1. Home
  2. Cryptocurrency Day Trading

Filecoin Day Trading 2024 – Tutorial and Brokers

Filecoin (FIL) has surged in popularity among traders in 2024. It is a decentralised peer-to-peer storage network that uses blockchain technology. In this review, we explain how Filecoin works, its benefits and risks from a trading perspective, plus how to start buying and selling the cryptocurrency. We also examine price predictions, use cases and digital wallets. Find out how to start trading Filecoin today.

Filecoin Brokers

  1. Eightcap
  2. eToro
  3. Exness
  4. FBS
  5. Pocket Option

#1 - Eightcap

Why We Chose Eightcap

Eightcap’s crypto offering is best-in-class with 250+ crypto derivatives, surpassing that of almost every alternative. Testing also reveals Bitcoin spreads of 12 pips, coming in lower than most competitors, while it offers real-time trading ideas through the Crypto Crusher market scanner. Add in convenient deposits and withdrawals in digital currencies, and Eightcap offers the complete package for serious crypto traders.

"Eightcap delivers in every area for day traders with a growing selection of charting platforms and AI-powered tools. Now sporting 250+ crypto CFDs and the Crypto Crusher market scanner, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row."

- DayTrading Review Team
  • Coins: BTC, ETH, LTC, BCH, XRP, XMR, DSH, EOS, XLM, ADA, TRX, DOGE, BNB, DOT, MATIC, VET, AXS, NEO, SOL, UNI, AAVE, KSM, THETA, CAKE, SUSHI, ATOM, XTZ, SNX, COMP, FLOW, EGLD, PUNDIX, RAY, ZIL, QTUM, BAND, OMG, FIDA, BADGER, NEAR and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: $12 (BTC)
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4, MT5, TradingView
  • Minimum Deposit: $100
  • Regulator: ASIC, FCA, xCySEC, SCB

Pros

  • After bolstering its roster in 2021, Eightcap offers one of the most extensive selections of cryptocurrency CFDs in the market, with crypto/fiat pairs, crypto/crypto pairs, plus crypto indices for broader exposure to the market.
  • With tight spreads from 0 pips, low commission fees, and high leverage up to 1:500 for certain clients, Eightcap provides cost-effective and flexible trading conditions that can accommodate an array of strategies, including day trading and scalping.
  • Eightcap stands out with a selection of powerful trading tools, including MT4 and MT5, the innovative algorithmic trading platform Capitalise.ai, and more recently the 50-million strong social trading network TradingView.

Cons

  • In spite of an increasing variety of tools, Eightcap doesn't offer industry favorites like Autochartist or Trading Central, which offer cutting-edge charting analytics, live news, and market insights for short-term traders.
  • The demo account expires after 30 days and can only be extended upon request - a notable inconvenience compared to the likes of XM with its unlimited demo mode.
  • Despite a useful library of educational guides and e-books, Eightcap still trails IG’s comprehensive toolkit for aspiring traders with its dedicated IG Academy app and 18 course categories.
Visit Eightcap

#2 - eToro

Why We Chose eToro

eToro leads the way in cryptocurrency trading, offering competitive spreads and a fixed 1% commission, plus their own wallet service. The broker offers a vast list of 95+ tokens which is continually being updated. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."

- DayTrading Review Team
  • Coins: BTC, ETH, BCH, XRP, DASH, LTC, ETC, API3, CRO, SKL, IMX, ADA, MIOTA, XLM, EOS, NEO, TRX, ZEC, BNB, XTZ, DOT, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, FIL, ALGO, ATOM, MANA, APE, LRC, ENJ, BICO, BAT, BNT, OGN, MATIC and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: BTC 1%
  • Crypto Lending: No
  • Crypto Staking: Yes
  • Platforms: eToro Web, CopyTrader, TradingCentral
  • Minimum Deposit: $50
  • Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA

About eToro

eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.

Pros

  • Top copy traders can receive annual payments up to 1.5% of assets under copy in the broker's Popular Investor Program
  • The copy trading app facilitates a best-in-class social environment, with an engaging social feed and community chat
  • The web platform and mobile app perform better in user reviews and app rankings than top competitors, including AvaTrade

Cons

  • There are limited contact methods aside from the in-platform live chat
  • There are no guaranteed stop loss orders which would be a useful risk management feature for beginners
  • There is a $30 minimum withdrawal amount and a $5 fee, which will affect novices with low capital
Visit eToro

#3 - Exness

Why We Chose Exness

There is a small range of popular crypto tokens paired with fiat currencies available, with zero swap fees and no commissions in the Standard account. Trading is available via desktop or mobile apps, and deposits via crypto are also available in some countries.

"Exness remains an accessible broker for all experience levels, though experienced day traders will particularly appreciate the ultra-low commission rates, fast withdrawals and high-quality charting software."

