Filecoin is a blockchain-based digital storage marketplace that allows its users to buy extra space for storing their files with the help of its native currency, FIL, or to rent unused hard disk storage and be rewarded for that. This cryptocurrency gained prominence and had a price growth after computer hardware giant Xinyuan Technology announced investing in it.
If you want to invest in Filecoin and don't know how to start, this guide is for you. In this article, you will be introduced to this cryptocurrency and its purpose; you will also be guided on how to buy Filecoin in the USA, learn about Filecoin price growth and price predictions.
What's in This Guide?
- QUICK GUIDE: HOW TO BUY FILECOIN IN THE USA
- What is Filecoin?
- How Filecoin Works and What Affects its Price?
- Is Filecoin a Buy Right Now?
- How to Buy Filecoin Online in the US - A Step-by-Step Guide
- How to Trade Filecoin in the US - A Step-by-Step Guide
- Filecoin Advantages and Disadvantages
- What is Filecoin Price Prediction?
- How Can Filecoin Change the Digital Storage Industry?
- How Do I Mine Filecoin in the US?
- What is the Total Supply of Filecoin?
- Things to Consider Before buying Filecoin in the US
QUICK GUIDE: HOW TO BUY FILECOIN IN THE USA
- Open an account with a cryptocurrency exchange.
- Verify your account.
- Go to the deposit section
- Go to the platform and select Filecoin.
- Enter how many Filecoins you want to buy.
- Check the details and confirm your purchase.
What is Filecoin?
Filecoin is a decentralized alternative to purchasing storage from such biggest companies as Amazon, Microsoft, DropBox, etc. The platform enables you not to trust all your important data to just one company, but your files are split up and stored on various computers throughout the world.
The project launched in 2017 and gained over $250 mln in its Initial Coin Offering, but the concept was first introduced in 2014 by Juan Benet, who released the whitepaper "Filecoin: A Cryptocurrency Operated File Storage Network." Filecoin is built on top of IPFS, which unlike its competitors HTTP or HTTPS, which rely on centralized servers, offers a peer-to-peer network for storing and retrieving your data.
Presently, Filecoin is ranked the 16th largest cryptocurrency in the world according to CoinMarketCap with market size of slightly over $9 billion.
How Filecoin Works and What Affects its Price?
There are basically two groups of people on Filecoin - Filecoin clients who buy storage and Filecoin miners. The latter can be of two types - those who help the clients store their data are called storage miners, and those who support them retrieve their data are retrieval miners.
Storage miners offer their unused storage and set their own prices. This makes the market more competitive, so the client has the opportunity to buy the same thing at different prices and make a deal at a more affordable price.
In addition, by being paid from clients, storage miners also get rewarded with a FIL token for a new block. Whether the miner will be rewarded with a new FIL token or not depends on their activity on Filecoin and the amount of storage they contribute to the platform.
The client's data gets split up and stored on different computers, making it more reliable and less possible to be hacked. Clients can see that their data is appropriately stored at any time and also request their data for which they need to pay. Retrieval miners help the clients to get access to their data and get rewarded for this.
The diagram introducing how Filecoin works, source: filecoin.io
When we look at the Filecoin price charts, we see relatively stable growth in 2020. The crypto started 2021 with relatively low prices, having dropped to $21, then it jumped to $41 in February and then again started to fall. But Filecoin had a significant growth starting from the middle of March. This high growth is associated with the announcement that the China-based computer hardware company Xinyuan made a massive investment in it.
Filecoin price history, source; crypto.com
Usually, in the case of any crypto, the prices go up when it catches a public interest. Filecoin offers a new alternative for storing the marketplace, which has all the potential to gain significant interest.
Is Filecoin A Buy Right Now?
The cloud computing market is growing pretty quickly, but it is dominated by a few giant companies, including Amazon, Google, Microsoft, and Alibaba. The problem with these companies is that they only offer centralized networks for storing your storage. This means that they only rely on one server, and if that server is hacked or goes down, you are likely to lose control over your data.
Filecoin, in contrast, offers decentralized storing cloud service aiming to control those risks, which makes this crypto an attractive investment.
Cryptocurrency analysts consider Filecoin a good long-term and short-term investment. So, you can buy it also for trading and make a profit from its price fluctuations or buy and keep it if you are convinced that it has the potential to bring you significant returns.
Nonetheless, while Filecoin has a good product, investing in digital currencies such as Bitcoin, Ethereum, or Filecoin is considered a “high-risk reward” investment. Cryptocurrency prices are generally volatile and the future of cryptocurrencies is still uncertain at this stage.
Read More: Filecoin Price Predictions
How to Buy Filecoin Online in the USA - A Step-by-Step Guide
If you already have learned what Filecoin is and how it works, analyzed its price history and predictions, and are eventually ready to buy it, here is a step-by-step guide on how to buy Filecoin in the United States.
1. Find a USA Regulated Crypto Exchange that Supports Filecoin
So, if you want to buy Filecoin in the US, your first step is to find a crypto exchange that supports US investors and allows you to buy and sell Filecoin.
Here are two of the most well-known ones.
eToro: supporting trading over 17 cryptocurrencies, eToro is one of the most well-known exchanges in the world. One of its benefits is that it offers lower exchange fees for its users.
Coinbase: Another well-known cryptocurrency exchange and wallet provider in the US is Coinbase which has robust security and offers reasonable fees. Coinbase is also easy to use and supports a large number of cryptos.
2. Register for an Online Account and Fund Your Account
After choosing the exchange platform you want to use for buying Filecoin, the next step is about creating an account.
In this part, you must provide some information and verify your identity with a copy of your ID. As long as crypto exchanges require you to deposit a minimum amount of money to allow you to trade, you should fund your account before making a buy.
