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How To Buy Filecoin Online in 2022

Last updated 13th May 2022
Disclosure

Filecoin is a decentralized file storage and sharing network that uses the power of blockchain technology to provide a secure service. The team behind Filecoin has a vision to store humanity’s most important information with their network. Moreover, using their services requires making transactions with their native coin FIL, which leaves a record of commitments made on the chain.

Today, we’ll cover important information regarding Filecoin to help you decide if it’s a great investment opportunity. This page goes over multiple payment options, key takeaways, and investment strategies.

Best Brokers To Buy Filecoin in 2022

Filecoin is an established cryptocurrency sitting in the top 50 of all coins. Therefore, multiple platforms provide exchanges for FIL at competitive rates. We’ve put together a list of the best options to purchase Filecoin below.

1
eToro
Minimum Deposit
$200
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

Key Takeaways

  • Filecoin is a decentralized file-sharing protocol. They have a completely unique product compared to what the overall crypto market offers.

  • Huge firms like Grayscale have investments in Filecoin.

  • Filecoin can see huge growth from the NFT market as it begins to support them on the blockchain.

  • Filecoin is planning to cut its production supply by 50%, making the coin more affordable and increasing demand.

  • This cryptocurrency specializes in storing important information with the power of blockchain technology.

What Is the Difference Between Owning Filecoin VS a Derivative Product

The best method of getting into crypto is buying coins and owning them yourself. This gives you complete control of your currency as you can stake, provide liquidity, and transfer them between accounts freely. Owning Filcoin means you have a portion of the available 147 million FIL, and no platform can control your assets.

However, derivative products like CFDs and ETFs let you invest in Filecoin without owning the coin. They take the current price of Filecoin and let you invest without needing to own the coin. Since derivatives are not real Filecoin, the owner cannot transfer them off the platform. The company that issued the CFD is in control of your money, and you rely on them to provide a fair service.

Different Ways To Buy Filecoin

Since Filecoin is a popular project, it’s available to purchase on various platforms. Take the time to research the options below, as availability depends on your location.

  • Brokers: Using a broker is an excellent way to get into crypto because they have easy-to-use interfaces. They let you invest in crypto while avoiding complicated trading platforms. However, brokers provide derivative products, so you won’t own the cryptocurrency.

  • Decentralized Exchanges: Those who want to buy Filecoin anonymously can use a decentralized exchange. It’s easy to use as you only need to connect your crypto wallet and select the coin you want to purchase. Avoid using ETH-20 based exchanges until Ethereum 2.0 comes out because they currently have huge gas fees.

  • Centralized Exchanges: Perhaps the best method to buy Filecoin is a centralized exchange because they have the lowest fees. Binance and CoinBase deliver the best user experience due to the straightforward process of buying Filecoin. They also have the best security and are regulated by respected authorities.

Where To Buy Filecoin

Selecting a platform to purchase Filecoin is an important step that you should not overlook. Choosing the perfect platform to meet your needs can become challenging with multiple options available. Thankfully, two major companies provide investment opportunities for FIL.

Binance

Binance is the biggest cryptocurrency exchange globally, with over 20 million users. The platform has low fees, letting you purchase more coins with your cash. You can withdraw your assets from the exchange to your crypto address, giving you full control of your assets. You’ll need to verify your identity with Binance to lift withdrawal restrictions.

Pros

Lowest fees in the industry
Huge coin selection
Multiple staking options

Cons

Live chat has unusable due to waiting times
Not available in the US
The verification process is slow

eToro

On the other hand, perhaps using a service like eToro is better for new crypto investors because of its easy-to-use platform. The crypto markets section has multiple investment opportunities, including Filecoin (FIL). Also, eToro has no complicated trading interfaces, making it accessible for less tech-savvy investors. However, with eToro, you’ll be buying a derivative product and not cryptocurrency.

Pros

Accessible for investors with little crypto experience
eToro has multiple layers of security
Interface is easy to understand for beginners

Cons

$200 minimum deposit required
Must verify your identity

How To Buy Filecoin Online?

Signing up for a cryptocurrency exchange is the easiest method to purchase Filecoin. Binance offers the best service for buying and withdrawing cryptocurrencies. Follow these steps to invest in FIL.

