Will Filecoin asset make me rich? Realistically, it depends. If you were one of the lucky few who snagged some Filecoin in its ICO, it's still a good bet. If you can get your hands on FIL tokens at a reasonable price right now, you may also be able to enjoy some gains by either trading or holding.
Filecoin is currently priced at $28.62 and has a market cap of 4 billion dollars. It is ranked #38 on Coinmarketcap. The volatility of the price makes it hard to predict, but history shows that this token might not be for short-term investors.
The price started at close to $10 post-ICO and has grown steadily since then, with some interesting dips along the way. It will likely increase in value as time goes.
It is possible that short-term investors will be able to make a lot of money, perhaps in the thousands of percent when compared to an initial investment, but they run the risk of losing it all just as fast.
Long-term investments and holding this token for at least 12 months will most likely yield better results due to the high volatility of the coin.
Read Also: What Is Filecoin? Should You Invest In FIL And Where To Buy It?
Can I Make Money Investing In Filecoin?
That depends on your risk tolerance, but it's largely a matter of timing. The more Filecoin puts in place its many promises, the higher its price will soar.
Filecoin has set out to create the world's largest cloud storage platform. The amount of money that companies are spending on data is just staggering. By some estimates, data storage spending might surpass $42 billion by the end of this year in the US alone.
There are billions of people trying to save pictures, videos, and other files online every day. And there are trillions of dollars worth of data stored online at any one time.
Companies are hungry for safe ways to store their data, which is why the Filecoin ICO generated so much buzz.
What makes it brilliant is that you can participate in the storage network without giving up control of your computer. Instead, your computer will become a node on the network, storing other people's data and earning Filecoin for its work.
With a huge market opportunity and big-name backers, there is no doubt that the technology has potential. However, with any investment, there is always a risk that it will fail to meet expectations or won't grow as quickly as intended.
If the promise of a decentralized network sounds appealing to you, and you'd like to invest in Filecoin, there are ways to do so. The most obvious is through the purchase of its native token, which is essentially a share of the network.
To give you a rundown, here are three common ways you can make money with Filecoin.
Trading FIL tokens
You can trade FIL tokens on some of the leading exchanges, such as Binance and Bitfinex. Just be sure to research any exchange before deciding to use it. Although not as common as investing directly in a cryptocurrency, you will likely be able to find ways to buy and sell FIL tokens with your country's currency.
We recommend trading if you are knowledgeable and know how to study the market. Otherwise, you may lose a lot of money since this strategy is a bit risky.
And if you are risk-averse, perhaps you should try the 'safer' alternative, which is buying and holding FIL tokens.
HODLing FIL tokens
You can always purchase FIL tokens and store them in a digital wallet. The process is straightforward, and you should be able to easily buy and sell tokens if you wish to give your investment a test drive before committing.
Holding tokens is much less complicated than trading, and we recommend it if you are just starting out.
However, you should know that the process of buying and storing cryptocurrencies can be daunting because you need to select a wallet and educate yourself about how these tools work.
The idea is to choose a secure wallet that allows you to store your FIL tokens.
If you decide to go this route, be aware that some wallets are compatible with certain exchanges while others are not. It's important to choose a wallet that's easy for you to use and also one that is compatible with any other wallet or exchange you wish to use in the future.
Sharing Storage Space with Other Users
This is another great way to make money with Filecoin, but it requires a strong technical background. In exchange for providing storage space, other users will compensate you with FIL tokens.
To get started, you must have a computer that is always on and connected to the internet. This way, other people can use your storage space whenever they need it. You should also be sure to encrypt any files you upload.
If you're interested in this approach, be aware that it can lead to a significant amount of stress and sleepless nights as you will be responsible for the security and integrity of other people's data as well as your own.
In other to be competitive, you will need to provide your services at a cheaper fee without compromising speed and security.
Check Out: Is Filecoin Safe?
Will Filecoin Eventually Reach $100?
Filecoin has previously surpassed $100 per coin, so it's possible it might achieve that milestone again.
However, like any other investment, it also faces many risks and challenges. Not only is the crypto market highly volatile, but Filecoin also faces stiff competition from other cryptocurrencies like Storj and Siacoin.
If you buy FIL tokens at their current price of $28.62 per coin, it may be a very expensive gamble as there are no guarantees that the value will rise.
However, if you're a risk-taker and want to make a profit, Filecoin may be a good investment.
The main thing you should consider is how much you can afford to lose before exiting your position.
For example, if the value of your investment falls below what you paid for it, sell at least some of your FIL tokens so that you don't lose your entire investment.
Otherwise, the coin might ultimately reach and surpass $100 per coin, although we can't tell exactly when that will happen.
Where Will Filecoin Be In 5 Years?
It's impossible to say where the price of FIL tokens will be in 5 years, and if you're looking for a prediction, this isn't it. The best we can do is make educated guesses.
There are too many variables to accurately predict how much money you might make by investing in any cryptocurrency. To start, Filecoin may face stiff competition from other storage providers, especially for users who are just looking to buy extra storage space.
However, if you're willing to take on the risk of investing in FIL tokens, your best bet may be to look for ways to contribute and help build the Filecoin network. This approach can be extremely profitable since it doesn't rely solely on the price of FIL.
This is the best way to secure your investment over the long term.
We say this because, in the next 5 years, Filecoin would probably have made a lot of strides and become the leading platform for decentralized file storage.
Check Out: Filecoin Price Prediction for 2025 and 2030
Is Filecoin A Good Long-Term Investment?
Filecoin is definitely a good long-term investment. Over time, it's possible that the price of FIL tokens will go up and reach $100 or more.
However, this isn't likely to happen anytime soon since there are still several barriers for would-be investors, like lack of liquidity and transparency.
As these issues get resolved, it's possible that more people will become interested in the project, which could fuel the price of FIL tokens.
As an investor, all you can do is wait for this to happen so you can sell your tokens at a higher rate if it does.
If you are patient and don't mind waiting several years before seeing returns on your investment, cryptocurrency like FIL is definitely a good long-term investment.
Conclusion: Should I Buy Filecoin?
You should only consider buying Filecoin if you are willing to wait several years before seeing any returns on your investment. If you're more concerned about making some money in the coming months, this might not be for you.
Instead of chasing quick profits, focus on investing in cryptocurrencies that have strong fundamentals and a promising long-term future instead.