Bitcoin has been accepted highly on other continents across the globe. However, most nations have…
Are you looking for a cryptocurrency that doubles as a file storage system? A two-in-one solution? Then you should check out Filecoin!
Filecoin is such a two-in-one solution, and it is both a cryptocurrency and a file storage system at the same time. It is a decentralized file storage system built with open source code as a starting point.
It has taken a long time for the developers to perfect their product. They started working on it already in 2014, but it was only in 2020 that the Filecoin project was actually launched. So it has long been worked on behind the scenes, but it is not an ancient project.
In this article we will get to know Filecoin better. This is a concept that has been “long in the making”, and this means that many people find it very interesting. Including us. Below we will also take a look at Filecoin’s course, as well as which factors affect it. In addition, we will give you some tips on how to go about investing.
What is Filecoin?
Filecoin is primarily a cryptocurrency, but which also functions as a decentralized file storage system. Filecoin is primarily a cryptocurrency, but which also functions as a decentralized file storage system. When this product was launched in 2020, it had been under development for 6 years – i.e. since 2014.
The developers of Filecoin started with blockchain technology, which most people recognize from other cryptocurrencies. The blockchain technology is based on an open source code, which makes the product much more transparent than it would have been with another starting point.
The developers of Filecoin go by the name Protocol Labs ( see the website of Protocol Labs here ).
Filecoin is without a doubt a concept that has growing interest in the crypto community. Some have even gone so far as to describe it as “the most exciting thing since Ethereum “.
Here you get an overview of what Filecoin is:
As mentioned, Filecoin is primarily a cryptocurrency. If you do not know what cryptocurrency is, then it is a digital currency where you do not depend on a third party (for example, the bank) to complete a transaction.
Cryptocurrency is an investment object in the same way as, for example, shares and indices. That means you have to pay a certain amount to get it. At the time of writing, the unit price for a british coin is NOK 55.02.
Cryptocurrency rates are known to be highly volatile, which means that the price rises and falls based on various factors. And Filecoin is, as mentioned, a cryptocurrency, which means that the Filecoin rate is very volatile. Here is a small overview of factors that can cause the price to fluctuate to a relatively large extent:
- Supply and demand – A factor with a very large influence. The greater the demand, the more the price is pushed up. The less demand there is, the more the price falls.
- Number of Coins in Circulation – In some cases, developers choose to put a “cap” on how many coins can be mined of their cryptocurrency. It has become associated with, for example, bitcoin. Of Filecoin, there are a total of 2 billion coins that will be released little by little. But the more coins in circulation, the lower the price will be.
- The rest of the crypto market – Take a look at the rest of the crypto market when you’re first starting out, because it’s not unusual for the cryptocurrencies to follow each other. If the price of bitcoin is falling, then it should come as no surprise that the price of Filecoin is also falling. It also works the same way the other way around.
Is Filecoin a good investment?
When speculating in investing with cryptocurrency, it is very important that you take the time to familiarize yourself with how such an investment works. Acquiring knowledge about Filecoin is the only way to find out how much Filecoin is a good investment or not.
For us, it is not easy to determine to what extent Filecoin is a good investment or not. Basically, it depends on what investment you are interested in making. For day traders it can be a good investment, but it is not certain that it is as good an investment in the long term. Again, knowledge and vigilance are key here.
As a cryptocurrency, Filecoin is highly volatile, just like the rest of the cryptocurrencies on the market today. Volatility can in practice lead to large price fluctuations, and it can be in both one and the other direction. The price fluctuations occur on the basis of the factors we mentioned in the previous section, so they are the important thing to keep in mind at all times.
So is Filecoin a good investment? It’s almost up to you to judge, but of course it won’t hurt to take a look at it as an investment. However, we would like to remind you not to invest more than you can actually afford.
You can see some tips on whether FIlecoin is a good investment in this video:
How to invest in Filecoin
Do you want to invest in Filecoin? Then we have good news for you: Investing in Filecoin is very easy! Let’s take a closer look at how to do it.
- Choosing a trading platform – First, you need to choose a trading platform . It must of course give you the opportunity to trade Filecoin, but in addition to this it is important that the trading platform generally suits you. You have to make sure of that before you decide to invest in Filecoin through this trading platform. A number of factors come into play here, for example the fee structure of the trading platform.
- Registering an account – You will then need to register an account. A complete registration process also consists of verifying the account and making a deposit. In some cases you can do this later, but we strongly recommend that you do it now while you’re at it.
- Buy Filecoin – Once the account has been verified and the money has arrived in the account, then everything is ready for you to be able to buy Filecoin. Find Filecoin in the trading platform selection, enter the amount you want to invest for and buy!