What Is Fantom? Should You Invest In FTM And Where To Buy It?

Last Updated January 31st 2022
17 Min Read

If you follow cryptocurrency news as much as you should, then you will know that Fantom is one of the trendy coins right now. 2021 has been a great year for Fantom, and the last few months have been the most spectacular period in the history of the cryptocurrency platform and its token. The price has increased significantly, and people are buying more than ever.

Are you considering investing in Fantom? Then it is time to find answers to some critical questions that will help you make the right decision. As you probably know already, the cryptocurrency space can be very risky, especially when you are dealing with a relatively new cryptocurrency.

So, what is Fantom? Should you invest in Fantom (FTM)? And where can you buy Fantom (FTM)? Depending on your knowledge and experience as a cryptocurrency investing, you may have other relevant questions about Fantom investing. Here, we will attempt to answer all the important questions you may have and help you make a sound decision about the currency.

Before we delve fully into answering the critical questions above, it is important to clarify that we won’t make a decision for you. It is important that you read every paragraph of this post with care as they all contain information that will help you make the right choice at the end.

Content

 

What Is Fantom?

Fantom is a directed acrylic graph (DAG) smart contract platform that allows users and developers to create decentralized apps (Dapps) and non-fungible tokens (NFT). It is a decentralized, permissionless, and open-source cryptocurrency platform that provides advanced smart contract functionalities.

Fantom is similar to Ethereum in many ways. It was primarily created to provide decentralized finance services, serving as a reliable platform for creating decentralized apps and digital assets that can be combined to serve as enterprise solutions.

Fantom has been described by some as an Ethereum-killer. Of course, the platform and its native currency are not as popular or as valuable as Ethereum. The name was only coined because Fantom has built a reliable blockchain from the scratch, and the blockchain is a worthy alternative to Ethereum. In fact, it offers advanced smart contracts, which makes it very attractive.

Like every other cryptocurrency platform, Fantom has a native currency. The native currency is also called Fantom and trades under the ticker symbol FTM. It has multiple usages in the network, serving as the governance token and also used for transaction fees and payments.

What Problems Does Fantom Solve?

In recent times, cryptocurrencies are not just created to serve as digital currencies. Rather, they are created as an ecosystem that solves specific problems. While many are created to serve specific purposes in certain industries, others are created to advance the blockchain industry.

Fantom was created as an alternative to Ethereum and solves some of the problems users and developers face while using Ethereum. The major goal of the project is to create a secure and scalable decentralized network without compromising security.

Fantom solves the problems of scalability, decentralization, and security. Together, these are referred to as the blockchain trilemma. It has always been challenging to improve these three areas in a crypto network. Fantom offers near-infinite scalability and processes transactions almost instantly at nearly zero cost. These solutions can bring a lot of improvements to the fast-growing DeFi subsector.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

A Brief History Of Fantom

To fully understand why Fantom is unique, you need to know a bit of its history. Fantom as a project was started by a South Korean scientist, Dr Ahn Byung Ik. He started by creating the Fantom Foundation and bringing in several helpful hands to build the blockchain from the scratch.

One of the reasons behind the success of Fantom is the quality of the team Dr Byung gathered. Some of the prominent names in the team include Michael Kong, who served as the CIO and later assumed the position of CEO when Dr Byung stepped down. Andre Cronje, the founder of Yearn.Finance and a prolific DeFi developer, was also a prominent figure in the team, serving as its DeFi architect.

In addition to the names above, Fantom Foundation had several specialist scientists, engineers, researchers, designers, and entrepreneurs from the early days. The team started working together in 2018, but the blockchain (Fantom OPERA), which is also called Fantom’s mainnet, was launched in December 2019.

To date, Fantom maintains a very serious and experienced team. Many of the brains behind the success of the blockchain are still part of the Foundation. Employees are generally drawn from different parts of the world to reflect the true nature of the Fantom as a distributed platform.

What Makes Fantom Unique?

From the onset, the Fantom Foundation set out to build a network that will be a worthy alternative to Ethereum. They started by creating an entirely new consensus mechanism that works great for DeFi and related services.

Fantom offers what is best described as advanced smart contracts. It is an improvement on what Ethereum offers. The scratch-built consensus mechanism, which is simply called Lachesis, offers higher capacity than what is obtainable from the traditional proof-of-stake (PoS) algorithm. Transactions can be finalized in less than two seconds.

Fantom was built to be a complete and advanced ecosystem for decentralized solutions. It seeks to make all transaction bodies around the world compatible.

