Filecoin Investment: Steps To Take For Crypto Beginners

Filecoin (FIL) is a decentralised file storage and sharing network that leverages blockchain technology to provide users with new opportunities in the market. Decentralised file-sharing platforms are now more popular than ever. Filecoin combines various technologies to provide a unique experience to its users, which translates into more chances to earn crypto. In its simplest form, Filecoin operates similarly to other file-sharing platforms such as Dropbox, but instead of a centralised authority storing data, users who wish to store data can bid on available storage offered by miners who offer disk space. Filecoin's decentralised approach to storage puts users and storage providers first. The platform has data retrieval speeds that outrank industry leaders like Amazon. As the market grows, its infrastructure is designed to improve its responsiveness. In this way, Filecoin has the potential to become the fastest and cheapest way to store data on the internet.

Choosing a crypto exchange

When choosing a crypto exchange to invest in Filecoin, there are several factors to consider. Here are some key points to help guide your decision:

• Exchange Reputation and Security: Opt for well-established and trusted exchanges with a strong track record of security. Exchanges like Binance, Coinbase, and Kraken have built solid reputations in the crypto space and implement robust security measures to protect user funds.
• Payment Methods: Different exchanges offer varying payment options, including debit/credit cards, wire transfers, and peer-to-peer transactions. Ensure that the exchange you choose supports your preferred payment method.
• Fees: Crypto exchanges charge various fees for deposits, transactions, and withdrawals. Compare the fee structures of different platforms to find the most cost-effective option for your needs. Some exchanges, like Bitstamp, offer low payment fees, while others may have higher fees for specific payment methods.
• Geographic Availability: Some exchanges have restrictions on the regions they serve. Check that the exchange is available in your country or state. For example, certain exchanges like Binance and Coinbase are not available to US customers.
• User Interface and Functionality: Consider the user-friendliness of the exchange's platform. Look for a platform with a straightforward interface that makes it easy to navigate and execute trades. Uphold, for instance, offers a highly intuitive trading experience.
• Cryptocurrency Pairs: If you plan to trade Filecoin (FIL) against other cryptocurrencies, ensure that the exchange offers the desired trading pairs. For instance, Gate.io, a popular exchange for FIL, has an active trading pair with USDT.
• Liquidity: Higher liquidity means better pricing and faster transaction execution. Binance, for instance, is known for its high liquidity, facilitating quick trades and allowing users to take advantage of market movements.
• Advanced Features: Depending on your trading strategy, you may want an exchange that offers advanced features like margin trading, futures, and limit orders. Kraken, for example, provides these options for more sophisticated investors.
• Customer Support: Choose an exchange that offers reliable and responsive customer support. This is crucial in the fast-paced world of cryptocurrency, where timely assistance can make a significant difference.
• Regulatory Compliance: Ensure that the exchange adheres to regulatory requirements, especially if you value compliance and want to mitigate potential legal risks.

Remember to conduct thorough research before selecting an exchange, as this decision can significantly impact your trading experience and investment outcomes.

Creating an account

To create an account to invest in Filecoin, you will need a smartphone or computer, photo identification, and a means of payment. You will also need to provide identity information and set up 2-factor authentication for added security.

• Choose a cryptocurrency exchange that offers Filecoin (FIL). Popular options include Uphold, Kraken, WazirX, KuCoin, and Binance.
• Visit the website of your chosen exchange and locate the option to create an account or sign up.
• Provide your email address and create a password. You may also need to choose a username.
• Verify your email address by clicking on the link sent to your email.
• Set up 2-factor authentication to add an extra layer of security to your account.
• Depending on your location and the exchange's requirements, you may need to verify your identity. This may include providing your name, date of birth, country of residence, phone number, and photo identification, such as a driver's license.
• Once your account is created and verified, you can proceed to the next steps of depositing funds and purchasing Filecoin.

Remember to do your research, compare different exchanges, and carefully review their terms and conditions before committing to any platform.

Making a deposit

Once you have chosen a platform to buy Filecoin (FIL), you will need to make a deposit. The deposit methods available to you will depend on the platform you have chosen. Most platforms will accept deposits via debit card, credit card, wire transfer, or Bitcoin. Some platforms will also allow you to deposit US dollars or other cryptocurrencies. For example, CoinList allows deposits in US dollars via wire transfer or ACH, as well as deposits in various cryptocurrencies, including BTC, ETH, and FIL.

Uphold is a popular platform for buying FIL, offering both a desktop and mobile app trading experience. It is known for its credibility, ease of use, and innovative features. Uphold also stands out for its intuitive trading view, which can be customized with your most-traded assets. Another benefit of Uphold is that it allows you to place trades with just a couple of clicks, directly from your deposit method, without waiting for funds to clear to your account.

Kraken is another trusted global exchange that offers the lowest fees in the industry, as well as robust security measures to safeguard your funds. It offers over 200 digital assets, including FIL, and provides advanced charting tools, 24-hour global client support, and spot trading on margin.

If you are a resident of India, WazirX is the best exchange for buying FIL. It is part of the Binance Group, ensuring a high standard of quality.

Buying Filecoin

Filecoin (FIL) is a decentralised file storage and sharing network that uses blockchain technology. Decentralised file-sharing platforms are very popular and Filecoin combines various technologies to provide a unique experience for its users.

The whole process of buying Filecoin can take as little as 10 minutes. All you need is a smartphone or computer, photo identification, and a means of payment.

Firstly, compare crypto exchanges. Filecoin is available on the following:

• Uphold (not available in Germany or the Netherlands)
• Kraken (not available in New York or Washington state)
• WazirX (not available in the US)
• Binance (not available in Canada or the US)
• KuCoin (not available in the US)
• HTX (not available in the US or Canada)

Next, create an account and verify your email address and identity. After this, you can make a deposit via debit card, credit card, wire transfer, or Bitcoin.

Now you're ready to buy Filecoin. Use your funds to buy FIL.

It's important to note that you shouldn't store your crypto on an exchange. Instead, consider a hardware or software wallet. Software wallets are free and can be downloaded to your computer or smartphone. Hardware wallets are physical devices that store cryptocurrency offline, making them the safest option.

Storing Filecoin

Filecoin is a decentralised cloud storage network that combines with IPFS, a peer-to-peer distributed network protocol, to create a more efficient and secure web free from corporate control. Anyone can participate as a storage provider and compete for clients' business, creating a hypercompetitive marketplace for storage.

Filecoin's decentralised nature means that it is owned by everyone in the network and allows for flexible, customised storage options. It also guarantees the security and authenticity of stored data through content addressing and cryptographic storage proofs. These cryptographic proofs ensure that data remains available and unchanged over time.

Filecoin's blockchain technology also provides verifiable action, automatically taking corrective action when needed. This adds an extra layer of security and reliability to the network.

In terms of specific storage options, Filecoin offers:

• Proof-of-Spacetime: Verifies that a file is being stored in its entirety and unaltered over the agreed-upon duration.
• Proof-of-Replication: Confirms that the agreed-upon number of file copies is being stored.
• Data replication, renewal, and repair (RaaS): Ensures data is reliably stored and maintained.
• Backup and disaster recovery: Safeguards against data loss in the event of unforeseen circumstances.

Frequently asked questions