How to Buy Filecoin – Beginner’s Guide 2022

Cryptoassets are a highly volatile unregulated investment product. 

4. Coinbase – Best Platform to Buy Filecoin for Beginners

Coinbase is another pure-play digital asset exchange that has taken the world by storm. Launched in 2012 by current CEO Brian Armstrong, Coinbase has become a mainstay for several users taking their first step in the crypto space. The platform is renowned for its beginner-focused services.

Coinbase offers several educational resources to onboard and teaches users how to buy, sell, and convert digital assets. The platform comes with over 300 digital assets users can trade.

Another major appeal is the low minimum deposit Coinbase supports.

New users can buy their first crypto with as little as $2. Subsequent to this, they can fund their account using a flurry of deposit options. However, this largely depends on their country of residence. US customers can use the automated clearing house (ACH), debit card, Apple, and Google Pay options. For other regions, Coinbase supports PayPal, bank transfers, instant cashouts, debit cards and others.

Coinbase’s fees are vague. The trading fees are only shown depending on the traded asset, the volume, and the current network fees at the time of the transaction.

The platform does features a Pro version targeting advanced crypto investors. This offers more trader incentives, including technical and trading indicators, and lower fees. The base fee structure is clearer there and starts at 0.60% for Coinbase Pro users using market orders, or 0.4% for limit orders.

Coinbase is regulated by the UK’s FCA and the US FinCEN.

Pros

  • Top exchange for beginners
  • Features a Pro version for advanced traders
  • Minimal starting deposit of $2

Cons

  • Fees are largely unstructured and high unless using Coinbase Pro

Cryptoassets are a highly volatile unregulated investment product.

What is Filecoin?

Filecoin aims to decentralise the storage industry. This way, users can easily store their assets in a censorship-resistant platform while having unhindered access to their files whenever they want.

Built on the Ethereum blockchain, Filecoin aims to eliminate the traditional cloud storage service controlled by tech giants Google, Microsoft, and Amazon, while incentivising users with superior services powered by blockchain tech.

Built by Protocol Labs, Filecoin is the premier decentralised storage platform in the crypto ecosystem.

The platform is renowned for its peer-to-peer framework that allows users to store their sensitive files with the nearest storage provider. These decentralised storage providers are properly incentivised with the network token called FIL to store users’ files securely.

To guarantee the absence of bad actors in its network, Filecoin ensures that all storage providers show proof-of-storage. This keeps all computer nodes in line.

Filecoin is one of the forerunners in the Web3 movement. The project aims to facilitate an open market where users can store and retrieve their assets with zero monopoly in the industry. This has made it easy for storage providers to provide the best storage services with no censorship involved.

Instead of relying on centralised storage entities that may not operate in a user’s location, Filecoin allows a user to choose from an array of storage providers and easily upload or retrieve their needed files in real-time.

Is Filecoin a Good Investment?

If you are considering whether to invest in Filecoin, these fundamentals should boost your confidence in the project:

1. Premier Decentralised Storage Network (DSN)

The DSN space is growing, with several competitors springing up daily. However, Filecoin is currently the most popular file storage protocol in the crypto space. The protocol commands a fair share of the rapidly growing DSN ecosystem, and this is even more exciting as the digital asset is trading at a bargain price currently.

2. Censorship-Resistant and No Single Point of Failure

Traditional storage services can easily lock users out of their files. This is not the case with Filecoin. Each user’s file is broken into singular bits of data and spread through the network, making it difficult for the protocol to be attacked, hence eliminating a single point of failure.

3. Move Into The Metaverse

The Metaverse ecosystem has generated a lot of buzz in the last year due to the huge potential it carries. Proponents have pointed out that this immersive blockchain experience would play a crucial role in the broader adoption of digital assets. Seeking to grow its user appeal, Filecoin has also made a foray into the Metaverse ecosystem. According to a recent update on its website, Filecoin is launching Mscape, a community-driven Metaverse project that allows users to explore projects and technologies, including what each team is building.

