How and Where to Buy Filecoin (FIL)
American computer scientist Juan Benet founded Protocol Labs in May 2014. Benet is a graduate of the prestigious Stanford University. Later, he created the Interplanetary File System (IPFS) as a protocol for sharing and storing data in a distributed file system via a peer-to-peer network.
In their 2017 ICO (initial coin offering), Filecoin (FIL) raised over $200 million. The mid-2019 launch date for the Filecoin mainnet was delayed until October 2020, after block 148,888 was finally completed.
What Is Filecoin (FIL)?
Filecoin (FIL) project is a decentralized, open-source blockchain-based protocol. It uses proof-of-spacetime (PoSt) and proof-of-replication (PoRep) to record network users’ commitments via $FIL token transactions.
Filecoin (FIL) is a storage system for users to store data securely without the risks of centralized censure. Filecoin (FIL) storage potential includes:
- Podcast data
- Security archives
- Contract data
- Personal files
- App data
- Company files
- Public datasets
- Private data
- dApp websites
$FIL is the Filecoin project’s native cryptocurrency token.
What Makes Filecoin (FIL) Unique?
Centralized cloud storage companies like Cloudflare and Amazon Web Service can be problematic for users. There are risks of censorship, customer data loss, platform failure, and storage can be expensive.
The decentralized nature of Filecoin protects the integrity of the location of stored data, which means it is almost impossible to censor but easily retrievable. In effect, Filecoin users become their own custodians.
Filecoin users win more block rewards by participating in the network by storing and mining data.
“Filecoin cryptographically verifies that a unique encoding of your data exists in physical storage in the world… over time.” – Filecoin website.
Proof of Replication (PoRep)
Based on “Sealing“, which is a gradual and sequential process that generates an encoding of the data, a unique replica for each miner who must submit public proof of existing data in physical storage.
Proof of Spacetime (PoSt)
Proof-of-spacetime (PoSt) is a similar concept to proof-of-stake (PoS), but instead of staking coins, the actual “stake” is the proven storage used to establish the probability of a miner mining a block. The proof structure is built-in “which consensus is achieved through an operation yielding positive social externality: data storage.”
Over a period, Filecoin randomly selects miners to challenge random proofs of spacetime sectors from which “data is read and compressed into PoSt proof.” Miners must provide public proof in the same manner as with PoRep.
- Filecoin has a superior network – combined with IPFS, it’s secure, efficient, and censorship-free
- Highly competitive pricing – compared to centralized storage, Filecoin storage is economical
- Authentic and secure – cryptographic storage proofs provide peace of mind
- Customized – you can create bespoke storage options
- Ecosystem for developers – Filecoin continues to grow the range of providers, integrations, and tools
Filecoin’s current client base includes Wikipedia, Project Gutenberg, OpenAQ, OpenStreetMap, and gnomAD.
How and Where to Buy Filecoin (FIL)?
Before buying Filecoin (FIL), it’s essential to register with a trustworthy cryptocurrency exchange. As the world’s largest crypto exchange by trading volume, we recommend Binance as a reputable platform to start crypto investing or trading:
- Open an account with Binance – register your details and submit documentation for KYC compliance and gain access to all services on the platform
- Find the “Deposit” tab – you can deposit with cryptocurrency or by wire transfer, Mastercard, or Visa for fiat currency
- Choose an available $FIL currency pair – on the Binance exchange, the pairs available are FIL/USDT, FIL/BUSD, FIL/BTC & FIL/BNB
- Send your $FIL tokens to a secure wallet – You can use the free exchange wallet or the mobile app wallet (Trust Wallet) or use an existing wallet if you have one that supports Filecoin (FIL)
How do I Sell Filecoin (FIL)?
Binance makes it easy to sell your Filecoin (FIL) tokens:
- Go to the trade section and sell your $FIL tokens for $USDT
- If you want to convert to fiat currency, send the $USDT to a suitable off-ramp platform (Coinbase or Gemini have a broad range of fiat currencies) if Binance withdrawals are not permitted in your country
- Once the $USDT is in your off-ramp account, convert to fiat and request a bank transfer, and that’s it. You can now enjoy the profits you’ve made with Filecoin (FIL)
Should I Buy Filecoin (FIL)?
We suggest seeking independent investment advice if you are unsure about buying Filecoin (FIL), as we are not qualified to advise you regarding cryptocurrency investments. If you decide to go ahead and buy $FIL tokens, we recommend using Binance, Gate.io, or Coinbase, as they are three of the top cryptocurrency exchanges online.
How do I invest in Filecoin (FIL)? Safely?
All financial investments are risky and cannot be classed as “safe“, and the cryptocurrency market is volatile. The best thing is to weigh up the risks and only invest what you can afford to lose.
Once you decide to invest in Filecoin (FIL), choose the best cryptocurrency exchange for your needs. Some platforms are ideally suited to beginners, and others are better for advanced investors and traders. Binance, Gate.io, and Coinbase are great platforms for beginners and those with more experience. The three recommended exchanges are easy to navigate, and all have secure wallets to store your Filecoin (FIL) tokens.