- DayTrading Review Team
  • Coins: BTC, LTC, ETH, XRP, BCH, SOL, SNX, UNI, BAT, DOT, XTZ, ADA, BNB, ENJ, FIL, DOGE, COMP, THETA, AAVE, LINK, IOST, CAKE, MATIC, HT, MANA, HBAR, INCH
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: Floating
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: Exness Trade App, MT4, MT5, TradingCentral
  • Minimum Deposit: $10
  • Regulator: FSA, CySEC, FCA, FSCA, FSC, CBCS

About Exness

Exness is a Cyprus-based forex and CFD brokerage established in 2008. With over 260,000 clients, several awards and reputable licensing, the broker has maintained its position as a highly respected global brand. Active day traders can access the popular MT4 and MT5 platforms, raw spreads and multiple account types.

Pros

  • There's excellent 24/7 multilingual customer support via telephone, email and live chat
  • Unlike many other brands, Exness doesn't charge any account maintenance or inactivity fees
  • Top-tier licensing with the FCA and CySEC and a strong reputation with over 10 years in business

Cons

  • There are no promotional deals or loyalty schemes for high-volume day traders
  • Unlike most competitors, Exness doesn't provide its own education section
  • There are several regional restrictions for retail traders including the USA, Europe and the UK
Visit Exness

#4 - FBS

Why We Chose FBS

FBS offers trading on crypto/metal, crypto/crypto or crypto/fiat pairs, making the broker a great pick for traders looking to diversify their digital asset portfolios. Spreads are also decent, averaging around 20.0 for BTC/USD.

"FBS is a great choice for traders of all experience levels and budgets with various account types, plus MetaTrader 4 and MetaTrader 5 access. That said, the broker's Cent account and intensive forex course will be particularly beneficial for beginners."

- DayTrading Review Team
  • Coins: ADA, ALG, AVA, BAT, BCH, BNB, BTC, DOG, DOT, DSH, EOS, ETC, ETH, FIL, IOT, LNK, LTC, MKR, MTC, NEO, OMG, SHB, SOL, TRX, UNI, VEC, XLM, XMR, XRPZEC
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: Floating
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4, MT5
  • Minimum Deposit: $5
  • Regulator: ASIC, CySEC, FSC, FSCA

About FBS

FBS is an award-winning forex and CFD broker based in Cyprus. The broker has a strong global reputation with authorization from the CySEC and ASIC, amongst others regulators. The brand has 17 million clients in over 190 countries, attracted by a diverse range of markets and the reputable MetaTrader platforms.

Pros

  • The MetaTrader terminals deliver a comprehensive day trading environment at FBS, including up to 21 timeframes and 6 pending orders
  • There’s a comprehensive learning section with tailored courses, webinars and trade ideas
  • The broker’s NDD technology ensures fast order execution within 0.4 seconds and no requotes

Cons

  • There’s no copy trading solution which would offer an alternative way to trade and is offered at many top competitors like Skilling
  • There's a limited range of assets overall, including only 35+ currency pairs
  • Account availability, platform access and market coverage all vary by jurisdiction
Visit FBS

#5 - Pocket Option

Why We Chose Pocket Option

Pocket Option offers a modest crypto offering with 10+ digital currencies including Bitcoin and 65+ tokens if you deposit $1000. The integrated analytics feature in the platform is helpful for finding opportunities, while the daily signals service makes it straightforward to act on short-term crypto opportunities.

"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."

- DayTrading Review Team
  • Coins: BTC, ETH, BCH, LINK, AAVE, ALGO, TLM, ALPP, ANT, AVAX, AXS, BNB, ADA, CHZ, COMP, ATOM, DASH, MANA, DGB, DOGE, ENJ, EOS, FIL, GLMR, ILV, ICP, KAVA, LTC, MKR, MASK, MIOTA, XMR, ALICE, NEAR, NEO, NULS, OMG, DOT, MATIC, QTUM and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: N/A
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: Web, MT4, MT5
  • Minimum Deposit: $50
  • Regulator: MISA

About Pocket Option

Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.

Pros

  • Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks
  • The web platform shines for its straightforward design and usability that will appeal to beginners looking to speculate on popular financial markets in a few clicks
  • The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries

Cons

  • Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests
  • The MISA is a weak regulator with limited investor protection for retail traders
  • Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
Visit Pocket Option

What Is Filecoin?

Filecoin is a decentralised storage protocol where participants can rent, sell or buy unused storage space on the blockchain in return for FIL tokens. Filecoin is essentially an incentive layer built on top of the peer-to-peer InterPlanetary File System (IPFS). Miners can also earn FIL tokens by storing and serving data.

The network operates similarly to other file storage platforms like Dropbox and Amazon Web services (AWS). However, these have a centralised authority that holds client data. The data held on the FIL network is stored on multiple computers around the world.

Filecoin is also exploring other use cases for blockchain technology outside of traditional financial means, which could positively impact the value of the crypto.

What is Filecoin?

