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How To Buy IOTA

These days, it seems like everyone wants “in” on the next cryptocurrency. Sure, they missed the Bitcoin boom. Then, they missed the rush on Ethereum. Now, they are just trying to decide which initial coin offering to throw their money at next, mainly so they can talk about how they are getting in early on the next big thing. If you feel like there is definitely something to digital currency and the associated technology involving the blockchain network but you are certain just picking a cryptocurrency at random is not a savvy investing move, then you need to know how to buy IOTA.

Not only is this digital currency practical enough to potentially power remote grocery delivery in the foreseeable future, but it is backed by a cryptocurrency platform with substantial potential and an innovative edge on the market. And, as with all cryptocurrencies, IOTA is a truly international currency which allows people to get away from traditional forms of exchange.

WHAT IS IOTA?


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If you want to know how to buy IOTA, you first need to know what IOTA stands for. Surprisingly, it stands for “Internet of Things Application.” Essentially, IOTA Is a secure network derived from blockchain research but that is not actually blockchain. The application is intended for use by all machines, appliances, and devices that can connect to the internet.

A Little History Of IOTA

In 2016, four programmers launched IOTA in an attempt to improve on the security offered by blockchain technology. Unlike Bitcoin and other cryptocurrencies, IOTA does not require you to mine for units, nor are you required to build something new into the system. In fact, IOTA does not even use the blockchain. Instead, it uses something called a “tangle” to keep user information and transactions as secure as possible.

The IOTA Transaction Tree

Despite its unconventional nature, IOTA is ranked 12th out of 400 cryptocurrencies in CoinMarketCap.com's recent ranking of cryptocurrencies by market value. The application's developers believe it has incredible security potential because instead of creating a straight line of verified transactions in the manner of blockchain, IOTA uses something called a directed acrylic graph (DAG) to have users verify two additional transactions before their own is processed. Interestingly enough, this actually creates a super-speedy network and, by extension, a potentially valuable cryptocurrency based on that network. Since IOTA is not a traditional cryptocurrency, however, learning how to buy IOTA can be a bit complicated.

WHERE TO BUY IOTA


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IOTA can be purchased by investing in IOTA coins. You cannot, however, purchase IOTA coins using your own country's currency. In fact, if you know how to buy IOTA, you already know you must buy other cryptocurrency first, then exchange that cryptocurrency for IOTA coins. This process often intimidates new investors because they believe they cannot afford digital currencies like Bitcoin or Ethereum even though the markets have recently settled. Remember, you can buy these digital currencies in fractional amounts, which is why crypto-to-crypto trading exchanges work.

Buying IOTA on Binance

​​​​​​​One of the most common options for crypto-to-crypto exchanges is to take your trade to the Chinese trading exchange Binance. This exchange requires that you make a deposit in either Bitcoin or Ethereum to start up your account. Once your account is funded with one of these cryptocurrencies, then you will be ready to trade for IOTA coins. When you make the exchange, Binance will charge you 0.1 percent of the trade amount. When you withdraw your IOTA, you will be charged 0.5 IOTA. You can save a little on the transaction by converting your Bitcoin or Ethereum into Binance Coin (BNB) before using the BNB to buy IOTA.

Using Fiat Currency To Fund Your Binance Account

If you do not already own Bitcoin or Ethereum, you will have to purchase some before you can explore how to buy IOTA on a cryptocurrency trading exchange. You can purchase more ubiquitous digital currencies on platforms such as Coinbase, which offer simple solutions for traders who simply want to make straightforward purchases using their country's currency, like the U.S. dollar or the Japanese Yen. Once your cryptocurrency purchase is complete, you can transfer it to Binance and start making exchanges.

Should I Buy Ethereum Or Bitcoin?

While both Ethereum and Bitcoin will work in a crypto-to-crypto exchange transaction, some traders say Ethereum is a safer option for funding your Binance account because:

  • It is less expensive than Bitcoin
  • It tends to take less time to process, leaving smaller windows where your funds are potentially available to be hacked
  • Its blockchain is usually considered sounder than that of Bitcoin

No matter which currency you choose, however, there will be some delay while you wait for the cryptocurrency to transfer to your Binance account. Binance does have a two-factor authentication protocol that has been proven to keep platform users' information and funds secure. In March 2018, hackers did manage to attack the exchange but were unable to steal anything before the Binance team stopped them.

How To Buy IOTA On Bitfinex

If you want to use your country's currency to purchase IOTA coin directly, then Bitfinex may be able to help you. This platform allows users to trade with:

  • US dollars
  • Euros
  • Cryptocurrencies

The benefit of Bitfinex is that you do not have to go through another trading platform first. Drawbacks include more fees on your transactions and that some new traders find the Bitfinex platform too advanced for comfort. If you are just learning how to buy IOTA and not getting into advanced transactions, it should probably be okay. Readers should note Bitfinex has been hacked several times, however, and users have lost money. In fact, in May 2015 and again shortly thereafter, nearly 120,000 Bitcoin were stolen from the site. However, the platform restored all lost monies to users by April 2017.

Other Options For Buying IOTA

Bitfinex and Binance are the two exchanges that post the most significant trade volumes for IOTA, but you have major options for making your IOTA purchase. These, include:

  • Gate.io, a relatively new two-factor identification system that offers crypto-to-crypto trading
  • HitBTC, a Hong Kong crypto-to-crypto exchange that requires users to purchase Bitcoin from a broker before conducting transactions

HOW TO BUY IOTA


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Once you have selected your platform for purchasing IOTA and funded the account as the platform requires, it is time to put all that effort you spent learning how to buy IOTA into action. It is time to do what most platforms refer to as “making a trade,” wherein you exchange one cryptocurrency for another. We will use Binance as our example for the process.

Trade Settings And Making Your Purchase

Unless you are an experienced cryptocurrency trader, just pick “basic” for your trade settings and then scroll through the list of trading pairs. You will see the option “IOTA/[BTC or ETH]” in that long list. Select it. Note that IOTA should be first in the pair. You are not trading IOTA for Bitcoin or Ethereum. You are trading one of those currencies for IOTA. Once you select the right trade, you will fill out an order form to tell the exchange how much IOTA coin you want to buy. Once you click the big “Buy IOTA” button, the transaction is complete and you now are the proud owner of some IOTA, possibly the cryptocurrency sector's next big thing.

Putting Your IOTA In A Wallet

It might feel like you should be done with learning how to buy IOTA at this point, but there is one more important step. You must transfer that IOTA out of the cryptocurrency exchange or trading platform and into a cryptocurrency wallet. Your wallet may be kept online or offline, and is where you keep all the codes you might need to access your cryptocurrency investments. Fail in this, and you run multiple risks including being hacked or assessed additional fees by the exchange platform.

2-Factor Authentication

You will notice that many cryptocurrency platforms offer “2-factor authentication” (2FA) as a demonstration of their high levels of security. Exchanges usually will offer their own custom versions of this, but Google, for example, also offers an authenticator that may be purchased and managed via the Google Authenticator App, which is a good additional option to help you avoid security breaches. Google Authenticator is free from both Google Play Store and Apple iOS Store. Binance will also limit your withdrawal limits until you complete additional authentication steps to prove your identity, so there is a wide variety of options for creating multiple levels of security.

Get Out There And Buy Some IOTA


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Experts predict IOTA could appreciate exponentially in the next few years as the Internet of Things (IOT) expands and becomes a more commonplace concept in our daily lives. Will this relatively new cryptocurrency be the next Bitcoin or Ethereum? Only time will tell, but it certainly has potential. However, if you do not learn how to buy IOTA, your window of opportunity for finding this out will certainly close.

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