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Cryptocurrency


HOW TO STAKE FANTOM

Buy Fantom Now



By Trading Education Team
Last Updated February 1st 2022
16 Min Read
 * 
 * 
 * 
 * 

Fantom is a crypto that increased its price by almost 10,000% in 2021. Its
success may be because investors are looking for the next Ethereum. Investors
want faster, affordable and secure cryptocurrencies. And Fantom (FTM) could be
the cryptocurrency to take the crypto market by storm.

Since the beginning of August, the price of Fantom (FTM) has grown by 500%. Many
crypto experts say that Fantom could be better than Ethereum. This guide will
outline the reasons behind that prediction and look at whether it is worth
staking Fantom.

This guide will highlight the pros and cons of staking Fantom and explore the
reasons for current growth and the potential for future gains.


CONTENTS

 * What Is Fantom (FTM)?
 * Who Are The Founders of Fantom?
 * What Makes Fantom Unique?
 * Why Do Smart Contracts Matter?
 * How To Set Up Your Fantom Wallet
 * How To Stake Fantom (FTM)
 * Should You Stake For Fantom (FTM)?
 * What Projects Partner With Fantom?
 * The Risks Of Staking Fantom (FTM)
 * To Summarise How To Stake Fantom (FTM)
 * FAQs


WHAT IS FANTOM (FTM)?

Fantom is a "directed acyclic graph (DAG)" smart contract platform. It provides
DeFi (decentralized finance) services to developers, and it uses a bespoke
consensus algorithm.

What Is a Directed Acyclic Graph (DAG)?

Unlike a blockchain, with directed acyclic graphs (DAG), there are no blocks. It
consists of vertices and edges, so transactions are recorded as vertices and on
top of one another. The only similarity to a blockchain is that transactions are
submitted to the DAG by nodes.

Fantom, together with its FTM token, aims to resolve problems concerning
smart-contract platforms. Specifically, the solutions could be improving
transaction speed, and, indeed, Fantom developers say they have reduced
transaction speeds to less than two seconds.


WHO ARE THE FOUNDERS OF FANTOM?

Dr Ahn Byung Ik, a South Korean computer scientist, founded the Fantom
Foundation in 2018. Currently, the platform's CEO/CIO is Michael Kong, who
oversees a diverse team of developers, scientists, engineers, designers,
researchers and entrepreneurs, all with extensive experience and sharing the
founder's vision to build the infrastructure for "a more democratic and
efficient future."


WHAT MAKES FANTOM UNIQUE?

Fantom aims to use a new "scratch-built consensus mechanism" called Lachesis for
facilitating DeFi and other services based on smart contracts. Lachesis can
inaugurate high-capacity, 2-second transactions and improved security over
algorithm-based proof of stake (PoS) consensus mechanisms.

Similarly to the Ethereum Network, the Fantom project appeals to developers
wanting to deploy decentralized solutions. The official literature for Fantom
states a mission to "grant compatibility between all transaction bodies around
the world."

Lachesis uses leaderless Proof-of-stake consensus, which provides the highest
levels of security without leaders. With some proof of stake (PoS) systems, the
validators influence the validity of transactions. But on the Fantom Opera
mainnet, validators have no say in the transaction validity

Fantom states the following regarding the Opera Mainnet,

"The Fantom Opera mainnet is compatible with the Ethereum Virtual Machine (EVM)
and provides full smart contracts support through Solidity. We designed Opera to
overcome the limitations of older generations of blockchains, keeping the
compatibility with Ethereum for seamless dApp porting"

The Opera Mainnet sets Fantom crypto technology apart from many other crypto
networks.

The FTM token allows staking activities with user rewards and is the backbone
for transactions.



Crypto asset investing is highly volatile and unregulated in some EU countries.
No consumer protection. Tax on profits may apply.


WHY DO SMART CONTRACTS MATTER?

