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How to Buy IOTA Coin – Step By Step Guide
What is IOTA? Well, if you like the idea of the internet of things, zero transaction fees and a cryptocurrency that has ditched blockchain for an entirely new technology, then IOTA could be the cryptocurrency for you. Maybe blockchain is old hat and IOTA’s new technology will be the tech that truly changes the world? We’ll find out in this IOTA review and guide.
- 1 IOTA Definition: What’s The Meaning Behind The Name?
- 2 What Is IOTA?
- 3 The Internet Of Things: Why IOTA?
- 4 The IOTA Tangle Technology
- 5 The Real World Applications Of The Crypto
- 6 The Rise Of The Machines?
- 7 The Team
- 8 The Future Of IOTA
- 9 The IOTA ICO
- 10 Should You Invest?
- 11 Are You Too Late To Join The Party?
- 12 IOTA Price Prediction: How High Could It Go?
- 13 How To Buy IOTA Cryptocurrency – Our 2 Favourite Methods Explained
- 14 How to Buy IOTA on Coinbase
- 15 Setting Up An IOTA Wallet
- 16 The Top IOTA Exchange: Binance & How To Get Started
- 17 How To Send Funds From Coinbase To Binance?
- 18 How To Buy IOTA On Binance?
- 19 Should You Withdraw Your IOTA Coins Off Binance & How To Do It?
- 20 Conclusion
- 21 Resources
IOTA Definition: What’s The Meaning Behind The Name?
IOTA derives from the Greek word, meaning an extremely small amount of something. This refers to the cryptocurrencies ability to process microtransactions both quickly and for free. However, the IOTA team would say that this is part of the meaning behind the name and that it officially stood for ‘Internet Of Things Application’.
IOTA also refers to the smallest unit in the cryptocurrency. A ‘kilo IOTA’ would be made up of one thousand IOTA. This system of units scales all the way to the ‘Peta IOTA’. Check out the visualization below to understand the entire system of units in this cryptocurrency:
You should also be aware that the IOTA ticker symbol is MIOTA. This is important when finding the correct market on cryptocurrency exchanges.
What Is IOTA?
To get into this, it is important to understand what the ‘internet of things’ actually is. In a nutshell, it means connecting different devices together and enabling them to speak to each other. Would you want to control your printer, lights, entertainment system and home security system, all from a single device like your phone? We bet that most people would say that this sounds amazing and would want this type of interconnectivity. To be frank, the world is already moving towards the internet of things. We don’t think it’s a matter of ‘if’ it will happen, it’s more of a question on whether IOTA will be the cryptocurrency of the internet of things.
Like Bitcoin, IOTA is a public ledger. However, it has no fees and doesn’t use the blockchain. Instead of using blockchain to create the ledger, it uses a new technology called ‘Tangle’. This system actually becomes better as the number of users increase and is designed to process micropayments exceptionally well. The idea is that this efficient micropayments system will be used to power the Internet of Things.
The Internet Of Things: Why IOTA?
There is little doubt that blockchain has value and that is why so many giant corporations are dedicating millions of dollars to blockchain research and development. However, blockchain based cryptocurrencies have major drawbacks such as relatively high minimum transaction fees. When it comes to the Internet of Things, most people agree that the fees will be exceptionally small. The problem is simply that it doesn’t make sense for micropayment fees to be higher than the actual payment amount. In this sort of environment, this is where IOTA and their feeless payments can add value.
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With the Internet of Things, devices will communicate with each other and there will be requests for different devices to perform functions. This requires some sort of base currency between devices and IOTA is trying to be the answer to that problem. Thanks to Tangle technology, IOTA can process transactions for free and the network actually gets stronger as it grows. This makes the cryptocurrency well suited to be the solution to this problem.
The IOTA Tangle Technology
Tangle is able to both verify and processes transactions instantly. Incredibly, it can do this without the use of miners (unlike other cryptocurrencies like Bitcoin). This means that no rewards need to be paid to miners and therefore there doesn’t need to be a transaction fee. IOTA Tangle achieves this by creating a system where a user, by processing a transaction, verifies the previous two transactions. This past transaction verification must happen before the user is able to send their payment. This means that the Tangle system gets stronger as more users transact on the system.