History

Filecoin was launched in 2014 by Juan Benet when he released the whitepaper “Filecoin: A Cryptocurrency Operated File Storage Network”. Juan Benet is also the founder of Protocol Labs.

In a 2017 ICO, the team raised around $250 million, which was the largest token offering at the time. Notable investors included Digital Currency Group, Winklevoss Capital and Union Square Ventures.

The Filecoin mainnet release date was the 15th October 2020. The price of the crypto was expected to climb by more than 150% between March and April 2021. This jump has been attributed to news of Grayscale adding Filecoin as a trading asset. Grayscale also facilitates investing in larger cryptocurrencies such as Bitcoin, Ethereum and Litecoin.

Filecoin currently has a fully diluted market capitalisation of over $5,000,000. FIL reached an all-time high (ATH) on March 30th, 2021 at $191.36, though it has since dropped as low as $69.82.

How Does Filecoin Work?

Filecoin is a distributed, peer-to-peer network where participants communicate through secure channels. As mentioned, the network is built on top of an IPFS, which uses hash-addressed content structures to store data as opposed to IP addresses. Nodes manage the distribution of the crypto and receive FIL tokens as rewards.

Miners have to submit Proof of Replication (PoR) to show they are capable of storing data. Miners must also periodically submit additional proofs to show that they are fulfilling storage agreements. This is called Proof of Space-Time (PoST). Miners can lose FIL tokens if they fail to meet the requirements.

Clients who wish to store data on the Filecoin network have to pay an initial fee and another to retrieve the file. The storage and retrieval costs are agreed upon with miners.

On top of the tokens paid to miners for storing data, they can earn block rewards that are proportional to the hard drive space they’ve contributed to the network.

Filecoin Chart

FILUSD Chart by TradingView

Pros Of Trading Filecoin

Cons Of Trading Filecoin

How To Start Trading Filecoin

  1. Open an account – You will need to pick a broker to open a live trading account with. Since its launch, Filecoin has been listed on plenty of major exchanges, including Gemini, Coinbase, Kraken and Binance.
  2. Open a wallet – You will need to open a digital wallet to store FIL tokens off the exchange. The private key to a wallet ensures only you have access to your funds. A wallet also reduces the risk of losing your investment if the exchange platform gets hacked. You can choose between a hardware wallet or a software wallet. One of the top-rated hardware wallets is Ledger Nano X. To use this, you will need to download the Lotus application.
  3. Buy or sell – There are many ways to trade Filecoin. Firstly, you will need to place an order to buy the crypto. You may opt for trading pairs like FIL/USD, FIL/GBP or crypto pairs like FIL/USDT. Fiat pairs tend to have higher liquidity and tighter spreads. You can also choose to increase profit potential with leveraged trading. However, your options will depend on the exchange.

How to buy or sell Filceoin

Should You Start Trading Filecoin?

Filecoin offers a disruptive decentralised storage solution using blockchain technology. The crypto has grown in popularity and can be found on most major exchanges. But whilst wild price swings may offer profit potential, they can also lead to large losses if investors aren’t careful. Make sure to use price prediction charts, technical analysis and keep on top of the latest news to inform your trading strategy into 2024, 2025, 2030 and beyond.

FAQ

What Is Filecoin?

Filecoin is a decentralised peer-to-peer file storage network that uses blockchain technology. Storage miners and clients (also known as nodes) participate in deals to agree on costs in return for FIL tokens. The distribution of files is shared across multiple locations around the world where no one person has central authority. You can also convert FIL into ERC20 tokens.

Is Filecoin A Good Investment?

The choice to add Filecoin to your portfolio will depend partly on your risk tolerance. The price of Filecoin peaked at $191.36 in March 2021 – a 325% increase since its mainnet launch in October 2020. And whilst the subsequent dip may not make it a promising long-term investment, short-term traders may be able to yield substantial profits.

Where Can I Trade Filecoin?

There are a number of exchanges where you can start trading Filecoin (FIL). Some of the best options include Coinbase, Binance, Gemini and Kraken. Each broker will have varying transaction fees, while some offer leveraged trading. Additionally, Binance allows users to earn staking rewards. It’s important to do your research before opening an account.

What Is The 5 Year Price Prediction For Filecoin?

Some experts on Digitalcoin offer bullish predictions for Filecoin over the next five years. Technical analysis also indicates there is potential for the price of FIL to rise. However, no forecast can be truly accurate as the cryptocurrency market is extremely unpredictable, as evidenced by Bitcoin.

How Do You Mine Filecoin?

Miners must prove they can store client data. This is called Proof of Replication. Miners then have to submit additional proofs called Proof of Space-Time to show they are fulfilling responsibilities. In return for storing data, miners receive rewards in FIL coins. Note, the Filecoin website warns that storage mining is an advanced process, with notable hardware requirements i.e. GeForce RTX 3090. You can estimate potential earnings by using a mining profitability calculator online. For more information on mining rigs, hardware and other requirements, download the relevant docs from the Filecoin website.