In this review, we will try to demystify what IOTA is, how to buy it and where you can buy the cryptocurrency. Since technology seems to change on a daily basis, the need to share resources and interoperability becomes a necessity.
It was designed with the Internet of Things (IoT) in mind. There are several ways of buying IOTA from the various exchanges that offer the buying and selling of IOTA.
IOTA has a number of advantages over blockchain cryptocurrencies. In this review on “how to buy IOTA”, we shall take a deeper look at those advantages too.
What is IOTA?
IOTA is a cryptocurrency solely designed for the Internet of Things. IOTA makes it possible for companies to explore new trading technologies by looking at every technological resource as a viable service to be traded with no fees in an open, real-time market.
This cryptocurrency has four major advantages compared to standard blockchain cryptocurrency. These advantages include:
- Low transaction fee
IOTA uses the Tangle technology which solves transaction fees and scalability. The technology prompts a user in a transaction to perform a proof work which will approve two transactions. These are transaction making and transaction validation.
The move also eliminates the need to mine and decentralizes the system fully. Users of this system are the only actors and they alone can affect how the system operates unlike in bitcoin where miners do not use the system but rather enable the system to operate.
The Tangle is the main factor behind IOTA’s success. It is a scalable light-weight distributed ledger which enables transaction transfers at zero fees. The unique Tangle architecture has enabled nano-transactions and true micro-transactions for the first time ever in history.
This has nurtured new opportunities for companies which were previously kept at bay from trading due to prohibitive transaction fees. IOTA relies on a coordinator to protect the system against malicious attacks. The network is working on eliminating the use of a coordinator when the network finally gets the required volume of transactions to be able to stand on its own feet.
The proof of work is also helpful in protecting the system against sybil and spam attacks. These attacks require a high transaction volume but proof of work dictates that each transaction should sacrifice a bit of processing power. This makes it too tedious for an attacker to generate the number of transactions needed in order to disrupt the system.
Scalability will increase efficiency by having your valid broadcasted transaction being vouched for by the entire system. The increased load pushes the Tangle to a situation where transactions are almost instantly verified by all the traffic towards the network.
If you use IOTA, you may independently operate a full node. This move enables you to contribute processing power which maintains the validity of the Tangle. A node is set to benefit a user with a large number of transactions if they are operating a system which benefits from a reliable connection to a Tangle.
The IOTA original Proof of Work algorithm which is also known as curl uses ternary logic. Ternary logic stores information in three states unlike in binary logic which stores information in two states. Ternary logic has more benefits compared to the traditional logic.
JINN labs are meant to work in an asynchronous manner with curl algorithm. Developers of JINN have the assumption that this processor will be able to hash curl algorithms efficiently compared to traditional binary algorithms. The foreseeable goal is that the JINN tertiary processor will be integrated with a good number of devices which support the Internet of Things securing IOTA as the medium of exchange.
These are the latest additions to IOTA services. Flash Channels allow off-network private transactions. This provides a diversion of transactions by trusted third parties off the Tangle.back to menu ↑
Best Exchanges to Buy IOTA
There are several exchanges where you can securely buy IOTA. Some of these exchanges include:
In this exchange, you can comfortably purchase BTC using either a credit card or debit card. You can then convert your Bitcoin units to IOTA in as little as 10 minutes using Binance.
On the Coinmama platform, you can buy Bitcoins almost everywhere in the world using either a credit card or a debit card. Once you have received your Bitcoins, you can easily convert them to MIOTA on Binance.
- Using PayPal – Although there is no direct way of buying IOTA with PayPal, you can, first of all, buy Bitcoins using PayPal then convert the Bitcoins to IOTA on either Binance or Bitfinex.
- Buying IOTA using Bitcoin –Using any marketplace, you can easily convert Bitcoins to IOTA.
- Using Ethereum to buy IOTA –You can also use Binance to easily and quickly convert Ethereum to IOTA.
- Using Skrill –Bitpanda allows for the purchase of Bitcoins using Skrill (formerly MoneyBookers). Once you have bought your Bitcoins, you can then easily convert the units to IOTA on the Binance platform.
- Buying IOTA using cash –Like we have observed above, it is not possible to buy the coin directly using cash. However, since buying Bitcoin using cash is possible, you can then convert them to IOTA using Changelly.
Step by Step IOTA Buying Guide
In this guide, we shall look at the different ways available on how to buy IOTA. Currently, there are only two exchanges that have listed IOTA on their platforms: Bitfinex and Binance.
Buying IOTA from the Binance
Set up your binary account – You will need an email address and a password to create a binary account. After submitting your registration, verify your email address by clicking on the link emailed to you from Binance.
