How to Buy Fantom in the UK – A Beginner’s Guide
Cryptocurrency investment has become increasingly popular in recent years, with more and more individuals looking to diversify their portfolios and explore the potential for significant returns. While Bitcoin remains the poster child of the cryptocurrency world, there are numerous other digital assets worth considering. One such cryptocurrency is Fantom. In this beginner’s guide, we will explore how to buy Fantom in the UK, offering a step-by-step approach to help you get started on your investment journey.
Before diving into the process of buying Fantom, it’s crucial to have a basic understanding of what Fantom is and why it might be a worthwhile investment.
What is Fantom?
Fantom, also known as Fantom Opera, is a blockchain platform designed to provide fast and secure smart contracts and decentralized applications (dApps). It aims to solve some of the scalability issues faced by other blockchain networks, such as Ethereum, by using a Directed Acyclic Graph (DAG) structure. Fantom’s native cryptocurrency, FTM, is used for various purposes within the network, including transaction fees and staking.
Why Invest in Fantom?
Fantom offers several advantages that make it an attractive investment option:
Speed and Scalability: Fantom is known for its high transaction speeds and scalability, making it a practical choice for dApps and DeFi projects.
Interoperability: Fantom can work alongside other blockchains, enhancing its usability and potential for mass adoption.
Staking Rewards: By staking FTM, investors can earn rewards, providing a passive income opportunity.
Growing Ecosystem: Fantom’s ecosystem is continually expanding, with new projects and partnerships, increasing its potential for growth.
Now that we understand why Fantom is worth considering, let’s explore how to buy it in the UK.
Buying Fantom in the UK
Investing in Fantom involves a series of steps. Below is a beginner’s guide on how to buy Fantom in the UK.
Step 1: Get a Cryptocurrency Wallet
Before you can buy Fantom online, you’ll need a digital wallet to store your FTM tokens securely. There are various types of wallets available, such as hardware wallets, software wallets, and mobile wallets. Choose one that suits your preferences and ensure it supports Fantom.
Step 2: Choose a Cryptocurrency Exchange
To purchase Fantom, you’ll need to find a cryptocurrency exchange that supports FTM trading. Some popular options for UK residents include Binance, Kraken, and Bitstamp. Sign up for an account on your chosen exchange and complete the necessary verification processes.
Step 3: Deposit Funds
Once your exchange account is set up, you’ll need to deposit funds into it. Most exchanges accept deposits in the form of GBP or other cryptocurrencies. You can deposit funds via bank transfer, credit/debit card, or even using other cryptocurrencies you might already own.
Step 4: Place an Order
With funds in your exchange account, you can now place an order to buy Fantom. There are different types of orders, such as market orders and limit orders. A market order will buy FTM at the current market price, while a limit order allows you to set a specific price at which you want to buy FTM.
Step 5: Store Your Fantom Securely
Once your order is executed, the Fantom tokens will be credited to your exchange wallet. For added security, it’s recommended to transfer your FTM to the digital wallet you set up in Step 1.
Step 6: Stay Informed
The cryptocurrency market is highly volatile. It’s essential to stay informed about Fantom’s price movements and any relevant news. This will help you make informed decisions about when to buy or sell your FTM tokens.
Best Sites to Buy Fantom
When it comes to choosing the best site to buy Fantom, it’s important to consider factors like security, fees, available trading pairs, and user experience. Here are some of the top exchanges for buying Fantom in the UK:
Binance: Binance is one of the largest and most popular cryptocurrency exchanges globally, offering a wide range of trading pairs, including FTM/GBP.
Kraken: Known for its robust security measures, Kraken is a reputable exchange that provides FTM trading options.
Bitstamp: Bitstamp is a user-friendly platform that allows you to buy FTM with GBP.
Coinbase: While Coinbase is beginner-friendly, it offers FTM trading with a limited number of trading pairs.
Bittrex: Bittrex offers a range of cryptocurrencies, including FTM, and is known for its security measures.
Additional Tips for Investing in Fantom
As you embark on your journey to invest in Fantom, consider these additional tips to enhance your experience and success:
Diversify Your Portfolio
While Fantom may hold great promise, it’s wise not to put all your investment capital into a single cryptocurrency. Diversify your portfolio to spread risk. This strategy can help you weather market volatility and reduce the impact of poor performance by any one asset.
Cryptocurrency markets are dynamic, and staying informed is crucial. Regularly follow crypto news, monitor Fantom’s official announcements, and join relevant communities on social media platforms or forums. Keeping up with the latest developments will help you make informed decisions.
Security is Paramount
Safeguard your investment by prioritizing security. Ensure your wallet and exchange accounts are well-protected with strong, unique passwords and two-factor authentication. Be cautious of phishing scams and unsolicited messages.
Consider Long-Term Holding
Rather than attempting to time the market for short-term gains, consider a long-term approach. Many successful crypto investors have benefited from holding their assets for an extended period, allowing their investments to appreciate.
In the UK, cryptocurrency investments are subject to taxation. Understanding the tax implications of buying, selling, and holding Fantom is essential to avoid potential legal issues. Here’s an overview of the tax considerations:
Capital Gains Tax (CGT)
Any profits made from the sale of Fantom are subject to Capital Gains Tax. The tax rate depends on your income and the amount of profit. It’s essential to keep accurate records of your transactions for tax reporting purposes.
If you receive FTM as part of a mining or staking operation, it may be considered income and is subject to Income Tax. Be sure to report such income to HM Revenue and Customs (HMRC).
Cryptocurrency holdings may be subject to Inheritance Tax if they are included in your estate. Proper estate planning can help reduce potential tax liabilities for your heirs.
Invest in Fantom in the UK can be a rewarding venture, but it’s not without risks and responsibilities. This beginner’s guide has provided you with essential steps to get started and tips to navigate the crypto world wisely. Remember to do thorough research, stay secure, and remain vigilant regarding taxation. As the cryptocurrency market evolves, so should your knowledge and investment strategies. Keep learning, stay informed, and make informed decisions to maximize your chances of success in the exciting world of cryptocurrencies. Good luck on your investment journey!