Filecoin (FIL), a global decentralized storage platform, aims to be the fastest, most secure, yet most affordable way to store data online.
Filecoin is a decentralized storage system that aims to challenge the dominance of a few central players in the cloud storage market like Amazon, Google, and Microsoft. By offering storage providers economic incentives, the network provides a crypto-incentivized, decentralized cloud storage solution. This ensures that files are kept reliably over time.
Clients have access to the decentralized cloud storage via the Filecoin FIL token. This is the native token of Filecoin.
This article will dive into Filecoin’s network, examine the FIL token’s use cases, and show you how to purchase Filecoin in just a few steps.
Let’s get to it!
What is Filecoin (FIL?
Filecoin (FIL), a peer-to-peer decentralized network, allows you to store files online using the Filecoin blockchain. This records every transaction and stores it in a storage unit.
This network allows you to monetize unused storage on computers around the world. Anybody with enough storage space can become a storage provider to make money by selling FIL tokens. This token allows you to store the data securely.
Filecoin was created in 2017 using the Interplanetary File System protocol. This protocol allows file storage and sharing through a distributed network. It was invented by Juan Benet. Protocol Labs was founded in 2014 by Benet and are responsible for the Filecoin network as well as IPFS.
Filecoin aims to address two of the most significant problems with centralized storage providers: control over data and cost.
First, the company that provides the service has control over data stored in central storage facilities. Clients may lose access to their data if a platform such as Amazon Web Services is affected by a bug, or goes down. Filecoin clients, on the other hand, have full control over all data stored on the network. They can access their data whenever they want and can retrieve it at any time.
Second, clients are unable to negotiate storage costs if they don’t agree with the centralized storage provider. Filecoin, on the other hand, allows end users to reach an agreement with storage providers for a mutually advantageous storage rate.
These two factors helped the network to emerge.
As the best platform to safely store sensitive files.
Who can use Filecoin Storage
Filecoin is a cryptocurrency that can be used to store large data sets. It can be used to store websites, private, public datasets, and contract data. To ensure data security and correct storage, the network uses content addressing and cryptographic storage proofs.
Filecoin is a platform for critical public data like open access public data and Creative Commons media. It also stores historical archives. It holds valuable data archives such as Wikipedia, OpenStreetMap, and gnomAD.
Both Web2 and Web3 users have demanded decentralized file storage. The network already has a storage capacity equivalent to about 65,000 Wikipedia articles at $16,000 per month.
FIL Token Use Cases
FIL tokens are required for transactions on the Filecoin Blockchain. This digital asset is required to store files on the network. FIL tokens can also be distributed to storage providers (miners), and retrievers to provide an economic incentive for file safety. As a reward, miners can earn FIL tokens even if they don’t use the storage. This ensures 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 can be used to pay storage providers and clients on the open market for negotiated contracts. FIL tokens are also needed to settle micro-transactions within the network.
Filecoin offers several benefits:
Anyone with additional storage on their computer can rent it to others on the Filecoin network to make passive income. This feature has allowed for the development of a large 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.
Filecoin, a platform that connects millions of computers around the globe with unutilized storage, is highly scalable. In less than 20 years, the network will increase its storage capacity by 1000x.
Filecoin is a decentralized storage system that ensures files are securely stored over the peer-to-peer network. The network can make decisions for all players.
Filecoin applications can store data on any storage provider that uses the same protocol. Each provider doesn’t need a unique API.
Filecoin has many benefits, but there are some disadvantages and risks that users need to be aware of:
Market volatility and market risks can impact the Filecoin token price and therefore, both storage providers and token holders may lose their earning potential. Their income may increase tremendously in green markets, but they could also experience sharp losses during a bear market.
Filecoin remains a challenger to giants like Amazon and Google within the cloud storage space. The network is also competing with Sia, Arweave, and Storj in decentralized blockchain-based storage.
Filecoin’s reliability in storage is dependent heavily on the crypto-economic rewards given to miners. If miners don’t feel motivated by these incentives, the network will not be able to operate to its full potential.
Filecoin cannot be used by non-crypto users. Filecoin transactions require FIL tokens. A large portion of the population has not yet expressed an interest in crypto or crypto-related services due to uncertainty around crypto regulations.
