How to Buy Filecoin (FIL) in India

Filecoin is a decentralized file storage network that uses blockchain technology to reimagine the way data is stored and delivered.

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Bitcoin only allows for small amounts of data to be stored on the blockchain as its main use case is payments. Filecoin, on the other hand, lets users store large amounts of dataYou can think of Filecoin as the “Airbnb of data storage”.

In this review, you’ll learn about what Filecoin is, its striking characteristics and how to buy Filecoin in India. You’ll also get a grasp of the benefits Filecoin can provide you, and in that way, determine whether it’s a crypto you’d like to hold. 

 

What is Filecoin?

Filecoin is a decentralized storage protocol developed by Protocol Labs. Filecoin operates in a similar way to other file-sharing networks and platforms, such as Dropbox and Google. 

Instead of being a centralized authority that facilitates the storing of data, Filecoin allows miners to offer their disk-space and users to bid on that available storage through a peer-to-peer protocol.

IPFS and Filecoin 

Filecoin is built upon another peer-to-peer storage protocol called InterPlanetary File System (IPFS). IPFS and FIL are complementary protocols for sharing and storing data; they’re both free and open-source.

IPFS and Filecoin work together to ensure that data is constantly available and can be retrieved quickly. Filecoin’s token FIL acts as the incentive layer that offers block rewards to miners. 

The FIL price is determined by an open market, and how much a user pays the miner would depend on the market. 

 

Filecoin Price 

You can buy Filecoin on most popular cryptocurrency exchanges. You can either use fiat currency to purchase FIL, or use other cryptocurrencies like ETH or BTC. 

Before you purchase Filecoin (or any other cryptocurrency), make sure you check its historical price, as it offers the coin’s growth and improvements.

Ticker Symbol FIL
Launch Date 2017
Market Cap Rank #22
Filecoin Price 1 FIL in INR: ₹2,271.83
1 FIL in USD: $30.73
1 FIL in BTC: 0.001590652 BTC
1 FIL in ETH: 0.051068243 ETH

 

Why Buy Filecoin?

Filecoin has motivated a wide network of global computer operators to provide storage and file-sharing services to users. 

As many miners join the Filecoin network, the number of users has enormously increased.  

Filecoin protocol solves two major problems: censorship and unused hard drive space. By addressing these two issues, Filecoin is able to provide a storage network with great efficiency.

Censorship Resistance

Cloud storage industry leaders like Amazon and Google are rather centralized. Since they play the role of gatekeepers, they hold the power to choose what information to share among the users. 

Filecoin’s decentralized peer-to-peer nature allows for censorship resistance. All the data on its network is encrypted to the latest industry standards and there are no gatekeepers to censor the data sharing. 

Just like with Bitcoin and any other cryptocurrency operating on the blockchain, peers can exchange information without any obstacles by the authorities. 

Optimal Use of Hard Drive Space

Unused hard drive space is put to good use with Filecoin. Contrary to other cryptocurrencies, Filecoin allows you to earn significant profits for sharing your unused hard drive space with those in need of some.

With Bitcoin, for instance, unused space goes to waste. With Filecoin, if you have hard drive space to spare, you can allow others to bid for it and pay you a certain price for the service. 

Both sides benefit from this feature. Those in need of space get some at a certain price, and those who have unused space get paid for letting others use it. It is a win-win situation.

Efficiency

This brings us to the efficiency you get for buying Filecoin. Not only is it decentralized, but its approach to storage puts both storage providers and users in advantage. 

The platform’s infrastructure was designed in that way to continuously improve its responsiveness. Filecoin’s data retrieval times outrank even the top industry leaders

Filecoin is becoming one of the fastest protocols that allow data storage on the internet, and in the cheapest way. That’s something that makes it worth considering.

 

How Does Filecoin Work?

Filecoin was designed on top of IPFS, which is a similar network allowing users to store space and share data for free.

However, IPFS does not offer a financial cryptocurrency advantage. On the other hand, Filecoin users pay miners for the distribution, retrieval and storage of data, in the form of FIL tokens.

The FIL price users pay depends on whether they choose redundancy over speed or the other way around. The storage prices are determined by demand and availability. Check out which services and parties are involved. 

Miners 

There are three types of miners. The first one that was already mentioned is the storage miners, or what I referred to as storage providers earlier. The second type is the retrieval miners, while the third repair miners, to be implemented. 

Storage miners are either organizations or individuals that have spare storage to share. The second type are miners that act as retrievers, pre-fetchers of the most downloaded files whose job is to deliver the data to users in close proximity. 

Miners perform proofs, which are computationally intensive processes that verify miners are doing a reliable job at storing the data they are claiming to be storing. To qualify as a miner, you must have a strong and stable internet connection. 

