Buying, storing, and trading Filecoin (FIL) cryptocurrency in Canada is quick and easy with Coinsquare, one of the leading cryptocurrency platforms in Canada.
Over the past decade, cloud storage has changed how we store data, leading to a handful of big companies dominating the industry. However, this rapid growth has also created opportunities for new and innovative approaches. Now, let’s learn about what is the Filecoin crypto and how you can utilize it.
Filecoin is a decentralized cloud storage network governed by the Filecoin Foundation, a nonprofit organization that advocates for digital rights and privacy. It aims to create a peer-to-peer, global, and open-source network for retrieving and storing digital information. It’s similar to cloud storage services like Dropbox and Google Drive, but Filecoin is powered by blockchain technology. This allows users to buy and sell unused storage spaces in exchange for a certain amount of Filecoin crypto coin.
FIL is the digital currency that powers the Filecoin network, rewarding storage providers for their contributions and serving as payment for data storage. The total supply is capped with a maximum of 2 billion FIL tokens, potentially increasing the Filecoin price over time as demand grows. Filecoin crypto tokens are minted based on the network’s growth and performance, ensuring the FIL price is tied to the network’s success.
Protocol Labs first introduced Filecoin in a published white paper. While Filecoin was not the only decentralized storage network at that time, it was the most awaited network compared to rivals, including Siacoin and Storj. Filecoin conducted a highly anticipated initial coin sale (ICO) in 2017, raising around USD 205 million — which helped fund the project and achieve its goals.
It’s built on the same software as the IPFS protocol, a peer-to-peer storage network that replaces the traditional HTTP protocol. HTTP identifies data by location, such as a website’s URL, whereas IPFS identifies data based on its content. This improves security, transparency, and accessibility to data stored on the Filecoin protocol. What sets Filecoin apart from the IPFS protocol is its built-in economic incentives and cryptography. Plus, it protects user privacy, ensures data availability, and does not rely on central authority.
According to project founders, if a lot of people use Filecoin, it could become a cheaper and more efficient way to store data compared to traditional cloud storage services. Most importantly, Web3 developers can build decentralized applications (dApps), DAOs, and other FILutions through the Filecoin Virtual Machine (FVM).
Blockchains, like Filecoin and Bitcoin, rely on mechanisms called proofs to ensure that users agree on new transactions. The Bitcoin blockchain, for example, relies on proof-of-work, where a miner performs calculations to add new blocks of transactions to the blockchain and claim minted BTC. Similarly, Filecoin uses proof-of–replication (PoRep) to verify if the miner truly stored the number of data it claims. While proof-of-spacetime (PoSt), ensures that the miner stored the data over a specific period. These safeguards help keep your data secure and available on the network.
Filecoin is powered by miners who contribute computing power and compete to make storage spaces available. Users who want to store, retrieve, or distribute data on the network must pay the miners. Miners compete to offer the lowest price. This fierce competition is designed to make Filecoin cheaper than traditional centralized data storage.
In return, miners are rewarded with Filecoin crypto coins for providing storage. The more storage space they provide, the higher their chances of earning tokens. But earning FIL rewards isn’t that easy. Miners must answer complicated calculations called proofs to prove that they are storing data and are doing so reliably. Once proven, miners can create new blocks on the blockchain to receive the reward and transaction fees.
To become a Filecoin miner and earn rewards, you must invest time, money, and technical expertise. First, you must acquire FIL tokens and set up specialized hardware. Then, you need to stake a significant amount of FIL as collateral. Only then can you start earning rewards by storing data for other users. This process requires substantial resources, making it challenging for individuals to participate on a small scale. While Filecoin aims to democratize storage, the reality is that it’s currently a big player’s game.
Filecoin can be used in several ways, including Web3 native NFT, incentivized permanent storage, metaverse or game asset storage, or archiving datasets. It supports different formats of data, including video and audio files.
While becoming a Filecoin miner might be out of reach for most users, anyone can still participate in the Filecoin network by buying FIL tokens. Crypto trading platforms, like Coinsquare, offer FIL with various currencies, making it easy to get involved in the Filecoin ecosystem.
Yes, you abFILutely can purchase Filecoin in Canada. You can buy it through a cryptocurrency trading platform like Coinsquare, where all your crypto purchases are quick and uncomplicated. Open an account today to discover how easy it can be to own Filecoin coins in as little as a few minutes.
There are many other Canadian and international cryptocurrency platforms where you can purchase Filecoin and participate in other crypto-based activities like staking. Many international platforms support transactions in Canadian dollars, but be sure to verify this before registering with them. Look for a platform that’s accessible for someone with your level of experience. The platform you choose to buy Filecoin should also feature robust security and exceptional customer support.
Another way to buy Filecoin is through a P2P platform. P2P platforms enable direct buying, selling, and trading of digital assets like Filecoin without banks or centralized platforms. They offer greater privacy and control over your funds compared to centralized platforms and typically have fewer expenses for things like overhead, which means lower fees for users. However, P2P transactions can be slower and more complex. Using a P2P platform to buy Filecoin requires time to learn the process and involves more manual effort, potentially prolonging each transaction.
Yes, as long as you do your due diligence on the platform you’re using for trading. Verify that the platform has a good reputation and has been in business for a reasonable amount of time. They won’t have as long a track record as a lot of companies because trading in crypto is still fairly new and because there are lots of mergers and acquisitions in the crypto space, but they should have a traceable history and positive reviews.