Secure your account – After the first login to your account, the system has the option of prompting you to enable a 2-factor authentication or not. Although this is not required, it is highly recommended because it secures your account by asking for an additional password when a login attempt is made.
Make a deposit – Find the deposit page in the main menu. You can then proceed to look for the Cryptocurrency that you wish to deposit. Then Binance will provide you with an address where you will send your deposit.
After sending your funds to the address given from your Cryptocurrency wallet, your deposit will reflect as pending as it completes a number of required block confirmations.
Buying IOTA – Since you have your Bitcoin or Ethereum ready to be traded, go to the exchange portion on Binance and then locate the IOTA pair you’d wish to trade. In the “IOTA buy” order form, make your IOTA purchase.
Two types of orders are available, limit orders and market orders.
The market order enables you to enter the amount of IOTA you wish to purchase then automatically purchases it for you at the most competitive price for you from the sellers available on the exchange.On the other hand, a limit order allows you to enter the limit and the amount you are willing to purchase but there is no guarantee of your order getting filled since there may be no sellers willing to sell at your price.
After your order has been successfully filled, it will be reflected in your IOTA balance.
- Allows for global exchange
- Has the best user experience
- High token selection
- Low transaction fees
- Very secure
- Aims at adding new coins always
Buying IOTA on Bitfinex
The process of purchasing IOTA on Bitfinex is similar to the process of buying IOTA on Binance. Follow the next simple steps:
Sign up for the Bitfinex account and then verify your email. In the security section, enable 2FA to secure your account further.
Make a deposit of cryptocurrency to Bitfinex – Click on the deposit tab and choose the Cryptocurrency you wish to deposit, similar to Binance, Bitfinex only trades IOTA in Ethereum and Bitcoin only.
Buy IOTA in using either Bitcoin or Ethereum – Look for the trading pair you’d wish to trade in. From the several types of orders, choose the market order since it’s the most convenient type of order.
Your IOTA will be available in your IOTA wallet after your order has been filled.back to menu ↑
- Full node – A full node needs to be connected to its neighbors through a static IP for it to function.
- Headless node – This is a full node which runs in your local console. Its requirements are similar to a GUI full node. The good thing about a headless node is that you can open simultaneous seed accounts.
- Light-weight GUI – This is a local interface which has access to a full node in a different location without your seed ever leaving your computer. This is the simplest way to receive or send IOTA.
Types of IOTA Wallets Under Construction
1. Nelium – This wallet aims at eliminating activities like re-attaching, manual node changes, manual re-broadcasting, manual generation of sender address and checking for unused addresses.
The wallet is meant for mobile phones only.
2) CarrIOTA – This wallet is meant to manage your single wallet, manage your complete household or a humongous business with many users and IOT entities. It can be run as a standalone app on your phone or as a web-app on a home server.
The wallet can also run on a single board computer or a cloud server which can be accessed from anywhere via a private virtual network.
Some desirable features of this wallet include:
- Automatic transactions
- FIAT/IOTA conversions
- Very secure, third parties cannot view your seeds
- Can manage several wallets in a single transaction
- User administration
- Accessible from any location
- Can run on any computer with Linux OS
Developers of this wallet aim at making it run on mini-computers like Raspberry Pi which you can connect to a router at home. To start the software, plug in your SD card and start using it.
3) Trinity – Formerly known as UCL wallet has been developed by a team in University College London. The wallet promotes incoming and outgoing transactions. It can also support multiple outgoing transactions.
Trinity wallet also automatically generates and stores seed. Moreover, the wallet has fully integrated seamless snapshots and automatic node selection.back to menu ↑
Features of IOTA Wallets
- Should automatically select nodes
Majority of users do not know or simply don’t care to know what node they are connected to. The node should automatically connect to a new node without a user’s input should a node go out of sync or go down.
- Support multiple outgoing transactions
This eliminates the need of having to wait for the previous transaction to confirm.
- Cached addresses and balances
IOTA wallets should be able to cache balances and addresses.
- Automatic transaction and re-attachment
IOTA wallets come in handy since no one is up for the task of babysitting their transactions, they should promote transaction as they await confirmation and only reattach when a transaction is inconsistent.
The wallet should not only promote outgoing transactions but also promote incoming transactions as well. Ideally, it should also be able to spam if the wallet has no pending transaction but do so with the users’ consent.
- Automatic seed generation
This ensures that there are no insecure seed generators. A user is asked to write down their seed words asymmetrically encrypted to a user’s computer. It’s up to users to always remember their seed words.
- Seamless snapshots
A wallet should be able to handle snapshots by the use of cached information in the wallet file. The wallet should be able to check for addresses that have been even indexed.