Consensus Mechanism 

There are two types of proofs or systems that secure the network and ensure it remains valid. They are the core protocols acting like self-healing features that allow Filecoin to detect faulty miners autonomously.

Proof of Spacetime verifies that the miner stored the data for the exact period of time as agreed. 

Proof of Replication is a mechanism that verifies the miner really stored the data and the number of files they claimed to hold. 

Miners are graded for the pricing, availability and reliability as the protocol has a history of every single miner. Those who grade top gain the most storage opportunities and earn more tokens. 

FIL Tokens

The native digital asset of the Filecoin network is the FIL token. Storage providers and retrievers are incentivized with FIL tokens for contributing resources to the network. 

Users can make payments in FIL, as they are versatile digital assets which can be traded on crypto exchanges. 

 

How to Buy Filecoin

You can purchase FIL on Binance or other reliable exchanges. On most trading platforms, you can buy FIL using INR (or any other fiat currency) or cryptocurrencies. 

The first thing to do is to register an account with the exchange platform. Verify your account and deposit it with either fiat or digital currencies. Once you do, you can start trading. 

Should you decide to buy your FILs with Indian rupees, there will be several payment methods for you to use. You can use:

  • Bank transfer
  • Net Banking
  • Instant deposits
  • UPI/IMPS. 

Before you choose a payment method, make sure to check the transaction charges and how long it takes to process the transaction.

 

Best Filecoin Exchanges in India

You need to find a trusted exchange platform to ensure that you’ll legitimately purchase Filecoin. The best Filecoin exchanges are those that offer low or no trading fees.  

After you find a suitable exchange for you, proceed to registration. You would need to hit the Sign Up/Join/Register button and fill out the required fields. 

Exchanges make the registration process pretty intuitive, with step-by-step instructions. After everything is set up, you’ll need to confirm and verify your account via email, and you can start trading. 

 

Best Filecoin Wallets in India

While you can store your FILs on the exchange wallet, it is recommended to store your Filecoin on other, more secure wallets. 

There’s no one size fits all when it comes to crypto wallets, as coin holders have different preferences. Some take advantage of the exchange as it is easier to trade coins via one account. Others feel their coins are safer when stored on private wallets

There are different types of wallets where you can store Filecoin. Hot wallets are wallets that are connected to the internet; while cold wallets aren’t connected to the internet, which makes it more secure. Some examples of cold wallets include Trezor T, Ledger Nano X and other electronic devices that store crypto. 

If you are planning to HODL your Filecoins, then you can store them in a cold wallet as they offer more security. But, if you want to trade Filecoin, then hot wallets are a better option as they allow you to transfer your FIL. 

 

What is Filecoin Mining

All cryptocurrency mining involves the use of a mining rig. This rig typically consists of a computer with a lot of GPUs, a cooling system, a motherboard and a power-generating unit. 

Contrary to Bitcoin mining which requires mining rigs to have the ultimate calculation power, what matters for Filecoin are upload bandwidth and storage capacity.

To get started with Filecoin mining, you need to have a mining rig, 8+ core CPU, at least 128 GiB of RAM, GPU and a minimal amount of 1TiB NVMe-based disk space.  

How to Mine Filecoin

Filecoin mining is all about contributing storage space to the community. To mine it yourself, you would need to have a storage capacity, and if you want to make a bigger profit, at least 16Mbps upload bandwidth. 

The process of mining Bitcoin involves expensive electricity bills and a lot of heat coming from computers that are running. It is suited for an area away from home, where electricity is cheaper. 

Filecoin mining is environment-friendly. So long as you have a mining rig, a stable internet connection and hard drives, you can mine Filecoin from the comfort of your home. 

You can use a mining calculator to check the price and mining metrics. 

 

How to Sell Filecoin in India

As long as you’re in possession of Filecoin tokens, you can trade and sell them with ease. Why sell it in the first place, though? Well, depending on your investment allocations and risk tolerance, sometimes it’s the best way to go. 

You can exchange FILs for other cryptocurrencies or Indian rupees, to avoid losses due to a sudden price movement or cash out gains you made from renting storage space. 

Just sign up for an account with an exchange platform as described earlier, and trade Filecoin for any other digital or fiat currency. 

 

Is it Legal to Trade Filecoin in India?

Cryptocurrencies are not legal tender in India. So currently the Indian government is in the process of framing a better regulatory procedures for crypto. So, the simple answer to “is it is safe to trade FIL in India?” is yes. 

You can find reliable crypto exchanges, the ones that are secure and legal, to trade FIL and other cryptocurrencies. 

Until further modifications of the law by Indian government, you can freely and safely trade Filecoin. 

 

Official Links 

Knowledge Base Website

Filecoin White Paper
Filecoin Source Code

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