How to Buy Factom - Where to Purchase FCT?
Factom is a prominent blockchain established in 2014 to help fix Bitcoin's inability to offer practical enterprise data solutions. It uses a cryptocurrency known as Factoids (FCT), though some refer to the coin as Factom.
FCT's value dropped significantly towards the middle of 2018. However, most modern investors still consider trading in the coin a viable investment. The crypto has no maximum supply, which increases its volatility. This article covers how to buy Factom and everything else you need to trade in the coin with ease and realise your financial goals.
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Why Trade rather than Buy Factom for Cheap and Fast Returns?
You Don’t Need a Wallet:
You trade on the price movement of the coin without having to buy and store it.
You Can Use Standard Payment Methods:
All regulated brokers accept popular methods of payment such as credit/debit card and bank transfers.
Trades Are Fast and Withdrawals Are Easy:
Trades are executed within seconds and withdrawals will reflect instantly in your account.
What is the Easiest Way and Best Way to Buy? Compare the Top Factom Brokers
Are you looking for the best place to buy Factom? If you are, all you need to do is choose one of the top Factom brokers out there. There are several reputable brokers with over five years of experience. Many of them are regulatory compliant and prepared to guide you through the trading process. So, once you choose the best broker, you can increase your earning potential with ease.
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.
Ultimate Beginner's Guide to Trading Factom
What is a Factom Broker?
Brokers are individuals or companies that act as a link between the cryptocurrency market and the trader. They work like traditional brokers in the investment industry. However, all cryptocurrency brokers execute their trades online.
You can find numerous Factom brokers online today. Some of them offer Factom trading. Others are masters of several cryptos except for this coin. So, it would be best if you did due diligence when looking for a reputable Factom broker.
What is a Factom CFD?
CFD is a common term within the cryptocurrency trading industry. It stands for Contract for Differences and offers traders an opportunity to trade on the volatility of coins. If you enter into a Factom CFD, you speculate the short-term change in this crypto's value to determine when to enter into a buying or selling position.
The most crucial feature of CFDs is that they allow you to earn irrespective of the price trend. All you need to do is to make accurate predictions. In other words, if you short Factom when the price is decreasing, you still have a chance to make a profit. Moreover, you can enter into the contract with or without leverage.
What is the Benefit of Factom Regulation?
Factom regulation is essential for enhancing the security of the traders and their funds. In the near past, trading platforms operated without the oversight of leading global authorities. This exposed Factom brokers and exchanges to security risks, forcing governments worldwide and the crypto industry to enact laws and rules geared towards limiting the risks.
Even though complying with the regulatory laws might appear demanding, they are the best thing that has happened to Factom. Besides ensuring your funds' security and personal information, it has restored sanity in the industry.
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.
The Verification Process for Trading Factom
We've talked about the regulatory requirements that you need to buy and trade Factom successfully. We need to add here that the laws have altered the registration process for trading Factom. Today, this process includes a verification procedure that involves verifying your identity and location. This process mainly aims at protecting the funds of users like you. If you need to know the documents you need to provide, you may need to contact your preferred broker. The requirements may differ slightly. In most cases, they ask applicants to provide their identification documents and proof of address.
Factom: Long vs. Short Term Investment
Before you buy Factom, you should determine whether a long or short-term investment suits you. The two are significantly different and come with varying degrees of risk.
If you need quick returns, a short-term investment may be the most suitable. However, it would help if you based your decision on your understanding of the cryptocurrency market and Factom. CFD, futures and similar contracts are some of the short-term solutions you can consider at any time. You can earn whether the coin's price increases or declines, depending on your prediction effectiveness.
However, if your market analysis predicts an increase in the price over a long period, you can opt for a long term trade. You'll need a reputable exchange and a private Factom wallet. For this strategy to work in your favour, you must decide based on objective data that shows the value of the coin will increase significantly over a long period.
Why Buy Factom rather than Trade?
Whether you should buy or trade your Factom depends on your understanding of the prevailing market forces. Of course, you should find the cheapest way to buy Factom if you want to reap the most out of your effort.
Let's dive into the reasons you can choose to buy Factom rather than Trade.
Once you buy Factom cheap, you'll gain access to a highly affordable medium of exchange. Remember, you need Factoids (FCT) to be able to write on the Factom network. The Federal Servers convert the coins into Entry Credits at USD 0.001. After the conversion, you can use the coin on the platform as a medium of exchange if you own it.
Moreover, you can use Factoids to buy other cryptos, services and goods. So, if you buy Factom cheap and then use it to do this, you may reap more benefits than trading it. Of course, this may not apply if you are a pro trader and the market conditions favour you.
You can also be safer if you use the cheapest way to buy Factom when the price is increasing. You don't take too many risks but can still make decent profits.
You can also buy Factom instantly and hold it if you want to keep it for security reasons. Traders typically use built-in wallets in exchanges to avoid withdrawal charges. This can expose them to criminal activities. If your funds are in your private wallet, you won't need to worry much about the risk, provided you take the necessary safety precautions.
Overall, you need to conduct in-depth research, set up secure and compatible wallets, and use advanced security solutions to minimise risks associated with buying and owning Factom.
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 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.
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Frequently Asked Questions
You can choose one of the Factom wallets out there. You can consider Factom Enterprise MyFactomWallet and more.
Yes. You can buy and trade FCT on platforms like CoinSwitch, ShapeShift or Bittrex.
First, ensure the exchange allows users to trade the coin. After that, sign up for free by providing your personal information and email and creating a username and strong password.
Ensure the exchange is regulatory compliant. Also, enable two-factor authentication.
After creating and verifying your account, deposit funds and then search for "FCT." Follow the prompts and provide the amount of FCT you want to buy or the amount of fiat or digital currency you want to spend. Review the details and accept the offer if you want to complete the transaction.
The selling process is almost the same as the buying process we've seen in the last question. You can follow the prompts to sell the coins instantly. If the coins are locked in your CFD, you can automate the selling process. You can also log into your trading account and click "sell."
If you don't want to work with any other exchange, convert Factom coins to the supported coin and then finance the Trade.
Yes. Most regulated platforms will insist on identity verification to meet the KYC requirements.