IOTA Tangle’s way of verifying transactions creates a web or tangle of transactions. Hence, their name. This is demonstrated in the visualization below:
IOTA also has been made with future proofing in mind. In the cryptocurrency space, there is a lot of talk about whether the Bitcoin network could be compromised by quantum computing. Because of this threat, IOTA actually uses something called Winternez hash-based signatures. In a nutshell, these signatures allow transactions to be sent.
Research has deemed Winternez hash-based signatures to be resistant to quantum computing and this is why the team chose to use them. Although quantum computing is not a serious threat to cryptocurrencies right now, it is widely regarded as a threat that could compromise the security of most cryptocurrencies. Whether quantum computing is a threat to cryptocurrencies in the future still remains to be seen. However, IOTA has not taken any chances and have already built in quantum proof resistance into their cryptocurrency.
The Real World Applications Of The Crypto
There is little doubt that IOTA has made some exceptionally impressive partnerships with leaders of industry. These include partnerships with the likes of car manufacturer Volkswagen, kitchen goods manufacturer Bosch, Telecommunications provider Cisco and many more. The cryptocurrency is certainly making waves in the area of traditional business. This interest is certainly key to the cryptocurrency if it’s going to be at the forefront of the Internet of Things revolution.
The fact that IOTA has been able to forge partnerships with some of the titans of industry shows that the cryptocurrency does have a real use case. Put it this way, if the concept didn’t have any value, would the likes of Cisco choose to partner up with the cryptocurrency?
IOTA has positioned itself to be at the front of the Internet of Things revolution. In essence, it is trying to be the glue that enables this new economy to function. Indeed, if the cryptocurrency and the Internet of Things are successful and widely adopted, then everyone may have to own some IOTA.
The Rise Of The Machines?
IOTA and the Internet Of Things truly have the potential to change the world. It could be a change on a scale that we have never seen before and disrupt how business is conducted, the legal system operates and accelerate automation.
Consider the humble robot vacuum cleaner known as the Roomba. Imagine it was now connected to the Internet of Things. The technology already exists that allows devices to know if they are malfunctioning and what part of the device has a problem. A Roomba with a broken wheel can know that it needs a wheel change. If it is connected to the Internet of Things, the Roomba also has the ability to contact a Roomba wheel repair company, order a new wheel and pay for it using IOTA.
This technological change brings into question if machines can enter into legally binding contracts like the sale of a product. For example, imagine if someone released a Roomba into the wilds of the USA with a lot of IOTA coins loaded onto it. Would businesses be able to accept payment from this machine? Technically it would be owned by no one and any business accepting the Roomba’s IOTA, would be making an agreement with a machine. It, therefore, seems highly probable that the Internet of Things will usher in a new era where machines actively participate in the economy. This is exceptionally likely to force legal systems to change and accommodate this rising phenomenon.
Maybe we don’t want the Internet of Things to be too successful. In the short term, most would agree that the IOT has the potential to make our lives easier. However, when we think about this technology combined with artificial intelligence and machine learning, maybe the rise of the machines is a very real risk?
IOTA have already positioned themselves as the largest cryptocurrency in the Internet of Things space. Indeed, the project is already a top ten cryptocurrency. Maybe this is not surprising given that IOT could be used to connect every device on the planet and if IOTA was the currency that powered all this… well, it would literally go to the moon.
There is little doubt that this is an exceptionally ambitious project. It’s also not just about the technology behind IOTA. For the cryptocurrency to be at the forefront of the Internet of Things revolution, it needs the big corporate partnerships to enable mass adoption. The good news is that the members of the Board of Directors seem to tick all the boxes. We have looked into crypto’s 45 person team and think its exceptionally well balanced and filled with high achievers. The team has members that specialize in everything from engineering, research, partnership forging, ecosystem development, public relations, business development and more. To keep things brief we will just go over the three members of the Board of Directors.