A crypto that provides smart contracts enables cryptocurrencies to run other
applications, such as DeFi (decentralized finance) and NFTs (non-fungible
tokens). DeFi cuts out the middlemen, such as lenders and banks, from daily
financial transactions. And NFTs are digital art collectables where the owner's
information codes into the item.

Ethereum was the first crypto platform introducing smart contracts, and now, 80%
of applications are built on the Ethereum network.

But Fantom could potentially do far better than Ethereum.

The Ethereum Network has congestion issues and high gas fees, and Fantom has
already obliterated these issues. Currently, if you stake Ethereum, your ETH is
locked until the Ethereum 2.0 upgrade completes.

Thankfully, you have the choice when staking Fantom. You can choose a designated
period to lock your FTM stake.

Before you can stake Fantom (FTM), you need to set up a secure wallet.


HOW TO SET UP YOUR FANTOM WALLET

The Fantom Wallet is a PWA (Progressive Web App) that is easy to use and update.

Install the wallet on Chrome (Windows/macOS/Linux)

 1. Open the Fantom Wallet in Chrome (or Safari for IOS)
 2. Click on the + in the URL address bar for Chrome (or click the Share button
    in Safari and +add to home screen")


ANDROID

 * Open the Fantom Wallet in Chrome
 * Click Settings (top right corner)
 * Click on "Add to Home Screen"


CREATING A FANTOM WALLET

 * Go to the URL pwawallet. Fantom.network#
 * Click on "Create Wallet"
 * Choose a strong password with at least 8 characters. Your password must
   include one upper-case letter, a symbol, and a number. Store your password
   safe as it cannot be reset or recovered.
 * Enter the password and click on the checkbox so you can download the keystore
   file (which contains your private key with your encrypted password.
 * Write down your private key and 24-word mnemonic phase, and do not share
   these details with others because they give access to your wallet.
 * Verify your mnemonic phrase and click "Access your wallet", and it will show
   the public address.


HOW TO STAKE FANTOM (FTM)

Now, you've set up your secure Fantom (FTM) wallet, and you are ready to buy FTM
and start earning rewards from staking it.

 1. Go to the menu bar and click on "Staking"
 2. Click on "Delegate"
 3. Enter the amount of FTM you wish to stake
 4. Choose a validator from the dropdown menu "Select a validator." You can find
    out more about a validator by clicking on their details. Although a
    validator can't access your funds, you could find your staked tokens reduced
    because of their activity if they commit a malicious act. Validators
    currently take a 15% commission from your rewards for their services.
 5. Review your choice of validator and how much you wish to stake
 6. Enter your password and click on "Delegate", and that's it, you have now
    staked your FTM

 


SHOULD YOU STAKE FOR FANTOM (FTM)?

Fantom is setting up to be one of the leading DeFi hubs, not least because
recently, many leading, reputable exchanges have listed FTM. Fantom is hosting a
few of the most popular DeFi protocols, which further adds to the popularity.

One of the main issues with Ethereum is network congestion which creates high
gas fees on Ethereum 1.0. It's a big reason why Ethereum is scaling to Ethereum
2.0. But, for Fantom, network congestion isn't a problem because it's a
ready-built function for scalability

The slow network speeds and high gas fees affect the DApps (decentralized
applications) on Ethereum. But, not so for Fantom because they give each DApp an
independent blockchain. To visualize this, imagine every App you have on your
computer having a computer to itself but linked up to the network.

Fantom, therefore, is a network of a potentially infinite number of
decentralized networks, all sharing the same software logic but behaving
independently of each other.


WHAT PROJECTS PARTNER WITH FANTOM?

Fantom is partnered with Chainlink, building secure, scalable DeFi products such
as stablecoins, synthetic assets and lending protocols. Developers on Fantom
have access to Chainlink's Oracle infrastructure, enabling the entire Fantom
ecosystem to "combine tamper-proof real-time data for on-chain and off-chain
assets from trusted sources."

