How to buy FANTOM (FTM)
A step-by-step guide to buying, selling and storing FTM tokens.
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FANTOM is a directed acyclic graph (DAG) based smart contract platform designed to provide instant transactions at next to no cost and can scale up to 300,000 transactions per second. FANTOM's native asset, FTM tokens, was launched during a 2018 ICO that raised almost $40 million in funds.
Where to buy and sell FANTOM
FTM tokens are listed on the following cryptocurrency exchanges:
A step-by-step guide to buying and selling FTM
Here's how to buy FTM:
Step 1. Register with an exchange that lists FTM
Compare the platforms that feature FTM in one or more trading pairs before deciding which exchange is right for you.
Then, you can sign up for an account by providing your email address and password. Some exchanges will also require your personal information and proof of ID in line with Know Your Customer and Anti-Money Laundering (KYC/AML) regulations.
Finally, if you're using an exchange that supports 2-factor authentication, make sure you enable this security feature before going any further.
Step 2. Deposit funds into your account
Some cryptocurrency exchanges only allow trading between cryptocurrencies and don't allow the direct deposit of fiat currency, such as AUD, so you'll usually need to own or buy BTC or ETH first.
The exact process for depositing funds into your account varies depending on the exchange you choose.
Step 3. Buy FTM
The final step is to navigate to the exchange page on your chosen trading platform, search for the pair you want to trade and then enter the details of your transaction. For example, if you're using DEX you'll need to search for FTM/ETH in the box at the top left of the screen, enter the amount of FTM you want to purchase and then click "Buy FTM".
Make sure to review the full details of your purchase, including any fees that apply, before finalizing the transaction.
How to sell FTM
If you need to sell your FTM tokens, the process you’ll need to follow is fairly similar to the “buy” instructions outlined in step 3. Just remember to enter your transaction details in the “Sell FTM” field, and once again take the time to review your transaction before submitting.
It’s also worth pointing out that FTM is only available in a limited range of currency pairs, so it may not be possible to directly exchange your FTM for the currency you want.
How FANTOM works
If you’re no stranger to cryptocurrency, you’ll no doubt have heard about the directed acyclic graph (DAG) technology used in other crypto projects like IOTA and Nano. In a DAG structure, nodes process transactions asynchronously and each transaction is linked to one another, all of which is designed to allow real-time transactions and the potential to scale to hundreds of thousands of transactions per second.
However, unlike other DAG-based projects, FANTOM aims to create the first DAG platform for running smart contracts and dapps. In other words, the plan is to offer the functionality of Ethereum but without any of that platform’s scalability issues.
FANTOM’s OPERA Chain uses the Lachesis Protocol, which is responsible for saving transactions that are connected by a chain of events, to maintain consensus. Digging deeper, the architecture is split into three layers, as outlined in the executive summary explaining FANTOM:
- The OPERA Core Layer (the bottom layer) runs the Lachesis Protocol and is responsible for creating events and maintaining consensus across all nodes
- The OPERA Ware Layer (the middle layer) provides the functionality for payments, issuing rewards, incentives and more
- The OPERA Application Layer (the top layer) provides publicly available Application Programming Interfaces (APIs) so that apps can use the features of the OPERA Ware Layer
Initially, FANTOM plans to disrupt the existing infrastructure for payments and supply-chain management.
Which wallets can I use to hold FTM?
FTM tokens are currently ERC20 tokens on the Ethereum network, so you’ll need to store your holdings in an ERC20-compliant wallet. For example, you may wish to consider MetaMask or MyEtherWallet, or you may prefer the security offered by a hardware wallet like the Ledger Nano S.
It’s also worth remembering that when FANTOM launches its mainnet in the future, these ERC20 tokens will need to be swapped for FANTOM’s native tokens. In order to be allocated the equivalent amount of FTM coins, you’ll need to lock in your ERC-20 tokens to the FANTOM platform. Monitor announcements from FANTOM for details of how and when the token swap will take place, as well as which wallets you’ll be able to use to store your mainnet tokens.
What to consider if you're interested in buying or selling FTM
Cryptocurrencies are notoriously volatile, so buying any digital coin or token is a risky and speculative move. You need to familiarise yourself with these risks, as well as all the factors that could influence a currency’s price, before you buy.
If you’re thinking of purchasing any FTM, make sure you consider the following:
- Supply. The total supply of tokens is 3.175 billion FTM. In addition, an initial annual inflation rate of 5% also applies, but will decrease as more users join the network. 20% of the total inflation will be set aside to reward nodes, with the remaining 80% used to provide incentives for FANTOM platform users.
- Distribution. The 3.175 billion FTM will be distributed as follows:
- 40% token sale
- 30% market development
- 15% advisors and contributors
- 15% FANTOM team and founders
- Availability.FTM tokens are only available on a couple of exchanges, so keep your eyes peeled for news of listings on additional exchanges.
- Whitepaper. For more details of the tech behind FANTOM and how it works, check out the project’s whitepaper.
By considering these and a range of other factors, you’ll be armed with the knowledge you need to decide whether or not you should buy any FANTOM tokens.
Image source: Shutterstock
Disclosure: At the time of writing the author holds ADA, IOTA and XLM.
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