Fantom Crypto Investment: A Beginner's Guide To Getting Started

Fantom (FTM) is a blockchain platform that provides a high-performance and secure environment for decentralised applications. It is the world's first Directed Acyclic Graph (DAG) based smart contract platform, offering significant upgrades in functionality and usability compared to Ethereum. Fantom's developers focused on creating a reliable, secure, and fast network for transactions, with the ultimate goal of becoming the nervous system for smart cities.

Fantom's unique features include its use of DAG technology, which enables faster transaction speeds, increased scalability, and improved security. It also offers interoperability with Ethereum smart contracts, allowing developers to tap into a wide range of decentralised applications.

The utility token of Fantom is FTM, which has multiple use cases within the ecosystem, including executing transactions, securing governance rights, and participating in decentralised finance (DeFi) applications.

Before investing in Fantom, it is important to evaluate the risks, position it in your investment portfolio, and stay informed about market trends and updates.

Where to buy Fantom (FTM) tokens

FTM tokens can be purchased on several major exchanges, including:

• Binance
• BTCC
• Bybit
• CoinUp.io
• DigiFinex
• Gate.io
• OKEx Korea
• Uphold
• Paybis
• Kraken
• WazirX
• Kvarn X
• Coinbase
• KuCoin

FTM exists on several protocols, with ERC-20, BEP2 and Fantom’s own OPERA tokens all circulating.

How to secure your Fantom investment

Once you have purchased FTM tokens, the next step is to secure your investment. Here are some key steps to follow to ensure your Fantom investment is safe:

• Choose a secure wallet: Select a reliable and secure wallet to store your FTM tokens. You can choose between hardware wallets, such as Ledger or Trezor, which provide offline storage and added security, or software wallets such as Rabby Wallet or Metamask.
• Set up and back up your wallet: Follow the instructions provided by your chosen wallet provider to create a new wallet. Be sure to back up your wallet's recovery phrase or private key offline in multiple secure locations.
• Enable additional security measures: Activate all available security features, such as multi-factor authentication (MFA) or biometric authentication, to further enhance the security of your wallet.
• Keep your wallet software up to date: Regularly update your wallet software to the latest version to protect against potential vulnerabilities and ensure the security of your funds.
• Monitor your investments: Stay informed about market trends and news related to Fantom. Track the performance of your Fantom investments using portfolio management tools or crypto-tracking apps to make informed decisions.
• Consider staking your FTM tokens: Staking your FTM tokens allows you to earn rewards while helping to secure the Fantom network. Staking is a more democratic way to participate in the network and does not require any expensive mining rigs or hardware.
• Utilize Fantom's security features: Fantom employs a bespoke variety of the proof-of-stake algorithm, known as Lachesis, to secure its network. This asynchronous byzantine fault-tolerant (aBFT) consensus mechanism ensures the security and reliability of the Fantom blockchain.

By following these steps, you can help ensure the security of your Fantom investment and protect your assets. Remember to always do your own research, evaluate the risks, and consider the advice of financial professionals before making any investment decisions.

The utility of FTM tokens

FTM is the native utility in-house PoS token of Fantom. It powers the Fantom ecosystem and is applied for payments, network fees, staking, and governance. FTM tokens have multiple use cases within the Fantom ecosystem, including executing transactions, securing governance rights, and participating in decentralised finance (DeFi) applications.

FTM tokens serve multiple purposes within the Fantom ecosystem. They are used to reward network validators, execute financial transactions, secure governance rights, and pay network fees. FTM tokens can be used in various decentralised finance (DeFi) applications on the Fantom network, such as minting stablecoins, participating in automated market maker (AMM) exchanges, and providing liquidity to yield farming protocols.

Holders of FTM tokens also have the ability to participate in the platform's on-chain governance, where they can vote on proposed changes and contribute to the development of the Fantom ecosystem. The more FTM tokens a person holds, the more votes they will have in network improvement decisions.