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IOTA Coin Future
The implementation bit is solely in the hands of the IOTA foundation team. If you are considering investing in IOTA coin, it’s prudent to do a thorough research on this foundation.
Adoption is not very clear since the machine-to-machine payment is quite a new concept in the market. It might take a bit of convincing the IoT manufacturers and users to start transacting. IOTA mostly targets machines- to-machine transactions and not human transactions. Even though you can trade IOTA tokens if you wanted to, it is aimed at machines.
IOTA might have a few scalability and security issues but it’s built on a proprietary technology which has a lot of potential.It is very important to do diligent research before investing in this new technology since this is rather new and has not been fully tested. But this does not stop IOTA’s Tangle from being one of the biggest cryptography technologies.
After Bitcoin and Ethereum, IOTA is the next evolution when it comes to cryptocurrency. It uses Tangle which is an open-distributed ledger un-like Ethereum or Bitcoin which use blockchain technology. The Tangle comes with various benefits lacking in other cryptos.
These benefits include:
- Unlimited scalability
- Zero transaction fees
- Secured data transfers
- Speedy transactions
IOTA fuses miners and users meaning that users will be paid block rewards which mainly consist of user transaction fees which sum up to zero-sum games resulting in little or no transaction fee.
The concept behind IOTA technology is genius in nature and is making technological baby steps and has little flaws here and there this still does not hinder IOTA from being the next crypto with strong ties. Definitely, the coin brings in a brighter future in cryptocurrency because it is trying to tackle a market full of unique solutions by using the Tangle.
Although there is no direct competitive crypto in the market currently, the target market to offer IoT communication is fiercely competitive. This makes the future of IOTA coin to be very bright since it has a team of dedicated developers aiming to solve two challenges at the same time.IOTA’s price keeps on surging even rising with a 700% rise making it among the fastest rising cryptos alongside with Bitcoin considering this rise took place in less than a month.
The partnership of IOTA technology and Microsoft is partly the cause of this rise so we can be justified to conclude that the future of IOTA is definitely very bright.
The general overview is that even though this technology is still in a testing phase, it speeds up a network more when there is increased traffic which is a revolution since this is quite unusual. It is also very secure and any machine which is a smart device can use IOTA technology.
It also uses HASH CASH which uses a proof of work, which does not require super-computers to solve but can be solved by the use of a smartphone making it a future revolution. Currently, IOTA is only listed on three exchanges and it is unbelievable to imagine how much it will shoot when eventually it gets listed on more exchanges.
To advance even further IOTA will need resourceful partnership but so far the ecosystem shows that this is extremely promising. The price of the coin has shot but it can still shoot further with the right purchase from the technological world.back to menu ↑
2018 is most likely the year that will make IOTA the most exciting cryptocurrency platform. This is because most of the newest platforms are trying to come up with solutions to solve problems arising from blockchain technology and IOTA has not been left behind in this.
IOTA is the only cryptocurrency with no transaction fees so far and because it requires computational power to send a transaction, making it perfect for use. It can also be used as a communication protocol which is distributed for the Internet of Things.One of the major purposes of IOTA is to solve problems arising from blockchain technology like the slower, expensive and restricted funds transfer. The development of the coin was also to solve blockchains’ issues brought about by size where additional blocks result in longer blockchains and lesser computers being able to mine.
The Tangle is the newest method of storing transactions via a Directed Acyclic Graph mechanism. The growth of blockchain results in lesser transactions per second leading to congestion. Another issue solved by Tangle is that increased miners on a network make transaction fees like the cost of electricity bills of miners to go up.
In IOTA, each and every user is verifying and submitting transactions simultaneously hence each user contributes to both verification and security. Multiple users verify transactions as they get approvals increasing confidence levels for the transactions.
- Parasitic chain tendencies
- Vulnerable when it comes to conflict resolution
- Malicious attacks
Most of IOTA’s tokens were generated using a genesis address at the same time. All of them have already been generated and there will be no future generation of tokens and no rewards will be given for mining.
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Currently, IOTA is the most interesting of all cryptocurrencies with an enormous potential to revolutionize cryptography. The aspect of giving machines the ability to transact is an interesting proposition using a network with no transaction fees.
If you are looking to invest in IOTA, it is most important to do due diligence since this is a new technology which has not been implemented fully.
IOTA is mainly built to solve problems brought about by blockchain technology and there are several benefits attributed to it!
The future of the coin is very bright and we are optimistic that IOTA will deliver its promises. Its partnership with Microsoft has so far led to an incredible increase in prices which is a very good indicator of how things are going to be in future.