How to buy Filecoin (FIL) from the USA

By   |   Verified by Andrew Boyd   |   Updated 29th August 2022

  • Filecoin is a distributed cloud storage network for data.
  • Filecoin enables anyone to monetize their open hard drive space and become a storage provider.
  • The Filecoin token was developed to allow users to distribute and store data on the network without transacting in fiat currency.

Ready to buy Filecoin? Here's a step-by-step guide covering where and how you can buy Filecoin today from the USA.

Step 1: Pick an exchange

To purchase Filecoin, you need market access. A crypto exchange offers you a platform for trading and practicing your strategy. However, there are a lot of crypto exchanges, and all of them provide different trading platform interfaces with varying terms and conditions.

To trade Filecoin, you need to open an account with a crypto exchange where it is listed. A crypto exchange is similar to the Robinhood trading app or opening an account with a stock brokerage like TD Ameritrade. The exchange acts as a middleman between the market, processing your trades while charging you fees for its service.

However, each exchange operates differently, and it pays to shop around for the best fees and features offered by exchanges.

eToro Crypto

On eToro's website

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk."

eToro Crypto

Highlights

  • Buy $100 worth of crypto and get a bonus of $10.
  • Trade and stake a range of crypto assets with low fees.
  • Copy successful traders. Practice with a demo account.
  • eToro is regulated by CySec, FCA and ASIC.

Pros

  • The user-friendly website and app make it easy to trade from anywhere.
  • Trade Bitcoin, Ethereum, and 60+ other crypto assets.
  • With its CopyTrader feature, you can replicate the moves of other investors.
  • Start trading with just $10.

Cons

  • There is a 1% fee that is added to the market price.
  • Other exchanges have more selections of crypto coins and tokens.
Crypto.com

On Crypto.com's website

Crypto.com

Highlights

  • Earn up to 8.5% p.a. on your crypto, and up to 14% p.a. for stablecoins.
  • Spend with the Crypto.com Visa Card and get up to 8% back.
  • Shop with Crypto.com Pay and receive up to 10% back, paid in CRO.

Pros

  • Get access to additional features including lending, borrowing, debit cards, and more.
  • Start trading with just $1.
  • Interest-earning deposits are available.
  • There is a USD 2,000 referral bonus.

Cons

  • Lack of educational resources.
Gemini Exchange

On Gemini's website

Gemini Exchange

Highlights

  • Gemini Exchange makes it simple to research the crypto market, buy bitcoin and other cryptos, and build a portfolio for the future of money.
  • Set recurring buys and dynamic price alerts.
  • All crypto held online in Gemini's exchange wallet is insured and it uses the best-in-industry cold storage coverage with leading insurance providers.

Pros

  • Suitable for both beginner and advanced traders.
  • Supports multiple fiats and cryptocurrencies.
  • You can earn interest on your cryptocurrency balances.
  • Its mobile apps are highly rated.

Cons

  • The fee structure can be expensive for both small trades and higher volume trades.
Coinbase

On Coinbase's website

Finty may be compensated when you click on the link.

Highlights

  • Get $5 in Bitcoin after your first trade on Coinbase.
  • Buy and sell popular digital currencies, keep track of them in the one place.
  • Invest in cryptocurrency slowly over time by scheduling buys daily, weekly, or monthly.
  • Maintains crypto-insurance and all USD cash balances are covered by FDIC insurance, up to a maximum of $250,000.

Pros

  • Get access to a wide variety of altcoins.
  • Start trading with as little as $2.
  • Offers Coinbase card which allows you to spend crypto anywhere.

Cons

  • Fees are higher compared to other exchanges.
Uphold Crypto

On Uphold's website

Uphold Crypto

Highlights

  • Invest in 200+ coins including the majors, altcoins, and stablecoins with 0% commission.
  • Ability to trade crypto against other assets like foreign currency and commodities.
  • Stake a range of coins with competitive yields.

Pros

  • Open an account in less than a minute.
  • Low deposit requirement and commission-free trading.
  • Option to trade fiat currencies and precious metals.

Cons

  • High spreads on low-liquidity assets.

Step 2: Fund your account

You can fund your account with the exchange using direct transfers, debit cards, and crypto deposits. Many unregulated exchanges won't accept debit cards or fiat currency as deposits. As a result, you'll have to buy crypto on an exchange like Localbitcoins.com and transfer it to your wallet at the exchange.

Regulated exchanges give you more deposit options, including debit cards, wire transfers, and crypto. However, it's important to note that crypto exchanges don't have federal deposit insurance, even regulated ones like Binance US and Coinbase. Therefore, your entire balance is at risk until you realize it as profits in your cold wallet or bank account. Exchanges get hacked all the time, so make sure you're using cold wallets for storing the bulk of your crypto assets and only leave what you want to trade in your hot wallet on the platform.

Step 3: Decide how much you want to invest

After the funds reflect in your trading account, it's time to think about your risk tolerance. Risk tolerance defines how much you feel comfortable losing in a single trade. Some people will freak out if they lose more than 5% of their balance on a trade, while others are fine "YOLOing" their entire account balance in a bet against the odds.

Risk tolerance is different for everyone, but a good rule of thumb is never to risk more than you can afford to lose. Traders also need to beware of using margin. Margin can make you rich quickly, but losses can pile up fast, leaving you owing the exchange money to cover your margin loan. Professional traders recommend never allocating more than 5% of your holdings to any single trade.

Step 4: Set up your order

After deciding how much money you want to invest in Filecoin, it's time to open your trading platform and use one of the following order types to place your trade.

Market order

The market order lets you purchase Filecoin at the next price quote. However, the quote could be above the price when you hit the buy button, filling you at a higher price point, known as "slippage." As cryptocurrencies are more volatile and less liquid than stocks, prices can jump around and you could end up paying a lot more than you planned for your Filecoin purchase.

Limit order

The limit order prevents slippage on your trades. You enter the maximum you're willing to pay for Filecoin and click the buy button when you want to enter. The exchange will not fill you above this price, limiting your slippage.

Stop order

This order helps you manage risk. You set the stop at 10% below your entry price. If the price action dips below that level, the exchange automatically liquidates your position to prevent further loss.

Stop limit

The stop-limit helps you take profit automatically. You set your price target, and the exchange liquidates your position when the price rises to this level.

Step 5: Place the order

After selecting your order types, use the buy button to enter Filecoin and make your purchase. When you reach your price target, hit the sell button, and the exchange exits you from the position.

Step 6: Monitor performance

Keep your eye on crypto developments that could shift the price of Filecoin. Filecoin, like the rest of the crypto universe, revolves around the price action and sentiment in major crypto assets, particularly bitcoin. A dip in the price of bitcoin can affect the value of Filecoin.

Regulatory action can also affect the price of crypto. Regulators and even banks are still learning about crypto technology and pricing and actions. In addition, crypto supporters and influencers such as Elon Musk and Mark Cuban can create sentiment changes in the market, causing price volatility.