So, you’re eyeing Fantom’s FTM token as your next investment? But before you dive in, it’s crucial to arm yourself with the right information. From understanding its role in the booming DeFi sector to knowing how to securely store your tokens, this guide has got you covered.
Let’s make sure your foray into the world of FTM is not just exciting, but also well-informed.
Is Fantom a Blockchain?
Yes! Fantom is a high-performance, scalable, and secure smart-contract platform.
It is designed to overcome the limitations of previous generation blockchain platforms. Fantom is a permissionless, decentralized, and open-source layer 1 Blockchain.
Lachesis, its revolutionary aBFT consensus mechanism, allows Fantom to be much faster and cheaper than older technologies, yet extremely secure. It aims to be the nervous system for smart cities, and the solution for supply-chain management and medical records, among many other real-world applications.
What is Fantom Crypto (FTM)?
If you’re keen on blockchain and DeFi, you’ve probably come across Fantom Blockchain and its native token, $FTM.
FTM is used for securing the network through staking, executing smart contracts, and performing peer-to-peer transactions. It plays a crucial role in Fantom’s decentralized finance (DeFi) ecosystem, serving as the primary asset for transactions, staking, and governance.
The token is designed to facilitate fast and low-cost transactions, making it a popular choice for DeFi applications built on the Fantom network.
The Basics of FTM Token
How many Fantom Coins are there?
First off, let’s talk numbers. The FTM token has a total supply of 3.175 billion tokens. That’s the ceiling, the whole pie. It’s essential to know this because the total supply impacts everything from the token’s value to how it’s used within the Fantom ecosystem.
Circulating Supply
Out of this total, 2.1 billion FTM tokens are already out there in the market, being traded, staked, or held in wallets. This is what we call the circulating supply. It’s what’s actively being used or traded, and it’s a crucial metric for understanding any cryptocurrency’s current activity level and liquidity.
Reserved for Staking Rewards
The rest of the tokens? They’re set aside for staking rewards. If you’re not familiar with staking, think of it as a way to earn additional tokens by holding onto and “locking in” your existing ones. According to fantom roadmap, it’ll take more than two years to distribute all these reserved tokens as staking rewards.
Token Standards: Versatility in Trading
One of the coolest things about FTM is its flexibility. It’s not just stuck in one form; it’s available in multiple token standards:
Native Mainnet Token
As a native mainnet token, FTM operates directly on the Fantom Blockchain. This is the most “pure” form of the token and is integral to the Fantom ecosystem’s functioning.
ERC-20 Token
FTM also exists as an ERC-20 token, making it compatible with the Ethereum network. This opens up a world of possibilities, including easier trading on decentralized exchanges that operate on Ethereum.
BEP-2 Token
For the binancers, FTM is available as a BEP-2 token, which means it can interact with the Binance Smart Chain. This offers another layer of flexibility, especially for those who are active in the Binance ecosystem.
Polygon Network Token
Adding another feather to its cap, FTM is also available on the Polygon network. This expands its reach even further, allowing for seamless interactions with Polygon’s rapidly growing DeFi and NFT ecosystems.
Also read: Fantom’s Evolution: From Technical Innovations to Ecosystem Expansion
How to Secure Your Fantom Assets
Security should be your top priority when dealing with any form of digital assets, and FTM tokens are no exception.
Here’s how you can keep your Fantom assets safe:
Use a Reputable Wallet
Choose a fantom wallet that has a strong reputation for security. Look for features like two-factor authentication (2FA), cold storage options, and end-to-end encryption.
Keep Software Updated
Always keep your wallet software up to date. Developers regularly release security patches, and staying updated is one of the easiest ways to protect yourself.
Be Cautious of Phishing Attempts
Be vigilant about phishing scams. Always double-check URLs and email addresses to make sure you’re not being redirected to a fraudulent site.
Consider Hardware Wallets for Large Amounts
If you’re holding a significant amount of FTM, consider using a hardware wallet. These wallets store your private keys offline, making it nearly impossible for hackers to access your assets.
Wanting to Buy FTM but Still Not Sure What is DeFi?
So, you’re intrigued by Fantom’s FTM token and are considering making a purchase. That’s awesome! But if you’re still scratching your head about this whole DeFi thing, don’t worry—you’re not alone.
Let’s break it down.
The Basics – What is DeFi?
At its core, DeFi aims to create a financial system that’s open to everyone and doesn’t require intermediaries like banks or brokers. Built on blockchain technology, DeFi platforms allow people to lend or borrow funds, trade coins, and earn interest in a decentralized manner.
How Does DeFi Work?
DeFi platforms operate using smart contracts on a blockchain. These are self-executing contracts where the terms are directly written into code. This eliminates the need for a middleman, making the process faster, cheaper, and potentially more secure.
FTM’s Role in DeFi
FTM isn’t just another token; it’s an integral part of Fantom’s DeFi ecosystem. Whether you’re looking to stake your tokens to earn rewards, participate in yield farming, or lend and borrow assets, FTM is often the go-to token for these activities on Fantom’s network.
Conclusion
You’ve delved into the multifaceted world of the FTM token and its integral role in the Fantom ecosystem. From its adaptability across multiple networks to its significance in staking and governance, FTM stands as a cornerstone in the evolving landscape of DeFi. As you consider venturing further into Fantom and DeFi, remember that understanding how to secure digital assets is as foundational as understanding their utility. Armed with this knowledge, you’re well-positioned to navigate the complexities and opportunities that Fantom’s ecosystem presents.