Co-Chairman & Founder – David Sønstebø
David is a serial entrepreneur whose mission is to pursue technology that can drive forward progress. Before founding the IOTA project, David was founder and CEO of Stealth. This was a company that focused on developing a low power processor for the Internet of Things.
Co-Chairman & Founder – Dominik Schiener
Dominik is another person addicted to entrepreneurship. His first company Fileyy specialized in connecting businesses with affiliates. Dominik then went on to Co-Found Bithaus GmbH, which intended to be a cryptocurrency to fiat exchange in Switzerland. Unfortunately, this project failed. Not deterred by this setback, Dominik then went on to found Finhaus which focused on applying blockchain in the financial sector. Then he went on to join the IOTA project.
Board Of Directors – Ralf Rottmann
Ralf has worn many different hats during his twenty-year entrepreneurial journey. He has held positions such as the head of IT strategy, been an editor for tech blogs, been a partner and investor at a tech incubator. Ralf brings with him a wealth of experience and technical know how to the IOTA team and we are sure he is a very valuable asset.
The Future Of IOTA
IOTA is certainly well positioned to power the Internet of Things. The cryptocurrency already has some exceptionally impressive corporate partnerships. Maybe more exciting is that Taipei in Taiwan have announced that they are transitioning into a smart city and have chosen to partner with the cryptocurrency. Sure, Taipei is a relatively small city with around three million people. However, the city could pioneer the blueprint which other cities will copy in the future to upgrade to smart city status. This has led some to speculate that MIOTA could be the cryptocurrency that powers the world.
Although it’s easy to get carried away by the potential of IOTA, the truth is that we are not there yet in terms of IoT adoption. Yes, the cryptocurrency does have great potential. However, it still needs to live up to its billing as the next big thing. Until this happens, the cryptocurrency will be subject to significant speculation and is likely to be volatile in its price action.
It is also possible that something better or more widely supported by industry will replace IOTA. Obviously, if this happens it would be a disaster for the cryptocurrency and its investors. We have little doubt that the Internet of Things is coming. The real question is if IOTA will become the IOT currency.
The IOTA ICO
The IOTA ICO took place on the 25th November 2015 and raised $434.5k in funding. No, that is not a typo. The project has proven that you do not need tens of millions in funding to become a top ten cryptocurrency.
In June 2017, MIOTA was listed for the first time on the exchange Bitfinex. Mayhem followed to the point that the cryptocurrency was more heavily traded than even Bitcoin.
So what price did ICO investors get in at? Well, fractions of a cent per token. At the time of writing, the cryptocurrency is trading at 98 cents a coin and that still means a 226,182% return for ICO investors. IOTA is currently the second most profitable ICO in cryptocurrency history.
Should You Invest?
- The cryptocurrency is exceptionally well positioned to be the currency of the internet of things. It’s already got partnerships with some of the largest companies in the world and Taipei has declared that they will use the crypto in their new smart city.
- There are no transaction fees.
- The cryptocurrency has been designed to be future-proof. Its quantum resistance is evidence of this.
- IOTA doesn’t use blockchain technology. In the future, it may be that Tangle technology becomes the new standard when it comes to distributed ledgers.
- The internet of things economy has the potential to be one of the biggest markets we have ever seen. The potential is there to connect every device on the planet through IOT. This revolution is likely to disrupt many traditional ways of doing things and create significant efficiencies throughout the world.
- Although the project is well positioned to become the currency of IOT, it is by no means assured.
- The internet of things could just be a concept that never truly takes off. This would severely limit the potential of the cryptocurrency.
- The cryptocurrency needs to make significantly more partnerships with hardware producers for it to be properly mass adopted.
- A better solution than IOTA could come along and be widely adopted. This would render the cryptocurrency obsolete.
Are You Too Late To Join The Party?
At the time of writing, IOTA has given its ICO investors the second highest returns in cryptocurrency history. If you invested just one dollar into the ICO, then you would now be sitting on a profit of $2,216. That’s pretty incredible, but with this sort of return already being generated, are investors now are too late to buy IOTA coin?
