IOTA (MIOTA) is a groundbreaking cryptocurrency that’s attracting plenty of interest right now. This guide shows you how to buy, sell and trade IOTA in 2020.
Read on to find out more about IOTA and how it works or skip ahead to our step-by-step buyers guide if you’re up to speed and ready buy MIOTA.
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What is IOTA?
Launched in 2015, IOTA is a relatively unique cryptocurrency that uses an entirely new system, called Tangle, that’s been touted as a potential successor to the blockchain.
IOTA’s name is short for Internet of Things Application, a direct reference to the idea that everything from TVs to toasters can be connected to the internet as part of a vast interconnected network, dubbed the Internet of Things.
How does IOTA work?
Instead of relying on mining like traditional blockchain coins, IOTA utilises the Internet of Things to replace the shared ledgers that underpin traditional cryptocurrencies such as Bitcoin, Ethereum or Litecoin. Instead, IOTA utilises self-verifying transactions via a blockless distributed ledger known as Tangle.
In theory, Tangle offers an exciting new alternative to the blockchain that promises improved scalability, the possibility of offline transactions and the end of transaction fees. Tangle’s decentralised, self-regulating system means that no third parties or mining communities are involved at any stage of the verification process. Everything is handled by the system itself.
How to buy IOTA online – step-by-step guide
Step 1. Get a suitable wallet
Before you buy MIOTA tokens, you will need to find a suitable wallet for it. At this stage not many wallets support IOTA so it might be tempting to store it on an exchange. We don’t recommend doing this – it’s always safer to use a hardware or software wallet. There are a few options, including:
- Ledger Wallet: Ledger is a hardware wallet, which means you can store your IOTA (along with 30 other currencies) offline on a super-secure wireless device.
- Trinity Wallet: Created by the IOTA team, Trinity is the official desktop IOTA wallet and has been widely praised for its ease of use and impressive security. The only obvious downside is that it only supports IOTA you can’t use it with other currencies.
- GUI IOTA Wallet: Prior to the introduction of Trinity, GUI was widely regarded as the best software wallet for IOTA. It’s an appealing, easy to use option, although it isn’t compatible with mobiles devices. Beginners are advised to choose the ‘Light’ mode when setting up.
Step 2. Find an IOTA exchange
Not all exchanges offer IOTA, so your choice is relatively limited, especially if you don’t want to buy MIOTA using Bitcoin or Ethereum. It’s important to do your research and choose a reputable exchange. Popular exchanges where you can buy IOTA include:
- Binance: Widely considered to be the best, most dependable place to buy MIOTA, Binance is the world’s biggest crypto exchange. But, while it offers a huge crypto marketplace with competitive fees, you won’t be able to buy using Fiat currency so you’ll have to buy Bitcoin or Ethereum in order to exchange it for IOTA.
- Bitfinex: A Hong Kong based exchange that will allow you to purchase IOTA using BTC, USD, GBP, EUR, JPY and ETH. Bitfinex should be relatively cheap but it can take a while to verify your purchase.
Step 3. Withdraw your IOTA
In the interests of securing your IOTA, it’s a good idea to move the assets out of the exchange and into your wallet as soon as you buy MIOTA tokens. To withdraw your IOTA to your wallet you need to generate an address then paste it the relevant field in your exchange account.
How to trade IOTA – step-by-step guide
If you’re only interested in trading IOTA tokens (instead of buying MIOTA) you don’t have to worry about getting a suitable wallet because you’re taking a position on the currency rather than actually acquiring it. This means you can potentially make a profit from IOTA without the hassle and security risk of owning it.
Step 1. Find a broker
There are plenty of cryptocurrency trading platforms to choose from but not all of them allow you to trade IOTA, so your first task is to identify the platforms that do and choose one that suits your needs. Plus500 and eToro are two of the most popular IOTA trading platforms.
Step 2. Deposit money
Another advantage of trading IOTA is that you can deposit Fiat money (USD, GBP, EUR etc.). This isn’t always an option when trying to buy MIOTA – some exchanges require you to purchase using Bitcoin.
Step 3. Decide how you’d like to trade
There are two methods to trade cryptocurrencies: CFDs (Contract For Difference) or Spread Betting. Both methods essentially entail speculating on the price movements of your chosen currency. If you aren’t sure which option to go for we recommend researching the differences between spreads and CFDs using our cryptocurrency courses.
Step 4. Start trading
If you’re a complete novice we recommend starting with a demo account and familiarising yourself with process and the platform. Cryptocurrency trading is extremely volatile, which means you can make and lose money very quickly. IOTA has typically trended upwards but, as a relatively new and experimental currency, it fluctuates wildly, even by crypto standards.
As an IOTA trader you’re speculating on the currency’s price movements by taking a short (sell) or long (buy) position. If you think IOTA will fall in value you should take a short position, if you think it will rise in value you should take a long position.
Still undecided?
- IOTA eliminates the need for miners
- Tangle resolves scalability issues associated with the blockchain
- If IoT devices continue to grow in popularity IOTA should be well placed
- IOTA has the potential to outperform Bitcoin according to some commentators
- Like most cryptocurrencies IOTA is a volatile short-term investment prospect
- There are concerns around the security of the IOTA network
- IOTA’s prospects are very much tied to the success of the Internet of Things, so it may struggle if IoT adoption is less widespread than predicted
