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Fantom Crypto (FTM): A Beginner’s Guide

If you’re also a crypto enthusiast you’ve probably got the eye for a good coin. Fantom Crypto is among the leading cryptocurrencies in the market. If you’re looking for something to invest in and then make a profit out of it you should seriously consider Fantom Crypto as your go to option.

But before you head knee deep into Fantom Crypto you should have a little knowledge of what it is and how it works. This article gives you an unbiased take on all you need to know about Fantom Crypto and the future prospects of it. So let’s read along and know all there is to know about Fantom Crypto.

What Is Fantom?

Some people consider Fantom as just a coin but it is much more than that. There is a good reason behind its massive growth in 2021 when the coin started off the year at the price of %0.0026 and reached peaks of $0.916 around May. Immediately, Fantom was on the map and in everyone’s mind. What makes Fantom so popular is that it uses a completely secure smart contract platform. This allows crypto users to use Fantom for making safe transactions as fast as any other trading platform. Members are also able to keep track of the blockchain’s history because they have a copy of the Hashgraph which documents the blockchain’s progress. 

Another major attraction and flagship selling-point for Fantom is the speed of transactions it offers via Lachesis -Fantom’s very own consensus mechanism for verifying transactions. As per Fantom’s claims, Lachesis can do in two seconds what other proof-of-work blockchains like Bitcoin would take minutes verifying. The stability and pace at which Fantom works is one of the salient features of the blockchain. 

At its core however, Fantom champions accessibility and equity for its members. The fact that Fantom validator does not have a special role is what separates it from the rest of the grain in the crypto scene. With a minimum stake of 1 FTM, you too can play a role in validating the network alongside the added bonus of earnining 4% per year. (That can go up to 12% if you consider taking part in the Fluid Rewards!).

Creation of Fantom

Fantom was developed by the South Korean computer scientist Ahn Byung Ik. Fantom was developed as the world’s first DAG based smart contract platform.  It entered the market in 2018 and became a hot deal over the last year. It was able to sustain the turbulent tides that the crypto market had to go through because of Elon Musk and China’s crackdown on mining mid-2021. 

Creator of Fantom, Ahn Byung got the inspiration for Fantom by the desire to decentralize user data, making transactions efficient both in terms of price and time as well as give the user control over their data.

DAG based contract platform 

As the first DAG based smart contract platform, Fantom has introduced a new degree of efficiency and access in the world of cryptocurrency. A previously centralized system involved third parties which for starters introduced great inefficiency in crypto transactions. But more so, it means large sums of user data were put at risk in this form of handling. What a DAG based smart contract platform did was decentralize and democratize digital currency by cutting off the need for such third parties.

The model of operation that DAGs offer allows for direct and secure transactions with you as the user behind the wheel, making it the blockchain of the future.

Why Fantom?

Exchanges like Ethereum and Solona offer a number of trading perks that you might be interested in, so why go for Fantom? Because Fantom offers all that and more! You can do all that you would be able to on other smart contract blockchains but takes the edge on price and time efficiency. 

Accessibility

Relative to Etheruem, Fantom is more accessible to all because it’s faster and cheaper. Additionally, its currency, FTM, is compatible with Ethereum which reduces risk associated with changing blockchains. 

Fantom Finance

Fantom Finance, a proprietary suite of Fantom, is a 3 part suite that further enhances the user experience.

The first component of this suite is fmint, which as the name suggests, allows you to mint your FTM and even other things like national currencies and synthetic assets. This way, you can use your minted resources to avail opportunities of earning rewards for staking FTM. The user interface of fmint is also easy to interpret, with essential information like how close you are to liquidation. 

Next up, there’s the flend feature, which lets you lend your assets and earn on interest, and similarly, borrow when need be. This makes trading much more efficient and interactive with other users. 

Then we have fTrade, also known as fSwap, allows for non-custodial decentralized exchange. This acts as the automatic market maker for the currency, and goes beyond the traditional user to user trading that Coinbase and Binance offer. Instead, in the case of fTrade, users swap from a liquidity pool composed of staked Fantom-based cryptocurrencies. This feature is key in making Fantom an efficient DeFi and one you certainly don’t want to overlook!

