Factom (FCT): How to buy, sell and trade Factoids | finder.com
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How to buy Factom

A beginner’s guide to buying and trading Factoids (FCT) in the US

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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.

This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Where to buy, sell and trade FCT

You can buy FCT on a number of popular cryptocurrency exchanges, including the following:

Name Product Payment Methods Available Fiat Currencies Available Cryptocurrencies
Cash, BPAY, POLi, Cryptocurrency
AUD
BTC, BCH, ETH, XRP, ADA, XEM, LTC, XLM, MIOTA, TRX, DASH, NEO, XMR, EOS, QTUM, BTG, LSK, ETC, XVG & over 60+ more
CoinSpot is an Australian-based marketplace that allows you to easily buy, sell or trade more than 100 cryptocurrencies.
Credit card, Debit card
USD, EUR
BTC, BCH, ETH, XMR, ZEC, DASH, XRP, ETC, LTC, DOGE, XLM,1ST, ADX, AMP, ANT, BAT, BCN, BNT, BTG, CFI, CVC & 70+ more
Access competitive crypto-to-crypto exchange rates for more than 35 cryptocurrencies on this global exchange.
Cryptocurrency
-
BTC, BCH, ETH, LTC, DOGE, NEO, XMR, POWR, DASH, PIVX, XEM, OMG, GNT & 500+ more
Buy and sell hundreds of cryptocurrencies with minimal verification on this all-in-one, New Zealand-based exchange.
Cryptocurrency
-
BTC, ETH, XVG, SC, XRP, DOGE, STRAT, XMR, ADA, OMG, ETC, BCC, XLM, DGB, UKG, QTUM, ZCL, RDD, LTC, NEO & 120+ more
Buy from one of the largest crypto to crypto exchanges with a selection of over 190+ cryptocurrencies.
Cryptocurrency
-
BTC, ETH, XRP, DOGE, XLM, ETC, STRAT, LTC, SC, DGB, BCH, LSK, XMR & 50 more
Trade various coins through a global crypto to crypto exchange based in the US.
Cryptocurrency
-
BTC, BCH, BTG, ETH, ETC, FUN, 1ST, ANT, BAT, BNT, BLK, CVC, CLAM, DASH, DCR, DGB, DNT, DOGE, EDG, EOS, FCT, GAME & 25+ more
A global exchange where no account is needed to begin trading cryptocurrency to cryptocurrency.

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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.

Tim Falk

A freelance writer with a passion for the written word, Tim loves helping people find the right products for them. When he's not chained to a computer, Tim can usually be found exploring the great outdoors.

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