However, it’s possible to buy your way into funds - ETFs or ETNs - that follow polygon’s rate. Instead of investing directly in polygon, you can invest in a fund that follows polygon’s exchange rate developments.

See polygon’s rate here.

What are ETFs and ETNs?

ETF stands for Exchange Traded Fund, while ETN stands for Exchange Traded Note. Both types of funds try to follow the rate developments of a particular market - such as the polygon market.

So, when polygon’s value rises by 20%, a successful ETF or ETN will also rise by 20%.

The difference between an ETF and ETN

An ETF owns the stocks it tries to follow. That means that when you invest in a polygon ETF, you’re investing in a fund that also owns polygon. An ETN doesn’t own the stocks it tries to follow. An ETN works similarly to a bond of debt. If you purchase a polygon ETN, the issuer of the ETN will then be indebted to you. The debt is then of the same value as the rise in value there has been on the market the ETN follows.

But since these are bonds of debt, where there’s no real ownership over actual assets, you could risk that the issuer goes bankrupt. This would mean that you could lose all the money you’ve invested.

With an ETF, the situation would rarely go this sideways. Because the ETF actually owns the assets - such as polygon - the ETF can then choose to sell their polygon tokens, in order to raise capital to pay back their investors.

There are pros and cons to both types of funds, which you should consider before investing.

How do polygon ETFs and ETNs work?

When you invest in ETFs or ETNs it works kind of like a stock. This means that gains and losses are taxed after existing taxation laws for stocks. Your investments can either be taxed as income on equity or as capital income, and further after the asset liquidation principle or inventory principle. Exactly as you know it from the regular stock world.

When you’re trading polygon as a currency, you don’t have access to income on equity. Here, certain taxation rules apply, which you can get more information on here.

Cryptocurrencies can rise and fall

When you trade cryptocurrencies, you need to be aware that it carries a large risk. The value of your cryptocurrency can both rise and fall, and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Cryptocurrency trading is done through Lunar Block. Lunar Block is not regulated by the Danish Financial Supervisory Authority (Finanstilsynet). That means you won’t have the same protection as when trading e.g. stocks or other regulated assets.

Buy polygon ETFs and ETNs through Invest

Do you want to invest in polygon ETFs and ETNs?

You can handle everything directly from your Lunar app. Log into the app, sign up for Invest , and get started with investing in just a few minutes.

Lunar cooperates with Saxo, so when you sign up to Invest, you’re investing through Saxo Bank directly from your Lunar app.

Download Lunar now

You can also buy polygon through Lunar Block

ETFs and ETNs aren’t the only things you can buy via the Lunar app. From your app, you can sign up to Lunar Block - probably Denmark’s easiest platform for buying and selling polygon and other cryptocurrencies.

Here, you’re not investing in stocks, funds or bonds of debt - but directly in the cryptocurrency polygon.

Download Lunar completely free now - and sign up to Lunar Block

What you’re getting

• The world’s leading cryptocurrencies
• Everything in one app. Buy and sell without a wallet
• Simple trading platform without buzzwords
• A low, set trading price of 2,5% for Standard users, 1,5% for Premium users, and just 1% if you have Pro
• No pointless fees
• Best crypto prices across three of the largest exchanges
• Guide to tax reporting to Skat  [Easy tax reporting]
• Track price developments and set price alerts on currencies you follow

Cryptocurrencies can rise and fall

When you trade cryptocurrencies, you need to be aware that it carries a large risk. The value of your cryptocurrency can both rise and fall, and you can risk losing the entire amount you’ve invested in cryptocurrencies.

Cryptocurrency trading is done through Lunar Block. Lunar Block is not regulated by the Danish Financial Supervisory Authority (Finanstilsynet). That means you won’t have the same protection as when trading e.g. stocks or other regulated assets.

We do not counsel

We do not advise on currencies and do not make recommendations for either buying or selling. We can provide factual information about the different currencies, but past price developments are not an indication of future developments.

No information from Lunar Block should therefore be considered as recommendations and all decisions are up to you alone.