How to buy Siacoin online
This guide introduces you to Sia and Siacoin, and by the end of it you will know where to buy Siacoin, how the platform works, and its investment prospects for the future.
Compare where to buy Siacoin, and open an account
If you are already familiar with Siacoin, and you want to buy SC tokens now, click one of the links below and sign up to one of our tried-and-tested brokers. For more information, scroll down this page.
What is Siacoin?
Sia is Airbnb for hard drives. The crypto blockchain and software allows any computer running it to rent out unused space on their hard drive to users who need it to store files.
As the currency of the platform, Siacoin (denoted as SC) is used to pay those who rent out their disk space, but it is only paid once the host proves they are storing the files in question. The system also has another kind of token, Siafunds, and these are used to incentivise users.
Currently host to some 766 terabytes of files, Sia was founded by developers David Vorick and Luke Champine in 2013. Its main competitors are Filecoin, Storj and MaidSafe, though Siacoin’s unique trait is that it can consistently provide high uptime because it is reliant on a distributed network of computers rather than Internet service providers (ISPs).
How does Siacoin work?
When individuals want to store their files on someone else’s hard drive, Sia slices the files into 30 small pieces so sections of them are stored on each hard drive within the whole system, so even if someone accesses a hosts hard drive, they would only be able to access a fragment of the files.
To enhance the security of this data transfer, the files are encrypted to ensure their security, and users are able to access their files even if 20 of their 30 hosts are offline thanks to a technology called erasure coding. Users pay hosts with Siacoins, however, the hosts only receive these fees if they prove they are storing a file by the end of the smart contract period, which is usually 90 days.
To incentivise users, Siafunds entitle them to 3.9% of each contract. There is no limit on the number of Siacoins that can exists, but there is a 10,000 cap on Siafund tokens, which fluctuate in value based on the size and value of contracts in Sia. Those who confirm transactions are known as Siacoin miners, and they receive 40,511 SC per complete block.
How to buy Siacoin online – a step-by-step guide
Step 1. Find an exchange to buy SC
The ideal way to purchase Siacoin tokens is via a crypto exchange, and these are like large marketplaces for cryptocurrencies. We have already outlined some of the best platforms to buy Siacoin at the top of this page, but to save you time and help you get started, we have listed two of the best exchanges to buy SC below:
- Bitpanda: Bitpanda is a strong candidate when choosing a cypto exchange. Its user interface is clear and strong, and the platform supports Siacoin. Join Bitpanda today >
- Binance: Many crypto investors go for Binance because it is the largest exchange by trade volume. It is a well-established platform with good tools and features, and it supports a large number of coins. Sign up for Binance now >
Step 2. Sign up and fund your account
If you want to buy Siacoin on an exchange, follow the steps and sign up for an account. For ID verification purposes, you usually have to provide a copy of your photo ID and some contact details, and then you can fund your account with a fiat currency like GBP or USD.
Step 3. Buy SC
If you want to buy SC with fiat money, say GBP, search on the exchange for the SC/GBP pair and enter the amount you want to buy. You can then execute the transaction and you will own Siacoin. If your account is funded by Bitcoin, just look for the SC/BTC pair instead.
Step 4. (Optional) Get a suitable wallet
If you want to store your SC tokens securely away from the prying hands of online hackers and scammers, a crypto wallet is a great option. These come in both online and offline form, and both are great ways to store your funds safely. Here are two of the best.
- Trezor: Trezor was the first hardware wallet to emerge onto the crypto scene, and it is regarded by many as the best. Your SC will be stored offline and completely protected from online attacks. Open a wallet with Trezor today >
- Freewallet: Compatible with over 100 different cryptocurrencies, and standing as one of the most popular online crypto wallets, Freewallet is a good choice for SC investors. Get a Freewallet right now >
How to trade Siacoin – a step-by-step guide
Step 1. Find a broker
Trading involves opening and closing buy and sell positions quickly to take advantage of price changes in the market, and most traders use a broker to accomplish this. Finding a broker that supports Siacoin is difficult, but the most likely options are eToro and Plus500; these two brokers support the largest number of cryptos.
Step 2. Deposit money
Just like you would with an exchange account, you can fund your broker account with fiat money. The vast majority of brokers let you trade with these funds directly, but make sure you watch out for the trading fees which can quickly add up.
Step 3. Decide how you’d like to trade
Make sure you are clear with your trading strategy before you execute a trade. A great technical trading strategy has an eye for the small details. Focus on short-term price movements and technical indicators to make predictions and determine patterns. This will help you buy SC tokens for a lower price than you sell them for.
Step 4. Start trading
Before doing the real thing, it is a good idea to practice trading with a demo account and virtual money, and most brokers support this service. In fact, you can find out which ones do in our reviews section.
Once you start trading, you can choose to go long, and believe SC will rise in value, or go short, and believe it will fall in value. You you choose either of these options based on current market behaviour and sentiment, and both can be profitable if you use them at the right time.
In addition, leverage is available via most brokers, and this increases your exposure to the price of an asset without you needing to buy more of it. However, this also increases your vulnerability to any potential downside, so losses can quickly multiply. Make sure you exercise caution when using leverage.
If you still aren’t sure what you want to do, take your time and don’t rush into anything. Here are some of the pros and cons of Sia as a platform.
- Unique cloud storage solution combined with crypto
- Less downtime than other providers
- Incentives for users via Siafunds
- Good rewards for Siacoin miners
- Encrypted and divides files increase their level of security.
- Competing with major cloud storage rivals like Google Drive and Dropbox.
- Is a crypto platform really needed for cloud storage?
Below are 3 questions and some key considerations to help you decide if you want to invest in Siacoin.
1. Is it a good time to buy Siacoin?
This largely depends on your investment strategy. If you are a long-term investor, Siacoin’s storage capabilities combined with crypto payments could become increasingly popular as time passes, leading to a rise in the price of SC tokens. Therefore, buying them now could prove to be an astute decision in the future.
On the other hand, if short-term trading is your strategy, the long-term vision of the platform is less significant. Instead, you need to tap into the technical side of things and make emotionless decisions to open and close positions quickly, buying Siacoin low and selling it high.
You may opt for either of these routes to possible financial success, but make sure to keep up to date with the latest analysis concerning Sia and SC:
2. What problem does Sia solve, and what are the coin’s investment prospects?
Sia makes storing files online easy, secure and payable via crypto. There are a variety of cloud storage options currently available, but the platform’s integration with blockchain technology and lack of reliance on internet service providers sets it apart from competitors.
If Sia can market itself as a safe, secure way for users to store files online, it could become increasingly popular, but it faces an uphill struggle because of the current established leaders in the data storage space. Crypto is very topical right now, and individuals are recognising the value of blockchain technology, so it stands a better chance of succeeding now than ever before.
Whatever you think of Sia and SC’s investment prospects, make sure you keep informed about the project’s development by reading the latest news on the platform:
3. Do you want to hold SC for the long term?
You can hold SC for the long term to vote on platform governance or speculate on future price increases, or you can flip it for a higher price in the short term. You should make different considerations based on what you do, and these are outlined below:
Considerations for a long term investment strategy
If you want to vote on governance decisions and believe Sia is a platform heading towards future growth, buy some SC tokens from a crypto exchange and store them in a crypto wallet to keep them safe and secure.
Considerations for a short term trading strategy
If you want to trade your way to profits, sign up to a broker and start trading SC tokens now. This can be a great way of putting your money to work.