Fantom (FTM) Review: 5 Things to Know Before Buying Fantom (FTM) Crypto

Binance, the largest stock exchange in the world in terms of trading volume, recently announced a new addition for its auto-invest feature. The exchange has decided to add support for Fantom’s native cryptocurrency, the FTM token.

With FTM support, users will be able to automatically use an average dollar cost strategy when investing in the token.

Binance users will be able to use auto-invest to automate their crypto investments and earn positive income simultaneously. The feature has been very popular among users of the exchange since its launch a few months ago, in November 2021. The feature was part of the platform’s Binance Earn suite, and when it launched, it only supported 3 cryptocurrencies – Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB) itself, the native cryptocurrency of the exchange.

However, the platform has seen a high demand for additional cryptocurrencies over the past few months, which is why it has added a number of new tokens. Since November, the auto-invest feature has added support for some of the most popular coins in the industry, including Cardano (ADA), Solana (SOL), Terra (LUNA), Algorand (ALGO) and Litecoin (LTC) , among others

While the entire market for crypto-currencies was in full swing at the end of the summer, Fantom (FTM) stood out as one of the big winners. Its price skyrocketed throughout August, and it reached an all-time high of $1.93 on September 9, 2021. It has cooled since then, but for those who believe in Fantom, this drop could be a good buying opportunity.

Much of the excitement around Fantom stems from its potential to be a better version of Ethereum (ETH), the second largest cryptocurrency. If Fantom is a crypto you are considering adding to your portfolio, this primer will cover what you need to know about it.

1. It is a blockchain platform with smart contract capabilities.

To start, it’s important to have an idea of ​​what Fantom does. Fantom is a blockchain platform capable of executing smart contracts. See also: Rubis share opinion: Investors face a slowdown in capital returns. These programs allow blockchains to perform more advanced transactions than just sending crypto from one person to another.

There are a few very popular uses of smart contracts right now:

  • They play an essential role in decentralized finance (DeFi), i.e. financial services that do not require a central governance body. Using smart contracts, developers can create decentralized applications (dApps) that power DeFi platforms.
  • They are used to establish ownership of non-fungible tokens (NFTs). These are digital collectibles that can be traded, bought and sold.

Ethereum was the first cryptocurrency to feature smart contracts, and it’s the platform most dApps are built on. However, it has experienced congestion issues, leading to outages and high transaction fees. This is why several alternatives have been developed, offering faster processing of transactions at a lower cost.

2. It is available on several major cryptocurrency exchanges.

Many types of cryptocurrencies, especially small cryptos, are difficult to buy. See also: Dogecoin review: what future for the DOGE token? (Price prediction in video). Fortunately, this is not not the case of Fantom. You can buy it on several of the biggest cryptocurrency exchanges, including:

Also, Fantom is available on many decentralized cryptocurrency exchanges. This type of exchange offers peer-to-peer cryptocurrency trading without an intermediary facilitating transactions. Decentralized exchanges that offer Fantom include Uniswap and Sushiswap.

3. Transactions on Fantom are inexpensive and almost instantaneous.

One of the main attractions of Fantom is This may interest you: Ethereum, MATIC, Uniswap price analysis: Should you buy your cryptos right now?.its efficient processing of transactionss. It can process thousands of trades per second, and trades settle within a second or two. Transaction fees are usually a fraction of a cent. In May, it was reported that Fantom had passed the 3 million transaction milestone and was the fastest blockchain platform.

Fantom is not the only cryptocurrency offering this kind of speed, and it may not be the fastest blockchain platform anymore. Solana (SOL) can apparently process at least 50,000 transactions per second and also only charges a fraction of a cent in fees. Despite this, Fantom’s performance is very impressive.

4. The Fantom token can be used for staking, governance, network fees and payments.

The Fantom token is the native cryptocurrency of the platform. Here is what it is used for:

  • Staking: Fantom uses a proof-of-stake model. Transactions are verified by nodes made up of people’s Fantom tokens. By staking cryptocurrency this way, you help secure the network and earn rewards.
  • Governance : Since Fantom is decentralized, the token holders make the decisions regarding its future. By owning and staking Fantom, you can propose and vote on changes.
  • Network fees: Fees on the Fantom network are paid using its cryptocurrency. These fees are charged on transactions, the deployment of smart contracts and the creation of new networks.
  • Payments: With its fast transactions and low fees, Fantom is a convenient way to transfer funds to other parties.

5. It has strong competition from Ethereum and other smart contract platforms.

Perhaps the most difficult challenge for Fantom in the future is the strong competition. There are many alternatives to Ethereum. Cardano (ADA) is the largest and has seen significant growth this year. Solana, already mentioned, is another up-and-coming platform that offers lightning-fast transactions.

There is also Ethereum itself, which is going through a series of upgrades to Ethereum 2.0. During these upgrades, it will transition to a Proof of Stake model like Fantom. These upgrades should improve transaction speed and reduce costs.

Given the speed of its transactions and the advanced smart contract platform it offers, Fantom could be a solid investment in cryptocurrencies. The price has fallen from its all-time high, and its market capitalization is still much lower than that of some of its major competitors. One can imagine that there is still plenty of room for it to continue to grow.

On the other hand, it’s hard to say which of these platforms, if any, will be more successful in the long run. Be sure to carefully consider Fantom and the other solutions before deciding where to put your money.

68% of retail investor accounts lose money when trading CFDs with this provider. You should ask yourself if you can afford to take the high risk of losing your money. eToro users in France cannot open positions to buy real crypto assets, all orders are opened as CFDs.

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Fantom (FTM) Review: 5 Things to Know Before Buying Fantom (FTM) Crypto

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