Fantom's staking structure is fairly dynamic and lucrative for users. Users can stake their FTM at will with a validator node for a 4% annual percentage yield (APY) staking reward, a common staking model. However, users can also take advantage of Fantom's Fluid Rewards by choosing to lock up FTM for a predetermined time, ranging from two weeks to a year, to secure higher reward rates of as much as 12% APY.

Fantom's consensus protocol

Lachesis combines aBFT with Directed Acyclic Graphs (DAGs), allowing for faster transaction times and increased scalability. In this system, validators process transactions independently, without being forced to work on the current block. This leaderless approach means there is no block leader, and anyone can join or leave the network of nodes at any time.

Each validator has its own local DAG and creates blocks from incoming transactions, which are then added to its DAG. Validators then asynchronously exchange these blocks, spreading information throughout the network. Once a majority of validators agree on a block, it is added to the blockchain, which is the Fantom mainnet.

This process results in fast and efficient transaction processing, with transactions typically being confirmed within 1-2 seconds. Lachesis also enables scaling transaction throughput while maintaining instant finality without increasing the risk of centralisation.

The security and reliability of the Fantom blockchain are ensured by Lachesis' consensus mechanism. It achieves finality within seconds through a voting mechanism, where network nodes, known as validators, vote to determine the order and validity of transactions. This consensus mechanism ensures the integrity of the network, even in the presence of malicious actors.

Fantom's advantages over Ethereum

Fantom (FTM) is a blockchain platform that provides a high-performance and secure environment for decentralised applications. It was founded in 2018 by Ahn Byung Ik, a South Korean computer scientist, and is currently led by Michael Kong. Fantom is designed to be an alternative to Ethereum, with several advantages that set it apart. Here are some of Fantom's advantages over Ethereum:

Speed and Transaction Costs

Fantom's blockchain is designed to be fast and cheap. It achieves this through a directed acyclic graph (DAG), where transaction histories are displayed as a "hashgraph". This technology allows for parallel processing of transactions, resulting in faster confirmation times compared to traditional blockchains. The network can handle thousands of transactions per second, with transactions settled in 1-2 seconds at a fraction of a cent per transaction. This makes Fantom highly scalable at a low cost.

Decentralisation

Fantom's Asynchronous Byzantine Fault-Tolerant (aBFT) Proof-of-Stake (PoS) consensus mechanism, known as Lachesis, maintains the efficiency of the network. It provides security at maximum speed and removes the need for block leaders, improving network security. Fantom's PoS mechanism is leaderless, allowing anyone to join or leave the network of nodes at any time. This leaderless mechanism also ensures a higher level of security by removing any trusted leaders.

Energy Efficiency

Fantom does away with the energy-intensive Proof-of-Work (PoW) consensus mechanism used by Ethereum and other early cryptocurrencies. Instead, it uses a Proof-of-Stake (PoS) algorithm, which enables the network to validate its state using less energy, making it more environmentally friendly.

Compatibility with Ethereum

Fantom is compatible with the Ethereum Virtual Machine (EVM) and supports the Solidity programming language. This compatibility allows for seamless integration with existing Ethereum smart contracts, providing developers with a familiar environment. It also makes it easy to port decentralised applications built on Ethereum over to Fantom, expanding the utility and interoperability of the Fantom platform.

Advanced Smart Contracts

Fantom takes the best aspects of Ethereum's smart contracts and adds more features. Fantom smart contracts can monitor transaction accuracy, generate evidence based on behaviour, and execute pre-programmed instructions efficiently.

Governance

Fantom integrates a community governance protocol, allowing users to propose changes to vital network upgrades. Users can vote with their FTM tokens, with one token equalling one vote. The more FTM tokens held, the more voting power a user has.

In summary, Fantom offers several advantages over Ethereum, including increased speed, scalability, security, energy efficiency, and compatibility with Ethereum smart contracts. It also provides advanced smart contract features and a decentralised governance structure. These factors make Fantom a compelling alternative to Ethereum for developers and users seeking a fast, secure, and low-cost blockchain platform.

Frequently asked questions