The cryptocurrency segment is becoming more crowded with every passing day. While not all are worth buying, one cryptocurrency that took my attention is Siacoin.
Understanding how to buy Siacoin will allow you to own this rising cryptocurrency.
- Things you need to know before you buy Siacoin
- Where to buy Siacoin?
- Where to store Siacoin
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Things you need to know before you buy Siacoin
Siacoin aims to disrupt the cloud storage industry by using the Blockchain technology. Nebulous Inc. is the name behind the creation of Siacoin, which is currently led by David Vick and Luke Champine.
Siacoin tries to solve weak security and expensive fee problems. To do so it offers a decentralized storage solution. The platform allows you to rent online storage and store data.
On the Siacoin network, peers can rent hard drive space from each other. Doing so they don’t rent from a centralized provider.
If you have unused space on your hard drive, then you can rent it on the Siacoin network and earn in the form of Siacoin (SC).
This might be a good choice if you have a lot of empty hard drives and are looking to make some money from them.
Siacoin is completely decentralized. No single authority or individual is controlling the network.
Several nodes verify all the data transactions.
This makes it difficult to hack Siacoin servers.
Things you need to know before you buy Siacoin
- Siacoin is 100% decentralized.
- Nebulous Inc. is the name behind the coin.
- Siacoin’s goal is to solve security and expensive fee problems by renting storage and using redundant algorithms to validate transactions.
How Siacoin Leverages Decentralization?
Sia platform distributes the users’ files across multiple nodes on their network. As the data is encrypted, it is only accessible by the user possessing the private key. Any random node will not be able to access all the data.
If a node manages to figure the users private key, they can only access a part of the data, which will not be useful.
The distribution of the file reduces vulnerability, as there is no single point of failure.
The major issue with the centralized system is the high cost of data storage. Centralized storage facilities need high maintenance and full-time resources to ensure smooth functioning. All these factors result in high costs.
In Siacoin network, there is no need for resources as the nodes take care of themselves. This alone makes the Sia platform a cheaper alternative.
Siacoin offers privately-owned cloud storage. The price is reasonable and has faster processing and enhanced privacy. According to Siacoin, at $2 per month, users will be able to store 1 terabyte of data.
This is cheaper compared to some other centralized platforms in the industry.
How Siacoin Leverages Decentralization?
- The power of Siacoin is security as only the user possessing the private key can access the data.
- If a node manages to find a user private key, it is only part of the data necessary due to redundancy of the information throughout the nodes.
- Siacoin is affordable thanks to users renting their hard drive’s spaces instead of using expensive cloud services.
How Sia Peer-to-Peer Storage Works?
The Sia ecosystem consists of two main components – the renters and the hosts. If you are renting hard drive space from a host, then you can pay them in Siacoin to lease storage capacities. You are also free to determine the fees with the hosts.
If you are offering storage space (a host), you can promote the quality of your service. You also get the right to refuse a particular client, if you believe that the data is too sensitive or illegal.
Renters have the right to split the files and have them copied with several hosts to ensure privacy. Renters can pay hosts more to get preferential treatment, including faster upload speeds.
Uploading and Downloading Files
Renters can upload and download their files as many times as they want, as long as there are funds. Hosts cannot change their pricing mid-way in the contract.
A direct connection between the host and the renter provides with the data transfer. The encryption of the files occurs via Twofish algorithm. The storage of the files occurs with Reed-Solomon (a redundancy algorithm) on the host side.
Proof of Storage
Sia network uses proof of network to protect renters from malicious hosts. The host only receive payments, if they present the network with a number of proofs, within predetermined time frames.
If the host cannot present the proof, the payment goes to a missed proof address until the host submits the proof. It is necessary for the host to keep sending the proofs to show that they are online and preserving the data accurately.
If the host is negligent towards the protection of data, they are fined with a penalty. Host’s contracts can be terminated if they keep missing the timeframes too often.
However, if the host is successful in presenting the proof, they receive the payment.
How Sia Peer-To-Peer Storage Works?
- The Sia network is made by renters and hosts where renters are those who pay for disk space and hosts are the one who sell disk space.
- Hosts determine their price and advertise their quality and have the right to refuse a client.
- Renters split the files along with several hosts, they can decide to pay more than the host’s requirement in exchange for faster services.
- Hosts cannot change their prices once the contract is done.
