What is IOTA?
IOTA is a cryptocurrency that has no transaction fees and requires no miners in order to process transactions. IOTA is a permissionless distributed ledger cryptocurrency. It aims to be scalable, secure and lightweight to allow any type of IoT (Internet of Things) device to use it.
Unlike the Bitcoin blockchain that incorporates miners using energy to solve math problems and unlock blocks, IOTA uses node to node verification only. Each node that wants to send a transaction is required to validate two unconfirmed transactions as payment. The more nodes on the system, the faster transaction verification will occur.
The benefit to this is that IOTA transactions are fast and feeless due to the model named “the Tangle” incorporated. The security quantum proof algorithm utilized by IOTA makes it secure against powerful computers.
The maximum amount of IOTA and circulating supply is 2,779,530,283 MIOTA. Note that MIOTA is a unit of IOTA. These were created in the genesis block and sold to investors in an ICO.
How to Buy IOTA Summary
Here’s how to buy IOTA:
- Get an IOTA compatible wallet (Ledger, Paper Wallet)
- Use an IOTA exchange (Binance, Bitfinex )
- Exchange Bitcoin for IOTA Withdraw your coins to your wallet
2. How to Buy IOTA
Step 1 – Get an IOTA Wallet
As of this writing the selection of wallets that support IOTA, is limited. Some may opt to store it on exchanges. We highly advise against this as you are subject to losing everything if the exchange fails. The best practice for all cryptocurrency is to use a hardware or software wallet and not risk your IOTA getting lost or stolen.
Ledger (Hardware Wallet)
Ledger has a family of hardware devices that allow you to store a large variety of cryptocoins such as IOTA safely and securely offline. Their device support the use of a mobile app to send and receive funds.
IOTA Paper Wallet
Creating your own paper wallet is a great option for offline storage if you’re looking to bypass paying for a hardware wallet. This method requires creating a seed comprised out of 81 characters with uppercase letters and the number 9. After generating the paper wallet, you can print it out and send IOTA to it. If you go down this route make sure to store in a safe place for use. Here’s a video explaining the process:
Step 2 – Find an IOTA exchange
Buy IOTA Through Bitfinex
Bitfinex allows you to purchase IOTA with the following: BTC, USD, EUR GBP, JPY and ETH. Bitfinex is no longer accepting US users. If you are in a region eligible to use Bitfinex this option will probably be the cheapest. You’ll be required to finish a complete identity verification process and wait for bank transfer to arrive at Bitfinex. Here’s a guide on Bitfinex.
Buy IOTA Through Binance
Binance is an amazing exchange as it allows you to trade between seemingly unlimited amounts of cryptocurrency pairings.
This means that rather than straight buying IOTA, you’ll either need to buy Bitcoin on Binance or deposit Bitcoins from somewhere else then trade them for IOTA. This is a very simple process. Binance also allows users to buy certain cryptos (but not IOTA) with a credit card, making this exchange a versatile solution.
United States based users have access to the newer BinanceUS platform.
Step 3 – Withdraw your IOTA
After buying your IOTA you will then want to move them from the exchange into the wallet you’ve chosen.
This ensures the coins are under your control and not subject to loss due to a third party. Also locate your IOTA address inside your IOTA wallet in order to request a withdrawal from the exchange. IOTA confirmations theoretically should take 2 milliseconds, in practice it usually take a few minutes.
3. Conclusion – IOTA Going Forward
There is still plenty of time to get in as an early adopter of IOTA as this project is still in its infancy. Though there are only a select few exchanges and hardware wallets compatible for setting up with his cryptocoin we’ve outlined the ones that make it possible. Use the Ledger hardware wallet paired with the Binance or Bitfinex exchange to hold and buy/sell in and out of IOTA.
IOTA brings about reduced transaction costs and an infrastructure that allows for it to scale and not be bogged down by rapid growth.