Otherwise, you can make an instant Filecoin purchase with a credit or debit card or any other e-Wallet payment solution.
3. Buy Filecoin
Finally, if you already have an account and deposited funds on it, you can buy Filecoin.
You can buy Filecoin directly, or you can exchange it with other cryptos, including BTC and ETH.
4. Transfer Your Funds to a Hardware Wallet
After purchasing your coins, you can keep them on your exchange platform, however, it is better transfer them to your hardware personal wallet.
It's a more secure way to store your coins, and you have more control over them. From the two above-mentioned crypto exchanges, both eToro and Coinbase provide a personal wallet .
How to Trade Filecoin in the US - A Step-by-Step Guide
After having your Filecoin, you can keep it for long-term investment and make a profit in the future in case the coin appreciates in value, or you can make use of its price fluctuations and trade this cryptocurrency.
If you want to know how to start buying and short selling your coins, here is a step-by-step guide on how to trade Filecoin in the USA.
1. Find a US Online Trading Platform that Supports Filecoin
To start trading Filecoin, you need to find a broker platform that supports Filecoin trading in the US.
There are two things to consider before making a final decision - first, choose a platform with relatively low trading fees and, second, select the one that is easy to operate. Among the two platforms that allow Filecoin trading and support a trading platform that is suited for active trading in the US are eToro and Gemini.
2. Fund Your Account
After creating your trading account, you obviously need to fund it. Both Kraken and Gemini (only US Dollar) accept trading with fiat currencies, so there is no need to transfer it on any other crypto first.
3. Develop a Trading Strategy - Scalping/day trading/swing, etc
Now, it's time to choose a trading strategy that you want to follow while trading your Filecoin (or any other coin) in the US.
You can choose among some trading strategies - swing trading, scalping, day trading, etc. If you want to get a small but rapid profit, you can select scalping. It's a trading style in which you buy and sell trades quickly, usually within a few seconds.
Day trading is another trading strategy in which you buy and sell cryptos within the same trading day. Another famous trading strategy is swing trading that attempts to bring some profit over a period of some days to a few weeks.
Notably, these trading strategies often minimize risk as you have the ability to control your daily profit and loss and thus create a risk management plan.
4. Start Trading Filecoin
As long as you have an account now, deposited your funds, and have a trading strategy, you can start trading Filecoin. But, if you still cannot make it up whether it would be a good investment or not, continue our guide and additional sources online to find out more about this cryptocurrency.
Check Out: Could Filecoin be a Millionaire-Maker Coin?
Filecoin Advantages and Disadvantages
Here are some advantages and disadvantages to take into account before making a final decision about buying Filecoin.
- Filecoin recently stands out with a strong business plan.
- It has started to gain much more public interest recently.
- Crypto analysts predict a considerable rise in Filecoin price in 5 years.
- You can use FIL tokens not only for trading but for buying extra storage based on a decentralized network.
- Filecoin has giant competitors in the storage computing industry.
- As long as the files are split up and stored on different computers, it still needs to improve the retrieval speed.
Filecoin Price Predictions
Crypto analysts foresee a stable growth for Filecoin prices. Let's have a look at their predictions.
According to the Long Forecast analysts, Filecoin will close 2021 at $266 while the highest closing price is $280 and the lowest closing price is $133. If we take a look at its long-term forecasts, we see a Filecoin grow up to around $552-$607 in May 2025.
Long Forecast predictions for Filecoin, source: longforecast.com
Digital Coin Price also forecasts a positive growth for Filecoin. According to them, the price of Filecoin will reach $229 in a year, up to $574 in 5 years, and up to $724 after 7 years.
Wallet Investor predictions look more promising for Filecoin investors. They see a potential rise from $151 up to $366 in one year. Meanwhile, they foresee that the price of Filecoin will hit the $1,000 level in five years and reach $1,200 in 2026.
How Can Filecoin Change the Digital Storage Industry?
One of the most significant changes that Filecoin aims to solve is to make a digital storage industry decentralized. The latter provides more reliability for your data storage. As long as there is no central server, it cannot be hacked. Instead, the network is created with various different computers that contain a piece of your data.
This makes it impossible for anyone to rearrange it, and any malicious case will be noticed automatically and deleted from the network.
Another great change that Filecoin aims to bring is to make the digital storage industry more competitive. Now, there are some giant companies offering cloud storage. On Filecoin, the storage miner sets its own prices, and the same thing can be sold at different prices. The client can navigate and find the most affordable deal.
How Do I Mine Filecoin in the US?
The process of Filecoin mining is different from that of Bitcoin mining. While in the case of BTC, mining rigs are required to have supreme calculation power, Filecoin mining is just about renting out your unused storage space.
Also, Bitcoin mining is highly electricity-consuming, so it is mined in such places where the electricity bill is lower. But you can mine Filecoin at home, as long as you have mining rigs, a good internet connection, and a hard drive.
To start mining Filecoin in the US, you just need to open your personal Filecoin wallet and then link it to the official mining software. After you get a FIL token, it will be automatically stored on your Filecoin wallet, and you can check it at any time on your phone.
What is the Total Supply of Filecoin?
The maximum supply of Filecoin that will ever exist is 2 Billion Filecoin coins. But this will be released over decades, much like in the case of Bitcoin.
Things to Consider Before Buying Filecoin
There are some things to consider before investing in Filecoin. First of all, you need to analyze how it works and what problem Filecoin eventually tries to solve. Then, consider also whether this cryptocurrency offers something that can draw a vast amount of attention to itself. This will make Filecoin more appealing with more and more people investing in it.
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