The cryptocurrency began trading publicly on exchanges in mid-June 2017. Back then, IOTA coin could be picked up for 64 cents each. There is still a respectable amount of profit potential in the coin. Consider that the IOTA price has already seen an all-time high of $5.23 a coin on 19th December 2017 and can be picked up for just 96 cents at the time of writing. This means that if the crypto reached it’s all-time high again, then investors today would enjoy a 450% profit.
The exciting thing about the Internet of Things is that it has not even got properly started yet. In the future, practically every device in the world could be connected by IoT. The vision is that IOTA would be the currency for this new economy made up of billions of different devices. Even if this only partially came to pass, there is not much doubt that IOTA coin would be valued way above its current all-time high.
In a nutshell, you are not too late to buy IOTA coin. The Internet of Things is only getting started and will probably take many more years to properly develop. The TotalCrypto Team believe that the cryptocurrency is well positioned to play a key role in this new economy and should do well in the bull market.
IOTA Price Prediction: How High Could It Go?
Although the Internet of Things is a new and emerging market, it is already valued at $157 Billion according to Forbes. Forecasts have put the value of the IoT market at $457 billion by 2020. The exciting thing with IoT is that its value is predicted to increase every year for the foreseeable future and is highly likely to become one of the most valuable markets in the world.
If IOTA successfully becomes the currency of the Internet of Things, it would not be absurd to believe it would be used more than most major currencies. Inevitably, this would lead to a massive surge in the IOTA price.
For the cryptocurrency to fulfill its potential, it needs to keep forging partnerships with IoT hardware manufacturers. The good news for IOTA investors is that the project has already made significant partnerships with the likes of Cisco, Bosch, and Volkswagen. If the team can keep convincing these titans of industry to support the IOTA coin, then this would solidify its claim of being the currency of the IoT economy.
Cryptocurrencies are speculative investments and no one knows what the future may hold for them. However, IOTA is perhaps the best-positioned cryptocurrency to play a key role in the IoT economy. This is why we would not be surprised to see IOTA surge in price during the next cryptocurrency bull run.
How To Buy IOTA Cryptocurrency – Our 2 Favourite Methods Explained
There are dozens of different cryptocurrency exchanges to choose from. With all this choice it can be hard to work out which IOTA exchange to use? Fortunately, we have done our homework on all the different IOTA exchanges and can share our top places to buy IOTA coin with you.
Our first way to buy IOTA cryptocurrency is perfect for investors who want to buy using conventional currency, like the USD. You should be aware that it is hard to buy IOTA directly using a single account at an exchange or broker. Instead, our top way to buy the coin is using Coinbase, where you can buy Bitcoin or Ethereum using regular currency. Once you have your Ethereum of Bitcoin, you can then send this to another cryptocurrency exchange and trade this for IOTA.
We think that Coinbase is the easiest way to get into the cryptocurrency market. This is thanks to how user-friendly we have found the Coinbase platform and their top-rated mobile app.
For those of you who have some Bitcoin or Ethereum already, we know that you are just interested in the best cryptocurrency exchange to buy IOTA coin. Just skip over all the stuff about Coinbase in this guide and we will show you how to buy IOTA on the Binance exchange.
How to Buy IOTA on Coinbase
Coinbase Key Facts:
- Great Reputation: Coinbase is the world’s favorite way to get into cryptocurrencies. The company was founded in 2012 and is one of the most established companies in crypto.
- Beginner Friendly: The interface is clean and simple. This makes buying crypto a breeze.
Small Minimum Deposit: On Coinbase you can invest in cryptocurrencies with as little as €6.
- Regulated: The exchange is one of the few that are fully compliant with regulations.
- Insurance: If you want peace of mind Coinbase has you covered. US customers have balances of up to $250k insured.
- How To Deposit: Bankcard, bank transfer & PayPal for US customers.
- Available Cryptos: Bitcoin, Ethereum, Bitcoin Cash & Litecoin.
Spend Over $100 On Cryptocurrency With Coinbase & Get $10 FREE When Signing Up With TotalCrypto.
Need a hand with getting your Coinbase account good to go? Just read our guide.
Created Your Coinbase Account? What To Do Next?