  • Step 1: Open the official Binance website and click the register button. This brings you to a page where you need to state where you live for KYC purposes. Afterward, select the option to create a personal account and input your email with a password.*Disclaimer: eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.*

  • Step 2: Click next, and Binance will send a verification email to your inbox. You’ll need to open it to continue the registration process. The next step is to provide your phone number and verify it by writing the code Binance sends.*Disclaimer: eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.*

  • Step 3: Now, you’ll have access to your Binance dashboard, where you can trade and stake coins. Before depositing money, you’ll want to verify your identity and location to lift restrictions. Binance accepts a government-issued document for identity verification and a utility bill, bank statement, or phone bill for proof of address.*Disclaimer: eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.*

  • Step 4: Deposit funds into your wallet using one of the payment methods Binance provides. *Disclaimer: eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.*

  • Step 5: Convert your fiat currency for USDT, the crypto version of a dollar. Then open the convert and OTC Portal under the trade tab. Choose USDT in the first section and FIL in the bottom.*Disclaimer: eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.*

  • Step 6: Input the number of USDT you want to offer for Filecoin and review the order. Once you are happy with the exchange, click the buy button for the transaction to complete. To see if the trade went through, you can check your Binance crypto wallet.*Disclaimer: eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.*

How To Trade Filecoin?

Cryptocurrency brokers like eToro are easier for beginners because you don’t need to know how to set up a crypto wallet or the technical side of a trading interface. Also, users can invest in Filecoin with fiat currency without converting them to a stable coin first. Below is a guide to trading Filecoin.

  • Step 1: Open an account with eToro and complete the verification process.*Disclaimer: eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.*

  • Step 2: Deposit money into your account using your bank card.*Disclaimer: eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.*

  • Step 3: Open the crypto marketplace and select Filecoin to open the trading interface.*Disclaimer: eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.*

  • Step 4: Write the number of coins you want to purchase and press the buy button. The newly purchased Filecoin will then show up in your portfolio.*Disclaimer: eToro USA LLC; Virtual currencies are highly volatile. Your capital is at risk.*

Crypto Investment Strategy

Having an investment strategy is important when buying cryptocurrency because it can help avoid bad decisions. New investors often experience huge drops in price for the first time and panic sell without proper research. Having an investment strategy can prevent emotional decision-making.

  • Short-term Holding: This strategy requires you to buy and hold coins for a short period. Once the coin price increases, investors will sell for a profit. Afterward, they wait for the dip to purchase the coin again and repeat the process.

  • Long-term Holding: Storing coins for long periods is the easiest investment plan because it doesn't require in-depth knowledge of the crypto market. Invest in strong projects like Filecoin and wait long-term for the value to increase to a price point you're happy with. Also, you can sell tokens at each price jump to take out profits along the way. This lets you recoup your initial investment and minimize the risks associated with crypto.

How To Store Filecoin?

Storing your coins is an important step when investing in cryptocurrency. Leaving your Filecoin on an exchange makes them vulnerable since it can get hacked or go offline due to DDoS attacks. Therefore, you should store them in a digital or hardware wallet.

Digital wallets are great for holding small amounts because you can quickly sell, making them viable for the short-term investment strategy. However, only a few crypto wallets are compatible with Filecoin due to their unique blockchain.

On the other hand, hardware wallets are brilliant for holding coins long-term because they have the best security. Although they require an initial investment, the services provided in return are well worth the price. Unfortunately, there are only a few options to store Filecoin on a hardware wallet.

Here are the best options to store Filecoin:

Hot Wallet

  • Trust Wallet

  • Gemini Walle

Cold Wallet

  • Glif Wallet

  • CoolWallet

What Are the Different Ways To Pay For Filecoin?

Nowadays, investors have multiple payment methods for buying Filecoin. The availability of the payment options depends on the platform you use. You should research this information before signing up. Here are the most common methods for buying Filecoin.

Cryptocurrency

Centralized and decentralized exchanges let users purchase Filecoin with their cryptocurrency. Often investors exchange USDT for Filecoin to reduce fees. Brokers don’t let clients use cryptocurrency as a deposit method to buy Filecoin since they provide derivative products.

Pros

Lets users buy Filecoin anonymously
Crypto wallets let you purchase Filecoin directly through their built-in exchanges
All crypto exchanges have crypto as a deposit method

Cons

Transfer times are lengthy depending on the blockchain you use
Decentralized exchanges built on Ethereum have huge gas fees for buying coins

Bank Transfer

Bank transfers are a secure way to send money to an exchange or broker to buy Filecoin. Also, it has fast processing times, so you can buy Filecoin quickly. Before sending money, always double-check the transfer to ensure everything is correct.

