A Beginner’s Guide on How to Buy Factom

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Image credit to: Factom.com

Factom is a new Blockchain company that creates innovative products and services which are designed to change the way companies store, secure, and share their information data. In essence, Factom’s products function as safeguards to help keep critical information safe and secure for any type of government, commercial, or not-for-profit organization.

The company uses the Bitcoin Blockchain as a way to create an extra layer of data in order to make existing information databases more secure.

The network’s applications are designed to be used as public utilities, which leverage the security and immutability of Bitcoin’s Blockchain and combine it with the scalability of Factom’s network.

Factom has designed their underlying infrastructure as an open source platform, which means that it can be used by practically anyone to create new products or applications. The goal behind their network is to make the world’s system more transparent and honest than it has ever been.

Traditionally, most information databases come with a few inherent flaws, making them prime targets for hackers and cybercriminals. However, through the implementation of Factom’s network, organizations are provided with a single version of the truth, through the use of what is known as a Decentralized Network of Authority.

For now, just think of the Factom network as a way to get all members to agree on a single version of the truth, which then allows safe, secure, and industry-changing applications to be created.

For a bit more information about Factom and their network, check out the following video:

Notable Milestones

Factom’s earliest pioneering servers first went live just over three years ago in September of 2015. Initially, the platform was a central server model under Factom’s control; however, it would allow developers to create applications using their protocol. Their servers have since been moved to a decentralized network.

In April 2017, Factom released its Factom Federation Testnet, formerly known as M2. This consisted of a marketplace, as well as a consensus mechanism using a network of federated and audit servers.

Finally, according to the company’s roadmap, Factom will also be implementing an election mechanism, which aims to elect 32 federated servers, as well as 32 audit servers. This will ensure that the network is truly decentralized and runs on a democratic basis.

Factom’s Success

Now that you know what Factom is, where to buy and invest into it, as well as where to safely store your tokens, you might be left wondering about what’s in store for the future of the company.

Currently, both the Factom cryptocurrency (FCT) and the platform’s development are performing very well on the markets. The price of FCT has seen roughly a 700% increase since the beginning of 2017, which means that the future of this Blockchain enterprise is looking rather bright.

As the platform continues to develop, Factom is planning on burning some of their Factoids (FCT), which will only cause the price to increase in the future. Furthermore, the platform’s promising future is almost guaranteed thanks to grants and funding provided by a variety of individual and corporate investors.

Let us take a look at a few of the platform’s funding achievements.

  • In July 2015, Factom secured about $1 million from crowd sales.
  • In February 2017, Factom received $200,000 in grants from the United States DHS.
  • In April 2017, Factom secured $8 million in funding from Series A.

Now that you know a little bit about Factom and their network, let’s move on to the next question that you likely have on your mind, “Where can I buy Factom tokens?”

Where can I Buy Factom Tokens?

As with any type of cryptocurrency, the best place to be able to buy and invest with Factom is to use a cryptocurrency exchange.

Exchanges are online platforms where crypto users can go to either buy, sell, or trade cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and, of course, Factom. Keep reading to find out how to buy FCT coins, as well as where the best place is to do so.

How to Buy Factom Coin (FCT)

As previously mentioned, in order to purchase Factom coins, you will need to use a cryptocurrency exchange. Unfortunately, FCT can only be purchased by using other cryptocurrencies such as Bitcoin, Ethereum or Litecoin.

Below, we will go over a few steps that will help you figure out how to buy Factom coins.

  • Obtain a Cryptocurrency

Note: If you already own one of these cryptocurrencies, you can skip over this first step.

As we have mentioned, Factoid can only be purchased by using other cryptocurrencies, as opposed to traditional fiat currencies. Therefore, if you are looking to buy FCT, the first step is to obtain a cryptocurrency such as Bitcoin, Ethereum or Litecoin. For this, you can use any popular crypto exchange such as Coinbase or Bittrex. Then, once you have obtained either BTC, ETH, or LTC tokens, you will be able to move on to the next step: converting your crypto to FCTs.

  • Converting your Crypto to Factoid

There are several popular crypto exchanges that can be used to exchange your cryptocurrency (BTC/ETH/LTC) into Factoid. Of these, Shapeshift is known to be one of the best, but you are free to choose from any exchange so long as they support crypto/FCT pairings. A few other popular exchanges that can be used are Bittrex, Cryptopia, Poloniex, and Upbit.

one you have converted your Bitcoin, Ethereum, or Litecoin into Factoid, the final step will be to move your newly purchased coins to a digital wallet for safe storage.

  • Transfer your Factoid to a Secure Digital Wallet

As it stands, Factom only supports wallets on desktop computers that run on either Mac, Windows, or Linux operating systems. The platform’s wallet is known as Factom Enterprise Wallet and is a GUI wallet, also known as a Graphical User Interface wallet.

The wallet can either be run locally or online. However, you will first need to synchronize the wallet with the Blockchain, which can take a little while.

The Best Place to Buy Factom

As mentioned above, using ShapeShift is considered to be one of the best and simplest methods for converting your cryptocurrency into FCT. For an in-depth guide on how to use ShapeShift for buying FCT, check out the following video:

In order to exchange your crypto into FCT, you will need two things: (1) the Bitcoins, Ethers, or Litecoins that you wish to purchase FCT with and (2) the address of the wallet that you wish for your FCT to be deposited in.

ShapeShift currently supports the use of more than 50 different types of cryptocurrency, which makes it easy to find good trading pairs and earn money using their exchange.

Factom Wallets – Safely Storing your FCT

Currently, there are only a few wallet options that can be used to store FCT coins. Two of the most popular wallets for storing Factoids are known as Jaxx and Exodus. Let us go over a few more of your options for safely storing your coins.

  • Paper Wallet

Not every crypto user will be comfortable storing their digital tokens in a paper wallet; however, if you are, you can create one by using FactoidPapermill. This will not allow you to download a printable version of your wallet. Instead, it allows you to generate public and private addresses, which can then be written down and stored for future use.

  • Desktop Wallet

Factom provides its users with a desktop wallet known as the Factom Enterprise Wallet. You will first need to download and install the wallet by following the on-screen prompts. And then, once you have properly installed the wallet, you will be free to deposit your Factoid into it for safe storage. The Factom Enterprise Wallet is available on Windows, Mac, and Linux.

  • Crypto Exchanges

A third option is to store your Factoids on the exchange where you have purchased them. This is fine if you are planning on trading them soon. However, if you plan on holding your FCT coins for any longer than a day or two, it is best to move them to a secure wallet. Just keep in mind that by storing your tokens on an exchange, you will be at risk of losing them if the platform should ever happen to be hacked.

Summary and Key Takeaways

By now, you should have a thorough understanding of the Factom network, as well as how and where to buy FCT tokens. Although Factom has only been around for a few years, they have continually grown their network and are constantly working to provide new security solutions for the Blockchain industry and crypto community.

Finally, earlier this year, Factom received a $500,000 grant from the Bill and Melinda Gates Foundation, showing that even some of the world’s biggest tech players are interested in seeing what else Factom has in store for the future of Blockchain.

Do you have any experience with Factom?

We would love to hear about it. Feel free to drop us a line in the comments section below.

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