- Sia uses Twofish algorithm and Reed-Solomon on the host’s side.
Where to buy Siacoin
Binance is amongst the largest cryptocurrency exchanges, allowing to trade hundreds of cryptocurrencies.
Originally based in China, it has moved to Malta because of lesser regulations in the area. With over 10 million registered users, it offers optimal security to its users.
- Binance offers the lowest trading fees in the industry, only 0.1% of the total traded amount.
- You can reduce the trading fee by 50% if you make use of BNB coin.
- It offers good liquidity due to large trading volumes.
- Lowest rate to trade Siacoin.
- Strange security threats which meant they had to block withdrawals.
How to buy Siacoin on Binance
You can buy Siacoin on Binance by first buying ETH/BTC with FIAT and then exchange it for Siacoin. If you fund your Binance account with ETH, you can buy Siacoin by following the steps discussed below:
- On the top of the screen, click on Buy Crypto.
- In the main content of the page, just chose either to buy Bitcoin or Ethereum as both are paired to SC (Siacoin) on Binance, and buy it.
- Click on Markets and chose ‘Basic’.
- In the right sidebar where all the pairs are, just search for ‘SC’ and you will see Siacoin, click on it.
- Now enter the total amount you want to buy and click on Buy SC in the Buy box under the chart.
There it is – you have your Siacoin.
Coinbase is more suited for beginners trying to buy cryptocurrencies. It has a very friendly and intuitive interface, which makes it easier for beginners to trade. First you would need to buy Bitcoin or Ethereum using bank transfers.
- Several deposit and withdrawal options.
- Friendly and Intuitive interface.
- 2 Factor Authentication to prevent unauthorized manipulation.
- Deposits and withdrawals are slow.
- Limited cryptocurrencies.
How to buy Siacoin on Coinbase
For buying Siacoin through Coinbase, you will need to have either BTC or ETH in your account. For instance, if you have ETH in your account, you convert ETH with Siacoin using Shapeshift.
Follow the procedure to buy Siacoin using Shapeshift.
- Visit the Shapeshift website, register and verify your account.
- On the left side of the buy panel in the homepage chose the currency that you own (ETH in this case) and in the right side click and search for ‘SC’ which is Siacoin.
- Next, provide your Siacoin address to send Siacoins. Also, provide the ETH address if the trade is not completed for some reason.
- You will see an order screen.
- Now go to your Coinbase account and click on Accounts and then click Send under the ETH wallet.
- Now enter the address Shapeshift provided you to send your Ether to and send them.
- Go back to your Shapeshift order page and within 10-20 minutes, you will receive your Siacoins on the address you provided in step 2.
Congratulations, you have bought your Siacoins.
PayPal Using LocalBitcoins
You can buy Siacoin using PayPal as well. First you will need to buy Bitcoins from LocalBitcoins. LocalBitcoins is both a buying and selling platform. LocalBitcoins is a place only for buying Bitcoins. However, once you buy Bitcoins, you can trade them for Siacoin.
- It is convenient to buy using PayPal.
- LocalBitcoins has a simple interface.
- It can be costly to buy Siacoin using PayPal.
How to buy Siacoin Using PayPal
For buying Siacoin using PayPal, follow the below discussed steps.
- Visit LocalBitcoins and click on the Quick Buy option.
- Enter the amount to buy Bitcoin and choose PayPal as a payment option.
- Click on purchase and you will receive Bitcoins in your wallet.
- Now that you have Bitcoin you can chose to either go on Binance or Shapeshift to trade for Siacoin (SC).
Your Siacoin is received in your wallet. Congratulations.
Where to Store Siacoin?
Once you bought Siacoin for yourself, you should ensure that you keep your Siacoin in your own personal wallet. The Siacoin wallet is available for Mac, Windows, and Linux operating systems.
I am always supporting hardware wallets as they are not hackable like the online ones, and if you want a Siacoin hardware wallet you can have a look at the ledger’s offers.
Over the years, a lot of people have shown interest in Siacoin. Out of all the ways to buy Siacoin, Binance and Coinbase is the most suited option to trade in Siacoin. The process is simple and allows you to trade in Siacoin at a much lesser fee, as compared to other options such as PayPal, Skrill, and Neteller. Therefore, Binance and Coinbase seem more suitable.
Thus, if you are wondering how to buy Siacoin and where to buy Siacoin, you now know the best options to make your trades.