Want to jump straight to the answer? You can buy Filecoin on SoFi.
If you run out of storage space on your computer, you’ll probably use a cloud storage service like iCloud or Google Cloud to increase your data storage capacity. However, you’ll need to trust these services to not only secure your data but also to allow you to use their service. Filecoin aims to solve this problem through blockchain technology.
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With Filecoin, anyone can buy or provide data storage on the network. The data you store on Filecoin is not only uncensorable but also immutable. The project has undergone significant development since its initial coin offering (ICO), making it an attractive investment to many crypto enthusiasts.
What is Filecoin?
Filecoin is a decentralized file storage system that uses blockchain technology to solve the problems associated with centralized cloud storage services. The Interplanetary File System (IPFS) blockchain that Filecoin uses makes it possible to host decentralized data storage, unlike most other cryptos. The platform has a current network capacity of over 2.5 billion gigabytes, making it the largest decentralized storage solution in the industry.
In an attempt to increase the network’s ecosystem, Filecoin offers grants to developers who use its network. So far, Filecoin has given out 45 grants to developers. Also, Grayscale announced its Filecoin Trust this year and has already invested $1.5 million into the project. With a quickly growing ecosystem, Filecoin is set up to succeed through this cryptocurrency bull market.
The coin on Filecoin’s platform is used by both storage providers and storage buyers. Buyers need to pay the providers in Filecoin to store their data, and data providers must stake Filecoin to join the network. By requiring storage providers to stake FIL, the network has the ability to financially punish bad actors on the network.
Brief History of Filecoin
Juan Benet founded Filecoin in 2014. He also invented the IPFS blockchain that made Filecoin’s network possible. While the cryptocurrency had its ICO in 2017, the Filecoin mainnet didn’t launch until October 2020.
Filecoin has a maximum supply of 2 billion coins, but there are only 73 million coins currently in circulation. While this is often a sign that the cryptocurrency could be devalued through inflation, Filecoin has a plan to distribute these coins over the long term. Looking at the shortest time frame, it will take 30 years for the network to reach its maximum supply.
Since the 2017 ICO, the project raised over $200 million. Filecoin’s initial price was $5 per coin, and it’s shown more than 14,000% returns since its ICO. Arguably more impressive, however, is that Filecoin has outperformed both Bitcoin and Ethereum in this time frame. Currently, Filecoin is trading for about $70 per coin, valuing the project at about $5 billion.
How to Buy Filecoin
- Open an online account.
Because Filecoin is an established cryptocurrency project with a strong backing, the coin is relatively accessible on major cryptocurrency exchanges. You can buy Filecoin on Coinbase, Gemini, Crypto.com and Binance. Coinbase is our personal favorite, as it’s simple to use and offers many unique features. Also, the exchange lets you swap between cryptocurrencies free of charge, making it easy to trade cryptocurrencies quickly.
To make an account with Coinbase, you’ll need to enter your email and create a password. You should also set up 2-factor authentication to improve your account’s security. Depending on where you live, you may need to complete identity verification before you can begin trading crypto. Some information to have ready includes your Social Security number, driver’s license and home address.
- Buy a wallet (optional).
No matter which trading platform you choose, you shouldn’t store your crypto on an exchange. Cryptocurrency exchanges hold custody of their investors’ funds, making them large targets for cryptocurrency hackers. Many cryptocurrency trading platforms have been hacked in the past, presenting a real risk to crypto investors.
The two most common and secure ways to store cryptocurrency are with a hardware or software cryptocurrency wallet. Software wallets can be downloaded on your computer or smartphone for free, and these applications will keep your crypto securely encrypted.
If you want to store your crypto assets in the safest way possible, then you should consider a hardware wallet. Hardware wallets are physical devices that store cryptocurrency offline, making it impossible for online hackers to steal your cryptocurrency.
- Make your purchase.
Once you’ve chosen where to store your crypto, you’re ready to make your investment. Most cryptocurrency exchanges let you buy cryptocurrencies as either limit or market orders. Market orders will purchase your investment instantly at market price, whereas limit orders will only make your investment if the asset dips to a price you specify.
Because crypto is so volatile, it’s a good idea to average into your investment. To do so, all you need to do is set aside part of your capital to invest later. If Filecoin goes down, then you’ll have more money to lower your buy-in price. Conversely, if Filecoin increases, then you’ll increase your buy-in price. Although your buy-in price will be higher if Filecoin increases, it’ll limit your risk as an investor.
Bonus section: Because storage providers on Filecoin’s network need to stake Filecoin to provide data storage services to consumers, there will be increasing demand for the coin over time so long as the Filecoin network continues to grow.
