How to buy Factom
A beginner’s guide to buying and trading Factoids (FCT) in Canada
Factom is a distributed record-keeping system designed to make it easier for businesses to store data on the blockchain. By creating a data layer on top of the bitcoin blockchain, Factom allows businesses to securely record information that can’t be modified or deleted.
To upload data into the network, you’ll need Factom tokens called Factoids (FCT). So, how do these tokens work and where can you buy FCT in Canada? Keep reading to find out.
Where to buy, sell and trade FCT
You can buy FCT on a number of popular cryptocurrency exchanges, including the following:
A step-by-step guide to buying FCT
If you want to buy FCT, here’s one example of how you can do it:
Step 1. Register for an account with an exchange that allows you to trade FCT
Find an exchange, like the ones in the table above, that allow you to buy, sell or trade FCT. You can sign up for a free account by providing your email address and creating a password, but in order to start trading, you’ll likely also need to supply your full name, contact information and proof of ID to become a verified member.
It’s also a good idea to enable two-factor authentication to protect the security of your funds.
Step 2. Deposit funds into your account
Click the “Deposit” link and enter the amount of fiat currency or cryptocurrency you would like to transfer.
Many cryptocurrency exchanges don’t allow you to swap fiat currency, such as CAD or USD, for cryptocurrencies directly. If this is the case, you’ll need to acquire a cryptocurrency that’s available in a pairing with FCT, such as Ethereum (ETH) or bitcoin (BTC), and then exchange it for FCT.
Step 3. Buy FCT
Click on the “Buy/Sell” link and then search for “FCT”. Click on “Buy FCT” and choose the amount of FCT you want to buy. You’ll then be given a chance to review the details of your transaction, including the amount of FCT you’re buying and the total cost of the purchase, before finalizing your transaction.
How to sell FCT
If you want to sell your FCT holdings, the process you need to follow is more or less the same as the buying process outlined in step 3. However, make sure you’re aware that exchanges don’t offer every possible currency pairing, so exchanging FCT for your desired currency straight away may not be an option.
Which wallets can I use to hold FCT?
It’s recommended that you don’t store your cryptocurrency in a trading account on a crypto exchange for any length of time, so you’ll need to find a suitable wallet that allows you to safely store FCT. The Factom Enterprise Wallet is available here, or you may prefer to try the Papermill paper wallet.
Exodus Eden also supports FCT.
How Factom works
Factom is a blockchain protocol designed to provide simple and secure record keeping for businesses. It uses distributed ledger technology to create a data layer on top of the bitcoin network, allowing users to securely notarize documents in a separate system. This data is then anchored to the bitcoin blockchain, ensuring the security and immutability of those records.
This allows businesses and governments to create permanent, time-stamped records of data in the blockchain. It’s also designed to overcome a number of issues associated with the bitcoin blockchain, including the following:
- Slow transaction speeds
- High transaction costs
- Limited transaction volume capacity
In the real world, applications for the Factom protocol exist across a wide range of industries. Any business or industry that needs to securely and reliably organize data, such as land title records, medical records, legal documents and more, could potentially benefit from the use of Factom.
Founded in 2014 by developer Paul Snow and blockchain entrepreneur David Johnston, Factom’s native cryptocurrency (FCT) is used to purchase Entry Credits, which allow you to enter data into the Factom system. One Entry Credit allows you to enter 1KB of data.
Key things to consider if you’re thinking about buying FCT
All cryptocurrencies are complicated and speculative, so it’s important to do your research before making a purchase. Make sure you’re aware of all of the risks involved in acquiring cryptocurrency before you buy.
If you’re thinking of buying FCT, make sure you consider the following factors:
- Supply. According to CoinMarketCap, at the time of writing on 29 January 2018, the circulating supply of FCT was 8,745,102.
- Use. If you want to use the Factom protocol, you’ll need FCT. Entry Credits are created by burning Factoids, and Entry Credits purchase fixed amounts of data in the Factom network. Entry Credits are not transferable.
- Future supply. The original supply of Factoids was set during the 2015 token sale, which saw the creation of 8,759,968 Factoids. However, the “burning” of Factoids to create Entry Credits will see the supply of FCT decrease in the short-term.
- No cap on total supply. It’s also important to be aware that there is no cap on the total supply of FCT. Once Factom has reached Milestone 3 – the election of 32 Federated Servers to run the network, which is scheduled to occur in the first half of 2018 – 73,000 new Factoids will be created and released each month as rewards for those servers. Once the number of Factoids being burned each month outpaces the 73,000 new FCT being created, this cryptocurrency will again become deflationary.
- Real-world applications. Factom’s technology has a wide range of potential real-world use cases in any industry that relies on effective record keeping and supply-chain management. You’ll need to consider the potential demand for the Factom network as more businesses and governments begin to use Factom.
- Commercial partnerships. Factom announced a number of commercial partnerships throughout 2017, including arrangements with businesses such as iSoftStone, Smartrac, DataYes and Intrinio. It also received a US$500,000 grant from the Bill and Melinda Gates Foundation to build a proof-of-concept prototype of a digitized medical record system for remote developing areas and a US Department of Homeland Security grant to advance the security of digital identity for Internet of Things (IoT) devices.
By thoroughly researching all aspects of Factom and Factoids, you’ll be able to make an informed decision about whether to buy FCT.
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