Doge was created as a joke. But I understand the sentiment... you want to get in on the next hot thing, and Doge is what people are talking about.
What should you buy instead
If you want a “penny crypto” with potential, you should buy Polygon (the coin associated with Polygon is MATIC).
Well, for starters, it has real value. And, if you’re going to bet on something you don’t understand, bet on something with value.
What is Polygon? It’s a... I’m kidding. If you’re asking if you should “invest” in Doge, you don’t care what Polygon does. You just want a chance at buying something that goes up in value. I believe Polygon is one of the more-sure bets you can make.
Let’s see how to get started instead of boring you by telling you more about Polygon.
Buy Matic on Coinbase
Download the Coinbase app or use their website to setup a new account. It’s been a while since I’ve setup an account, but it’s straightforward.
Once you setup your Coinbase account, head over to settings (lower right) and add a payment method. Connecting your bank has lower fees than using a credit card; and I’ve heard that some credit cards block crypto purchases, so you’re best bet is a bank account.
There are a couple of things to consider:
- If you plan to follow this all the way through, you will want to purchase $200 to get the bonus from Celsius (below).
- Your first purchase should be higher than $200 so that you have enough to cover any fees you might incur in the following step, even if prices drop a little. $225 should be plenty.
- If you can afford it, setup a monthly purchase to dollar cost average into your position. Research proves that if you make savings automatic, it will improve your commitment to saving.
- What started as Matic became Polygon as they expanded their mission. Make sure you're buying the coin with the icon below. Coinbase is trustworthy, if you see both of those terms you won’t be buying the wrong thing or a scam.
Once you’re set, hit the double arrow button in the bottom middle of the Coinbase main screen (circled in green in the image below). Tap “buy” and select the purple Polygon/Matic item. On the screen following, you’ll see an option at the very top to make the purchase a recurring purchase if you like. The default is one-time purchase.
That’s it. Once you finish that flow you’ll have some Matic. It may take as long as five days for what you purchase to be available to transfer because the transfer from the bank to Coinbase takes that long. If you keep cash in your Coinbase account, what you buy is available to transfer right away.
Why transfer out of Coinbase? You don’t have to. Coinbase is as secure as anyone, and a great place to keep your stash. However, if you transfer it to Celsius you can earn compounding weekly interest. Compounding Interest is super valuable, and the annual rate for Matic on Celsius is currently 14%, so that’s a pretty good rate to compound.
Earn interest on your Matic with Celsius
Once you purchase Matic, download the Celsius app (in case that link doesn’t work, when you sign up use my code David37dd to get the bonus). Using my code gets us both a little extra if you move over $200 or more of crypto as your initial transfer to Celsius.
Celsius is launching their web app in April 2021, depending on when you read this, you may or may not be able to use the web to do the following step.
Setup an account on Celsius.
Tap on the menu in the app (lower right corner, looks like the Celsius logo). From there, tap on transfer coins, then select Matic Network in the top-middle section that says “choose coin to transfer”. At the moment, the Celsius app still calls this Matic without referencing Polygon. You’ll find Matic towards the bottom (for some inexplicable reason, this list of coins is not alphabetical order and the app doesn’t give you the option to search the list!). Tap transfer, dismiss the warning that comes up (reminding you to only transfer Matic to this address) and copy the wallet address by tapping copy.
Switch back to Coinbase and send the Matic to that Celsius address you just copied.
Here’s where that suggestion to buy a little extra to cover any fees matters. There will be a fee, paid in MATIC, to transfer Matic from Coinbase to Celsius. I’ve seen it as “low” as 6 MATIC and as high as 32. You may want to pay attention and try to find something on the lower side (I just did a transfer and paid ~20 MATIC, or about $6.50). When you put the address in for the transfer, hit “max” to send all the MATIC you have, the button will say “preview send”. That’s just the confirmation, you will not send by hitting preview... but you have to preview to see the fee. I just did it as I was typing, and the fee was 20 MATIC.
A note on the fee. It’s based on what’s happening on the underlying network (the Ethereum network) and is not based on the amount you are transferring. So... you may be OK with a slightly higher fee on a first try, just to get it all setup. But, if you do a recurring purchase (say monthly), you might do the recurring purchase a few times, then move all the MATIC from those purchases at once to minimize fees.
Let your Matic compound
Once the MATIC is on Celsius there’s nothing else to do except wait for Monday interest payments. They calculate interest, if my memory is correct, from Friday to Thursday, and it’s payable on Mondays. So... if you make your first deposit in the middle of the week, your first Monday payout will be pro-rated from when you transferred-in until Thursday-Night/Friday when the cutoff is, and the following week will be the full amount.
Every Monday, you’ll earn a little more MATIC, that will in turn earn a little more MATIC each week following.
If you’re new to Celsius, you might also come to realize that some Mondays interest rates change. They evaluate the rates weekly, based on market demands for the underlying loans that they make with the coins deposited.
Also, it’s important to realize that Celsius has no fees and covers the transfer fees for customers. So, if you decide to move your coins back to Coinbase (or elsewhere), there won’t be a fee and there are no limits to your ability to withdraw your coins.
And, I would recommend turning HODL mode on in Celsius. This means there is a 24 hour delay for any withdrawal you might make, but it is a good security measure for people who are investing for the long term and aren’t going to wake up one morning and decide they need their coins right this second.
Learn more about Polygon/MATIC
In all seriousness, I find that investing helps me learn things because once I invest, there’s money riding on it. If after you invest, you’d like to learn more about Polgyon here are a few places to learn more:
- What is Polygon? A good overview / explainer.
- Applications running on Polygon. A good landscape overview to see all the innovation occurring on the Polygon network. This is a good place to jump-off to learn even more.
Update April 12, 2021
Funny enough, 10 days after my post, US News and World Report asked the same question. Reading their answer is illustrative of, I believe, good vs bad communication.
The title of the article is a yes/no question. Yet they never give a yes/no answer. I do.
Then, since my answer is no, I give alternative advice of what to do. It doesn't mean I'm right. It means, I've clearly stated my position and plan of action. They don't ever answer the question they themselves ask!
I've seen this in my career too. Doing product demos, someone watching asks a yes/no question... and the demonstrator answers with an explanation of why, without ever clearly saying yes or no. If you want to build credibility, answer clearly then explain. Jumping in the explanation leaves the listener trying to infer what you mean, which means they're not listening to what you're telling them about why.