FIL is an inflationary cryptocurrency that was created to be used within the Filecoin network. It is not as speculative as Bitcoin but may have a shorter-term value.
How to buy Filecoin
It is easy to buy Filecoin. Filecoin FIL can be purchased on many crypto exchanges like Coinbase, Gemini, and Crypto.com.
You must connect your wallet to purchase Fil on CoinStats and then swap your tokens for Filecoin. CoinStats has over 250 cryptocurrency exchanges, and more than 7,000 cryptocurrencies. The CoinStats Wallet and Ethereum Wallet can be used. Trust Wallets, Bitcoin Wallets, CoinStats Wallets, and Trust Wallets are also available.
Follow this step-by-step guide for buying FIL on CoinStats
Step 1: Log in to CoinStats
CoinStats Sign Up page
Users must have some of the major crypto tokens such as Bitcoin and Ethereum in their crypto wallet to be able to purchase FIL. Log in or create an account via the contacts. To buy Filecoin, open the app and use the search bar to search for Filecoin.
Step 2: Click on Buy FIL
Filecoin coin info
Next, click the “Buy FIL” link located in the upper right corner.
Step 3: Connect your wallet
Connect your wallet to swap Filecoin
Scroll down to “swap”, and connect your wallet where you keep your ETH tokens or BTC tokens. Click on the “Connect” button to see all of CoinStats’ wallet options. Connect your wallet by searching for it. You can also scan the QR Code using WalletConnect, or manually add the Blockchain/Crypto address to your mobile or web application.
Step 4: Choose the Token
After linking your wallet successfully, select the token that you wish to swap. You can do this by entering the data in USD/EUR or cryptocurrencies.
We can swap ETH for FIL, or buy Filecoin with Ethereum. Select the ETH token you have in your wallet. In the “From”, field, choose “FIL”
Step #5: Swap Crypto
To change slippage or gas settings, click on Advanced Options. After you are done customizing, scroll to the bottom of the screen and click “Submit Swap”.
Once you have submitted your swap request, you will be asked to confirm it. You can then confirm the request by reviewing the information on your mobile or web screen and clicking the “Confirm” button.
The transaction is currently being processed. The gas parameters you choose will affect the speed of your transaction. The loader is located at the bottom right corner of the wallet’s homepage. You can track your transaction.
NOTE Network Transaction Fees, also known as gas fees, will be charged to your account. This is the cost to make a transaction on the Blockchain. Gas fees are charged in the native currency of the network. For example, Ethereum for Ethereum network. CoinStats charges a small swap fee along with the gas fees.
How to buy FIL on Cryptocurrency exchanges
This guide will show you how to purchase Filecoin (FIL), on cryptocurrency exchanges.
Step 1: Choose an exchange
FIL tokens can be purchased on multiple exchanges. To find the right one for you, you will need to compare the different exchanges. Consider whether the cryptocurrency exchange is regulated and allows you to buy FIL using your preferred payment methods, such as a bank transfer, credit card, or debit card.
Step 2: Login/Create an Account
Once you have chosen a cryptocurrency exchange that meets all your requirements, you can create an account with your email address or mobile number. The requirements vary depending on which platform you choose. To verify your account and begin trading, you will need to enter the verification code that was sent to you via email or by mobile phone.
You might need to provide KYC or AML information for certain exchanges. To verify your identity, you will need to give personal information such as your name, contact number, and email address. If you intend to deposit fiat currency into your bank account to purchase FIL tokens, this information must be provided.
To protect your funds, it is a good idea to enable two-factor authentication (FA) once you have verified your identity.
Note: Currently logged-in users can log in to purchase Filecoin (FIL)
Step 3: Deposit funds
Next, deposit funds into your account. You can fund your account with fiat currency, such as USD or EUR.
Many exchanges will allow you to do this. You can choose the preferred method of payment, including bank transfer, Master or Visa credit/debit card, e-wallets, wire transfer, and PayPal. FIL coins can be purchased using any of the following payment methods: location, platform, and preferences.
Some deposit methods can be done almost immediately, while others may require authorities’ confirmation depending on the amount. Be sure to compare the fees associated with different deposit options as some may charge higher fees.
