How to Buy Fantom in the UK – A Beginner’s Guide
The world of cryptocurrency has seen tremendous growth over the past decade, with Bitcoin leading the way as the pioneer and most well-known digital currency. If you’re in the UK and looking to explore the cryptocurrency market, you may have come across the term “Fantom.” In this beginner’s guide, we will walk you through how to buy Fantom in the UK, but before we dive into that, let’s discuss the fundamentals.
What is Fantom?
Fantom is a fast and highly scalable smart contract platform that aims to solve many of the issues plaguing existing blockchain networks. It offers quick transaction speeds, low fees, and a robust ecosystem for decentralized applications. While Bitcoin remains the poster child of cryptocurrencies, Fantom has made a name for itself as an innovative project with promising potential.
Step 1: Understand the Basics
Before you dive into buying Fantom, it’s crucial to have a solid understanding of how cryptocurrencies, including Bitcoin, work. This knowledge will not only help you make informed decisions but also keep your investments safe. Here are some essential concepts:
Blockchain: Both Bitcoin and Fantom operate on blockchain technology. A blockchain is a distributed ledger that records all transactions across a network of computers. It ensures transparency and security.
Wallets: To store your cryptocurrencies, you’ll need a digital wallet. There are various types of wallets, including hardware wallets, software wallets, and online wallets. Each has its advantages and disadvantages.
Exchanges: Cryptocurrency exchanges are platforms where you can buy, sell, and trade digital assets like Bitcoin and Fantom. These exchanges play a pivotal role in the crypto ecosystem.
Step 2: Buy Bitcoin
In most cases, buying Fantom in the UK will involve a two-step process. First, you’ll need to purchase Bitcoin, and then you can exchange it for Fantom. Here’s how to buy Bitcoin:
Choose a Reliable Exchange: Select a reputable cryptocurrency exchange that operates in the UK. Some popular options include Binance, Coinbase, Kraken, and Bitstamp. Create an account on your chosen exchange.
Complete KYC: Exchanges often require users to complete a Know Your Customer (KYC) verification process. This involves submitting identification documents to comply with legal requirements.
Deposit Funds: After your account is verified, you can deposit funds. Most exchanges accept bank transfers, credit/debit cards, and other payment methods.
Buy Bitcoin: Once your account is funded, place an order to buy Bitcoin online. You can choose between a market order (buying at the current market price) or a limit order (buying at a specific price). The purchased Bitcoin will be stored in your exchange wallet.
Step 3: Exchange Bitcoin for Fantom
Now that you own Bitcoin, it’s time to exchange it for Fantom. Follow these steps:
Select an Exchange that Lists Fantom: Not all exchanges offer Fantom trading pairs. Ensure the exchange you choose supports Fantom. Examples of such exchanges include Binance, KuCoin, and Bitfinex.
Transfer Bitcoin: Transfer your Bitcoin from your exchange wallet to the exchange that lists Fantom. Use the wallet address provided by the exchange.
Trade for Fantom: Once your Bitcoin is on the exchange that lists Fantom, place an order to buy Fantom. You can set the desired price or choose a market order for convenience.
Secure a Wallet: While keeping your cryptocurrencies on an exchange is convenient for trading, it’s not the safest option for long-term storage. Consider transferring your Fantom to a secure wallet.
Step 4: Secure Your Investment
Security is paramount in the world of cryptocurrencies. To protect your investment:
Use Hardware Wallets: Consider using a hardware wallet, which is considered one of the most secure options for storing your cryptocurrencies.
Enable Two-Factor Authentication (2FA): Add an extra layer of security to your exchange accounts and wallets by enabling 2FA.
Keep Private Keys Safe: Never share your private keys with anyone. These keys are the only way to access and control your digital assets.
Step 5: Stay Informed and Monitor Your Investment
The cryptocurrency market is known for its volatility. Prices can swing dramatically in a short period. Therefore, it’s crucial to stay informed about the latest developments in the world of Fantom and cryptocurrencies in general. Some ways to keep yourself updated include:
News Sources: Follow cryptocurrency news websites, blogs, and forums. This will help you understand market trends, technological advancements, and regulatory changes that can impact your investment.
Social Media: Join Fantom’s official social media channels, such as Twitter, Telegram, or Reddit. Communities often share valuable insights, and you can engage with other enthusiasts and investors.
Price Tracking: Use cryptocurrency price tracking tools or apps to monitor the value of your Fantom holdings. These tools often provide real-time data, historical charts, and price alerts.
Long-Term Perspective: While day trading can be profitable for some, it can also be risky and stressful. Consider adopting a long-term investment strategy, also known as “HODLing,” where you hold your assets for an extended period. This approach can help you weather short-term market fluctuations.
Step 6: Tax Considerations
Cryptocurrency transactions can have tax implications, depending on your country’s tax laws. In the UK, cryptocurrencies are considered taxable assets, and you may be required to report your gains and losses. To ensure compliance and minimize your tax liability:
Consult a Tax Professional: Seek advice from a tax professional or accountant who specializes in cryptocurrency taxation. They can help you navigate the tax implications of your investments.
Keep Records: Maintain detailed records of your cryptocurrency transactions, including dates, amounts, and the purpose of each trade. This will be invaluable for tax reporting.
Stay Informed: Be aware of any changes in cryptocurrency taxation laws in the UK. Regulations may evolve, and it’s essential to adapt your strategy accordingly.
Step 7: Diversify Your Portfolio
While Fantom and Bitcoin are exciting assets, it’s wise not to put all your eggs in one basket. Diversifying your portfolio can help spread risk and increase the potential for long-term gains. Consider investing in a variety of cryptocurrencies, as well as other assets like stocks, bonds, or real estate.
Buying Fantom in the UK, or any cryptocurrency, is a journey that requires careful planning and ongoing attention. It’s an exciting and potentially rewarding endeavor, but it’s not without its risks. To recap:
Understand the basics of blockchain, wallets, and exchanges.
Buy Bitcoin as an entry point to the world of cryptocurrencies.
Exchange Bitcoin for Fantom on a reputable exchange that supports it.
Secure your investment with proper wallet management and security measures.
Stay informed and monitor your investment to adapt to market changes.
Consider tax implications and seek professional advice if needed.
Diversify your portfolio to reduce risk.
Remember that the cryptocurrency market is constantly evolving. What is true today may not be the case tomorrow. Be adaptable, cautious, and continue learning as you navigate the exciting world of cryptocurrencies. With the right knowledge and approach, you can be on your way to successfully investing in Fantom and other digital assets.