Best Crypto Exchanges for Filecoin
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
- Active traders
- Intermediate traders
- No charges to open and maintain an account
- No account maintenance fees or software platform fees
- Intuitive trading platform with technical and fundamental analysis tools
- Only offers 14 coins
Founded in 2015, Exodus is a multiasset software wallet that removes the geek requirement and keeps design a priority to make cryptocurrency and digital assets easy for everyone. Available for desktop and mobile, Exodus allows users to secure, manage and exchange cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and more across an industry-leading 10,000-plus asset pairs from a beautiful, easy-to-use wallet. The noncustodial functionality is encrypted locally on users’ own devices, ensuring privacy, security and complete control over their wealth. Exodus is on a mission to empower half the world to exit the traditional finance system by 2030.
- Newcomers to the cryptocurrency world
- Ease of use
- Trezor integration
- Huge selection of cryptocurrencies
- Excellent 24/7 customer support
- No personal info needed
- FTX app not available on the mobile app
SoFi takes a modern approach to personal finance. It recently created buzz with the release of SoFi Crypto, a way to trade cryptocurrency on the app. The platform allows investors to familiarize themselves with crypto. It offers a high level of security, great customer support and an intuitive interface. However, it does have shortcomings with the number of cryptos offered and geographic restrictions.
- Centralization of your money
- Charges low or no fees for some functions within the interface.
- Relies on Coinbase, a very secure platform, to process transactions.
- Presents a low barrier of entry — you only need $10 to start trading.
- Currently only offers 28 coins.
eToro is headquartered in Cyprus, England and Israel. A major eToro plus is its social trading operations, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its underwhelming research and customer service features.
- Investors looking to CopyTrade other traders
- Simple user interface
- Several major cryptocurrencies and altcoins
- Expansive network of social trading features
- Large client base for new traders to imitate
- Only 29 coins available
Gemini is a cryptocurrency exchange and custodian that offers investors access to over 100 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.
Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader.
In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.
- New investors looking for a simple mobile and web app
- Day traders looking to use technical analysis tools
- Users looking for a 1-stop-shop to buy, sell and store all of their cryptos
- Easy and quick signups — can get started in as little as a 5 minutes
- Multitude of platforms to accommodate traders of all skill levels
- Hot wallets include insurance to protect your from theft and hacking attempts
- Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app
Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.
Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.
- New cryptocurrency traders
- Cryptocurrency traders interested in major pairs
- Cryptocurrency traders interested in a simple platform
- Simple platform is easy to operate
- Comprehensive mobile app mirrors desktop functionality
- Coinbase Earn feature rewards you with crypto for learning about available coins
- Higher fees than competitors
Best Crypto Wallets for Filecoin
Best Hardware Wallet: Ledger Nano S
Ledger is an industry leader that has been selling cryptocurrency wallets since 2014. The company offers two products: the Ledger Nano S and the Ledger Nano X. Both wallets serve the same function, but the Ledger Nano X has Bluetooth connectivity, making it much easier to connect to your laptop or smartphone.
However, the Ledger Nano X comes in at a premium over the Nano S. The Ledger Nano S is less than half the price of the Nano X, making it an affordable option for most cryptocurrency investors. If Bluetooth connectivity is a must for you, then it may be worth it to fork over the extra cash for the Ledger Nano X.
Best Software Wallet: Coinbase Wallet
Coinbase Wallet is among the most technologically advanced software wallets available. It’s free to download on iOS and Android, and it’s a separate application from Coinbase’s exchange. The application lets you swap cryptocurrencies directly from your wallet, adding a level of security you otherwise wouldn’t have.
Trade, Sell or Convert your Filecoin
The easiest way to convert your Filecoin into other cryptocurrencies is through Coinbase. Coinbase lets investors swap their cryptocurrency for any altcoin available on its platform, free of charge. However, converting your cryptocurrency constitutes a taxable event, so make sure to keep track of your trades.
When you want to sell your Filecoin, you’ll need to send your coins from your cryptocurrency wallet to your exchange of choice. As long as your bank account is connected to your crypto exchange, you’ll be able to transfer your funds to and from your bank as you choose.
Current Crypto Prices
The cryptocurrency market as a whole has been extremely volatile. With Tesla CEO Elon Musk suspending Bitcoin transactions for Tesla’s electric vehicles, many speculators sold their cryptocurrencies. This of course led to lower cryptocurrency prices. However, crypto has recovered more than 20% to the upside since its lows, enticing new investors to buy in at a lower price.
Is Filecoin a Good Investment?
Even after plummeting over 50% in value, Filecoin still outperformed almost any other asset you could have invested in over the last year. With the cryptocurrency’s market cap valued at about $5 billion, some investors think it’s too late to buy the digital asset. However, if Filecoin can succeed in its goals to decentralize data, it’s likely the cryptocurrency’s market capitalization will continue to increase.