There are many projects in the cryptocurrency space that aim to be an alternative network to Ethereum.
One such project is Factom (FCT) which enables independently verifiable transactions on the blockchain.
In this guide, we’ll be talking about how to buy FCT along with some other important considerations.
Read on to find out more.
Best Brokers to Buy Factom in 2023
Given the rise of cryptocurrencies, finding a platform to buy digital assets can be a daunting task. As such, we’ve made a list of the top brokers in the market that can help you get started today.
What Is the Difference Between Buying and Trading Factom?
When researching Factom, you'll encounter the terms buying and trading. Below we’ll give you an overview of what these mean exactly.
Buy Factom: When you buy FCT on an exchange, you own the asset itself and then you can choose to hold or sell as you please.
Trade Factom: When you trade Factom, you purchase the assets with the intention of selling at a later date for profit. If you use a broker, you can speculate on the price of a crypto without owning the underlying asset.
How to Buy Factom Online?
Even if you have no prior experience with cryptocurrencies, buying Factom online is a pretty straightforward process. Below, you'll find the steps for purchasing your coins.
Step 1: Find an Exchange
Step 2: Create an Account
Step 3: Verify Your Account
Step 4: Deposit Funds
Step 5: Use the Search Bar
Step 6: Confirm the Transaction
How to Trade Factom?
If you want to trade Factom, the steps are a bit different but still straightforward. Below, you'll find a step-by-step guide.
Step 1: Find a Broker
Step 2: Sign up
Step 3: Pass KYC
Step 4: Trade
Step 5: Deposit Funds
Step 6: Buy
What Are the Different Ways to Pay for Factom?
When you buy Factom, you'll be able to use a selection of payment methods to deposit money and purchase your coins. We've listed these below.
One of the most convenient ways to add money to an account and buy Factom is with your credit card. If you’re familiar with online shopping, you’ll likely be familar with this process. All you need to do is choose the amount you'd like to deposit and enter your card details.
Depositing money into your account with a debit card isn't too different from using a credit card.
All you need to do is follow the onscreen instructions and wait for the funds to appear in your brokerage account.
Some platforms will let you trade one cryptocurrency for another. Here, you would withdraw from your existing wallet and deposit onto the new platform. Then, you’d head to the Factom market and make the trade.
One of the most popular ways to fund an account on a trading platform is via bank transfer. Doing so is easy; choose how much you'd like to deposit and follow the instructions provided by the platform.
What to Consider When Buying Factom?
When you're ready to buy FCT, it's worth keeping a couple of things in mind. We've listed the most important ones below:
Deposit Fees: When you deposit money into your account on a cryptocurrency exchange, you'll need to pay a deposit fee. This will vary depending on the payment method you use and will vary from platform to platform; make sure you check before signing up.
Maker/Taker Fees: When you buy and sell FCT on an exchange, you'll need to pay maker and taker fees; the first for when you purchase the coin and the latter when you sell it.
Volatility: Cryptocurrencies are well-known for their volatility, and Factom is no different. Prices fluctuate regularly, and it's vital that you understand the associated risks. If you're not careful, you could lose a lot of money in a short space of time.
Long-Term Holding: Long-term holding means that you hold onto your FCT for 12 months or more. The concept behind this is simple; you think you'll make more significant profit in a longer period of time. You might also refer to this as holding on for dear life (HODL).
Short-Term Holding: Short-term holding means that you expect to sell your coins within a few days or months.
Security: When you buy FCT online, it's important to remember the security risks involved. This will be covered more comprehensively in the next section.
Is It Safe to Buy Factom Online?
Measures that will increase your security include:
Storing Your Coins in a Wallet: After buying Factom, it's essential to keep your coins in a secure wallet. Doing so will help protect you if a hack occurs on the exchange you use, which might otherwise result in you losing your money forever.
Having Two-factor Authentication (2FA) on Your Accounts: A strong password is important, but adding extra layers of security is also crucial. It's a good idea to integrate 2FA, which will send a code to your phone every time you want to log in.
Only Provide the Necessary KYC Documents: A KYC application typically involves sending a copy of your passport or driving licence, along with a utility bill or some other proof of residence. If a website is asking for more information, that could be a red flag and you should double check to see if the website is legit.
Not Sharing Your Account Information with Anyone: Keep your details confidential and change your passwords if you think someone else has access to them.
Be Careful When Clicking on Links: Only ask for help through official customer service channels. Oftentimes, hackers will pose as staff in order to gain access to your personal details.
How to Store Factom?
After buying FCT, we recommend storing your coins in a secure wallet. Different types exist and we've outlined these below.
Digital Wallets: Digital wallets can come in different forms, from desktop applications to ones you can access on your phone. They can be used to send and receive cryptocurrencies including Factom.
Cold Wallets: Cold wallets are considered to be safer options since they’re not connected to the internet. They essentially work in the same way as the above, but they come with more safety features.
How to Sell Factom?
Below, we've broken down the different ways to sell your FCT into a list.
Cryptocurrency Exchanges: The easiest way to sell Factom is via a cryptocurrency exchange. To do this, find an exchange that offers FCT markets and sell into the fiat currency of your choice.
To Your Friends: If your friends want to buy Factom from you, you can take a payment from them and transfer
Is It Worth Buying Factom Right Now?
Cryptocurrencies are highly volatile assets and Factom is no different. When you purchase any crypto, it's important to remember that you're responsible for any losses.
In 2021, Factom is not as popular as it once used to be but there is some potential in the technology going forward.
If its network gets adopted, it should reflect positively on the price of the FCT tokens.
Finding a platform that supports Factom might be challenging as it's not as popular as some other cryptocurrencies such as Bitcoin and Ethereum. Once you find an exchange, it’s important activate 2FA authentication and not reuse the same password as your other logins.
After you buy, it’s worth storing your coins in a personal wallet so that if an exchange gets hacked, your funds are not affected.