Fantom is also considered unique because of the nature of its native currency (FTM). It is not just a regular digital currency, but a special token with impressive qualities. We will focus on this coin next.

What You Need To Know About the Fantom Token (FTM)

The Fantom blockchain is great, and the Fantom token is like the icing on the cake. The Fantom token forms the backbone of transactions on the network and brings life to the entire ecosystem. It is the governance token of the network and can also be used for several activities that contribute to the growth of the network and rewards users at the same time.

In addition to being the governance token of an incredible blockchain, FTM is used for transaction fees and making payments. Of course, it is the investment vehicle people buy and sell to make profits. FTM is also used for staking, which means it can yield passive income for owners even before they decide to sell.

Another important thing to know about Fantom FTM is the fact that it comes in different incarnations. There is the native FTM, an ERC-20 FTM (Ethereum compliant), and a BEP2 FTM (Binance Chain compatible). The three versions of the coins have the same value but are suitable for different platforms. However, only the native FTM can be used in the Fantom mainnet. Again, the other versions are automatically converted to the native version once they are received into FTM wallets.

At the time of writing this piece, Fantom (FTM) was trading for $1.94 per token with a 24-hour trading volume of $766 million. Fantom’s market capitalization stands at $5 billion, making it the #29 ranked cryptocurrency in the world by market capitalization. There are currently 2.55 billion FTM in circulation, which is about 80% of the 3,175,000,000 maximum supply of FTM.

Should You Invest In Fantom?

With what we’ve discussed so far, it is easy to conclude that Fantom is a good cryptocurrency. Of course, it has an incredible blockchain and the native currency has achieved a lot in just about three years of existence. But does it mean it is a great decision to invest in Fantom?

You should never feel coerced to invest in a coin. This is one of the reasons we try to avoid giving “yes” and “no” answers. There are a few things you can consider before deciding to invest or not to invest in Fantom and we will highlight them soon.

Read Also: Will Fantom Make Me Rich In 10 Years?

Is Fantom Safe?

The first important thing to consider before deciding to invest in a cryptocurrency is security. You want to make sure that the asset you intend to buy is issued by a secured platform. That is one key element that determines the security of your investment.

Already, we’ve mentioned that Fantom uses a bespoke proof-of-stake algorithm to provide its services. This unique algorithm, simply called Lachesis, also play a crucial role in securing the platform. It is an example of an asynchronous byzantine fault tolerant (aBFT) consensus mechanism.

There are many other ways Fantom keeps its network secured. For instance, it removes leadership among network participants, this way, low-cost attack risks are avoided. Even staking is properly secured to allow users to earn incentives with zero risks.

Overall, Fantom is well secured and investing in Fantom (FTM) is a very safe way to get into cryptocurrency investing. The network has never been hacked, and there are no complaints or lawsuits threatening its long-term performance. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Top Reasons To Invest In Fantom

If you have followed our discussion carefully, you will have several reasons to trust Fantom FTM as a viable investment vehicle and a good coin to buy.

Are you looking for more reasons to trust yourself and go ahead with the purchase? Here are top reasons to buy Fantom (FTM):

  • The Fantom Foundation has the right team to run the platform and reach great heights.
  • The Fantom blockchain is unique and wonderful.
  • Fantom uses a unique consensus mechanism that improves scalability, decentralization, and security.
  • Fantom offers advanced smart contracts, which makes it an attractive platform for DeFi.
  • Fantom is flexible and provides solutions that make it applicable for different industries.
  • Fantom has been recognized as a worthy alternative to Ethereum, meaning it will attract developers who can create projects that will help grow the network further. It is also Ethereum-compatible.
  • The Fantom token is properly designed with multiple versions that make them easier to use across other platforms.
  • Fantom (FTM) has performed really well, considering that it is a new crypto.
  • FTM is still a cheap cryptocurrency, meaning you can start investing with little capital.
  • Fantom is one of the fastest networks in the cryptocurrency universe, finalizing transactions in a matter of seconds at a minimal cost.

Check Out: Why Fantom Will Skyrocket

Why You May Choose To Ignore Fantom

Obviously, Fantom is a great cryptocurrency but not everyone will choose to invest in it. Actually, there are tangible reasons some may choose to ignore Fantom (FTM) and invest in other assets. Here are the major ones to know:

  • Fantom has shown signs of volatility, which is somewhat normal for a cryptocurrency, yet cause for concern.
  • Fantom is a relatively new cryptocurrency, and no way can confidently tell what will happen in the next few years.
  • Fantom is competing with Ethereum, a platform that has won the hearts of many. Most industry insiders know it will be very difficult, if not impossible, for Fantom to get to the level of Ethereum.

