STORJ (formally known as Storjcoin X) is the cryptocurrency token used by the Storj data storage network and it has already garnered plenty of attention from traders.
Compare where to buy Storjcoin, and open an account
Read on to find out more about STORJ in 2020 or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to buy STORJ.
What is Storj?
The Storj network is a decentralized peer-to-peer data storage alternative to traditional file hosting companies such as Dropbox, and Storjcoin X was the first iteration of the cryptocurrency created by Storj Labs for use as payment in the Storj network.
In 2017, Storj Labs migrated Storjcoin X to STORJ due to some limitations of the original token. STORJ is an ERC-20 token powered by Ethereum.
How does Storj work?
The Storj network works by linking people with excess data storage capacity with people who need more space. Users who have signed up to the network either earn STORJ by becoming Node Operators and offering up their spare hard drive capacity or they can buy STORJ and use it to pay for extra storage.
How to buy STORJ online – step-by-step guide
Step 1. Get a suitable wallet
Before you head to an exchange to buy STORJ, it’s a good idea to set up an ERC-20 compatible wallet so you have a safe place to keep your funds. We’ve had a look at what’s out there and found plenty of options. Here are a few of our favourites:
- Ledger Nano X: If security is your number one concern, then you should consider a hardware wallet like the Ledger Nano X. The price tag means it’s not for everyone, but if you’re on a budget and still want to go down the hardware storage path for your STORJ, there are cheaper alternatives such as the Nano S.
- MyCrypto wallet: Another great option for STORJ is the MyCrypto Wallet which offers a desktop client and a mobile option and is fully compatible with hardware wallets such as the Nano X.
- MyEtherWallet: With a super slick design and easy-to-use interface, MyEtherWallet (or MEW as they like to be called), is a great option for cryptocurrency newbies and pros alike.
Step 2. Find an exchange to buy STORJ
While it’s possible to earn STORJ by becoming a Node Operator, it’s not the fastest route to ownership, and unless you have a fair few terabytes of spare storage space at your disposal it might take a while to build up your funds. So, with that in mind, we recommend you find an exchange and buy STORJ.
We managed to find a couple of places that accept fiat currencies (mainly USD) for STORJ, but Bitcoin (BTC) was the most widely accepted currency.
Our preferred exchanges to buy STORJ are:
- Binance: As one of the biggest and (in our opinion, anyway) best exchanges online, we usually head straight to Binance when we’re buying cryptocurrencies.
- Poloniex: Another tried and tested exchange, Poloniex is a great place to source your STORJ.
Step 3. Withdraw your STORJ
It’s a good idea to withdraw your STORJ once you’ve bought them as it’s safer to keep your funds in a wallet rather than leaving them on the exchange.
How to trade STORJ – step-by-step guide
If you’re only interested in trading and have no intention of buying STORJ, then there’s no need to set up a wallet as you’ll only be speculating on the rise and fall of its value.
Step 1. Find a broker to trade STORJ
Finding a reputable broker is the first step to becoming a cryptocurrency trader. There are loads out there, but we like eToro and Plus500 as they have great features and reasonable minimum deposit requirements.
Step 2. Deposit money
The next stage, once you have chosen your broker, is to make a deposit. Once the deposit is in your account, we recommend you set up a demo account rather than jumping straight into the live trading. This way, you’ll get a good feel for the platform and, if you’re new to trading, you’ll also get a good feel for the rise and fall in the value of your chosen cryptocurrency.
Step 3. Decide how you’d like to trade
There are two main ways in which brokers allow you to trade on cryptocurrencies. These are spread betting and CFDs (contracts for difference). They’re both fairly similar in that whichever way you go, you’ll always be taking a position on whether you think the price of your cryptocurrency will go up or down. If you’re interested in trading, it’s worth doing some extra research to understand the differences between spreads and CFDs.
Step 4. Start trading
When you feel you’re ready to move away from your demo account, it’s time to start trading for real. If you’re not experienced, we suggest you take it slowly at first – it’s easy to win and lose money very quickly due to the volatility of the cryptocurrency market.
Trading isn’t hugely complicated, and you should have a fairly good idea of what you’re doing if you’ve been using a demo account. Essentially, you’re going to be predicting which way the value of your cryptocurrency will go. If you’re confident the value of the currency will rise you should take a long position (buy) or if you’re confident it will fall, you should take a short position (sell).
Depending on your experience as a trader and the type of broker you’re using, you may also be able to add leveraged trading to your strategy. This allows you to put up a fraction of a trade’s worth (known as a margin) with the broker covering the rest. This is a high-risk strategy, but savvy brokers use stops to limit potential damage.
- The Storj network is a great idea with solid backing
- While there are competitors, Storj Labs is still fairly unique
- STORJ is interesting to traders as the Storj network is in early release and moving away from beta versions
- It’s still early days for the network and the STORJ token
- Storj Labs are more invested in their network rather than the STORJ token
- STORJ is only accepted as payment within the Storj network