How to Buy Filecoin in Spain - Beginner's Guide (2024)

How to Buy Filecoin in Spain - Tutorial

Our guide focuses on eToro as it is our overall best place to buy Filecoin in Spain. However, these steps can be applied to other crypto exchanges in this guide.

1. Open an account

Click on the Start Investing button on the homepage to get started. Fill in your details on the signup form and create an account. You can also download the mobile app from the Play Store/App Store and do the same.

2. Verify your account

You’ll receive an email verification link when you create an account. Click on it to start the process. Complete your profile by submitting details like your date of birth and a passport photo, after which you submit KYC documents. These documents include proof of ID (national ID or driver’s licence) and proof of residence (such as a utility bill).

3. Make a deposit

Once your account has been verified, click on Deposit Funds on the left pane of your dashboard. The deposit options available will be displayed. Choose one and set the amount you’d like to deposit. You can deposit euros directly using credit cards, bank transfers, PayPal, Skrill, Neteller, Klarna/SOFORT, Rapid Transfer, or Trustly.

4. Buy Filecoin Spain

Search for Filecoin in the Discover tab. An interface like the one below should load. You can buy immediately at market price or set a price you’d like to buy at.

Is Filecoin a Good Investment?

We cannot outright say whether or not Filecoin is a good investment. However, we can give pointers to help you arrive at that decision yourself.

Decentralisation

Firstly, Filecoin is decentralised. It does not depend on governments to legitimise it or companies to run and maintain its blockchain infrastructure. Transactions are free from many of the controls and drawbacks of traditional finance networks, like high fees for international transfers.

As the digital age progresses, more components of our lives will be moved to the digital space. Crypto technology mathematically safeguards digital assets and places ownership with users, making it crucial for a free digital future.

Liquidity

Cryptos are generally very liquid and portable assets. They can be bought on one crypto exchange, moved to another cryptocurrency exchange in a different country and sold in a matter of minutes, creating a way to move wealth easily.

High Return Potential

Filecoin has a track record of delivering high returns on investment, either due to its volatility or more fundamental reasons like growing adoption and institutional interest. Combining this with the fact that blockchain technology is still in its early stages, the growth (and profit) potential is significant.

Store of Value

Crypto can be used as a long-term store of value, especially those that are scarce, like Filecoin. Because supply is capped, the value of finite coins are projected to grow over time, provided demand grows. This makes Filecoin a possible long-term alternative to gold.

Portfolio Diversification Option

Filecoin is a digital asset that can be used as an asset class when building a diversified portfolio. Its equity potential (the possibility of increasing in value) makes it worthy of consideration for modern portfolios.

Risks of Buying Filecoin

There are downsides to buying Filecoin. The first is its volatility. Crypto is known to swing wildly, losing significant portions of its value within a few weeks and often leaving investors reeling from losses.

There is also a risk of rug-pulls, blockchain attacks, and wallet hacks. These are technological risks that involve an attacker hacking a crypto’s blockchain network or your wallet and usually end with funds getting stolen.

Finally, crypto at large is still the target of legal crackdowns and harsh regulatory policies that could stunt its growth and adoption rate.

What Payment Methods Can I Use to Buy Filecoin in Spain?

Ideal payment methods should support the euro natively, and while not all platforms allow deposits in euros, these are the methods you can easily use to buy Filecoin in Spain.

Credit or Debit Card

Credit or debit cards are probably the most accepted payment method across platforms but also the most expensive. eToro doesn’t charge trading fees, but those of Binance and Coinbase are 1.8% and 2.49%, respectively. On other platforms, fees generally range from 1% to 3%.

Bank Transfers

Local bank transfers through a Spanish bank account are available for all platforms listed. It is free on eToro, Capital.com, and Bit2Me, and costs €1 on Binance. A conversion fee may be charged for deposits in currencies other than the account-denominated currency.

PayPal

PayPal is one of the most popular payment services and electronic wallets in use today. However, it is not as widely supported as the first two payment methods. eToro and Capital.com do support PayPal, though.

Cash via ATM

An alternative is to use cash or a card to buy FIL at a Filecoin ATM. However, this is less convenient than using an online platform and some Filecoin ATMs charge exorbitant fees. There are 260 crypto ATMs across Spain, including 58 in Barcelona, 41 in Madrid, and 17 in Valencia.

