A beginner’s guide to buying and trading Factoids (FCT) in Indonesia
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 Indonesia? 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. Create an account on a cryptocurrency exchange that allows you to trade FCT
Search for a crypto exchange that lists FCT in one or more currency pairings. Once you’ve found a suitable platform, register for an account. You’ll need to provide an email address and password to sign up, while some exchanges may also require your full name, contact details and proof of ID before allowing you to trade.
Don’t forget to also enable two-factor authentication on your account before making any deposits.
Step 2. Deposit funds into your account
At the time of writing, no crypto exchange allows you to exchange Indonesian rupiah (IDR) for FCT directly. As a result, you’ll have to first acquire a currency that’s available in a pairing with FCT, such as Bitcoin (BTC) or Ethereum (ETH), before you can exchange it for FCT.
To deposit funds, log in to your account and click on the “Deposit” button to generate a wallet address. You can then transfer funds into your trading account from whichever exchange or wallet is holding your coins.
Step 3. Buy FCT
The final step is to exchange your BTC, ETH or other cryptocurrency for FCT. The buying process varies between exchanges, but you’ll usually have to search for your chosen pairing (such as BTC/FCT) and then click on “Buy FCT”. After entering the amount of FCT you want to buy, review the full details of the transaction and finalise your purchase.
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 notarise 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 organise 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 (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 $500,000 grant from the Bill and Melinda Gates Foundation to build a proof-of-concept prototype of a digitised 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.