Filecoin is a worldwide decentralized storage platform that aims to make the web the most efficient, secure and affordable place to store your data. Filecoin is a decentralized storage system that aims to challenge the dominant position of some centralized cloud storage providers like Amazon, Google and Microsoft. Filecoin is a decentralized crypto-incentivized cloud storage network that offers economic incentives for storage providers in order to guarantee file storage reliability over time.
Access to decentralized cloud storage can be made available for clients using the Filecoin token FIL, which is the native token of Filecoin.
In this article, we’re going to dive deep into the Filecoin network, explore the use cases of the FIL token, and learn how to buy Filecoin in a few simple steps.
Let’s get right to it!
Filecoin (FIL), What is it?
Filecoin is a distributed peer-to–peer network that allows file storage on the Internet using Filecoin Blockchain. Each transaction associated with the Storage Unit records it.
This network allows you to monetize unused storage on computers around the world. Everybody can make extra storage on their computer and earn FIL tokens by becoming a storage provider.
Filecoin launched on 2017 using the Interplanetary File System Protocol (IPFS). This protocol allows for file storage and share in a network. It was invented by Juan Benet. Protocol Labs was founded in 2014 by Benet and is responsible for the Filecoin network as well as IPFS.
Filecoin attempts to solve two of the biggest problems associated with centralized storage providers – control over data and the cost of storing data.
The company that provides the service is responsible for the management of data stored in these centralized facilities. If a platform such as Amazon Web Services becomes corrupted or has a problem, clients may be unable to access their data. Filecoin clients, on the other hand, have full control over all data and are able to access their data whenever they want.
The centralized storage providers also have full control of the storage fees clients must pay. These are not negotiable. Filecoin is the alternative. It allows both end users and storage companies to come up with a mutually-beneficial storage rate.
This has helped to make the network possible.
As the best platform to safely store sensitive data.
Filecoin Storage for Whom?
Filecoin is a cryptocurrency that can store large amounts of data. It’s suitable for website, personal, business, government, corporate, or podcast files. Filecoin uses content addressing and cryptographic storage to make sure that data is securely stored over the period requested by clients.
Filecoin is a platform for critical public data like open access public data and Creative Commons media. It also stores historical archives. You can store valuable data archives, such as Wikipedia and OpenStreetMap.
Both Web2 and Web3 users have demanded decentralized file storage. Already, the network can store $16,000 per month. This is equivalent to 65,000 Wikipedia copies.
FIL Token Use Cases
FIL tokens are required for transactions on Filecoin’s blockchain. FIL tokens are required to save files onto the Filecoin network. To ensure file safety, storage providers (miners), and retrievers are given FIL tokens. As a reward, miners can earn FIL tokens even though the storage they have provided is not used. It helps to ensure that there is always free storage available on the network.
FIL tokens can be held by storage providers as collateral to facilitate future use. FIL tokens serve as the payment option for storage provider and client contracts in the open marketplace. FIL tokens can also be used to settle several micro-transactions in the network.
Filecoin Pros
Many advantages are offered by Filecoin
Passive income
With Filecoin, anyone can rent extra space on their computers to others on the network to generate passive income. This has allowed for the development of an enormous community network within a matter of years.
Affordable storage and retrieval
Clients can negotiate storage rent with miners on an open market so that storage costs are not fixed arbitrarily. Filecoin’s open-market pricing makes it affordable to retrieve data.
Scalability
Filecoin is an open-source platform which connects millions of computers worldwide with inactive storage. In less than 20 years, the network will increase its storage capacity 1000x.
Decentralization
Filecoin offers decentralized storage. Files are kept in an anonymous manner on the peer-to–peer network. Also, no one player has all the rights to decide on the network.
One Protocol
Filecoin applications can store data at any storage provider that uses the same protocol. There isn’t a different API to implement for each provider.
Filecoin Cons
Filecoin offers many advantages, however there are certain disadvantages or risks users need to be aware:
Market Risks
The price of Filecoin tokens is subject to market risks and volatility that can affect the storage providers’ and token holders’ earning potential. Although their income could increase dramatically when markets are open, it is possible for them to suffer sharp losses in bear markets.
Competiton
Filecoin remains a challenger to giants like Amazon and Google within the cloud storage space. In the blockchain-based decentralized storage space, there are also competitors such as Sia, Arweave and Storj.
Security risks
Filecoin’s reliability in storage is dependent heavily on crypto-economic rewards given to miners. Without these incentives, the network might not function at its full potential.
