Filecoin aims to decentralize web storage, providing an alternative to cloud computing services like Amazon Web Services as well as content delivery networks like Cloudflare. Here’s how to buy Filecoin.
Overview of How To Buy Filecoin
STEP 1: Open An Online Account
Step 2: Buy a Wallet (optional)
Step 3: Make Your Purchase
Anyone on the network can purchase or offer data storage using Filecoin. It is impossible to censor or change the information you store on Filecoin. Since the project’s initial coin offering (ICO), it has undergone significant development, which attracts many cryptocurrency enthusiasts as an investment.
Numerous factors, including location and protocol, are taken into account when buying cryptocurrencies. Quick, safe, and simple describe it. Here is a step-by-step guide on how to purchase Filecoin.
What is Filecoin?
Blockchain technology is used by Filecoin, a decentralized file storage system, to address the issues with centralized cloud storage services. Unlike the majority of other cryptos, Filecoin’s Interplanetary File System (IPFS) blockchain enables the hosting of decentralized data storage. As the largest decentralized storage solution in the market, the platform currently has a network capacity of over 15.6 EiB.
Filecoin grants money to programmers who use its network in an effort to strengthen the ecosystem. Filecoin has awarded dozens of grants to developers thus far. Additionally, Grayscale announced its Filecoin Trust this year and has already contributed $1.5 million to the initiative, with another nearly half a million under management. Filecoin is positioned to prosper during this bull market in cryptocurrencies thanks to its rapidly expanding ecosystem.
Both buyers and sellers of storage use the coin on the Filecoin platform. For the storage of their data, buyers must pay the providers in Filecoin, and the data providers must stake Filecoin in order to join the network. The network has the power to penalize bad actors on the network financially by requiring storage providers to stake FIL.
Brief History of Filecoin
In 2014, Juan Benet launched Filecoin. The IPFS blockchain, which he also created, enabled the Filecoin network. Filecoin’s initial coin offering (ICO) took place in 2017, but the mainnet didn’t go live until October 2020.
Only about 330 million Filecoins are currently in use as of December 2022, compared to a maximum supply of 2 billion coins.) Filecoin has the plan to distribute these coins over the long term, despite the fact that this is frequently a sign that the cryptocurrency may lose value due to inflation. Looking at the shortest time frame, the network won’t reach its maximum supply for 30 years.
The project has raised more than $200 million since the 2017 ICO. Filecoin’s initial coin offering (ICO) price was $5 per coin, and since then, it has returned more than 14,000%. The fact that Filecoin has outperformed both Bitcoin and Ethereum during this time is arguably more impressive. But due to Terra’s debugging and the demise of FTX, which was trading for just over $4 per token in mid-December 2022, Filecoin has suffered significantly.
How to Buy Filecoin?
Filecoin is a relatively accessible cryptocurrency on major cryptocurrency exchanges because it is a well-established cryptocurrency project with solid support. Filecoin is available for purchase on SoFi and Uphold. SoFi is a great option because it’s user-friendly and has lots of special features. Additionally, the exchange offers free exchanges between cryptocurrencies, making it simple to trade cryptocurrencies quickly.
You’ll need to enter your email address and make a password in order to create an account with SoFi and the other exchanges. Adding 2-factor authentication will strengthen the security of your account. Before you can start trading cryptocurrency, you might need to finish identity verification depending on where you live. Your Social Security number, driver’s license, and home address are a few pieces of information you should have ready.
Your cryptocurrency shouldn’t be kept on an exchange, regardless of the trading platform you select. Exchanges that trade cryptocurrencies are prime targets for hackers because they have custody of the money of their investors. There is a real risk for cryptocurrency investors because numerous trading platforms have experienced hacks in the past.
A hardware or software cryptocurrency wallet is one of the two most popular and secure ways to store cryptocurrency. Software wallets can be downloaded for free on your computer or smartphone and will keep your cryptocurrency safely encrypted.
Consider using a hardware wallet if you want to keep your digital assets as secure as you can. By storing cryptocurrency offline on physical devices known as hardware wallets, you can prevent online thieves from stealing your funds.
