IOTA is a distributed ledger that records and executes transactions between devices and other machines in the Internet of Things (IoT) ecosystem. The ledger deploys a cryptocurrency called mIOTA as the native coin of the network, allowing the machines to pay using this crypto. Unlike most cryptocurrencies, IOTA’s key technology is Tangle. This is a system of nodes that are used for confirming transactions within a network. According to the IOTA Foundation, Tangle is faster and more efficient than the regular blockchain technology deployed by other cryptocurrencies. To ensure that the IOTA network and its cryptocurrency operates smoothly, the IOTA Foundation takes charge of the network. They are a non-profit foundation responsible for the Tangle ledger. Their partnership with several companies like Volkswagen, Bosch, and more will likely see them extend the use of IOTA and mIOTA amongst connected devices globally. This is likely to impact their value which makes IOTA a top choice to trade, buy and sell for global investors.
How Did IOTA Start?
IOTA was launched in October 2015 by Sergey Ivancheglo, Serguei Popov, David Sønstebø, and Dominik Schiener. These four co-founders developed the IOTA network to be scalable and to allow transactions between machines to be faster and more efficient. The roots of IOTA go back to the Jinn project which focused on developing low-cost and energy-efficient hardware and general-purpose processors in order to use in the IoT ecosystem. In 2015, Jinn was rebranded as IOTA
According to a research firm Gartner, we will have roughly 20 billion devices connected to the Internet by 2020. The drastic surge in the number of connected machines and devices created a new and large market for IOTA to explore. IOTA was created to become the standard mode of carrying out transactions on the connected devices. According to the founders, IOTA is the public permission-less backbone for the IoT, allowing interoperability between multiple devices. To describe it simply, IOTA enables transactions between connected devices, and since it is a public ledger, anyone has access to it. The mIOTA cryptocurrency has been one of the most valuable cryptos in the trading space due to the functions of the IOTA network. To put it into perspective, within three months of its debut in the crypto markets, mIOTA reached a peak valuation of $14.5 billion.
What is MIOTA?
For those that want to buy IOTA, the real term is to purchase mIOTA. This is the native cryptocurrency of the IOTA network. Unlike the other popular cryptos, mIOTA cannot be mined. It has a total supply of 2,779,530,283 mIOTA, which are all in circulation. Although mIOTA is mined using the PoW (proof of work) consensus algorithm, there are no miners and transaction fees on the network. It is only a micro-transaction network used by innovative decentralized applications. The trinary hashing algorithm and the Tangle technology help secure IOTA transactions and scale them. The Tangle platform deploys Directed Acyclic Graphs to instantly accelerate transactions, based on the previous transactions within the chain. The process used by mIOTA makes it faster than the traditional blockchain. As one of the leading cryptos, you can buy mIOTA from a wide range of crypto exchanges, P2P platforms, and some brokerage platforms.
How to Buy IOTA from a Broker?
One of the easiest ways to buy IOTA is from an online financial broker. Since cryptos have not been around for a long time, most crypto enthusiasts are not always sure how to buy IOTA from these platforms. To buy IOTA from a broker, you need to first check if your preferred broker offers IOTA as an option to trade. There are a lot of reputable brokers that list the coin on their platforms so take the time to research what each broker has to offer and if it meets your trading needs and risk appetite. Once you have made your selection, simply visit the website of the broker, register a trading account and then start trading IOTA. It is especially important to note that when you buy and sell IOTA with a broker, you are not actually purchasing the cryptocurrency. Instead, you are trading a CFD or contract for difference. This means that you simply need to speculate on the direction that the price of IOTA will move. With CFD trading, you can trade and invest in IOTA without requiring a large amount of trading capital. You also do not need to store your digital coins in an online wallet. Most leading brokers also have the most intuitive and powerful trading platforms that ensure that buying IOTA is easy for everyone, even new traders.
The Pros of Buying IOTA from a Broker
Here are the benefits you enjoy when you buy IOTA from an online broker.
- No Spending on Storage: when you buy IOTA from a broker, you do not have to spend money on an online wallet since you will not be holding physical coins. You are trading IOTA CFDs which means you only need to predict the price movement of the digital asset.
- Cost: It is cheaper to trade mIOTA with a broker than it is to actually purchase mIOTA coins. In addition, most brokers offer leverage which enables a trader to open bigger trades than their available trading capital.
- Easy to Buy: Brokerage platforms ensure that trading the mIOTA coins is easy. The brokers accept a wide range of payment options and ensure that all trading transactions are processed smoothly.