Any platform you choose should use normal security measures like two-factor authentication (2FA) and strong encryption such as SSL (Secure Socket Layer) to protect your data.
Remember that online safety is also partly up to you. Never share your passwords with anyone or record them somewhere where they can be easily uncovered. Don’t do Filecoin transactions while on public WiFi networks, change your passwords often, and always use strong passwords. Be vigilant about doing your part to secure your own account.
You can buy Filecoin and many other popular cryptocurrencies like SHIB, BTC, XRP, DOGE, LTC and more directly from Coinsquare’s secure, trusted trading platform.
The process is quick and easy. Sign up for an account and start your purchase by following these steps:
The increasing popularity of cryptocurrencies means that you can use them in more and more ways. Many retailers now accept Filecoin for online and even in-store purchases. In fact, money is transferred all over the world via various blockchains, including the Filecoin blockchain; opening the door to possibilities that might not otherwise exist.
You can use Filecoin to trade for other cryptocurrencies. Coinsquare customers can make trades directly from the platform. If you’re a beginner, access all the information you can about Filecoin and other cryptocurrencies before you get heavily into trading.
Go through the information available on Coinsquare’s website, which features many helpful explainers and blogs, as well as a real-time news feed about what’s going on with Filecoin and other currencies in the crypto space. There are many other sources for information about what’s new and exciting for Filecoin, such as:
As a cryptocurrency trading platform, we understand that you're curious about the potential for Filecoin's value to increase. It's important to note that the value of any cryptocurrency, including Filecoin, can be influenced by a wide range of factors such as market demand, technological developments, regulatory news, and broader economic conditions.
While historical performance and current trends can provide some context, past performance is not representative of future results. We recommend staying informed through reliable sources, considering a diversified approach to your investments, and only invest according to your risk tolerance.
Always make sure to do your own research and consider seeking advice from financial professionals before making any trading decisions.
Filecoin holdings are normally stored in special software applications called wallets. They can be divided into hot wallets and cold wallets. Due to their complementary functions, most investors use a combination of hot and cold wallets for their Filecoin holdings.
Hot wallets are digital applications used to store cryptocurrencies like Filecoin. Hot wallets are connected to the internet, making them easily accessible for transactions. These wallets are commonly used for everyday trading and transfers due to their convenience and ease of moving funds in and out of them.
Storing Filecoin in a hot wallet makes it quick and easy to access for trading and spending. Hot wallets usually have a user-friendly interface that makes them intuitive to use and suitable for people with limited experience in the crypto space. Hot wallets allow quick and easy access to your Filecoin for trading and spending.
The downside to hot wallets is that being online, they are more vulnerable to hacking, phishing and other types of interference. Some hot wallets are also custodial, meaning that a third party holds your private keys; this can pose a security risk in the event of a data breach.
Cold wallets are physical devices or offline storage FILutions you can use to store Filecoin and other cryptocurrencies.
Unlike hot wallets, cold wallets are not connected to the internet, meaning that they are less vulnerable to hacking, phishing, and malware. This enhanced security prompts many investors to hold most of their Filecoin in cold wallets. Cold wallets also allow you to maintain control of your private keys.
Cold wallets are not as convenient as hot wallets for daily transactions; your Filecoin holdings need to be moved to a hot wallet for you to use to purchase goods or make trades. It is also possible to lose or misplace your cold wallets since they are physical assets. It’s crucial to have a backup of your wallets in a secure offline location in case you do lose them.
To open an account on a cryptocurrency platform in Canada, investors usually have to provide their full name, date of birth, current address, phone number, and e-mail address. They also have to scan and upload a government-issued ID such as a driver’s license and sometimes provide proof of address using a utility bill, bank statement, or a similar document that shows their full address. A selfie or photo is often required to match them to their government-issued identification.
Providing these details protects the investor and also ensures the security and legitimacy of Filecoin transactions on the cryptocurrency trading platform. Providing this personal information enables the platform to comply with regulatory standards.
The process of collecting personal information is known as Know Your Customer (KYC). KYC helps prevent illegal activities like money laundering, fraud, and terrorist financing. This is a regulatory requirement that Canadian registered marketplaces for crypto assets, like Coinsquare, must adhere to.
Although it may seem onerous and invasive to provide such personal information, you should be wary of any cryptocurrency trading platform that does not ask for this information when you open an account. Failure to conduct proper KYC procedures is an indication that the platform isn’t complying with industry standards or Canadian law.
Opening a Coinsquare account to buy Filecoin is very simple. Click on the Get Started button on our main Canadian webpage or downloading the Coinsquare app and enter the information as requested. Once your account is set up, you will need to fund it, which you can do directly from your bank via Interac e-transfer. Be sure to review the limits and other notes regarding funding your account with Canadian Dollars.
When you make your first deposit, there is a brief waiting period before your funds become available for investment, but after that, you’ll have access near instantly but can sometimes take up to 30 minutes of completing a transfer.
If you are using digital currency to make your initial deposit, the procedure is slightly different but still quick and convenient. If you have any issues making deposits, access the support documentation from our main page. If you can’t find the answers to your questions there, our Customer Success team is available 24/7.
Coinsquare is a leading cryptocurrency trading platform founded by Canadians for Canadians. We’re excited to welcome you to the ever-growing cryptocurrency world!