4. Push Towards Green Decentralised Storage Service

With energy consumption remaining a key issue in the crypto space, several projects have come under intense criticism. One of such is the Bitcoin network, which reportedly takes up as much energy as a small country in validating transactions.

Seeking to foster a carbon-neutral future, Filecoin has joined the ranks of blockchain projects going green. According to a recent website update, the Filecoin Green website has been launched. The new initiative is expected to track the environmental impact of the Filecoin ecosystem. Filecoin Green is a means of the network cutting down on its carbon impact.

5. NFT Storage Crosses 50 Million Uploads

Filecoin has also become a major hub for the storage of NFT data. According to a recent announcement by NFT.storage, the platform has since recorded over 50 million user uploads into its network.

Filecoin plays a crucial role as it stores these long-term provably bits of data. Launched in April 2021 by Protocol Labs, NFT.storage is a nod to the growing relevance of the non-fungible token (NFT) ecosystem.

Filecoin Price

The crypto industry is trading sideways at press time, with a total market cap of $2.1 trillion.

The Filecoin price has also substantively improved, with the storage token trading around $23 – $26, stable in the last 24 hours. A 12% increase last month shows a strong bullish trend brewing.

Filecoin Price Prediction

The Filecoin price has been on a downward trend over the last month, trading below the 100-hourly Simple Moving Average (SMA) value of $24.20. The coin picked up momentum over the last few days as the market recovered.

According to Wallet Investor, the Filecoin token is expected to retrace to a minimum value of $21.2 and reach a maximum value of $24.5 within the month. The crypto asset exceeds short-term price predictions as it currently trades at $24.7.

Digital Coin Price projects that the Filecoin crypto asset will trade at a minimum value of $30.36 and a maximum value of $34.39. The five-year projection puts the digital asset at a minimum value of $30 and a maximum of $64.

Price Prediction has a slightly higher forecast for the FIL coin as it projects a minimum value of $23 to $157. The maximum value projection is within the range of $27 to $183 in the next five years.

Generally, the Filecoin token seems to be making efforts to push past resistance levels and move onto higher highs. As the crypto market gets on a bullish trend, savvy investors would start looking to buy Filecoin to tap into the new decentralised storage industry.

Ways of Buying Filecoin

Looking for how to invest in Filecoin? The most reliable way of investing in crypto assets is through crypto exchanges like eToro and Binance. These platforms offer investors opportunities to invest through easy setup and flexible payment options.

Payment methods are essential parts of an exchange platform as they serve as bridges between fiat currencies and cryptocurrencies. Some payment methods are more efficient than others, but this guide provides insight into the fastest ways to buy Filecoin tokens.

1. Buy Filecoin with PayPal

PayPal is a common payment method used to purchase crypto assets on various crypto exchanges. eToro supports PayPal as a funding option for buying Filecoin. Investors can buy FIL by clicking the ‘Deposit’ button and selecting ‘PayPal’ as the preferred payment option. Investors will be redirected to another page to continue the payment process.

2. Buy Filecoin With Credit Card Or Debit Card

Most crypto exchanges provide the credit or debit card option as a viable means of buying Filecoin. The credit card option on most crypto exchanges require a fee within the range of 1% to 4%. However, eToro does not charge users for using their credit cards. The credit/debit card payment option is quite easy to use, and the transaction is swift.

You only need to click on the ‘Deposit’ option on the eToro platform and then select the credit or debit card option. They will need to provide their card number and CVV for confirmation.

Best Filecoin Wallet

eToro Money Crypto Wallet

For investors to interact with a blockchain network, they need a crypto wallet. A crypto wallet is a form of digital storage for your cryptocurrencies.

Hardware, software, and paper wallets are the three main crypto wallets. They might be characterised as cold or hot wallets based on their mode of operation.