- Security: Brokers offer high-end security, such as the implementation of SSL certificates on their sites and more. These security measures help ensure that transactions on their platforms are safe and secure.
- Effective Tools and Features: Online brokers offer excellent trading features when you trade IOTA with them. They have intuitive platforms, powerful trading tools, excellent cryptocurrency trading software, and other features that make it easy to buy and trade the mIOTA coin.
The Cons of Buying IOTA from a Broker
Although buying IOTA from a broker has several benefits, it also has some disadvantages.
- Not Buying Real Coins: trading on brokerage platforms involves trading CFDs. This means that you are not actually buying the real assets, rather you are trading on contracts for differences. Since you are not buying the real IOTA from the broker, you cannot send the coins to someone else or store it in a wallet.
What to Consider When Buying IOTA from a Broker
Here are a few suggestions to consider when buying IOTA from a broker:
- Payment Method: Top brokers support multiple, secure payment options to make it easier for traders to trade IOTA. Select a broker that supports your preferred payment method such as credit/debit cards, bank wire, and electronic wallets.
- Broker Fees: The fees or commissions a broker charges for trading assets on its platform and other transaction fees should be high on your list of things to consider when selecting a broker to partner with. Take the time to fully understand the charges and spreads offered by the broker.
- Security: Is the broker’s platform secure? Choose a broker that deploys high-end security protocols to protect the funds and information of its traders.
- Deposit and Withdrawal Speed: It is recommended that you choose a broker that has a swift deposit and withdrawal process. Swift withdrawal will ensure you can access your profits quickly, while an instant deposit of funds will allow you to trade the assets as soon as your account is activated.
How to Buy IOTA from a Crypto Exchange
One of the places you can buy IOTA is from cryptocurrency exchanges. When cryptos were first introduced in the financial markets, these exchanges were the main link between cryptocurrencies and investors. To buy IOTA from a crypto exchange, visit their official platform site, and register an account with them. After your account is activated, deposit funds, and use these funds to buy mIOTA coins. Once the transaction is done, the coins will become instantly available to you, and you can use them to either send, save, or trade against other assets. Buying IOTA from cryptocurrency exchanges is different from buying this digital asset from online brokers as you are actually purchasing the crypto coins. This means that you have to ensure that the coins are secure at all times and this involves storing them in a secure wallet. As one of the leading cryptos, IOTA is listed on virtually all cryptocurrency exchanges. However, it is recommended to buy the coins from exchanges that are reputable and have large liquidity as that would make it easier to sell when you are ready.
The Pros of Buying IOTA from Exchanges
The advantages of buying IOTA from crypto exchanges include:
- Buying the Real Coins: When you buy IOTA from a crypto exchange, you are purchasing the crypto coins. Unlike brokers that usually offer CFDs, exchanges offer you the actual digital asset.
- Storing, Sending, or Trading: Since you are buying real coins, you have more options when using them. You can store the mIOTA on external wallets, you can send them to other people as payment for goods and services, or you can trade them against BTC, USD, or other assets.
The Cons of Buying IOTA from Exchanges
The downsides of buying IOTA from crypto exchanges include:
- Security Risk: Cryptocurrency exchanges are usually the target of hackers. Hence, your asset might be at risk when you buy IOTA from a cryptocurrency exchange. The exchanges also lack high-end security protocols like most brokers.
- Spending More Money on Storage: Since you are buying mIOTA coins, you will need to spend money to store them safely. Since leaving them in your exchange account is not always safe or recommended, you will need to purchase a cold storage wallet or to store the mIOTA, which means extra expenses for you. Cold wallets have no connection to the Internet, and they use a physical medium to store the keys offline, making them resistant to online hacking attempts.
What to Consider When Buying IOTA from an Exchange
When buying IOTA from an exchange, here are the things to consider:
- Liquidity: Select exchanges with high liquidity as that will make it easier to buy and sell any amount of IOTA you desire. Using exchanges with low liquidity, makes it harder to sell or buy cryptos.
- Payment Methods: Top crypto exchanges support multiple payment methods, and you should select one that offers your preferred payment method. This will give you more options when it comes to paying for the assets.
- Fees: Before opening an account, take the time to understand what fees the crypt exchange charges.
- Security and Support – Select an exchange that has anonymous sign-ups as well as two-factor authentication (2FA), such as Google Authenticator or SMS, and in this way, you can have peace of mind that you have taken the proper precautionary measures to protect your funds.