How To Buy Filecoin (FIL) | Best Crypto Exchange To Buy FIL 2020
Trading and investing in cryptocurrencies solely relies on how well you perceive the digital asset based on its market industry. First of all, this guide doesn’t give any investment advice. Given the fact that the market value of Filecoin’s native token FIL doesn’t satisfy others’ expectations. It is worth noting, however, that outside of these sometimes spectacular runs from low market cap coins, often see little gains. More often than not they stagnate for the majority of the market cycle, maintaining their price if not moving in a bearish trajectory. But it is this low valuation that allows for major gains, for those savvy enough.
HTTP serves the client-server model of data access very well: data is stored in centralized servers and location-based addresses are used to quickly and efficiently access data. But what happens when there aren’t centralized servers and no single address where data is stored? With different system architecture this protocol is no longer suitable and a new language must be developed. One new language is called IPFS, or the InterPlanetray File System, and is an open-source project developed by Protocol Labs. IPFS is a collaborative project with hundreds of developers around the world contributing to its development. With the attention it has gained there are hopes that it can become a new standard in a decentralized internet.
HTTP cannot function properly outside of a client-server model because it utilizes addresses to retrieve data, and on a decentralized network there is no single address for files. IPFS solves this by using content-based addressing: files are found not based on IP addresses and server location but by the data they contain. While IPFS shares some traits with BitTorrent’s decentralized p2p protocol, it also differs in some fundamental ways. BitTorrent is strictly used for p2p file-sharing, while IPFS is intended to replace HTTP entirely. IPFS also practices deduplication which eliminates redundancy on the network and frees up bandwidth and increases speed. IFPS uses hashing, the cryptographic method utilized by the blockchain in which files are broken into blocks and are then given unique numerical codes. This overlap with blockchain technology makes IPFS ideal for integration.
This decentralized model has its own issues with privacy and data security which are addressed by each of the projects utilizing this protocol. However, given the hashing, encryption processes and decentralized architecture that are built into IPFS suggests that it will be more secure than the centralized models currently used. But what incentive is there for users to utilize their computers in order to provide the network with the storage it needs?
Blockchain & IPFS
Seeing that the blockchain is a decentralized protocol by design it is not surprising that people would find ways for these technologies to be integrated. There are a number of different projects utilizing the blockchain for decentralized cloud storage, however, we will take a look at the most exciting project currently in development.
What is FileCoin?
FileCoin is a project that comes from Protocol Labs, the same group that developed IPFS, and provides a blockchain-based storage solution to the issue of incentivizing node participation on the IPFS network. The project was developed based on the fact that there are huge amounts of unused storage space across the world’s personal computers, and a way to utilize this idle storage could have profound implications.
Users are able to join the network and rent out the unused space on their hard drives, disks, or data centers. Within the FileCoin ecosystem there are four different roles. The first are Clients. These are the people paying for their data to be stored across the network. Then there are storage miners that rent out their space to the clients. Retrieval miners act as intermediaries, shuttling data from storage to the clients and back again based around a send/receive, request system. Finally there are full nodes that act as validators for the entire network.
It is only after the data is validated as being correct and transferred successfully that a storage miner is paid for his storage space. This validation is done using cryptographic means, utilizing the blockchain. Clients and storage miners are able to fine tune their storage strategy to suit their needs as well as the needs of the network. With first-mover status, this is the project that could, with wide-scale implementation, create the eco-system for a decentralized internet to function.
What’s the main problem that the project solves?
There are a myriad of reasons why a decentralized ecosystem is beneficial for all parties involved — excluding big tech firms that rake in cash for centralized server space and authoritarian regimes. Everything from security and cost to ideology and philosophy are valid arguments for decentralizing data storage. The development of FileCoin’s technology bring us closer to taking the reins from monolithic corporations and developing a system that provides users with the freedom to grow and create in new and exciting ways.
What are the main use cases of FIL?
The Filecoin token (FIL) is the native crypto token of the Filecoin network, similar to Bitcoin and Ether. Token holders can use FIL to participate and transact in the Filecoin network. In particular, users pay miners in FIL to store or distribute data and to retrieve their information.
Where can I buy FIL?
There are many exchanges that claim the title of “best” exchange. While this may all seem simple enough, however, in choosing the best crypto exchange to invest in, you’ll have to pay attention to a myriad of considerations like fees, reputation, security, verification processes, and geographical restrictions an exchange platform has to offer.
To better understand most of the exchanges, as well as some of them that are working actively towards this goal, first, we need to understand some several factors that these crypto exchanges are currently working on:
- Security: Safety should always come first. A good exchange will place great emphasis on the security of their users’ accounts, personal information, and the system in general. The majority of the assets should be stored offline in a cold storage system. Also be on the lookout for additional security features such as Two-factor authentication, withdrawal confirmations, etc.
- Reputation: A well established, long-standing exchange is a much safer option.
- 24/7 Support: The support should be responsive, friendly, professional, and ideally reachable through several different channels. A call center is a big plus as it’s comforting to know you have the option to speak to someone in person.
- Payment methods: Take into consideration which payment methods are available — do they support credit card purchases, p2p fiat trades, and other methods of payment.
- Fees: Fees can vary substantially between different exchanges. The fee schedule has to be provided on the site.
- Interface: The site should be easy to navigate, even for crypto beginners.
- Geographical restrictions: Some exchanges are locally restricted and their service might not be available in your area.
- Uptime: Avoid exchanges with lots of downtimes.
- Verification: Even though some users find verification and KYC procedures a hassle, you should look at it from another perspective. They are done with the best intention to protect the exchange from money laundering and all sorts of scams.
Taking everything into consideration, KuCoin is one of the many cryptocurrency exchanges who explored the concept of what the future of cryptocurrency trading looks like. It is also a reputable exchange that adds high-quality projects, hence, where you can buy FIL.
KuCoin has a highly trained research department that looks for top-quality projects throughout the crypto industry. The exchange has over 6 million registered users across 207 countries and regions around the world with 450+ trading pairs to date. KuCoin provides a highly secure and easy-to-use platform for users to engage in cryptocurrency trades and transactions efficiently and safely.
KuCoin also launched a series of other products in the past year designed to further help out crypto users, including futures markets, public chain, one-stop exchange solution, creating a platform for how your crypto can yield interest, as well as some upgrades to the main exchange to uphold its principle of security and transparency. KuCoin since its inception has insisted on taking the tech as its backbone to build a better trader relationship while constantly pushing for the sustainable development of the digital currency trading ecosystem as the ultimate goal.
The Best Crypto Exchange To Buy FIL 2020
There are several exchanges, in fact, catering to different requirements and varying in terms of safety and security, convenience, accessibility, and so on. But unlike most of them, KuCoin is unique in its approach. From their timely upgrades, reports, and recently introduced products & features like KuChain, Margin, KuCoin Futures, Soft Staking, and Pool-X is what I think helping them build a better ecosystem for us, traders. Significantly, the structure of Kucoin is utterly fascinating, which shows they are more interested in long term growth. I’d say with their competitive services and reputable brand, KuCoin is already one of the leading cryptocurrency exchanges today.