Enter Barriers
Filecoin can’t be used by anyone other than crypto users. Filecoin requires FIL tokens to make transactions. Due to global uncertainty surrounding crypto regulations, large sections of the populace are not interested in crypto or related services.
Inflationary token
FIL, an inflationary cryptocurrency that was developed to be a utility token within Filecoin’s network. This cryptocurrency may not be as long-term as Bitcoin, but it could have some speculative potential.
Filecoin How To Buy
Filecoin can be bought very easily. Filecoin FIL is available for purchase on several cryptocurrency exchanges such as Coinbase or Gemini.Crypto.com, Binance
You must first connect to your wallet, then swap existing tokens with Filecoin in order to purchase Fil. CoinStats is compatible with over 250 cryptocurrency exchanges as well as over 7,000 different cryptocurrencies. The CoinStats Wallet and Ethereum Wallet can be used. Trust Wallets, Bitcoin Wallets, CoinStats Wallets, and Trust Wallets are also available.
We will walk you through the steps to purchase FIL via CoinStats.
Step 1: Sign in to CoinStats
Users must have key crypto tokens such as Bitcoin and Ethereum in order to purchase FIL. You will need to login or create an account after that. coinstats.appSearch for Filecoin on the search bar in order to purchase FIL.
Step 2: Click to Buy FIL
In the next step, click on the “Buy FIL” link available in the upper right corner of the page.
Step 3: Connect Your Wallet
Scroll down to the “swap” feature and connect the wallet where you store your ETH or BTC tokens. Once you click on the “Connect” button, you’ll see various wallet choices offered by CoinStats. Connect your wallet by searching for it. Connect it via WalletConnect by scanning the QR Code or manually adding your Blockchain/Crypto or Wallet address to your web or mobile app.
Step 4: Choose the token
After linking your wallet successfully, you can choose which token to trade by providing data in cryptocurrency or USD/EUR.
You could, for example, swap FIL for ETH or purchase Filecoin with Ethereum. In the “From” field, select the ETH token from your wallet, and in the “To” field, select “FIL.”
Step 5: Swap Crypto
For more options, click Advanced Options. When you’re finished customizing, scroll down to the bottom of your screen and click the “Submit Swap” button.
After you’ve submitted your swap request, you’ll be prompted to confirm it. To begin the swap, review the information displayed on your web or mobile app screen, and click the “Confirm” button.
The transaction has been processed. The gas parameters that you choose will affect the pace at which your transaction is processed. You can trace your transaction from the loader at the bottom right corner of the wallet’s home page.
NOTE: You’ll be charged Network Transaction fees, also known as gas fees. It is the cost to make a blockchain transaction. Gas fees can be described as being paid in the local currency of the network. For example, Ethereum is used for Ethereum transactions. CoinStats may also charge a swap fee.
How to Purchase FIL On Cryptocurrency Exchanges
Here’s our guide on how to buy Filecoin (FIL) on crypto exchanges:
Step 1. Select an Exchange
FIL tokens can be purchased on multiple exchanges. You’ll have to compare them to choose the one with the features you want, such as low transaction fees, an easy-to-use platform, and 24-hour customer support. You should also consider whether or not the cryptocurrency exchange is regulated and permits you to purchase FIL using any of your preferred payment methods (e.g. a credit/debit card, another cryptocurrency, bank transfer, or a bank account).
Step #2: Sign in or create an account
Once you have chosen a crypto exchange that meets all your requirements, it is time to open an account with the exchange using either your mobile number or email address. Different platforms have different requirements. For verification and trading to begin, enter the code you received via your mobile or email.
Some exchanges might require stringent KYC and AML procedures, and you must provide personal information like your name, contact number, email address, home address, social security number, and a copy of your driver’s license, passport, or government-issued ID to get verified. If you intend to withdraw fiat currency to buy the FIL token, this information must be provided.
It’s advisable to enable two-factor authentication (2FA) to keep your funds safe once you’ve verified your identity.
Note:Filecoin can be purchased by existing users simply by logging in.
Step 3: Deposit funds
You will need to deposit funds in your account. Your account can be funded with USD, EUR or other fiat currency through many exchanges. You can choose the preferred payment method such as bank transfer, Master or Visa credit/debit card, ewallets, wire transfer and PayPal. FIL coin purchase options will vary depending on the location and platform.
Some deposit methods can be done almost immediately, others may require authorities confirmation depending on how large the amount. You should also check out the charges associated with various deposit methods as certain types of deposits attract more fees than others.