Once you have created your account at Coinbase, the next thing to do is to buy Bitcoin or Ethereum on the exchange. Once this little mission is complete, you can then send this to an IOTA exchange and buy your coins.
The Simple Way To Buy Bitcoin Or Ethereum Using Coinbase
- Click on the ‘buy/sell’ page of your account.
- Add your preferred payment method to your account.
- Choose a deposit method: For those of you who want the cheapest way to transfer money to Coinbase, we recommend using a bank transfer. However, be aware that this method means you waiting for two to five days for the funds to hit your account. If you want to buy cryptocurrency instantly, then deposit using a debit card or PayPal. Once you have entered your payment details and have sent the deposit to Coinbase, just sit back and wait for the funds to hit your account. Coinbase will also send you an email when your deposit has been successful
- After your funds have been credited to your account, click Bitcoin or Ethereum in the ‘Buy/Sell’ area of Coinbase.
- Input the amount of money you wish to spend on the selected cryptocurrency.
- Choose the wallet you deposited funds into as the payment method.
- Finish your buy order by hitting “Confirm Buy”.
If you want to keep fees as low as possible on Coinbase, then there is another method to buy Bitcoin or Ethereum using CoinbasePro (previously known as GDAX). Although this way is slightly trickier, you can follow all the step in our Coinbase guide and get your Bitcoin or Ethereum that little bit cheaper.
Once you have bought your Bitcoin or Ethereum you are then ready to progress to the next step.
Setting Up An IOTA Wallet
As IOTA doesn’t use blockchain and is built on its own unique tangle technology, you will need to use a wallet specifically designed to store IOTA. We recommend you use the official GUI wallet. Need some help to get it set up? Fortunately, we have made a dedicated article showing you all the steps.
The Top IOTA Exchange: Binance & How To Get Started
Now that you have got your Bitcoin or Ethereum on Coinbase and have your IOTA wallet set up, it is now time to get your IOTA exchange account sorted. In our book, there is no need to look further than the Binance exchange. Why do we believe Binance is the top exchange to buy IOTA?
Well, it’s the largest and most popular cryptocurrency exchange in the world right now. This is due to a combination of factors, such as their beginner-friendly design, low fees, and excellent reputation. Binance is also a leader when it comes to security and was the first ever exchange to get all their smart contracts fully audited. Professionalism like this is actually pretty hard to find in the cryptocurrency space and we think this is one of the main reasons behind Binance being as popular as it is. Binance also has the added bonus of being home to one of the largest IOTA markets in the world as well.
Once all these factors are taken into account, Binance comes out on top and we think this makes it an excellent place to buy IOTA coin.
Binance Key Facts:
- The Biggest Exchange In The World: Binance has the highest crypto trading volume in the world.
- The One Stop Shop: Over 100 different cryptocurrencies are available on the exchange.
- Easy To Use: The exchange has won much praise for being simple and straightforward to use.
- Customer Support: Binance has invested in multi-language support.
Why Not Buy IOTA Coin On The World’s Favourite Crypto Exchange?
Want to double check you are setting up your Binance account correctly? Why not check out our Binance guide?
How To Send Funds From Coinbase To Binance?
You should have your Binance account ready to go now. Next, you will need to deposit funds on Binance to buy IOTA. In case you have funds in another wallet or on another exchange, you should know that the process to deposit on Binance is the same. Just follow the steps below and you will have your funds deposited on Binance in no time.
How To Locate Your Deposit Address On Binance?
- Ensure you are logged into your exchange account.
- Hit “Funds” and click the “Deposit” button.
- Warning: Make sure you select the correct cryptocurrency. If you send funds to a wallet address for another cryptocurrency, then you will lose your funds. Select Bitcoin if you have Bitcoin or Ethereum if you hold Ethereum.
- Your Binance deposit address will then be generated. Simply, copy this address.
Sending Funds From Coinbase
- Once you are logged into your Coinbase account select your ‘Accounts’ tab.
- Hit the send button for the cryptocurrency you hold.
- Paste your Binance deposit address into the ‘Recipient’ address box and key in the amount you wish to send to the Binance exchange.
