you can participate in events or skin in the game in the Polygon Ecosystem, such as joining lending, yield farming or staking activities on this chain.
However, you should note that there will be multiple token standards for MATIC in the market, such as BSC (BEP20), Ethereum (ERC-20), Heco Chain (HRC-20), and Avalanche C-Chain (ARC-20). You can change the token standard to match the chain you need.
For example, if I have an ERC-20 MATIC token and need to convert it to a PRC20 MATIC token, some options are:
- Option 1: Buy MATIC Coins from CEXs and transfer them to a Polygon-supported wallet.
- Option 2: Convert that token from the Ethereum blockchain to the Polygon blockchain using a Cross-chain Bridge.
To make it easier for you to visualize, I'll walk you through the process for the two methods listed above.
Option 1: Buy tokens on CEXs & withdraw to a PRC-20 Wallet
Transfer and withdrawal fees will vary depending on the exchange. If you want to transfer your assets, you should pick the CEX that is most convenient for you to use. I'll recommend a few exchanges here, such as OKEx ($0), Gate ($1.98), Huobi Global ($16), and Binance ($16),...
To begin, you'll need USDT or USDC stablecoins in order to purchase MATIC. US dollars (USD) or other currencies in your country can be used to buy USDT if you don't have stablecoin yet.
Step 1: Login to the Binance Mobile App. I recommend reading this “How to use Binance'' article
Step 2: Choose “P2P Trading” in your Binance Homepage
Step 3: In this step, you will see:
- Number 2 indicates which fiat currency you have now to buy USDT
- Number 3 indicates which token you want to buy (e.g. USDT, BTC, BUSD, etc.)
- Number 4 displays a list of sellers who will sell you USDT in exchange for your fiat currency.
After you've decided on your preferred sellers, simply follow the Binance instructions to complete the transaction (Remember to read the instructions carefully).
Now that you have USDT, you can purchase MATIC from any exchange, such as Binance, Kucoin, Gate, etc. and transfer the tokens to the Coin98 Wallet by doing as follows:
Step 1: On Binance exchange, use USDT to purchase MATIC.
Step 2: Transfer MATIC to the Polygon wallet by typing in your Coin98 wallet address.
Option 2: Use Cross-chain Bridges to transfer tokens to PRC-20 Tokens
As Polygon is also a well-known blockchain, all bridges on the market currently support asset transfers to and from the Polygon Network. You are free to select any bridge that makes you feel at ease. I'll suggest a few bridges here:
1. cBridge
cBridge introduces cross-chain token bridging experience with deep liquidity for users, highly efficient and easy-to-use liquidity management for both cBridge node operators and Liquidity Providers, and new developer-oriented features such as general message bridging for cases like cross-chain DEX and NFTs.
cBridge currently supports 26 blockchains, ranking 8th in the market with more than $720M in TVL.
2. Multichain
Multichain is a fully decentralized cross-chain swap protocol for various tokens with an automated pricing and liquidity system. Additionally, the protocol is powered by Fusion’s Decentralized Control Rights Management (DCRM) technology, boosting Multichain's ability to swap any coins/tokens on any blockchains that uses ECDSA or EdDSA as a signature algorithm.
Multichain now supports more than 40+ different blockchains, allowing users to have multiple choices when transferring assets.
3. Allbridge
Allbridge provides an easy and reliable way to transfer assets between different blockchains. It acts as the bridge between EVM and non-EVM chains. Allbridge supports up to 13 chains and more to be announced in the future.
The mission of Allbride is to remove any border among different blockchains, which maximizes the capital efficiency in the DeFi ecosystem. Therefore, if you need to move assets from any network to the Ethereum blockchain, Allbridge is a good option.
Step 4: Add tokens to the Coin98 Super App
Because MATIC is the native token of the Polygon Network, it will be displayed by default in multi-chain wallets. If you need to add a new token to this multichain wallet, follow these simple steps:
Step 1: On the homepage, select More → Custom Tokens.
Step 2: Fill in the following information:
- Select Blockchain.
- Enter the token's Contract Address.
- Token symbol.
- Token name.
- Decimals.
You can check this information on block explorers.
Users only need to select Blockchain and enter the Contract Address of the token they want to add to the wallet. The remaining data will be automatically updated after users enter the correct contract address.
In case the system fails to extract the data, you can manually fill the remaining data into the required cells.
Select “Create” and you're done.
Step 5: Transfer Polygon tokens (PRC-20) from the Coin98 Super App
To transfer tokens from a decentralized wallet to another, follow these simple steps. I'll show you how to transfer MATIC from your mobile wallet.
Step 1: Click the Polygon wallet.
Step 2: Choose Send.
Step 3: Select the token, the number of tokens you want to send & the wallet address to send to. Adjust the Gas fee slider to suit your needs → Slide the Send bar to confirm.
In addition, you can also click Send on the main interface, then select the Polygon wallet you want to send from.
Note:
- The gas fee for each transaction is paid with MATIC, approximately 0.00063 MATIC.
- The default gas fee on the Coin98 Super App has been set at the standard rate that offers the most optimized speed at a reasonable cost.
Step 6: Skin in the game with Polygon Network
After transferring MATIC to Polygon Network, you can skin in the game in Polygon Ecosystem and earn interests.
Disclaimer: The information in this article is provided solely for informational purposes and should NOT be considered as investment advice. Investing in cryptocurrencies involves a high level of risk, and you should only invest what you are willing to lose.
Lending
Lending is a money market that allows you to deposit your assets in order to receive interest. AAVE and QiDAO are two of the most prominent Polygon-based lending platforms.
AAVE is a liquidity-based Lending protocol. Originated as a decentralized peer-to-peer lending platform (ETHLend), Aave revamped to a pool-based one.
Instead of forming a direct relationship between lenders and borrowers, Aave involves the participation of both through liquidity pools, thus diversifying the options and automating the process. Aave provides borrowers with not only the conventional overcollateralized loans, but also the Flash Loans.
Another notable money market candidate on Polygon is Mai Finance. Mai Finance provides a way for you to keep your crypto and still be able to spend its value. That means you're able to borrow stablecoins without having to sell your crypto assets, and do so at 0% interest.
Yield Farming
Farming is a method of providing liquidity for AMMs in order to receive rewards. Farming produces much higher profits than lending and staking, but there is a risk of impermanent loss.
You can also choose Yield Aggregators as they offer different strategies to find the best yields for farming/staking assets. This is one of the most important sectors in DeFi as it helps users gain a massive amount of profit, which is one of the main reasons why anyone would want to participate in DeFi.
Some notable Yield Agreggator projects on Polygon Network include Beefy Finance, AutoFarm, etc.
If you're interested in learning more about Polygon Network and the investment opportunities it offers, I recommend checking out this article.Hopefully, this will be beneficial to you!
Learn more: Polygon Ecosystem
Conclusion
So far, I've shown you how to transfer coins to Polygon Network in order to skin in the game. Hopefully, after reading this article, you will have a better understanding of the DeFi market and find suitable ways to maximize your profits.