You’re prepared to make your investment once you’ve decided where to store your cryptocurrency. On the majority of cryptocurrency exchanges, you can place market or limit orders to purchase cryptocurrencies. Limit orders won’t execute until the asset drops to a price you specify, whereas market orders will buy your investment at the market price right away.
It makes sense to average into your investment because cryptocurrencies are so erratic. All you need to do to achieve this is set aside some of your money for future investments. You’ll have more money if Filecoin declines, allowing you to lower your buy-in price. Instead, you’ll raise your buy-in price if the value of Filecoin rises. It will reduce your risk as an investor even though your buy-in price will be higher if Filecoin increases.
Best Crypto Exchanges for Filecoin
Best Hardware Wallet: Ledger Nano S
Since 2014, the market leader in the cryptocurrency wallet market, Ledger, has been offering these products. The Ledger Nano S and Ledger Nano X are the company’s two products. Although the functions of both wallets are identical, the Ledger Nano X has Bluetooth connectivity, which makes it much simpler to connect to your laptop or smartphone.
The Ledger Nano X, however, costs more than the Nano S. The Ledger Nano S is an affordable option for the majority of cryptocurrency investors because it costs less than half as much as the Nano X. It might be worthwhile to spend more money on the Ledger Nano X if you require Bluetooth connectivity.
Best Software Wallet: Exodus Wallet
The most cutting-edge software wallets currently on the market include Exodus Wallet. It offers a wide variety of different cryptocurrencies, including Filecoin, and is available for free download on iOS and Android. It not only safely stores your Filecoin and other cryptocurrencies, but it also allows you to switch between a large number of more than 225 different cryptocurrencies.
Is Filecoin a Good Investment?
Inflationary Token
Due to its high rate of inflation, Filecoin may not be a good investment to hold over the long term. This is due to the fact that it is a utility token, which means it is intended to be used and spent within the Filecoin ecosystem rather than being held for its speculative value like Bitcoin. 70% of the total supply of tokens is set aside for mining rewards, and these tokens will be released gradually throughout the network’s lifetime. The remaining tokens have already been allocated; they were either sold to investors in the 2017 ICO or reserved to pay for future development.
Use-case
The native token of Filecoin, called FIL, is used for network transactions and is kept as collateral by miners in order to access the network. Filecoin is used as payment for contracts made between miners (storage providers) and customers (storage buyers). Additionally, Filecoin tokens are used to settle small transactions on the network, such as when data is requested to be pulled at-a-Glance from various storage facilities. Miners can earn Filecoin in addition to payments by merely providing space, even if it isn’t used. This ensures that there is always a predetermined amount of free storage available on the network.
Competition
Using the blockchain to provide decentralized storage, Filecoin was one of the first platforms to do so, but it is not the only initiative in this field. Direct competitors of Filecoin include Storj and Sia. Additionally, Filecoin must compete with the major centralized businesses that currently rule the cloud storage market, including Google, Apple, and Amazon.
Conclusion: Easy to Get
Users can rent storage space on their computers to other people using the decentralized Filecoin protocol. Anyone can produce enormous amounts of data storage on the Filecoin network. Storage of data is crucial. It helps the entire blockchain run smoothly and avoids network congestion.
Crypto exchanges are a great resource for new investors to purchase Filecoin. Utilizing eToro is something we advise. The cryptocurrency exchange is governed and extremely safe from bad actors. eToro is also quite easy to use and affordable.
The platform will appeal to investors with small trade margins because it also offers some of the lowest
trading fees in the market.
FAQ
Where Can I Buy Crypto Filecoin?
Services like Coinbase, PayPal, and Robinhood are available for buying bitcoin.
What Exchange Can I Buy Filecoin?
Fortunately, Filecoin is available for purchase on Coinbase’s centralized exchange. It is quick, safe, and simple.
Can I Buy Filecoin on Binance?
Direct purchases of Filecoin from Binance can be made with a debit or credit card. On the Binance exchange, Filecoin can also be exchanged for different cryptocurrencies.
Does Filecoin Burn Coins?
Burned Tokens: If there is activity on the Filecoin network, significant amounts of Filecoin tokens will be burned in network transaction fees.