- When you’re ready, click the ‘Continue’ button and your transaction will be processed. Your funds should show up in your Binance account in just a few minutes.
Are Your Funds In Another Wallet?
Just send you funds to you Binance deposit address and you will be ready to buy IOTA in no time.
How To Buy IOTA On Binance?
It’s now time to buy your IOTA crypto. Just follow the steps below and you will have your coins in no time.
- Once you are logged into your Binance account, navigate to the homepage. You will then see a range of different cryptocurrency markets. Select ‘BTC Markets’ if you hold Bitcoin on Binance or ‘ETH Markets’ if you have Ethereum. Then type in ‘IOTA’ into the search bar and select either the IOTA/ETH or IOTA/BTC market.
- A trading screen will then pop up. Click the ‘Market’ tab to buy IOTA at the current market price. The just enter the number of coins you want to buy. You can also choose to use a certain percentage of your Binance balance to buy coins. To do this, select the percentage you want. These buttons are located under the ‘Amount’ box in the ‘Buy IOTA’ section of the screen.
- Click The ‘Buy’ button and your order will be processed. Your coins will then be credited to your Binance account.
Should You Withdraw Your IOTA Coins Off Binance & How To Do It?
Now that the problem of how to buy IOTA has been solved, the next consideration is where to store your coins? Although we are big fans of Binance, we do recommend you move your coins off the exchange and store them in the IOTA GUI wallet you have set up.
The main reason to store your coins off an exchange is to protect yourself against an exchange hack. The truth is that there has been an ever-increasing number of hacks on cryptocurrency exchange. This is maybe not surprising, as these exchanges hold millions of dollars of client funds, making them very tempting targets for bad actors. By holding your cryptocurrency yourself you make sure that you are not dependent on an exchange to keep your money safe for you. Why not take control and reduce the risks by storing your IOTA in your own wallet?
To transfer your IOTA coins to your IOTA GUI wallet, just follow the steps below:
- Copy your public address from your GUI Wallet.
- Ensure you are logged into your Binance account.
- Hit “Funds’ in the top navigation bar and click ‘Withdrawals’.
- Select ‘IOTA’ from the drop-down. Then paste your wallet public address into the ‘IOTA Withdrawal Address’ field. Once you have entered in the number of coins you want to withdraw, click ‘Submit’ and your coins will be sent to your wallet.
Binance withdrawal fees: The exchange will charge you to withdraw your coins. The fee regularly changes. You can double check the fee you will pay here.
There you have it, everything you need to know on how to buy IOTA. At TotalCrypto we are exceptionally excited to see how the Internet of Things grows over the next few years. IOTA is certainly in pole position to be the crypto of IoT. However, we do think that they need to continue growing their extensive list of partnerships with IoT hardware manufacturers. If the project succeeds in partnering up with the dominant businesses of the new Internet of Things economy, then we have little doubt that IOTA will play a key role in this new market.
We think that the Internet of Things could be the biggest market on the planet and the potential is almost limitless. It’s quite easy to get carried away by the possibilities of IOTA. However, it seems likely that the crypto’s adoption will be either all or nothing. This means investors in this cryptocurrency should be prepared to lose their entire investment. On the flipside, IOTA has the potential of becoming as commonly used as gas in a car. This would obviously be great news for anyone invested in this project.
Will IOTA become the currency of the Internet of Things? We don’t know. However, we are excited about IOTA potentially powering one of the largest growing markets on the planet.
Below we’ve listed some key resources relevant to MIOTA Coin.
? Best Free Wallets
MIOTA does not use blockchain and is built on Tangle technology. This means it needs to be stored in a Tangle compatible wallet.
- The New Trinity Wallet Designed Specifically For IOTA.
- The GUI Light Wallet.
- Check out all your IOTA wallet options in our Top Four IOTA Wallets Review.
? Best IOTA Tracker Apps
- Blockfolio – Want To Learn More About Blockfolio? Just Read Our Review.
- Delta – Is Delta Really The Right Crypto Tracking App for You? Our Dedicated Review Tells You Everything You Need To Know.
The IOTA team have written extensively about their Tangle system. Learn more about how it works in their white paper.