A beginner’s guide to buying and trading Factoids (FCT) in India
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 India? 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
Register with an exchange that allows you to trade for FCT. You may not be able to trade Indian Rupees (INR) directly for FCT. You might have to trade a popular cryptocurrency like bitcoin (BTC) or Ethereum (ETH) for FCT. Before you can buy, you’ll need to sign up for an account by entering your email address and creating a password. You’ll also likely be asked to verify your account by providing your full name, contact information and proof of ID before you can make a deposit.
We also recommend that you enable two-factor authentication to provide an extra level of security for your account.
Step 2. Deposit funds into your account
Many cryptocurrency exchanges don’t allow you to swap fiat currency, such as INR, for cryptocurrencies. This means that you’ll often 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.
To deposit funds, login to your account and click on the “Deposit” link. Enter the amount you want to deposit and generate a wallet address to transfer your chosen crypto from another exchange or your own wallet into your account.
Step 3. Buy FCT
Click the “Buy/Sell” link on the account dashboard page and search for “FCT”. Click on “Buy FCT” and you’ll get an option of specifying the amount of FCT you want to buy.
You can then review the full details of the transaction, including the amount of FCT you’re buying and the total cost, before confirming the 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.