Ways to Invest in Filecoin in Spain

There are several ways to gain exposure to Filecoin and profit from its price movements in Spain. This section dives into them and how they relate to Filecoin.

Buy and Hold Filecoin

The buy-and-hold strategy involves buying Filecoin and holding it for a long time, usually as long as you can. This strategy is popular in the industry as it has proven to be effective over long periods, usually years.

This strategy can be varied using a buying technique called dollar cost averaging (DCA), where you buy a set dollar amount of Filecoin at fixed intervals regardless of price.

Trade Filecoin

This strategy profits from Filecoin’s volatility. Trading FIL involves relatively short-term buying and selling, usually from as little as a day to as long as a year. Positions held for longer are often classified as investments.

Trading creates an opportunity to explore other financial derivatives like futures, options, and CFDs that give traders exposure to FIL’s price movement without the need to buy the coin. It also allows for leverage facilities that can magnify traders’ wins (or losses).

Choosing a Filecoin Wallet in Spain

Wallets are important because they store your valuable cryptos, so choosing the right one is crucial. Crypto wallets are generally split into hardware and software wallets. Hardware wallets store cryptos offline on a device while software wallets store cryptos online and are always connected to the internet.

Software Wallets

• Web wallet: These wallets come as either browser extensions or web apps that store your private keys in your browser. Web app variants are accessible through any browser. However, the extension variant must be installed on a new browser, and a seed phrase must be used to recover your wallet. eToro, Binance, and Coinbase provide free web wallets that store Filecoin.

• Mobile wallet: This wallet is a mobile app downloadable from the Play/App stores or the internet. Binance’s mobile wallet is called Trust Wallet, and it supports Filecoin.

• Desktop wallet: This is an application that runs on your computer and stores your private keys on your hard drive. There are several desktop wallets available depending on the level of control you want and your familiarity with blockchain technology. However, a good option for beginners is the Electrum wallet, available for Windows, Mac, and Linux PCs.

Physical and Hardware Wallets

• Hardware wallet: A hardware wallet is a physical device that stores private keys offline. They are much harder to hack and are currently the safest storage option. Hardware wallets that support Filecoin include Trezor and Ledger.

• Paper wallet: A paper wallet is a piece of paper with public and private keys printed on them. While they are a good way to keep your private key offline, they are not recommended as you may lose the paper or the ink could wear off with age. Paper wallets have gone out of fashion since the advent of hardware wallets.

Wallet Combinations

You can combine two or more wallets for added security or a better user experience. For example, you can use a hardware wallet like Ledger with a web wallet extension to buy coins on a decentralised exchange and immediately send them to your hardware wallet.

Should I Buy Filecoin Now? - Things to Consider Before Buying Filecoin in Spain

Whether or not you should buy Filecoin now depends on the state of the economy, your investment goals, your risk tolerance, and the cost of investments. Consider these factors when making a decision.

Filecoin Fees

The total cost of buying Filecoin is made up of trading fees, network fees, exchange fees, and deposit fees across exchanges.

The network fee is the charge the blockchain takes for processing transactions. This fee usually goes to computers that help secure and run the network. It could rise and fall based on the volume of transactions for certain blockchains. However, newer networks are built to accommodate high volumes without significant changes to transaction fees.

Exchange fees are charged for conversion, trading, or other related services. Some platforms are cheaper than others in certain regards. For example, conversions on Binance are cheaper than eToro at 0.1% per trade compared to 1% charged by the latter.

However, eToro trumps Binance when it comes to deposits as it supports free deposits, while Binance charges €1 for bank transfers and 1.8% for credit card payments.

Aggregate the costs of using various components of an exchange to obtain a holistic view of the cost of using that exchange, then compare it with others to find a cheap option.

Filecoin Price

Filecoin’s price is known to change rapidly and swing widely, i.e. change quickly and by a considerable amount. For traders, this is good news as it presents opportunities to profit from this volatility.

Long-term investors, on the other hand, may not be too bothered by short-term fluctuations as historical prices show an overall uptrend with pocket downtrend periods. In the long-term investment case, a simple buy-and-hold strategy, or one combined with a DCA strategy, may prove effective.

Buying Filecoin in Spain Safely

Security is of the utmost concern when dealing with cryptocurrencies and the exchanges that sell them. The first thing you should observe is the exchange’s regulatory status. The ideal situation is when the exchange is registered in its country of operation.

