How To Buy Filecoin (FIL)?

A common question you often see on social media from crypto beginners is “Where can I buy Filecoin?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Filecoin on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.

Step 1: Create an account on an exchange that supports Filecoin (FIL)

First, you will need to open an account on a cryptocurrency exchange that supports Filecoin (FIL).
We recommend the following based on functionality, reputation, security, support and fees:

In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.

Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.

Step 2: Deposit funds into your account

Many cryptocurrency exchanges will allow you to purchase Filecoin (FIL) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.

Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.

Step 3: Buy Filecoin (FIL)

This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Filecoin (FIL) or Filecoin (FIL) trading pairs. Look for the section that will allow you to buy Filecoin (FIL), and enter the amount of the cryptocurrency that you want to spend for Filecoin (FIL) or the amount of fiat currency that you want to spend towards buying Filecoin (FIL). The exchange will then calculate the equivalent amount of Filecoin (FIL) based on the current market rate.

Note: Make sure to always double-check your transaction details, such as the amount of Filecoin (FIL) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.

For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out. 

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What Is Filecoin (FIL)?

Filecoin is a decentralized storage network that lets anyone rent out storage space. In the same way, anyone can buy storage on the network. Instead of having to trust only one company with important data, it can be split up and stored on different computers around the world.

Filecoin is sometimes called an incentive layer on top of IPFS. This just means that users are incentivized to rent out their storage space by getting paid in FIL tokens. So, can you use Filecoin to send Christmas photos to Mars or Venus? Not yet. IPFS is a peer-to-peer data storage and retrieval protocol that’s built using a more decentralized approach. Unlike HTTP or HTTPS, it doesn’t rely on centralized servers to store data.

Filecoin raised over $250M in their 2017 ICO, which was a record at the time. The Filecoin mainnet was subsequently launched in October 2020.

How Filecoin (FIL) works

The Filecoin infrastructure is a distributed, peer-to-peer network whose main purpose is to provide a new way for organizations and individuals to store data around the world. When people have free storage available, they can become storage miners, who are essentially responsible for storing data on the Filecoin network. Clients pay FIL tokens both to store and retrieve data. 

Retrieval miners are another class of participants. As you’d expect, they facilitate the data retrieval process between clients and storage miners and also receive a small amount of FIL for their services. Filecoin uses end-to-end encryption, and storage providers don’t have access to the decryption keys. Since it’s a distributed system, files are kept safe across multiple storage locations.

So, what makes Filecoin potentially better than its centralized competitors? Well, it offers a peer-to-peer cloud storage solution for businesses and consumers. Because the same item (storage) is offered by different sellers potentially at different prices, the consumer may benefit in the end. While at times you might not have enough storage for all your data, sometimes you’ll have excess, and you can sell it. That’s the promise of Filecoin.

Why Filecoin (FIL) is important

Over the past few decades, the way that we store and access data has changed. In business, this has changed from on-site storage, where companies have huge server rooms, to remote data storage warehouses and more diversified cloud storage across the entire world. Currently, most businesses use a combination of all of these. Similarly, consumer data storage has also changed with an increased reliance on cloud storage.

This brings up cloud storage market superpowers such as AWS, HPE, and Dell. Business customers usually pick one provider and stay with it for years, which hinders competition. Filecoin allows customers who want to purchase storage to navigate the best deals on the fly, no matter who the storage provider is. This can likely create a more competitive cloud storage market.

Filecoin (FIL) use cases

Filecoin development updates in 2023

Filecoin (FIL) has undergone several significant developments in 2023, marking an exciting year for the decentralized storage network. Here are some of the key updates:

• Launch of Filecoin Virtual Machine (FVM): A major milestone for Filecoin in 2023 was the introduction of the Filecoin Virtual Machine (FVM) on its mainnet. This update brought smart contracts to the Filecoin ecosystem, enabling user programmability and the creation of decentralized applications on the network. However, there was a noticeable decline in transaction fees and new validator interest following the initial excitement around FVM​​​​.

• Market Performance and Price Fluctuation: The FIL token displayed a bullish trend in 2023. The price rose significantly from $3.1 to $8.4 within a month, showing strong market optimism. This was followed by a period of price correction, but the token later stabilized around $4.27, indicating resilience in the volatile cryptocurrency market​​.

• Project Saturn and Retrieval Markets Update: Significant advancements have been made in Project Saturn, aimed at democratizing the content delivery network (CDN) market. The project focuses on high-performance retrievals with low latency and no single point of failure, leveraging content-addressability for data integrity and authenticity. As of August 2023, Saturn had over 2,000 global points of presence and the capacity to handle 478 million requests per day​​.

• Overall Market Capitalization Growth: FIL’s trading value increased significantly, rising by 152% year-to-date as of the report. Despite this growth, FIL’s price remains significantly lower than its all-time high, reflecting the dynamic nature of the cryptocurrency market​​.

• Anticipation for Filecoin Virtual Machine Upgrade: The Filecoin community has been eagerly awaiting the upgrade to the Filecoin Virtual Machine. This upgrade is expected to significantly enhance the network’s capabilities, introducing smart contracts and expanding its potential use cases​​.

These developments demonstrate Filecoin’s commitment to innovation and its potential in the evolving landscape of decentralized storage and blockchain technology.

Official website: https://filecoin.io/

Best cryptocurrency wallet for Filecoin (FIL)

There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.

HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for Filecoin (FIL)?

Deciding which type of wallet to use depends on a variety of factors, including:

• How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades. 
• What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
• Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
• How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
• What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.

For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.

If you’re going to be dealing in larger volumes of crypto, investing in cold storage might prove advantageous.
Most widespead examples of this being the Ledger Nano and the Trezor.

Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).

Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).