How To Buy Filecoin (FIL) - Beginner’s Guide
A step-by-step guide to Buying Filecoin FIL Cryptocurrency
If you are looking for the best ways to invest in Filecoin cryptocurrency, this guide on how to buy Filecoin will help you find the answers. We'll Suggest the most effective investment platform that offer you to buy Filecoin. We'll also include a tutorial on how to open an account and invest in FIL
Within the last year, we have seen Filecoin enter the sphere of online cryptocurrency trading - quickly establishing itself as a highly profitable digital coin.
Filecoin was first developed by Juan Benet at Protocol Labs and is built on top of a peer-to-peer network named the Interplanetary File System (IPFS). Filecoin (FIL) is an open-sourced cryptocurrency and digital payment method that fuels the network of the same name.
The platform was designed to become a decentralized storage protocol with the primary objective of being able to “store humanity's most important information.” Think along the lines of an old-school filing system but magnified into the digital era.
If Filecoin is something you are interested in investing in, then this beginner’s guide is for you.
We break down exactly how to buy Filecoin and what to look for in an online broker - ensuring you have the best chance of profiting from this popular coin.
- How to Buy Filecoin Quick Tutorial
- Step 1: Choose an Online Filecoin Broker or Exchange
- Step 2: Come up With a Filecoin Investment Plan
- Step 3: Open a Filecoin Broker Account
- Step 4: Deposit Some Funds
- Step 5: Set up a Filecoin Order
- Step 6: Storing Your Filecoin
- Step 7: Selling Your Filecoin
- How to Buy Filecoin - The Verdict
How To Buy Filecoin (FIL) In 5 Easy Steps - Quick Tutorial
For anyone looking to jump right in, here is how to buy Filecoin in 5 easy steps.
- Sign up with a regulated online cryptocurrency exchange.
- Fund your account.
- Find Filecoin from the list of available cryptocurrencies.
- Enter the amount of Filecoin you want to buy.
- Confirm your choices, and open your trade.
Your Filecoin tokens will be instantly added to your account portfolio. Moreover, you can buy Filecoin with as little as $25 on the platform.
Step 1: Choose An Online Filecoin (FIL) Exchange
When looking at how to buy Filecoin, it is crucial to find a reputable and transparent online broker. By doing this, you will ensure that your investments are being treated with top-level security protocols.
After all, your chosen broker will be the one to execute trades on your behalf, therefore handling your hard-earned capital.
With this in mind, let us have a closer look at what we believe are the most valuable points when researching your broker.
The first point we feel needs more recognition when exploring how to buy Filecoin is the regulation status on any particular brokerage site. As some may already know, it is possible to purchase and trade Filecoin on a third-party cryptocurrency exchange.
However, this is not something we would promote, as there is a high chance that the necessary bodies do not regulate the exchange in question. Therefore, a more significant opportunity for security breaches to happen.
This means you may never know if your trading capital is at imminent risk. Even if the unregulated exchange has the soundest intentions for their clients, you would not have any financial protection if something were to go wrong.
Suppose you are looking to protect your investments while still having the freedom to trade in the cryptocurrency markets. Then choosing a broker regulated by esteemed bodies such as CySEC, ASIC, and the FCA should be a top priority.
Here are some points on why this decision is essential when it comes down to how to buy Filecoin:
- Regulated brokers give your funds the highest priority regarding security.
- These platforms must segregate their client's funds into banks that differ from their own. This offers top-tier security measures when partnering with banks.
- In some cases, a regulated broker will offer a compensation plan that provides extra protection to your trading or investment accounts.
In addition to protecting your trading money through the brokerage site - you must also consider where you will store your Filecoin tokens on a day-to-day basis.
- The best way to do this is by checking if your broker offers an in-house crypto wallet service. If they do, then you can secure your Filecoin there.
- By doing this, you can keep all your Filecoin investments in your brokerage platform - ensuring that all your trading assets are under the same cover.
The other option is to withdraw your digital funds from your broker and store them in a separate cryptocurrency wallet. Crucially, you would be responsible for the safekeeping of your Filecoin wallet password, otherwise known as the private key.
When you select your online broker, it is vital to choose a company that supports your preferred payment methods. There are multiple reasons for this; the first is that most unregulated exchanges only accept payments in the form of other crypto assets.
This payment method is no help if you plan to fund your account with a debit/credit card or an e-wallet such as Paypal or Neteller.
