How to Buy Factom (FCT) in 3 Simple Steps

5 Things to Consider if you Want to Buy Factom

To buy Factom, you need to consider essential factors that can help you prevent loss and mitigate security threats. Here is what you need to do.

1. Carefully choose your preferred secure payment method

The best payment method for you depends in part on your geographical location. The most important thing to remember is that secure payment methods have a few features in common. They are fast, safe, and designed to meet your trading needs.

2. Will you need to set up your own wallet?

The answer depends on your trading strategy. Assume you are entering into a CDF agreement through your preferred broker. In this case, you don’t require a wallet since you can trade on Factom’s price movements without owning this digital asset. 

However, if you buy the coin through an exchange, you can use their built-in wallets. Please remember that these wallets are not the safest. So, we strongly recommend that you set up a secure digital wallet if you intend to invest for an extended period. This way, you’ll minimise the possibility of losing your funds to cybercriminals.

3. Comparing costs

Since you want to maximise your returns, you should compare fees and the cost of transactions. Consider the cost of using cryptocurrency as a means of payment. Since you don’t have to spend lots of money to convert your digital asset into FCT, you might save a lot of time and money if you choose this option. 

4. Safety and security

Factom is designed to offer advanced security, and you can take advantage of this. Its protocol ensures related entries are linked chronologically for easy retrieval and efficient storage. Before any entry data is written into an entry block and stored, it’s hashed. Bitcoin cryptographic anchor entries secure each directory block further, thereby promoting interoperability and third-party security.

A federal server peer-to-peer network governs the public Factom blockchain. Please note that the membership of this team is based on community support and performance.

To protect your funds, you still need to analyse the cryptographic security protocols that exchanges and brokers use to ensure your safety. You can consider MetaTrader 4 (MT4) and MetaTrader 5 (MT5). For an added layer of security, you should work with a trading platform that allows you to set up a 2-step authentication.

5. Can you understand and navigate the platform?

Once you are satisfied with the security that the cryptocurrency exchange or brokerage platform offers, you should consider whether its user interface has been designed with your needs in mind. So, it would be best to try to navigate the site and be sure you understand the mechanics and are confident to use it before taking the next step.

What is the Best Payment Method for Buying Factom

As we saw earlier, you have several optional ways to buy Factom. When choosing one, you need to consider whether it’s available in your locality. Let’s take a brief look at some of the most popular methods that may serve your trading interest.

Buying Factom with Debit and Credit Cards: This is the most popular method since it’s fast and convenient. Remember, you can use crypto or fiat currency debit and credit cards, depending on your needs. The only drawback associated with credit cards is that they are relatively costly. Crypto debit and credit cards can also be costly depending on the impact of various market forces on the value of digital assets.

Buying Factom with Cash: Buying Factom with cash is also becoming increasingly popular. The transaction cost can be as low as zero. The only challenge is that it’s challenging to find suitable Cash ATMs. As such, if this is your preferred option, you might consider entering into a private agreement with a Factom trader who’s willing to sell you the coins at your agreed rate. This method is a bit risky. 

Buying Factom with Paypal: PayPal is a reputable global payment processor. It enables you to pay for crypto in either fiat or digital currency. One major limitation is that it doesn’t support most altcoins. According to information on PayPal’s official website, they currently support Bitcoin, Ethereum, Bitcoin Cash, and Litecoin in a few locations. This means you can only use a few cryptos to buy Factom.  

In most cases, you might be forced to use Paypal to buy the coin indirectly. If it is not available in your area, you can’t use it at all.

Buying Factom with Bank Transfer:o u can use bank transfer anytime if your trading exchanges accept it. It might remain one of the most popular methods for an extended period since it typically costs nothing. Once you add your payment details, you can conveniently deposit and withdraw your funds.

What Fees are Involved in Buying Factom

Buying Factom can be a little costly, depending on your chosen exchange or broker. However, if you are working with the right platform, you’ll find that the costs are worth the benefit you get in return. Here are some of the costs you can expect to bear to make more money:

Deposit Fees: Some Factom brokers will charge you a small fee when you deposit your coins into your account. Others may not charge a deposit fee. You need to understand the platform’s affordability by considering the overall cost of the service.