However, this is not always the case. Crypto exchanges sometimes offer services to users in certain geographical regions using entities registered in a nearby jurisdiction or in a jurisdiction where regulations allow them to onboard users from other countries.

In this case, ensure the regulatory agency is transparent and enforces industry-standard security and legal practices.

Buying Filecoin in Spain Anonymously

Buying Filecoin anonymously is not as easy as some may assume due to widespread regulation on all major exchanges and platforms. The key to remaining anonymous is to refrain from providing personally identifiable data. Platforms require this to varying degrees.

Crypto ATMs are a way to buy crypto anonymously. They only require the money with which you buy crypto and the wallet address you want to send it to. Currently, most ATMs are limited to Bitcoin, Ethereum, and Litecoin, but more are popping up with support for more coins.

Another method is using prepaid cards to purchase cryptos on peer-to-peer markets. You send the code to the counterparty, and they send your crypto. Visa offers prepaid cards, but you’ll need to ensure you won’t have to give up personal details to obtain one.

Is Buying Filecoin Legal in Spain?

Yes, it is legal to buy Filecoin in Spain, but cryptocurrencies are not considered legal tender in Spain. The Spanish securities regulator (CNMV) and the Bank of Spain jointly advised on the risks associated with cryptocurrencies in 2018.

Since then, the Spanish government has published laws to prevent money laundering and tax evasion associated with cryptocurrencies, and in October 2021, the Bank of Spain implemented a register for providers of crypto exchange and wallet services.

What Banks Let You Buy Filecoin in Spain?

The below information provides details of banks you might want to use to buy Filecoin.

Santander

Santander is one of the most popular banks globally. Although Santander has blocked its UK users from making deposits to Binance, the bank still processes payments to other crypto platforms and in other countries. Santander also has plans to launch a Crypto ETF in Spain.

BBVA

Spain’s second-largest bank, BBVA, doesn’t block payments to crypto platforms. In fact, BBVA has a history of engaging with crypto—it was among the first banks to integrate blockchain onto its platform and has plans to launch crypto trading and custody services in Switzerland.

CaixaBank

CaixaBank is based in Valencia and is Spain’s third-largest lender. You can use the bank to make deposits to crypto platforms, and CaixaBank has even launched its own blockchain platform, we.trade.

Is Filecoin Taxable in Spain?

Yes, the Agencia Estatal de Administración Tributaria (AEAT) views crypto as an asset for tax purposes. If you make capital gains when disposing of your Filecoin, you will need to pay income savings tax at a rate of 19-26%, depending on the size of your profit.

You may need to pay income tax if you have earned crypto, such as through mining or getting paid in FIL. Wealth tax may also apply in some regions of Spain. If you live in one of these regions, you will need to include the value of your crypto on your tax return.

You are required by the AEAT to keep detailed records of your crypto transactions. The information you need to record for each transaction is the date, value in euros of the crypto at the time of the transaction, the purpose of the transaction, and the identity of the other party involved, such as their wallet address.

Final Thoughts

The best platform for buying Filecoin in Spain depends on a range of factors, including features, ease of use, security, and fees. We believe that eToro is the best platform overall as it ticks all the important boxes.

As well as being very user-friendly for traders of all levels, eToro is a regulated platform that supports free deposits via a range of payment methods and provides innovative social investing features that you can’t get anywhere else.

More Cryptocurrency Guides in Spain

Check out more of our popular crypto guides for Spain below.

• How to Buy Polygon in Spain
• How to Buy Tezos in Spain
• How to Buy Algorand in Spain
• How to Buy Curve Dao in Spain

Methodology - How We Picked the Best Platforms to Buy Filecoin in Spain

We decided on the best platforms by first testing them individually. Our criteria for assessment includes fees, deposit and withdrawal methods, reputation, credibility, security, ease of use, trading features, coin selection, and competitive edge.

The platforms listed on this page are ones that we found to be the best at the features we listed them under, e.g. best platform for advanced Filecoin trading. All platforms have a track record of providing value to users.

We also placed an onus on security and credibility. These platforms have millions of users and employ some of the highest security measures in the industry.

Finally, we considered trading fees and limits. These platforms have various fees and deposit/withdrawal limits, but they are all within reasonable limits.

To learn more about how we test and choose platforms, visit our why trust us and how we test pages.