Filecoin Futures: A Quick Guide to the Public Cryptocurrency
Filecoin entered the crypto-space with its record-breaking ICO back in 2017. It is currently ranked #34 out of all cryptocurrencies and the Filecoin price is $53.89 at the time of writing.
Filecoin futures allow you to use leverage to enhance your returns on this crypto asset, but it’s important to be able to speculate the future movement of Filecoin. To help you to do this, let’s take a look at Filecoin crypto and where it might be heading.
Filecoin is a decentralized alternative to online storage solutions such as Dropbox and Google Drive. These two cloud-based storage options rely on a central server to store users’ data, whereas Filecoin stores the data on a peer-to-peer blockchain.
This creates an open market for individuals who provide storage space on their own computers as they can set their own prices. While storing your information on someone else’s computer might sound risky, the team behind Filecoin have you covered.
When you store data using Filecoin it is essentially shredded that so different computers have different pieces of the information, but the never the whole piece. When you need to retrieve your stored data, Filecoin remembers how it is all pieced back together and presents you with your data in its original form.
Another advantage of using Filecoin for storage is that you can pay for the exact amount of storage you need, as supposed to buying pre-determined storage bundles as you do with most cloud storage providers.
The Filecoin Crypto Token
Filecoin’s native token (FIL) has a capped supply of 2 billion tokens of which only 129 million are in circulation at the moment. The remaining tokens will be released gradually over several decades so as not to shock the price, much the same as Bitcoin.
The general sentiment around the future Filecoin price is optimistic. Conservative estimates price the coin at around $100 by the end of the year, while more bullish forecasters see Filecoin hitting $300 at the end of the current bull cycle.
As with most other cryptocurrencies, it’s important to remember that this projected growth comes with expected volatility. At the peak of the bull run in April this year, the Filecoin token was trading at just over $180. It has seen a 70% drop between then and its current trading price.
Is It Time to Invest in Filecoin Futures?
Hopefully, this Filecoin guide has helped you to decide whether or not it is a good time to be investing in Filecoin futures. As with any form of trading that involves leverage it is highly recommended that you have spot-traded profitably for at least a year.
Taking a long on Filecoin could lead to huge returns in the future, but it is important to remember that leverage means that the downside is amplified too.
Overall, Filecoin is a great project and one of the leading decentralized storage providers. If the bull run is just around the corner like many experts believe, then now could be the perfect time to be investing in Filecoin.
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