Step 4: Purchase FIL
All exchanges have the same process for purchasing Filecoin. Search for Filecoin FIL in the search bar, select it, and click on “Buy FIL” or its equivalent. Enter the FIL amount or fiat currency to be used. Most exchanges will automatically convert the amount to let you know how much you’ll spend and how much FIL will be obtained. Verify the purchase details carefully before making a payment.
To buy Filecoin tokens at current market prices, you can make a market order. A limit order, which indicates that you wish to purchase FIL at a particular price, can be placed. If your broker fulfils your order at the price you requested, then coins will appear in your wallet.
A few cryptocurrency exchanges offer peer-to–peer (P2P), platforms that allow users to purchase FIL directly from each other. Filecoin FIL is a seller and payment method. After making selections, users must click the “buy” button, confirm the transaction, and the seller will release the FIL tokens to the buyer.
FIL Tokenomics
The FIL tokens’ total supply is capped at 2 billion, with 223 million tokens currently in circulation. At an initial price $0.75, the token was released in 2017. The total FIL supply has 70% allocated to miners/storage companies. 600,000,000 tokens remaining were pre-allocated, with different vesting periods.
Over 20 years, 770 million FIL tokens are expected to be issued. 97% of the 330 million FIL tokens are expected to be available in 30 years.
FIL token reached $237 (ATH) on April 1, 2021. On August 29, 2019, the token dropped to $1.83, its lowest point ever. Current price is 187% above the record low.
What to do with FIL?
FIL tokens are easily exchangeable on any cryptocurrency exchange. These steps will make it easy to exchange or sell your FIL tokens.
Step 1. Register to access your account.
Step 2 Select FIL from your portfolio’s list of assets and choose how many Filecoin you want to trade.
Step 3Follow the instructions of crypto exchanges to complete your token sale or trade process.
How do I store FIL?
After buying a digital asset, it’s essential to securely store it in a crypto wallet. Although you have the option to store your tokens in an exchange wallet, you are more likely to be compromised if that platform is hacked. We recommend you create a private wallet and your own keys. Two major options exist to keep your Filecoin FIL tokens away from exchange wallets. These are a Software Wallet, Hot Wallet and a Hardware Wallet, Cold Wallet.
FIL can be stored in the following supported wallets: CoinStats wallets, Trust Wallets, Filfox wallets, FilSnap wallets, FilSnap wallets, FilSnap wallets, FilSnap wallets, FilSnaps, Metamask wallets, Plugins, FilWallets, FoxWallets, Glif Web Wallets, ImTokens, MathWallets, Brave Browser Wallets, and others. Financial Crimes Enforcement Network approves some wallets.
“Not your keys, not your coins” is an often quoted saying for crypto investors. Giving your keys and wallets to an online exchange or wallet could expose your digital assets to hackers and may make them more vulnerable to withdrawal suspensions. The best way to protect FIL is to put your keys in a cold or metal wallet.
Filecoin: Should you buy it?
Although Filecoin’s token was successful immediately upon its debut, it has not been able to maintain its fame. In the bull run of 2021, the token’s price increased to $237; however, the FIL price has been on a downward trajectory since last year. FIL’s current drop in price could also be due to global downturn in crypto markets and other financial markets.
Crypto investment is a long-term endeavor. Decisions made based solely on current market prices can often prove disappointing.
Filecoin has a promising future, but it needs to become a major competitor to traditional Web 2 cloud players, earn the clients’ trust, and ensure a smooth user experience for all stakeholders like clients and storage providers.
Before purchasing Filecoin or any other cryptocurrency, it’s also vital for investors to do their own research and seek investment advice from professional financial advisors.
Last Thoughts
FIL, one of few crypto assets which has practical use cases is highly valued. The popularity of decentralized file storage solutions among crypto enthusiasts contributes to the network’s growth, irrespective of the market conditions. Global cloud storage is expected to increase exponentially in the next years. The Filecoin ecosystem may capture significant market share if it delivers on its promises.
Filecoin is a network that provides decentralized cloud storage for Web 3 ecosystem. This includes storage solutions for NFTs and the metaverse, as well as music, video streaming, gaming, and storage solutions for music. Filecoin could also grow if Web 3 continues to expand as expected.
The Web 3 ecosystem continues to grow rapidly and new players can emerge quickly and challenge existing ones. Filecoin needs to stay ahead of the other crypto-based file sharing protocols, by offering better user experience and greater earning potential for storage providers. It should remain vigilant to the evolving regulations in crypto and existing centralized storage providers. The network’s unique model puts it in a sweet spot, but the company may have to do more to experience massive growth in the coming years.
Note:Users should seek out professional advice before buying FIL.