Getting your own FTM

With a reported market cap of $6.3 Billion and one of the top performing ROI’s, the appeal for Fantom is real. If you are looking to reap the benefits of Fantom and get your hands on FTM, here’s what you need to know:

The buying and selling of FTM is supported by its own Ethereum, a decentralized and open-source blockchain. To buy FTM, you would want to trade via Binance’s USDT/FTM pairing where over 60% of FTM trading happens. Think about USDT as the money you are trading in for FTM and Binance as the platform across which the transaction happens. USDT is a pretty popular currency which makes the entire process much easier because it’s easy to get your hands on. An important thing to note about USDT is that it is pegged to the value of the US Dollar and varies accordingly. So depending on how deep you want to dive with FTM, buy a reasonable amount of USDT and trade it in for FTM. 

With that in mind, a good place to start off is to set up an account for yourself on Binance. To do this, you want to have some form of acceptable identity proof -a utility bill or passport should do the job. Given that we recommended you use the USDT, you want to first get your hands on some of it. USDT is associated with different cryptocurrencies and you can trade those for USDT accordingly. Here again you benefit from the popularity of USDT because it’s associated with a decent amount of currencies making it easy to work with. 

To actually trade in your USDT for FTM, you’ll have to submit an order for your desired amount of FTM in the exchange page on Binance. Binance offers you two options when making purchases. You can either place a market order to get FTM instantly at the current rate, or you can place a limit order which allows you to set a price at which you want your FTM. Binance will automatically buy FTM for you when the currency hits that price.

While Binance is a solid exchange, there are different options available to you, each with their own perks that also list FTM. Some of the top alternatives are KuCoin, Gemini, and FTX. If you are a new user, there’s a case to be for Coinbase which doesn’t have the advanced learning curve that Binance does. If you are an advanced user, you can benefit from features like choosing from hundreds of currencies which might overwhelm someone who’s just starting out.
Regardless, you need not worry too much about committing to a platform because Binance offers a withdrawal option. You can choose to transfer your FTM at a certain withdrawal fee. 

Future prospects 

It’s no surprise when something once big on the crypto market falls off, which is why it’s crucial to think about the future prospects of Fantom. The good news is that Fantom developers also have the same thing in mind. CEO of Fantom, Micheal Kong, has indicated that plans are underway for using Fantom’s technology towards developing decentralized technology along the lines of tools for smart cities and supply chain software. Additionally, predictions for FTM going into 2022 are also strongly in favour of the coin, which is set to have price surges across the next 5-7 years.

Ultimately, it’s the community that determines what trends Fantom will see going forward. While developers can work on ways to keep Fantom in the race by making it cheaper and faster, there’s an inevitable degree of uncertainty.

Fantom Crypto Facts

Fantom came to the common public and became an entire phenomenon. But before you get caught up in the razzle dazzle and commit to an investment in the business. Here’s a few facts to help you with that decision.

  1. Fantom crypto is an entire blockchain platform that comes with its own smart contracts. This means that there is very little third-party involvement. 
  2. You can easily grab a hold of Fantom at the currency exchange closest to you. You can get a hold of Fantom from exchanges such as Gemini, Crypto.com, and Binance. If you don’t want to buy at a decentralized exchange you can always try using non-decentralized platforms. One example of a decentralized exchange is the Uniswap platform.
  3. Fantom offers instant exchanges. In fact, they’re pretty inexpensive as compared to other options.
  4. The Fantom token can be used at a lot of places. From governance, staking, to paying network fees, to governance and other payments. The possibilities are countless. This makes Fantom a fan favorite.
  5. Fantom is also giving other major crypto currencies a tough competition. Especially on other smart platforms such as Ethereum.

Conclusion

Fantom is currently a leading smart contract blockchains out there. It checks off the three most important considerations for a blockchain: Speed, security, and stability. It’s also doing very well in the current market conditions and survived some major hits to the cryptocurrency market. Offering both a user-forward, decentralization approach as well as affordability, Fantom sets itself apart from traditional blockchains.

References

https://www.wealthsimple.com/en-ca/learn/what-is-fantom

https://coinmarketcap.com/currencies/fantom/

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