Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
How to buy Factom
A beginner’s guide to buying and trading Factoids (FCT) in the US
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 the US? 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 on an exchange that lists FCT
Not all exchanges list all cryptocurrencies, so you’ll need to search for one that allows you to trade FCT. You should be able to sign up for a free account by providing your email address and creating a password. 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
Many cryptocurrency exchanges don’t allow you to swap fiat currency, such as 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
Search for “FCT” and follow the prompts to select the amount of USD, BTC or ETH you want to spend, or the amount of FCT you want to buy, and review the details of your transaction, including the total cost of the purchase and any fee.
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 directly for your desired currency 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 recordkeeping 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 due diligence before making a purchase. Make sure you’re aware of all 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 (January 29, 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 recordkeeping 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 $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.
More guides on Finder
Thanksgiving safety stats
Each year, Thanksgiving Day sees twice as many house fires as usual — mostly caused by this one source. Find out how to protect yourself.
Compare tuition insurance
If your child gets sick or injured and has to take time away from college, tuition insurance can reimburse you for what you already paid.
Rug cleaning services
Find a professional that can sanitize your rugs and eliminate dirt, dust and allergens. Learn what rugs you should steam clean, dry clean and handwash.
Palantir reports $289.4M in Q3 revenues, up 52% year-over-year
We sat in on Palantir’s earnings call to find out how the company is doing, what losses it’s facing and what you need to know about the new administration.
How to get life insurance as a freelancer
As a freelancer you may have unpredictable cashflow, but you can still find income protection with term life insurance.
How to get makeup delivered same-day
Need a new makeup product in a hurry? There are a few retailers that offer same-day delivery, so you can primp with time to spare.
Alani Nu partnered with The Vitamin Shoppe – here’s what you can buy
You can now snag Alani Nu products from The Vitamin Shoppe, with a selection of tasty protein bars and tropical energy drinks.
Moomoo stock trading review
Features and fees to consider before you open an account with this trading platform.
JPMorgan makes cryptocurrency push as blockchain becomes “real business”
JPMorgan has extensively shifted its blockchain efforts and branding this week.
Here’s what you need to know about Chewy, the popular pet retailer that offers fast shipping, a wide-variety of products and 24/7 customer service.
Ask an Expert