Withdrawal Fees: A significant number of Factom brokers charge withdrawal fees. Again, keep in mind that you should base your decision on the overall cost.

Transaction Fees: These are the costs associated with buying Factom. It would help if you considered whether you would buy a different coin like BTC or ETH from another platform first before getting the coin. If so, the cost may be higher. Overall, transaction costs vary from one platform to another but should be minimal.

Safely Storing Your Factom

You can safely store your Factom in various types of digital wallets. You should choose one depending on your trading strategy, withdrawal costs and the volume of investments. Here are the top wallets for your consideration.

Web Wallet: These are built-in trading platform wallets. They are free and allow you to store your Factom coin conveniently. However, when the platform goes out of business or is hacked, you risk losing the coins. 

Mobile Wallets: These are Factom wallets designed to be used on mobile devices. They come with the unlock code and built-in security protocols. These wallets are also convenient to use. However, if a stranger gains access to the code and other security enhancers, you could still lose your funds. The main mobile wallet for FCT is MyFactomWallet.

Desktop Wallet: These wallets are installed on desktops, meaning they may not give you convenient access to your funds. However, they are safer as you can store the computer far away from the reach of strangers. Besides, you can install a wide range of security enhancements like 2FA to improve your experience. The Factom Enterprise wallet is the most common option under this category.

Hardware Wallet: These wallets store your Factom coins offline and are the most secure. They are immune to viruses and store your private keys in secure physical devices. However, you can enjoy enhanced protection if you properly take care of the keys. Some examples of hardware wallets for your consideration are Trezor, Ledger Nano S, and Ledger Nano X.

Wallet Combinations: Some of the above Factom wallets can be interlinked with one another to increase security and convenience. You may also use a mobile wallet to store crypto assets you wish to use frequently and use another desktop wallet for long-term storage. Using different wallets can provide more security for your assets in case one of the wallets is compromised.

What Other Coins Can I Trade or Use to Buy Factom?

As we have implied, you can buy Factom with some cryptos. The most common ones are Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. This option is typically affordable and convenient. Consider which of the pairs your trading platform offers before moving on to buy Factom with Bitcoin Cash or any other cryptocurrency.

What’s the Smallest and Largest Amount of Factom I can Buy?

What’s the minimum purchase for Factom? If this is what you are asking, bear in mind that one Factom is currently USD 2.04. So, if you have about two dollars, you can buy a whole Factom. Therefore, it doesn’t make economic sense to buy small amounts of Factom.

Can I Buy Factom Anonymously with no ID? Is it Safe and Legal to Buy Factom?

It’s safe and legal to buy Factom in almost all jurisdictions. However, if you want to buy Factom with no ID, it may take some time to find a platform that offers the service. Most exchanges and brokers that do this are not regulatory compliant and may expose you to security threats. So, if you buy Factom without verification, the transaction will remain private and anonymous, but you could be exposed to some risks.

Will Buying Factom Make Me Money?

There’s no guarantee. Remember, the coin price increased to approximately USD 80 in early 2018 when the platform was fully decentralised. It then dropped to close to zero. Since then, the coin’s price has been in the single digits for almost the entire period. So, unless its value shoots up again, you cannot rely on the coin to get rich quickly. If you wish to research the price history of Factom, please feel free to visit our Factom Price Page. 

How to Spend your Factom

You can use Factom today as a medium of exchange with great ease due to its growing popularity. Many online traders consider the high levels of anonymity and simplicity of transactions as the coin’s key selling points. So, do your research before opting to work with any exchange or broker.

How to Sell your Factom

You can sell your cryptocurrency through an exchange or broker whenever you need it. If you choose an exchange, you should look for a ready buyer who accepts your terms. Once you receive your desired digital or fiat currency, you can securely close the sale. If your Factom is already held in a CFD, you’ll find the process much easier. 

In this case, if you think the value of the coin will fall, you can log into your trading platform and click sell. You can also activate the risk management settings on the platform to automate the selling process.