Launched in late 2018, Fantom has morphed into one of the best-performing and one of the most lucrative crypto investments. By November 2021, for instance, its value had shot up by more than 20,000% - outperforming such industry giants as Bitcoin and Ethereum. But like all other cryptocurrencies, Fantom is highly volatile, and it is not uncommon for its prices to crash by double-digit percentages in a matter of hours.
This tells us that making money with Fantom can be rather easy and straightforward, but so is losing it.
So how do you create wealth when investing in Fantom? Well, you start by learning the different ways of making money with the fast-growing altcoin. You also learn of the different risks associated with FTM investments, how they expose you to losses, and how such losses can be avoided.
In this post, we will be telling you of the most practical ways beginner and professional crypto investors can make money with Fantom. We will also tell you of the different ways other people have lost money with Fantom in the past and how you can keep your FTM safe.
Ways To Make Money With Fantom (FTM)
Before we look at the most practical ways that you can use to start making money from Fantom tokens today, it is important to note that the altcoin wasn’t originally designed to serve as an investment product. On the contrary, it was designed to serve as the native token for the Fantom blockchain - facilitating transactions within the network.
But as the network’s popularity soared and FTM token’s value exploded, it has received wider adoption among speculative investors/traders who continue having the greatest influence on its price action today.
1. Fantom Investing
In this case, investing - also known as HODLing - involves buying Fantom tokens and holding on to them for a long time. These long-term investors are confident about the altcoin and its anchor blockchain's future price action and believe that FTM token prices will continue uptrending.
In the case of Fantom, these investors are looking at the coin's exemplary performance, its projected future price action, the promise of the Fantom blockchain, which convinces them that the altcoin prices will continue rising for the next few years.
Here is an example of how much a long-term investor can earn from FTM.
If you had invested $1000 in FTM at the beginning of 2021, your investment would be worth $200,000 today. And if you buy FTM tokens worth $1000 today and its per-token value reaches $100 by 2030 as predicted by CryptocurrencyPricePrediction, you will be $40,000 richer by the turn of the decade.
2. Staking & yield farming
The Fantom blockchain which s secured using the delegated proof of stake consensus algorithm. This gives Fantom token investors a chance to commit their assets to secure the network in return for rewards in the form of FTM tokens. At the moment, the blockchain will pay 13% p.a interest for staking your tokens on the network, according to the Fantom Foundation.
Alternatively, you may choose to yield farm Fantom tokens on different DeFi protocols. Though yield farming is a broad practice, it primarily involves providing you with a platform that lets you lend out your Fantom investments safely to other traders/investors in return for interest or other rewards. Yield farming will appeal most to you if you are a long-term investor because it lets you earn doubly - from value appreciation of your FT tokens over time as well as interest/rewards from yield farming.
Check Out: How to Stake Fantom
3. Fantom Trading
Trading is a form of short-term investing that involves leveraging Fantom’s volatile price action to make quick profits. When crypto trading, you are essentially buying an asset at a relatively low price and selling it as soon as it turns profitable, which could be after a few seconds, minutes, days, or even months.
There also are multiple ways in which Fantom could be traded. You could choose to trade actual Fantom tokens. Alternatively, and the most common method, you could choose to trade Fantom CFDs. The benefits of trading FTM CFDs and not actual FTM tokens include the fact that CFDs give you access to leverage; you also don’t need a wallet or worry about the security of your assets because you are essentially betting on the price of the altcoin and not the altcoin itself.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Way To Lose Money With Fantom (FTM)
As is the case with any other investment, virtual or conventional, Fantom is exposed to a myriad of risks that, if not monitored and thoughtfully addressed, can lose you money. In this section, we will be looking at the most common ways through which Fantom investors have lost money and telling you how each can be avoided.
When investing in Fantom and virtually any other cryptocurrency, there is an increased risk of losing your crypto assets to hackers. For the longest time, hackers and other cybercriminals targeted individual crypto exchange accounts and wallets. They then shifted their focus to crypto exchanges, and now, as evidenced by CipherTrace’s half-year cybercriminal report, they have their guns trained on the DeFi sector.
In all these cases of exchanges and DeFi protocols, hackers gain access to client funds by manipulating vulnerabilities in the code exchange/wallet/DeFi code. In the case of individual wallets and exchange accounts, they take advantage of weak passwords or employ phishing tactics.
Solution: So far, there haven’t major incidences of DeFi platform compromise on Fantom. But this is not a license to abandon all caution when staking FTM tokens or engaging the DeFi programs hosted on the blockchain. Before choosing a wallet, exchange, or DeFi platform, vet it and its founders thoroughly. Where possible, check independent reviewer opinions about the integrity of these platform’s codes to ensure that you only register with the most reliable platform.
Read Also: Is Fantom (FTM) Safe?
The volatile and unpredictable nature of Fantom token prices makes trading the altcoin rater risky. The trade becomes even riskier and exposes you to massive losses when you trade recklessly, i.e. without a proper strategy, misusing leverage, or not conducting thorough research before opening the trade.
Solution: To avoid losing money when trading Fantom, you first need to gather as much experience as possible before you start trading. You also need to perfect a trading strategy and keep improving on it. Equally important, you need to learn how to interact with leverage and how to only use a healthy amount of it when trading. You also need to start utilizing the different risk management features provided by your broker/exchange.
Online crypto scams are on the rise and are slowly proving to be a menace for the crypto investment community. These scams range from crypto MLM schemes, DeFi rug pulls, fake websites, fake DeFi and crypto dApps, scamming emails, and pump and dump schemes. Earlier in the year, the Federal Trade Commission (FTC) had sounded a warning and cautioned the world that crypto scams are on the rise and the need to be extra cautious when interacting with other crypto investors and investment platforms.
Solution: Most of the losses to crypto investments to scammers are avoidable. You, however, need to be extra cautious when deciding the crypto investments and platforms to interact with. Avoid platforms that promise you above-average returns on your crypto investments, avoid platforms with shady backgrounds or developers/founders, don’t act on unsolicited emails and social media messages or posts that promise ultra-high returns on crypto investments, and other get-rich-quick schemes.
Conclusion: How to Keep Your Fantom (FTM) Safe?
Fantom is slowly turning into one of the most sought-after crypto investments today. And as if we have highlighted in this post, there are multiple highly practice always of making money with Fantom, including Staking, investing, and trading.
Similarly, there are numerous risks to Fantom investing that expose you to massive losses. The most common include careless trading, crypto scams, and hacking. But there are several measures that you can take to minimize possible exposure to losses from these risks.
To start creating wealth with Fantom investments, start by learning about all the possible ways of making money with Fantom. Then learn about all the possible ways through which you could lose your FTM token investment and how to avoid them.