The following reason is that back in the younger days of the cryptocurrency market, you only had the bank wire transfer method. This transaction could take days or weeks to be processed depending on the exchange.
After years of development, rapid bank or e-wallet purchases have been a fond welcome into the crypto trading space. That is why we suggest looking at which payment methods your broker offers - ensuring there are no inconveniences when you buy Filecoin!
Fees and Commissions
Cryptocurrency brokers make their money by charging an assortment of fees and commissions. These fees allow you access to the crypto market, in turn giving you a gateway to buy Filecoin with ease.
That is why we suggest thinking about your investment goals and what costs you are open to paying sooner rather than later. Although most online brokers offer a wide range of fees, these can quickly add up and start eating into your profits.
As we mentioned above, the fees that crypto brokers charge can differ with each position - in most cases, they will fluctuate based on the trade size. This is why when it comes to looking at how to buy Filecoin, it is imperative to do your research on the fees involved.
To give you a clearer picture of how these prices will vary when you buy Filecoin online - we have included an example below:
- Let us take Gemini as an example; you are subject to pay up to $2.99 on any order that amounts to between $1 to $199. Anything after this holds a 1.49% commission fee.
- As such, you must pay this when placing both a buy and sell cryptocurrency order.
- To give you an example, if you were to place a $500 buy order - you would incur a fee of $7.45 (1.49% of $500).
- As such, if you were to increase your order to $2,000, your commission would add up to $29.80.
To help show you how the fees might work when you buy Filecoin, we have elaborated below:
- You decide to buy $1,500 worth of Filecoin.
- Based on Gemini's fees, you would pay a fee of 1.49% of this amount ($22.35)
- The market shifts, and now your Filecoin investment is now worth $2,200.
- You now decide to cash out; you now have to pay the 1.49% commission once more - this comes to $32.78.
- So at the end of your Filecoin investment, you have spent $55.13 on commissions alone.
What is evident from this example is that these nominal fees can slowly but surely add up to a more significant sum. Additionally, it would be best to look out for any other costs involved, such as the spread, withdrawals, or deposits.
In order to better protect your profits, you can also find online brokers that charge you a 0% commission fee. Just remember to make sure that they offer your desired cryptocurrency coin! eToro, for example, offers more than 40 cryptocurrencies that you can buy and sell without paying any commission at all.
Other Important Factors
Although we have covered the more prominent factors you need to consider, these are not the only aspects determining the performance of a crypto broker.
If having a smooth user experience is essential to you, then be sure to look out for these points below:
- User-Friendliness: The user-friendliness of any website or company can be one of the main reasons people stay a customer in the long term. This critical component can determine how easy it is for you to navigate the brokerage site and, more importantly, place your Filecoin buy orders. Any good Filecoin broker will have an easy-to-use interface to ensure it is attracting both novice and experienced crypto investors.
- Minimum Investment: Like the fees and commissions we mentioned, broker platforms can also have a minimum investment requirement in place - $0 straight into the hundreds. That is why it is always helpful to check what the minimum investment amount is with each broker.
- Storage: As we mentioned previously, you need to have an idea of where you are going to store your Filecoin tokens. Some brokers will come with a crypto wallet embedded in their website or app. These wallets will allow you to keep your digital currencies under one roof at no extra cost. This will ensure that you do not need to search for a new provider to find a secure platform for your money.
Read Also: Is Filecoin A Good Buy?
Step 2: Come Up With A Filecoin (FIL) Investment Plan
When you are exploring how to buy Filecoin, it is essential to have a practical investment plan in mind. This plan will allow you to execute trades with your goals as the top priority. Crucially, by leaving your emotions at the door - you can focus on staying consistent if the market were to shift unexpectedly.
In the highly volatile world of crypto trading - timing is indispensable. Even though higher risks may result in more significant profits -the market can turn in the opposite direction in a matter of minutes.
That is why any long-standing crypto trader will tell you to get your investment objectives in order as soon as possible. For anyone who is just beginning, we have highlighted some current Filecoin investment strategies for you to contemplate:
Long-Term or Short-Term
While researching how to buy Filecoin and creating your investment plan - you need to decide if you are looking to engage in long or short-term investing. If your goals are short-term - you would strive to profit on the shorter price changes of the crypto market.
For example, you may place a buy order on Filecoin with your chosen broker - then proceed to cash out within the space of a few days to a few weeks. As we mentioned above, cryptocurrencies are known to favour a highly unpredictable market; that is why you will see prices fluctuate each and every second.
