How To Short Filecoin (FIL)

    • James Page

James HeadshotAuthor: James Page - Last Updated on June 28, 2022

Summary: Shorting Filecoin is pretty straightforward, all you need is a crypto broker that allows for short selling. While there are a few exchanges out there that have added the ability to short crypto, our recommendation is to use eToro. They’re well-known, have a global presence, and are trusted by millions of users from 100+ countries.

We’ll be using eToro in our guide, you can sign up with one of the sign-up buttons below.

Global: Sign up with eToro

USA: Sign up with eToro US

Filecoin

Before we get started, let’s quickly explain what shorting is (for those that are new to it). Shorting is the practice of selling a cryptocurrency hoping it will drop in price so you can buy it back later for cheaper… which, if successful, will give you a net profit.

It might sound a bit complex but don’t worry, it’s a lot easier than you might think.

How to Short Filecoin

Shorting Filecoin can be done in 4 steps:

  1. Find a crypto exchange
  2. Sign up with the exchange
  3. Fund your account with fiat or crypto
  4. Short Filecoin

1. Find a crypto trading platform

As mentioned before, for this guide we’ll be using eToro as they offer the ability to short the most common cryptocurrencies.

You can, of course, use any other cryptocurrency trading platform that allows for short selling.

etoro crypto

2. Sign up with the crypto exchange

Let’s start with creating an account on eToro.

Global: Sign up with eToro

USA: Sign up with eToro US

 

eToro sign up form

The sign-up process is very quick and easy, as is the verification that needs to be completed afterwards so you can get started.

3. Funding your eToro account

Next is funding your account. You have several deposit methods to choose from when depositing funds into your eToro Account. These include a bank transfer, credit card, debit card, PayPal, and more.

4. Short Filecoin

These are the steps to follow to execute a short sell:

  1. Go to the search bar at the top, find Filecoin by entering the name.
  2. On the crypto page/section, on the right side, hit the TRADE button to enter the trading interface.
  3. At the top of the trading interface: Click on sell to short the crypto.
  4. Enter the amount for which you want to sell Filecoin and click on “Open Trade”.

Once you’re ready to close the trade, hopefully when the value of Filecoin has dropped, go to your Portfolio, find the Filecoin trade, and click on the red cross to close the trade.

If your assumption/prediction was right, then the profit will be added to your account after closing the trade. If you were wrong on the other hand, you’ll incur a loss which will be debited from your eToro account.

Congratulations, now you know how to short Filecoin!

Global: Sign up with eToro

USA: Sign up with eToro US

 

Disclaimer: Trading, investing, and dealing with digital and cryptocurrencies might involve a lot of risks. Their prices are volatile and performance is unpredictable. Their past performance is no guarantee of future performance.

Affiliate Disclosure: This site is supported by its users. We may receive commissions for purchases made through the links on our site. This does not impact our reviews, guides or comparisons.

 

Where to Short Filecoin (FIL)

Aside from eToro, the other major exchange you can use is Binance.

While Binance tends to be a bit more advanced when compared with eToro, they do have a lot more digital assets to trade with.

 

Frequently Asked Questions

Can I short Filecoin on Binance?

Yes, you can short Filecoin on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.

About Filecoin

Filecoin (or Filecoin) is a decentralized storage system that uses the Interplanetary File Storage(IPFS). It was created to make unused storage available to users worldwide and create a market where they can pay for storage at a low price. The goal is to make file storage permanent and distribute it across the internet. Contrast that with centralized cloud storage options such as Amazon Web Services and Google Cloud, which store data in servers controlled by private corporations.

Filecoin, also known as FIL or, is the currency used to fund the decentralized storage network. Filecoin storage costs will be charged to customers who wish to have access to storage. Filecoin is used to pay for storage provided by nodes in the network.

IPFS is an acronym for Interplanetary File Storage. It is a peer–to-peer file system protocol that Protocol Labs created. The unique signature of a file uploaded to the IPFS Network is used to identify the file. Multiple nodes can have a single file or part of it. The unique signature allows anyone to request the file. The file can be stored on any nodes, so it is distributed. This provides resilience to file's existence online. Many believe IPFS is as important and valuable as Bram Cohen’s Bittorrent protocol.

The Filecoin Initial Coin Offering (ICO), price was $1. This was followed by an increase of $1 for every $40 Million raised. Finally, it topped out at $6 per token. The ICO was held on August 10th 2017 and Filecoin has raised more than $200 millions in funding.

Juan Benet's Filecoin founder, Protocol Labs is the company behind Filecoin.

Filecoin's blockchain network is focused on network storage.

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