Other projects leveraging Fantom:

 * DABS – a fast-growing and innovative energy provider in Afghanistan. Fantom
   is supporting smart energy in the country.
 * Travala -  a blockchain-based travel booking platform using Fantom's
   blockchain to leverage bookings for over 3,000,000 travel products worldwide,
   such as tours, flights, homes, hotels and activities.
 * Afghanistan Chamber of Commerce and Investment – Fantom are working with the
   Chamber of Commerce to improve its current software by incorporating
   blockchain and cryptographic tools.
 * Royal Star Pharma Partnership – the largest pharmaceutical distributor in
   Afghanistan, has collaborated with Fantom to help overcome the regional
   counterfeit drug problem.

You can find out more about Fantom partners from the Fantom website.



Crypto asset investing is highly volatile and unregulated in some EU countries.
No consumer protection. Tax on profits may apply.


THE RISKS OF STAKING FANTOM (FTM)

Is staking Fantom safe? Well, you can never apply the word "safe" to any form of
investing or trading, and staking is no different. You are relying on Fantom
(FTM) to carry on paying staking rewards and not going belly up any time soon.

Realistically, Fantom is still relatively new to the cryptocurrency market.
Founded in 2018, Fantom is listed at #29 by market cap with a price of $2.10
today, a drop of $0.28 since a week ago.

Fantom is a high-performing, secure and scalable DAG. It can overcome most of
the limitations of first-generation and second-generation blockchain platforms.
One of the main issues with early blockchains is the inability to solve all
three blockchain components: security, scalability, and decentralization. But
Fantom uses a superior standard of consensus algorithm called an Asynchronous
Byzantine Fault Tolerance (aBFT), which can simultaneously solve all three
problems.


TO SUMMARISE HOW TO STAKE FANTOM (FTM)

Fantom uses unique, secure and scalable leaderless proof of stake consensus
mechanism. Not having leaders increases network security significantly. Fantom
is community-driven and open-source.

Fantom has a highly experienced support team of engineers, researchers,
scientists, entrepreneurs, and designers sharing the same open-source vision.

Fantom has a solid foundation and an excellent support team. It has backing from
reputable investors like HyperChain Capital and Alameda Research.

But, cryptocurrency is a highly competitive market. Cardano (ADA) and Polkadot
(DOT) are crypto worthy competitors, proclaiming faster transaction speeds and
lower costs. These cryptos are likely to be forerunners in the quest to be the
top-performing cryptocurrency. The question is, therefore, will Fantom (FTM) be
one of the top five cryptocurrencies?

The Fantom network says transaction speeds are fast, but Solana can process
50,000 tps (transactions per second). And Cardano is considering HYDRA
technology, which would offer 1,000,000 tps. Fantom cannot yet compete with
impressive speeds like that.

After the Ethereum upgrade, the network suggests an achievable 100,000 tps is a
realistic expectation. So Fantom cannot afford to be complacent.

Consider the following three influential factors before staking Fantom (FTM).

 1. Adoption – Fantom already has a few good partnerships. It has attracted some
    DeFi projects and has $850 TVL (total value locked) on the system. More
    adoption of Fantom would enable further speculation for growth potential.
 2. Technology – Fantom professes to have solved the Ethereum scalability
    issues. Each application has a separate blockchain. The DAG (directed
    acyclic graph) is unique to other blockchains because it means transactions
    are processed in parallel, unlike other cryptos using a single processor.
 3. Fantom threats – concerns may come primarily from competing cryptos and the
    fears of DeFi regulation. Globally, financial regulators are worried about
    DeFi because the projects may offer similar financial products without the
    protection that centralized banking products provide. If DeFi became
    regulated, it would change the face of cryptocurrency as we know it.
    Technical hitches or delays with crypto technical development are common
    concerns for all cryptocurrencies. The underlying technology for Fantom is
    untested in the long term.