Hardware wallets are the most secure, but software wallets are more accessible and handy. Paper wallets are made of paper and are now outdated and unstable.

  • Hardware Wallets: Hardware wallets are storage options that allow investors to safeguard their crypto assets in an offline location. The hardware wallets come in the form of USB devices and require secret keys for authorisation before funds can be accessed. The advantage of this type of wallet is that it is difficult for hackers to access the crypto-assets since they are stored offline.
  • Paper Wallets: A paper wallet is a real wallet with QR codes written on it. Some wallets allow you to download the code in order to generate new addresses when you’re not connected to the internet. They aren’t hackable, but the sheer quantity of defects makes them dangerous. The inability to send partial funds is a big problem. As a result, it can’t be utilised again.
  • Software Wallets: Software wallets are the most convenient method of storing crypto assets as they are easily accessible. Software wallets use a 24-word recovery phrase that enables users to recover their funds should they have a problem with their mobile device. This wallet option allows users to access their funds at any time.

The eToro wallet is an example of a software wallet. It is one of the most secure platforms for storing crypto assets. The eToro wallet is a multi-crypto wallet with several high-level security features, such as encryption to protect user funds from unauthorised access. The wallet uses two-factor authentication (2FA) and an analytic behaviour machine learning program to keep user funds safe. The wallet does not allow users to keep private keys; however, this is not a dealbreaker as there is a recovery process if they ever lose their keys.

The eToro wallet supports up to 120 cryptocurrencies and features in-app conversions with the support of up to 500 crypto pairs.

How to Invest in Filecoin – Tutorial

Investors looking for how to buy Filecoin crypto on eToro.com can follow this step-by-step guide:

1. Sign up


Go to the eToro home page and click on the ‘Join Now’ or ‘Sign up’ buttons. Type in your email, preferred username, and password in the space provided. Users must confirm their account by clicking on the verification link sent to their mail.

2. Verify your Identity

eToro Verify Account Verification ID
The eToro platform is a regulated platform requiring users to verify their identity. Users must adhere to eToro’s policy of providing KYC information. To do so, users must provide a government-issued ID and a utility bill for proof of residence to enjoy all of the broker’s features.

3. Deposit Funds

etoro deposit funds
To deposit on the eToro platform, click on the ‘Deposit Funds’ button on the home page. You can deposit using payment methods, like Skrill, bank transfer Neteller, and credit/debit cards.

After choosing the preferred payment method, users can type in how much funds they want to invest and follow the on-screen prompts.

4. Buy FIL

After typing in the crypto asset’s ticker symbol FIL, select the relevant result and click on the ‘Trade’ button. Insert how much you want to invest and click on ‘Open Trade’ to complete your transaction.

How to Sell Filecoin

Selling cryptocurrencies is an essential part of investing as it allows investors to reap the profits of their patience and knowledge. To close a trade position on FIL, follow these quick and easy steps:

  • Click on the ‘Portfolio’ button to view the coins available in your portfolio.
  • Select ‘FIL’ among the assets on the portfolio list
  • Click on the red ‘x’ on the right side of the screen to close the trade.
  • The eToro platform will send a pop-up displaying the crypto asset’s value and how much you stand to gain or lose by selling.
  • Click on ‘Close Trade’ to sell your Filecoin token.

Conclusion

Filecoin is a decentralised protocol that enables users to rent out storage on their computers to others. Anyone on the Filecoin network can create huge data storage. Data storage is important. It aids the entire blockchain to function properly per time and prevents network congestion.

New investors can take advantage of crypto exchanges to buy Filecoin. We recommend using eToro. The crypto exchange is regulated and highly secured against malicious actors. eToro is also quite easy to use and affordable.

The platform also has some of the lowest fees for trading in the industry and will appeal to investors who have low margins for trades.

Cryptoassets are a highly volatile unregulated investment product. 

Frequently Asked Questions

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