How to Buy Filecoin (FIL): Step-by-Step Guide for Beginners
Filecoin is a network where you can store files with independent providers around the world and pay them in FIL. We explain how it works, the token's risks and how to buy it.
What Is Filecoin?
Filecoin was created by Protocol Labs, the same team that developed IPFS, a protocol for storing and sharing files over a distributed network. Filecoin adds an economy on top: storage providers offer disk space, and clients pay for storage.
Providers post FIL as collateral and regularly prove to the network, cryptographically, that they are actually storing the data. If they fail to provide proofs, they lose part of their collateral. For honest work, providers receive newly issued coins and payments from clients.
Filecoin Risks
- Constant coin issuance. Rewards to providers are newly issued FIL that enter the market.
- Competition from familiar cloud storage services and other decentralized networks.
- Storage demand. The supply of space on the network can exceed actual client demand.
- Volatility is high, as with most altcoins.
How to Buy Filecoin (FIL): Step by Step
- Step 1. Choose an exchange. Use a major exchange that lists the FIL/USDT pair. To set up an account, see how to open a crypto exchange account.
- Step 2. Secure your account. Complete KYC verification and turn on 2FA with an authenticator app right away.
- Step 3. Get USDT into your balance. The easiest way is to buy USDT from another user: see how to fund your account via P2P. Why exchanges price things in it: what is USDT.
- Step 4. Place an order. Go to Spot → FIL/USDT → a limit order at your price. More on this: limit vs. market orders.
- Step 5. Stop-loss. If you're buying to trade a price move rather than to hold for years, set your exit level in advance. Aspiro Trade has ready-made levels: signals on 45 assets with an entry, take-profit and stop-loss (the list is in the app).
- Step 6. Storage. For storage, withdraw FIL to a wallet that supports Filecoin. The network has different address formats (native and Ethereum-compatible), so check the address format and the network on the exchange before sending.
Where to Store FIL
| Option | Best for | Keep in mind |
|---|---|---|
| Exchange spot account | Active trading and small amounts | The exchange holds the keys; 2FA is a must |
| Software wallet (a wallet that supports Filecoin) | Holding and using the network's apps | Seed phrase on paper only, never on your phone |
| Hardware wallet | Large amounts held long term | Make sure it supports the coin's network |
Our affiliate link. If you decide to open an OKX account, please sign up through it: it's free for you and doesn't change your terms. If you trade, the exchange pays Aspiro an affiliate bonus, which goes toward developing our apps and the free Aspiro Academy. We have no access to your account, funds or trades.
- Buy FIL on the spot market with USDT, using a limit order.
- KYC and 2FA come before your first deposit.
- When trading, a stop-loss is mandatory on every trade.
- When withdrawing, double-check the network and the memo, if one is needed.
Frequently Asked Questions
How is Filecoin different from IPFS?
IPFS is a protocol for storing and sharing files. Filecoin is a network with a token, where people pay for file storage and providers back it with collateral.
Can I make money storing files on Filecoin?
Storage providers receive rewards, but this requires serious hardware and collateral in FIL. It's not suitable for beginners.
Where should I store FIL?
For trading, on an exchange with 2FA. For the long term, in a wallet that supports the Filecoin network; keep your seed phrase offline.
Start with free education
A step-by-step OKX guide and free Aspiro Academy courses: 26 lessons on investing and trading from scratch, with practice and a certificate.