Blockchain technology is experiencing exponential growth. Right now, Fantom may
appear to solve the issues that Ethereum has yet to resolve. But undoubtedly,
existing and emerging cryptocurrencies will be working on superseding current
technological solutions.

It's easy to learn how to stake Fantom (FTM), and we hope this guide has helped
you understand the reasoning for staking Fantom (FTM) instead of one of many
other cryptocurrencies.

Please note that the above information is not providing advice on tax,
investment, or financial services. We provide the above information without
consideration for risk tolerance and a specific investor's financial
circumstances.

Trading or investing in financial instruments such as cryptos may not be
suitable for all investors. It does involve risk and the possibility of a loss
of capital. There are no guarantees for profiting from cryptocurrencies, and
it's advisable only to risk what you can comfortably afford to lose. 


ETORO – THE BEST PLATFORM TO BUY FANTOM



eToro have proven themselves trustworthy within the Crypto industry over many
years – we recommend you try them out.



Crypto asset investing is highly volatile and unregulated in some EU countries.
No consumer protection. Tax on profits may apply.

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5 Cheap DeFi Cryptocurrencies To Buy Right Now

9 Cryptocurrencies To Buy As Inflation Protection


FAQS


WHERE CAN I BUY FANTOM (FTM)?

You can buy Fantom (FTM) from the major cryptocurrency exchanges, such as
Binance, Gemini, Sushi, Uniswap, Bitfinex and Gemini.


HOW MUCH FANTOM DO I NEED TO STAKE?

The minimum stake is 1 FTM, but you have to use Multichain to swap EC-20 FTM or
BEP-2 FTM tokens in exchange for Opera FTM coins. Don't worry. It's not as
complicated as it sounds.

How do I Claim FTM Rewards

Claiming your FTM rewards is simple. Click on the "Claim Rewards" button on the
menu within the staking tab. You will enter your password and click "Claim
Rewards." You can do this in multiples of up to 200 epochs of rewards pending. 


HOW MUCH CAN I MAKE FROM STAKING FANTOM (FTM)

According to the Staking Rewards Website calculator, you can make up to 9.64%
APY from staking (delegating) your Fantom (FTM).

The Fantom website, however, states that your FTM rewards are proportional to
the lockup period. If you commit your stake for 365 days, you could earn 13%
APY. But if you stake FTM with no lockup, the base rate is 4% APY, which is
still far more than you'd get with fiat currency in a centralized bank savings
account.


HOW DO I UNSTAKE FANTOM (FTM)?

When you stake your Fantom (FTM), you agree to a "lockup" period. If you unstake
before that ends, your rewards are burned. If you still want to go ahead, click
on "Staking" and "Undelegate." Enter how much FTM you want to undelegated and
click OK.  Enter your password and click "Undelegate".

Your "undelegations" are available to withdraw in 7 days from initiation. To
check progress, you can click on "Pending" in the Staking tab.


CAN I BECOME A FANTOM NETWORK VALIDATOR?

If you want to become a validator and help secure the Fantom network, you might
change your mind when you learn that the minimum requirement is 1,000,000 FTM,
which, at today's FTM price, would be $2,100,000.


WHAT IS FANTOM OPERA MAINNET?

The Fantom Opera mainnet creates a fast, permissionless, open-source and secure
environment that enables developers to build centralized applications on top of
it, powered by the aBFT consensus algorithm.

It is compatible with the Ethereum Virtual Machine (EVM) and provides full smart
contracts support through Solidity.


SHOULD I BUY FANTOM (FTM)?

There's no guarantee that you'll see 9,710% gains from buying Fantom (FTM).
After the mad frenzy of opinions on smart contracts, this year's Fantom (FTM)
highs could be from false speculation. At the best of times, the cryptocurrency
market is unpredictable, especially in the short term.

But, how about the long term potential for Fantom (FTM)? Could Fantom be the
next big thing? Possibly. According to several crypto experts, the price of
Fantom could rise to $4 over the long term (2025). 

Cryptocurrency
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FTM



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