Therefore if you can time your Filecoin buy orders accurately - it is more than possible to make profits from short-term trading. On the other side of the board, you have long-term investing. This strategy would mean you wouldn't need to keep an eye on the short-term movements of Filecoin quite as much.
Alternatively, all you would need to do is 'buy and hold' your Filecoin for an extended period of time. That is to say, when you feel the time is right for you, you may withdraw your position and maximize your gains that way.
Target Filecoin Price
Another strategy some traders use is setting a target price. This may be beneficial when creating your investment plan. This target price will help you maintain clear objectives when purchasing Filecoin.
To give you an example,
- Suppose you invest in Filecoin at an entry price of $50
- You then set a goal to double your investment.
- Therefore you want the value of Filecoin to grow to $100
- If you wanted to go ahead and triple your investment - your target price would be $150, and so on.
These targets may seem like a challenging goal initially. However, keep in mind that the price of Filecoin has continued to increase at a rapid pace since it was launched.
To give you an example; On the 1st of January 2021, Filecoin had a market price of $24.36.
In April, just four months later, the price has sky-rocketed to $237.24. This is an approximate increase of over 870%. This shows us that anything is possible in the crypto market!
Don't Miss: Filecoin Price Predictions
Consider Regular Investments
The central premise of trading is usually associated with staking more significant sums of money on a single asset. This approach is not the only way to make profits in the crypto space; you can make smaller, more consistent investments.
For instance, you could buy Filecoin by injecting smaller amounts more regularly - rather than risking all of your built-up trading capital at once. This method is undoubtedly slower and more reserved, but it allows you to minimize any potential risks.
Because the crypto market can be highly volatile, it is feasible that you can achieve profits within a shorter time, such as weeks or months.
If you plan to use this approach, you will need to find a crypto broker with its minimum investment on the lower end of the scale. This approach allows you to execute smaller sums on Filecoin purchased without risking large amounts.
Step 3: Open A Filecoin (FIL) Broker Account
Now we have covered the strategies you need to consider when selecting a crypto broker - we can show you how to buy Filecoin and the following steps you need to take. The process is similar to setting up an account with any business in the online community.
- All you need to do is choose which broker you want, ensuring it is regulated and currently providing a market on Filecoin.
- You then would proceed to the sign-up page and enter any necessary personal details that it requests: name, phone number, address, and date of birth.
- Regulated brokerage sites will also require a photo ID such as a passport or national identity card.
- If proof of your residential address is demanded - you are generally able to present a utility bill or bank statement.
If you have access to all the required documents, the broker can complete this progress promptly. You then will have your new broker account and be ready to start buying Filecoin!
Step 4: Deposit Some Funds
This step is self-explanatory. When you have your account open, you will need to deposit some funds. Select your preferred payment method from the options your broker has to offer.
One of the most immediate ways to make a deposit is with a credit/debit card or an e-wallet like Paypal. There are options for wire transfers; just keep in mind this can take a bit longer to show in your account.
Step 5: Set Up A Filecoin (FIL) Order
You now have your very own broker account and funds to start your investing journey. The next step is to place your first order on Filecoin.
There are different styles of trading orders, each with a specific way on how to enter the market. We have included the most common and how they work in the sections below.
When reviewing how to buy Filecoin, you will see a large percentage of investments require you to use a buy order to enter the market. For example, you think that the price of Filecoin is due to increase; therefore, you would arrange a buy order via your broker.
Now say, the market fluctuates, and you want to cash out - you would then set up a sell order to lock in any profits you may have.
With that being said, there is another type of order in the form of short-selling'. This allows you to place a sell order when the price of Filecoin decreases - with the aim in mind to repurchase them at a lower price.
When you repurchase Filecoin at a new and lower price, you will set up another buy order.
Limit or Market Order
If you are a beginner at crypto trading, then there are two more common options for entering the market. These are the limit and market orders. While they are very different from one another, they each serve their purpose.
Let us look at what the limit order involves and how you might come to use it when looking at how to buy Filecoin.
In a nutshell, a limit order instructs your broker at the specific price you want to enter the market.
To give you a more straightforward example:
- Let's suppose you want to buy Filecoin, which is currently priced at $150.
- However, you are looking to enter the market at $155.
- Then you would generate a limit order at the price of $155.
- If Filecoin rises to your chosen limit order price, your broker will carry out your order.
