A beginner’s guide to buying, selling and trading Polymath in Australia.
Polymath is a securities token platform designed to act as an interface between financial securities and the blockchain. Its aim is to simplify and streamline the complex technical and legal challenges of conducting a token launch.
To issue securities on Polymath and interact with the platform, you’ll need its native POLY tokens. If you’re thinking of buying any POLY tokens, either to use on Polymath or simply in the hope that they’ll increase in value, read on to find out how.
Where to buy POLY
POLY tokens are available on the following exchanges:
Quick guide to buying POLY
- Register for an account with Kucoin.
- Verify your account.
- Enable 2-factor authentication.
- Click “Assets” at top of the screen.
- Select "Deposit"
- Search for the currency you want to deposit (BTC or ETH).
- Generate a new address.
- Transfer BTC or ETH to this wallet address.
- Click “Markets” at top of the screen.
- Search for the pair you want to trade (e.g. POLY/BTC).
- Enter transaction details.
- Click “Buy Poly”.
Step-by-step guide to buying POLY
Want to buy POLY but don’t know what you need to do? Follow these three steps:
Step 1. Register for an account with an exchange that lists POLY.
Compare the features and fees of the exchanges that list POLY in one or more currency pairs. Once you’ve found a platform you like, provide your email address and create a password to register for an account.
Depending on the site you choose, you may also need to provide proof of ID and other personal details (like your name, address and contact information). This is often required to satisfy Know Your Customer and anti-money laundering (KYC/AML) requirements.
Make sure you also enable 2-factor authentication (if available) on your account for increased security.
Step 2. Deposit funds into your account.
There currently aren’t any exchanges that let you buy POLY directly with Australian dollars. As a result, you’ll need to first own or obtain a cryptocurrency that’s listed in a trading pair alongside POLY. Bitcoin (BTC) and ether (ETH) are the two most popular options, so check out our how to buy BTC and how to buy ETH guides if you need advice on how to acquire either of these coins.
To transfer BTC or ETH into your account you’ll need to copy the relevant address for your exchange wallet. For example, if you're using Kucoin, you would select "Assets" in the top of the screen and search for the currency you want to deposit (BTC or ETH). A new address would then be generated. Alternatively, if you’re using Bittrex, click “Wallets” at the top right of the screen and search for the wallet you want to deposit to (BTC or ETH). You can then click the green deposit icon next to the wallet, peruse the terms and conditions and generate a new address.
Use this generated wallet address to transfer the necessary funds to the exchange.
Step 3. Buy POLY.
The final step is to navigate your way to the exchange page on your chosen platform, find the pair you want to trade and specify the details of your transaction. If you’re using Kucoin, you’ll need to click the “Markets” link at the top of the screen and search for the pair you want to trade, such as BTC/POLY or ETH/POLY.
In the “Buy” box, select your order type and enter your transaction details. Make sure you review all the details of your purchase, including the total cost, before you click “Buy POLY” and finalise the transaction.
How to sell POLY
If you want to sell your POLY tokens, the process you’ll need to follow is fairly similar to that detailed in step 3. However, after navigating to the “Markets” page and searching for your chosen currency pair, make sure you enter your transaction details in the “Sell” box.
Also remember that POLY is only available in a handful of currency pairs, so you may not be able to directly exchange it for the currency you want.
Which wallets can I use to hold POLY?
After you’ve purchased your tokens, you’ll need to find a safe place to store them. While storing them in your exchange wallet is quick and convenient, the security risks associated with exchanges mean that it’s generally not a recommended course of action. Instead, most users advise moving your tokens into a private and secure wallet.
POLY is an Ethereum-based ERC20 token, so you’ll need to find a wallet compatible with these types of tokens. Examples worth considering include the MyEtherWallet web interface, or a hardware wallet like the Ledger Nano S.
How Polymath works
In the first quarter of 2018 alone, cryptocurrency ICOs raised a remarkable US$6.3 billion in funding. Token fundraising is undoubtedly a huge growth area, but the global securities market hasn’t yet been caught up in the boom. One of the key premises of Polymath is the belief that financial securities like stocks, bonds, venture capital, private equity and more will soon be replaced by tokens that live on the blockchain.
Polymath aims to provide a link between Wall Street and blockchain, providing a scalable platform where companies can issue securities on the blockchain using a standardised token protocol known as ST-20. The goal behind tokenising these previously illiquid assets is to provide investors with easier access and higher liquidity, and to open capital markets to the world’s two billion unbanked adults.
Founded in 2017, Polymath offers a decentralised protocol that embeds all the necessary regulatory requirements into the tokens themselves. The protocol also verifies crypto wallet addresses to ensure that only authorised investors are able to transact with a particular security token.
What to consider if buying POLY
Cryptocurrencies are complicated digital assets known for their volatility. Buying any digital coin or token is a speculative move, so you’ll need to carefully consider anything that could affect the price of a currency before deciding whether or not to buy.
If you’re thinking of buying POLY tokens, make sure you take the following factors into account:
- Supply. According to CoinMarketCap, at time of writing (May 2018) the circulating supply of POLY tokens was 276,420,107, out of a total supply of 1 billion tokens. No additional POLY tokens will ever be minted.
- Use. Though Polymath is a securities token platform, POLY tokens are utility tokens rather than security tokens. They’re need to access the Polymath ecosystem and can be used to issue securities on the platform. Other uses for POLY tokens include:
- Token issuers can post bounties in POLY tokens to attract the services of developers and legal delegates
- Developers can earn POLY for creating security token contracts
- KYC providers will need to pay a fee in POLY to join the network
- Any investor who wants to purchase security tokens will need to pay a fee in POLY to KYC providers to complete the verification process
- Whitepaper. If you want to know more about how Polymath works and the problems it aims to solve, check out the project’s whitepaper.
- Partnerships. Polymath has secured a few key partnerships to help streamline the token issuance process. Notable partners include IdentityMind, SelfKey and BnkToTheFuture.
Will Polymath be able to migrate the multi-trillion dollar securities industry to the blockchain? Do your own research to decide whether the project is well placed to achieve this goal, and whether or not POLY tokens represent a good purchase.
At the time of writing, the author holds IOTA and XLM.