Step 4: Purchase FIL
All exchanges have the same process for purchasing Filecoin. Use the search bar to find Filecoin FIL. Select it and click “Buy FIL” (or its equivalent). Enter the FIL amount or fiat amount you wish to spend. Many exchanges convert the amount automatically to show you how much FIL you will receive and how much money you will spend. Double-check all details before you make your purchase.
To buy Filecoin tokens at the current market rate, you can place a market or order. You can also place a limit or market order to purchase Filecoin (FIL) tokens at a certain price. If your broker fulfills your order at the price you requested, then the coins will appear in your wallet.
Peer-to-peer (P2P), platforms are available on some cryptocurrency exchanges that allow users to buy FIL directly from other users. Filecoin FIL is a seller and payment method. After selecting the options, click on the “buy” button and confirm the transaction. The seller will then release FIL tokens.
FIL tokens have a total supply of 2 billion. There are currently 223 million tokens in circulation. The initial price for the token was $0.75 per token. 70% of the FIL supply was allocated to miners/storage providers. The remaining 600 million tokens were preallocated with different vesting periods.
Over 20 years, 770 million FIL tokens are expected to be released. 97% of the 330 million FIL tokens are expected to be released within 30 years.
Filecoin price page on CoinStats
FIL token reached $237 (ATH) on April 1, 2021. On August 29, 2019, the token dropped to $1.83, its lowest point ever. Its current value is 187% higher than its all-time low.
How to Exchange or Sell FIL
FIL tokens can be easily traded on cryptocurrency exchanges. These steps will make it easy to sell or trade your FIL tokens.
Step 1 – Log in to your account.
Step 2 Select FIL from your portfolio’s list of assets, and select how many Filecoins you wish to trade.
Step 3 – Follow the instructions of crypto exchanges to complete the token sale/exchange process.
How to store FIL
It is essential that you securely store your digital assets after purchasing them. Although you can store your tokens in an exchange wallet, you are more likely to be hacked. Therefore, we recommend that you create a private wallet with your unique keys. Two major storage options are available to store Filecoin FIL tokens away from exchange wallets: 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, etc. Financial Crimes Enforcement Network (FinCEN) has approved some of these wallets.
For crypto investors, the saying “Not your keys and not your coins” is often repeated. Your digital assets could be at risk if you give your wallet and private keys online. This can make them susceptible to cyber-attacks and suspension of withdrawals by exchanges. Therefore, it is safer to keep your FIL in cold or physical wallets.
Filecoin: Should you buy it?
Although the Filecoin token was successful immediately upon its launch, it failed to live up to its reputation. The token’s value rose to $237 during the bull run in 2021. However, FIL has been steadily declining since last year. FIL’s current drop in price could also be due to global downturns in crypto and other financial markets.
When investing in crypto assets, it is important to consider the long-term potential. Decisions made based on current market prices can often be disappointing.
Filecoin’s future looks bright, but it must compete with traditional Web 2 cloud players, win clients’ trust and provide a seamless user experience for all parties, including clients and storage providers.
Investors should do their research before purchasing Filecoin, or any other cryptocurrency. They also need to seek advice from professionals in financial planning.
FIL is one of the few crypto assets that have real-world applications. The network’s growth is due to the popularity of decentralized file storage solutions among crypto-enthusiasts, regardless of market conditions. Global cloud storage is expected to grow exponentially in the next years. The Filecoin ecosystem could capture a significant market share if it delivers on its promises.
Filecoin is a network that provides a decentralized cloud storage solution for the Web 3 ecosystem. This includes storage solutions for NFTs and the metaverse space, as well as music, video streaming, gaming, and storage solutions for music. Filecoin could also grow if Web 3 continues to grow as expected.
The Web 3 ecosystem is rapidly expanding and new players can emerge quickly to disrupt established platforms. Filecoin should be ahead of all other blockchain-based file sharing protocols by offering better user experiences and more earning opportunities for storage providers.
Filecoin should be aware of existing centralized storage providers as well as the constantly evolving crypto regulations. Although the network’s unique structure puts it in a great spot, the company will need to do more to see significant growth over the next few years.