The Ultimate Guide to Trading Filecoin With eToro
The decentralized network universe gets more interesting by the day. One of those that further innovates it is Filecoin. It is an open-source, digital payment system and public cryptocurrency, decentralized protocol that allows anyone to rent out extra storage space on a computer. Likewise, anybody can also buy storage within the network.
According to the developers:
"Filecoin is a decentralized storage system that aims to store humanity's most important information."
Think of Filecoin more like Bitcoin, but instead of hashers, it has its hard-drives.
Imagine a homeowner renting an extra room or a spare house on Airbnb. In Filecoin, you as a computer owner can rent out your extra disk space. Among the main features of Filecoin are publicly verifiable cryptographic storage proofs, a public blockchain and crypto-economic mechanisms that makes it possible to transact using its native token, the FIL which can also be traded on eToro's platform.
Table of Contents
- History of Filecoin
Who invented Filecoin? (21sec)
- What Comprises Filecoin?
What is it built on? (9sec)
- The Importance of Filecoin
How is it used? (40sec)
- Exchanging FIL
What exchanges is Filecoin on? (14sec)
- FIL Token Allocations
How many Filecoin will there be? (21sec)
- Filecoin Leading Players
Who uses this crypto? (11sec)
- Filecoin Transactions
How does a Filecoin transaction work? (39sec)
- Filecoin's Proof Methods
Does Filecoin use proof of work? (22sec)
- Safety Net Mechanism
How secure is this digital payment system? (25sec)
- Trading and Investing on FIL?
Can you trade Filecoin? (10sec)
- How to Trade or Buy FIL?
Where to purchase the token? (17sec)
- How to Trade Filecoin (FIL) on eToro?
Beginner's step-by-step guide (16sec)
- Is Filecoin a Good Investment Now?
Is it worth investing in Filecoin? (38sec)
Thinking of trading FIL with eToro?
If you're thinking of investing on Filecoin then you better visit its trading page on eToro and get started. To continue, you'll need to create a new account and explore all the features that this platform has to offer.
YES, TRADE FIL NOW!
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
History of Filecoin
Filecoin was developed by Protocol Labs, an American company started by Juan Benet in 2014. They came up with this service and IPFS at the same time, raising investment rounds to help finance this.
The project was published in a white paper entitled "Filecoin: A Decentralized Storage Network" in July of 2017. In August 2017, Filecoin was launched after it raised more than $200 million in just half an hour.
What Comprises Filecoin?
The Filecoin universe is composed of clients and miners. They are the network's heart and soul who maintains the Filecoin blockchain, by obtaining storage services. In return, they are given rewards.
The Importance of Filecoin
It is widely believed that more data will be created after 2017 than the previous 8,000 years and more, of humanity. Despite that huge data storing forecast, more than 50% of the world's digital data storage is left unused—from data centers to extra hard drive space in computers and laptops. With Filecoin, it creates a frictionless market to put all these extra storage spaces to good use.
The decentralization of Filecoin also provides a better network not only for storing data but also for securing it. Filecoin implements an IPFS, a peer-to-peer hypermedia protocol that makes the web operates safer, faster and more organized.
Every created file has its own fingerprint called the cryptographic hash. By indexing files by hash, it permits users to distribute and search high volumes of data with accuracy and efficiency.
The FIL, which is the native currency of Filecoin, can be trader and bought on several exchanges. In addition, the FIL can also be easily exchanged with other cryptocurrency such as Ether and Bitcoin as well as to other leading currencies like the US Dollar and the EURO.
FIL Token Allocations
Filecoin's FIL is intended to be distributed to 4 major groups that plays a key role in the Filecoin network. 70% will be allocated to Miners as a form of reward, 15% to its developer, the Protocol Labs, 10% to Investors, and 5% to Filecoin Foundation.
The entrusting process is as follows:
- Miners: Asymptotic vesting much like in Bitcoin
- Protocol Labs: 6 years linear vesting
- Filecoin Foundation: 6 years linear vesting
- Investors: Linear vesting per block
Filecoin Leading Players
Currently, the two main participants in Filecoin are the Miners who provide storage and retrieve date in and from the network and the Builders who creates applications that transacts and interacts in the Filecoin network.
There are two key transaction types in Filecoin. They are the retrieval deals and storage deals.
In storage deals, a client and a storage miner agree on the specifics of storing data in the network. Once a deal is reached, the miner will receive the data to be stored. The miner's responsibility is to continuously prove to the network chain that is still in safekeeping of the data as per the storage deal. Doing so, the miner will continue receiving rewards. Failure to do so will result to the miner being penalized and lose some valuable FIL.
Retrieval deals involves an agreement between the client and the retrieval minders in extracting data from the network. Payment for this transaction is done off-chain using the usual payment channels to pay for the retrieved data.
Filecoin's Proof Methods
By using PoRep (Proof of Replication), miners in Filecoin, upon receiving the data, guarantees zero chances of anyone replicating or copying the stored data by encoding it in a manner unique only to them.
Another Proof, the Proof of Spacetime (PoSt), proves that the miner is still storing the data as part of the agreed deal. In PoSt, miners are required to prove that random parts of the data they are storing still exist.
Safety Net Mechanism
Everyone’s obvious question would be "Is it safe to store important data on someone else's computer?". Following traditional methods, yes. It is risky.
However, with Filecoin, it is almost as safe as storing it yourself—or even safer. Filecoin splits up the stored data like shredding papers thus making it impossible for anyone to piece all the data altogether. Despite the shredding method, the network knows how each data fits, therefore it can also re-arrange the data when requested or retrieved by the owner.
Trading and Investing on FIL
The easiest way to buy and invest on FIL is through a broker or a trading platform. Especially useful for those beginning to invest on cryptocurrencies are trading platform apps like eToro.
How to Trade or Buy FIL?
The easiest way to buy and invest on FIL is through a broker or a trading platform. Especially useful for those beginning to invest on cryptocurrencies are trading platform apps like eToro that allow investors to trade on stocks and cryptocurrencies via the Contracts for Difference (CFD) trading method.
How to Trade Filecoin (FIL) on eToro?
- On your eToro dashboard, click "Discover".
- Select "Crypto".
- Scroll down to look for "FIL".
- Click "Buy" and set the amount you want to invest.
- "Click "Open Trade".
Is Filecoin a Good Investment Now?
Filecoin is a unique network since it is the earliest blockchain-based file sharing protocol to make its presence in the cryptocurrency and blockchain market. The system is helping mankind reduce carbon footprint and lessen technology waste by decreasing our need to buy physical hardware for data storage. Because of its revolutionary features, expect Filecoin to go through a series of growth in the immediate future—thus making investing on it a good idea.
Are you interested now to trade Filecoin?
You are more likely interested in trading Filecoin now. If you want to get started, there is no need to go anywhere. Just click on the button below and this will take you to eToro's FIL trading page where you can explore the platform further:
START TRADING FIL!
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