- If Filecoin fails to hit the limit price you entered, then the position will continue in a pending state. You can go ahead and manually cancel the order if needed.
The other option would be the market order. This strategy allows your broker to execute your trade at the next available price. That is to say, if a new trading opportunity had occurred - then you would use a market order to secure your next entry price.
- A market order allows your broker to enter the market immediately.
- For instance, Filecoin is priced at $130 and you want to buy at that price straight away.
- You would place a market order via your broker to buy Filecoin at this price.
Depending on your investment plan and the price movement of Filecoin - you can decide which order suits your needs best.
We have highlighted the value of setting up trading goals throughout our how to buy Filecoin guide. Perhaps one of the most important details of your trading plan is knowing how much you want to invest in Filecoin.
As mentioned previously, you can opt for a short-term goal and stake smaller amounts to create more consistent Filecoin purchases. Or, go for a long-term plan and stake a more considerable amount intending to buy and hold until the time is suitable for you.
Let's recap; you should now know how to open an account with an online broker—the pros and cons of each investment strategy and, most importantly, how to place your Filecoin order.
When you are more comfortable in your investment decisions - you can go ahead and confirm your order. Before you know it, you will see your new Filecoin tokens included within your investment portfolio!
Step 6: Storing Your Filecoin (FIL)
In a contrast to how we store our day-to-day fiat money in bank accounts, cryptocurrencies are kept in digital wallets. As we mentioned earlier, you have two options when it comes to managing your trading capital.
The first is a third-party exchange - however, these are usually unregulated and put your assets at risk of security breaches. The alternative is choosing an online broker that equips you with a digital wallet through its website.
Remember to select a regulated brokerage site so you can confidently entrust it with your Filecoin profits.
Step 7: Selling Your Filecoin (FIL)
When discovering how to buy Filecoin, the main goal is profit in whichever direction the market is moving your investment. In most cases, online brokers allow you to buy and sell Filecoin smoothly and conveniently.
This decision means you can store all your assets in one wallet until you feel it is the right time to withdraw your Filecoin.
When it comes to withdrawing - you can exchange your Filecoin for fiat currency on a regulated platform.
You would then need to transfer the money back to the payment method you opted for when placing your orders. For example, the selected bank account, debit/credit card, or e-wallet.
Check Out: Could Filecoin Be A Millionaire-Maker Coin?
Other Ways To Buy Filecoin (FIL) In 2022
There are a couple of other methods that you can use to invest in Filecoin.
We have included these below for your convenience:
Buy Filecoin Debit Card
You can use your daily bank card to buy Filecoin instantly. As odd as it may sound, you can now buy cryptocurrency alongside your online shopping - the processes are very similar!
All that is needed is to specify how much Filecoin you want to buy, and your broker will complete the transaction for you. When you decide you want to sell your coins, the broker will transfer the money back to the debit card used to make the initial purchase.
Buy Filecoin Credit Card
If using a credit card to buy Filecoin is what you are looking for, this is also doable. The process is the same; however, you will need to verify the 'cash advance fee' before making any purchases.
Credit card companies sometimes use this fee if a brokerage-based transaction has been identified - it amounts to around 3%.
Buy Filecoin Paypal
In addition to bank cards, another modern method you can use to purchase Filecoin is an e-wallet. You can have several choices with this design, such as Skrill, Paypal, Apple Pay, Neteller, and many others.
However, you will need to check to see which ones your broker has to offer.
If you are an absolute newbie to the world of cryptocurrency, then this one may blow your mind. A crypto ATM operates in the same manner as a regular one - but when you insert your cash, you will receive cryptocurrencies in return.
Of course, not in a physical form but instead added to your digital wallet. This is achieved by scanning a QR code with your mobile phone.
It is worth noting that not every ATM will offer Filecoin. Furthermore, these machines tend to come with a high processing fee, which can reach up to 20%.
Read Also: How To Make (Or Lose) Money With Filecoin?
How To Buy Filecoin (FIL) In 2022 - The Verdict
We hope that our extensive guide on how to buy Filecoin has equipped you with all the data you need to start your investment plan.
To summarize, always ensure you select an online broker currently regulated by at least one financial body. Be sure to research what fees, commissions, and storage options your broker offers, too. And finally, make sure to select a payment method that is suitable for your needs!
Now all you need to do is buy File at your chosen broker!
eToro – Best Cryptocurrency Platform To Buy Filecoin
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
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