Pros

Straightforward to deposit money
Reliable and safe transfers
Available on most platforms

Cons

Banks can deny payments to crypto platforms
Transfer times can vary and are usually not instant

Debit and Credit Cards

The most popular method to purchase cryptocurrency is with a debit or credit card. Buying coins directly with this option has higher fees. You’ll want to convert your money to a stable coin and then buy Filecoin.

Pros

Widely available
It’s a straightforward payment method
Depositing money to a platform is instant

Cons

Buying crypto directly with a bank card has higher fees
Your bank can deny transfers to crypto platforms

What To Consider When Buying Filecoin

When buying Filecoin, there are a few considerations to make. Below are some factors that should impact your decision when investing in FIL.

  • Different Fees: Crypto platforms have various costs for buying Filecoin. Take the time to research the best options available in your country to minimize the fees you’ll pay. Also, when withdrawing your crypto to a wallet, a fixed fee is applied. Usually, the cost of withdrawing is paid with the same crypto you’re sending. In this case, you’d be paying with Filecoin.

  • Volatility: Cryptocurrency is a highly volatile asset, meaning the price can swing in either direction. Only invest an amount you can afford to lose and stick to your investment plan.

  • Regulations and Taxes: Before buying Filecoin, check the laws and taxes regarding cryptocurrency to ensure that your activities will be legal. Only use platforms that are regulated by a government authority. Platforms that are not licensed cannot be trusted since they are not required to deliver a fair experience.

  • Investment Strategy: Most crypto investors fail before starting because they didn’t take the time to create an investment strategy. Choose a plan that focuses on your goals and stick to it. You may want to set up key sell points that let you take out profits to minimize risk.

Is It Safe To Buy Filecoin Online?

As mentioned above, buy Filecoin from a regulated platform as they have multiple layers of security. However, before creating an account, look at reviews left by other investors and see what their experience was like. This gives you a feel for the platform and if they can be trusted.

Users can further protect their accounts by enabling 2-step authentication, making it harder to steal your funds. Platforms like Binance let you whitelist your crypto address for extra security. Whitelisting your crypto addresses means that the coins can only be sent to approved wallets. If your account gets compromised, your funds will be safe from getting stolen.

How To Sell Filecoin?

Selling Filecoin is similar to the process of buying. First, go to the trading page of your platform and select the token. Usually, a drop-down menu will appear, letting you choose the exchange pair like FIL/USDT, FIL/ETH, and FIL/BTC. After selecting your currency pair, input the number of coins you want to sell.

Next, review the order of the trade to ensure you’ve made no mistakes. Then click the sell button to execute the trade. Lastly, you can check if the coins have sold by looking at your crypto assets.

Is It Worth Buying Filecoin Right Now?

Filecoin has a lot of use cases and adoption that has made it reach a market cap of 4.3 billion. However, the coin costs $29, falling heavily from its all-time high of $190. While new partnerships can impact the price, it’s evidently a highly volatile cryptocurrency.

Filecoin is led by a team of experts in the crypto space. Their website is well-built and comprehensively showcases everything you need to know about the coin. Filecoin has many use cases for businesses and individuals. FIL is potentially a great long-term investment if they plan to make new partnerships in the oncoming years.

Final Thoughts

The best option for buying Filecoin is through an exchange like Binance to reduce fee costs. These platforms have multiple deposit options and the highest level of security. Lastly, they let you whitelist your wallet addresses and enable 2-step authentication.

Remember that cryptocurrency is a highly volatile asset, so the prices can swing drastically. Invest what you can accordingly, and don’t make decisions based on emotion.

FAQs

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Amala Pillai

Amala Pillai

Amala is custom content and news editor based in London. She is a former financial journalist based in Singapore with 7 years of experience covering a range of business and financial topics. Now she focuses on crypto and macro-economics. She has also covered feature profiles, tech, business politics and ESG— she was the Environment Editor for the Solutions Newspaper, 2016 and worked in an editorial capacity at both News corp (Dow Jones) and JBN. She also has experience as a content creator, strategist and brand editor for various financial institutions and banks.