Where Can You Buy Fantom?

Though it is a relatively new cryptocurrency, Fantom is available across a wide range of cryptocurrency platforms. Buying the token shouldn’t be challenging, but you need to buy from the right place to enjoy specific benefits and reduces your risks of losing money.

There are three major categories of places where people buy cryptocurrencies. The first and most popular option is to buy from cryptocurrency exchanges like Binance and Coinbase. Some of the best exchanges out there have a wide selection of good cryptocurrencies you can buy and sell for profits. However, there are elements of risks involved in trading on exchanges.

You can also choose to buy cryptocurrencies from stockbrokers. There are a few stockbrokers that allow their users to buy and sell cryptocurrencies, among other investment vehicles. Most exchanges have a wide selection of valuable digital tokens, securities, and more.

You can also choose to buy cryptocurrencies through specific apps that focus on buying, selling, and investing in cryptocurrency. Such apps are neither official exchanges nor brokerages. Though many people choose to buy cryptos from such apps, there are elements of risks involved in such transactions.

Best Platform To Buy Fantom

Choosing where to buy Fantom or any other cryptocurrency is important for many reasons. Firstly, you need to buy your digital assets from a reputable platform that minimizes the risks involved in online trading. You need to avoid any platform with a bad reputation, especially apps that are neither official exchanges nor brokerages. Though some are run by reputable companies, some are run by con artists who are out there to scam unsuspecting members of the public.

Buying cryptos from exchanges is relatively safe. The problem with many exchanges is that they are not safe to store your digital wallet. Many have been hacked in the past.

From the content of the paragraphs above, you can deduce that we recommend buying cryptocurrencies from brokerages. A full-service brokerage caters to the needs of its users, serving as a secured platform to buy and sell all kinds of digital assets.

As you know, not all brokerages support buying and selling of cryptocurrencies. eToro is one of the most reliable platforms for buying and selling cryptocurrencies. It is highly recommended because of the many benefits users stand to gain. It is also appealing because it is easy to use and built to serve the interests of traders/investors of all experience levels.

What Next After Buying Fantom?

Buying Fantom is just one step in the investing process. You will need to sell when the price is favourable, but what happens before then? You need to store your cryptocurrency in a digital wallet, and the digital wallet you choose matters a lot.

You need to use a secured digital wallet to store your cryptocurrencies. There are important factors you must consider before choosing a digital wallet. Some of the best cryptocurrency wallets are those that allow for the storage of multiple coins and have adequate security features.

Finding a digital wallet that suits you shouldn’t be too challenging, especially if you decide to buy and sell cryptocurrencies through eToro. The full-service brokerage offers users an easy-to-use, multi-crypto, secure digital wallet that can help you organize your cryptocurrency portfolio. It is an excellent wallet, by many standards.

Key Points To Keep In Mind

We’ve provided most of the information you need to understand what Fantom is, decide whether it is the right investment for you, and know where you can buy FTM. Here, we will highlight some of the key points you need to help you reach a decision:

  • Fantom is a decentralized cryptocurrency platform with lots of wonderful qualities – it is seen as a worthy alternative to Ethereum and has even been described as an Ethereum-killer.
  • Fantom offers advanced smart contracts, which makes it a relevant platform in the DeFi subsector.
  • Fantom has a strong team that can lead it to future glories.
  • Fantom token (FTM) has various incarnations, and they all help to make transactions within and outside the ecosystem fast and seamless.
  • The Fantom token is a valuable cryptocurrency that has been making waves recently.
  • Fantom (FTM) is still cheap and affordable – the value is set to rise, and that will mean a lot to investors.
  • Now is a good time to invest in Fantom.
  • eToro is one of the best platforms to buy and sell Fantom, other cryptocurrencies, securities, and other investment vehicles.

Final Words

Fantom is one of the trendy coins out there and many are buying with full force. It is always important to seek expert opinion before investing in any coin. Here, we have discussed what Fantom is, its viability as an investment option, as well as the best place to buy FTM. We strongly believe you have enough information to make a sound decision about the coin and its place in your portfolio.

To succeed in online investing, you must weigh the risks and possible rewards of your investment decisions. One of the best ways to improve your chances of getting it right with crypto investments is to read the right materials and take quality courses when you know you need them.

eToro – The Best Platform To Buy Fantom

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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