Learn Where & How to Buy IOTA (MIOTA) - A Beginner's Guide
IOTA isn't exactly a blockchain, instead, it uses a network of nodes called Tangle to verify transactions to offer quicker processing time compared to the existing blockchain-based networks. At present, IOTA has a dependable community of software engineers, financial supporters, and developers that upholds and contributes towards the platform. You can either go to crypto brokers or exchanges if you are interested in selling or buying IOTA. The cryptocurrency of the network is known as MIOTA.
Since its inception, the return on investment (ROI) for investors has been more than 9000%. However, this figure includes those investors who bought the coins during an initial coin offering. There are many ways to buy IOTA tokens and you can also use brokers to speculate on its price.
3 Things to Consider Before Buying IOTA
Loyal & Dedicated Community
IOTA has an ardent and steadfast community of programming engineers alongside the benefactors who have stayed consistent since the project began. It has four cofounders including David Sonstebo, Dominik Schiener, Sergey Ivancheglo and Serguei Popov who are the technical masterminds behind the project. The community members of IOTA are spread across 25 different countries.
One of the most interesting aspects of IOTA is that it's not like other cryptocurrencies. It is not a blockchain, instead, it is defined as an extension of the blockchain ecosystem that can work with different cryptocurrencies allowing secure, efficient and lightweight micro-transactions without incurring any fees. This innovative technology means that IOTA has a better chance of staying relevant in the sea of altcoins.
Despite not being a blockchain, the IOTA network offers robust security through a Proof of Work protocol that is a part of the transaction verification process. It means that hackers and cyber attackers cannot hack the network since it involves PoW dependent verification. The whole network will have to provide its consensus for it to be compromised which is quite impractical.
Where to Buy IOTA in 2021?
You can't simply begin putting capital into IOTA coins. Before investing in any digital money, you have to learn various investment strategies and recognise the one that suits your needs. Maybe you need a digital asset that you can hold for quite a while or you simply need to short an asset that can augment your primary income in the short run. The purpose behind investment figures out which technique you should go for.
When you just need to procure supplemental revenue to help your primary income, you are a day trader and you have to rely on a crypto broker. You don't have to directly buy and own the IOTA tokens as you can just purchase instruments of IOTA, for example, CFDs that are more convenient and advantageous to use for short term investments. This way you won't need to manage all the issues related to owning IOTA.
Then again, when you are a long haul investor who is looking for a crypto asset, you have to directly buy and own the IOTA tokens. Rather than setting off to a broker, you should find a cryptocurrency exchange that sells digital currencies. This way you will have the option to purchase and hold IOTA coins so you can sell them at whatever point you need. You will need to have a devoted wallet to hold your coins in a protected way.
Our Tutorial to Buy IOTA in 5 Steps
You currently have built up a fundamental comprehension of investment methodologies. We should now discover how you can approach putting capital into IOTA and different currencies.
Step 1: Find an Appropriate Platform to Buy/Trade Iota
Since you understand what sort of financial investor you want to become, you have to recognise a crypto exchange or a broker that will address your needs in the most ideal manner. What you have to do is assess the ease of use, cost and fee structure, client support, accessible payment modes and online reviews to see if the platform you are inclining towards offers the blend of features you are keen on. Ensure you go through the review websites and social media accounts to check all the reviews to verify the standing of your favoured exchange or broker.
Step 2: Registration/Create a New Account
Once you have selected your broker or exchange, you have to join it to sign up by providing basic data, for example, name, number, email and password. It is suggested that you go with a broker or exchange that complies with regulations. They will validate your own identity through legitimate documentation which might feel inconvenient yet they will end up being more secure and safer when it comes to your personal and monetary data alongside your IOTA tokens.
You can generally discover unregulated crypto services on the web if you lean toward staying anonymous above everything else except they can be very risky as they are not limited by any laws.
Step 3: Deposit Funds
Whenever you are finished setting up your account, you can start trading after depositing your capital. You can browse the platform website to discover numerous payment methods available to the users including credit and debit cards, bank transfer and other e-payment modes. Ensure that you pick the one that offers the correct combination of convenience and affordability.
Additionally, remember that numerous platforms have a base deposit limit which implies that you need to store a minimum specific total before you can start investing. For instance, Skilling's base deposit ask is $100 while Pepperstone doesn't request any minimum whatsoever.
Step 4: Start Trading or Buying IOTA
Short term investors will purchase instruments like CFDs of IOTA on a brokerage site while long haul traders will buy and own IOTA tokens so they can hold them however long they need. When you are a trader who just wants a second income, you need to go with a broker since it's simple and more affordable to purchase and sell instruments as you don't need to manage all the challenges and complexities related to owning IOTA tokens, for instance, wallets.
Besides, there are a few platforms like eToro that have act as both crypto exchange and brokerage sites. You can engage in a wide range of investment activities from a single platform.
Step 5: Optional Steps
After you have bought IOTA tokens, there are several alternatives accessible to you. Some are referenced below:
- Move resources to a wallet:
Short term investors don't have to manage this, however, in case you're a long-term investor, you should find a dedicated software or hardware wallet to store your IOTA coins safely.
- Participate in mining:
Although you cannot technically mine IOTA, you can donate IOTA tokens to the community if you believe in the cause.
- Sell high, rebuy low:
The best technique to go with is purchasing low and selling high which is quite difficult. You'll have to watch out for the price development. Don't venture when the cost is bullish and is experiencing a hype or a surge. Let the price correct itself and when it descends, it's your chance to jump. Continuously manage your risk by diversifying your portfolio.
Available Payment Methods for Buying IOTA
There are numerous payment methods open to a wide range of traders offered by a variety of crypto traders and dealers. The main payment strategies are mentioned underneath:
- Buy IOTA with Cash
If you need to purchase IOTA with fiat money or cash, you have to locate the nearest IOTA teller or ATM. You can use the CoinATMRadar.com site to find the area of the nearest ATM for purchasing IOTA coins.
- Buy IOTA with Credit/Debit Card
You also have the alternative to depend on your bank card for example debit or credit card to buy IOTA as pretty much every crypto broker and exchange offers that choice including Coinmama, eToro, Binance and Coinbase.
- Buy IOTA with Bank Transfer
For purchasing IOTA tokens with bank transfer, you first need to see if your exchange or broker offers the payment mode in your nation. Exchanges like Coinmama have wide coverage.
- Buy IOTA with Cryptocurrency
- Buy IOTA with PayPal
While a wide range of traders couldn't want anything more than to have PayPal as a payment mode for purchasing IOTA, right now, it hasn't been made accessible in many countries except the US on account of regulatory consistency issues. However, it is possible that due to the effort of blockchain network communities and crypto platforms, PayPal will soon be one of the payment methods available to investors.
What Are the Fees for Buying Iota?
That relies upon where you live, what platform and instalment mode you pick, and the amount of IOTA token you will purchase. Bank transfers are very reasonable with charges being under 2% while credit or debit card payments can set you back up to 7-8% of the order sum. Ensure that you know your charges and costs identified with depositing, withdrawing, and trading/investing so you can amplify your profits as a trader.
Expert Tip to Buy and Sell IOTA
When you are emotional about your investments, you cannot become a good investor. This is the reason it is significant for traders and investors to be balanced and prudent in any event, whenever they have missed a chance. Continue perusing the news, get your work done, tune in to the analysts and notice price developments to guarantee that you are settling on an educated decision about purchasing IOTA and not simply relying on your gut feeling.
How to Find the Best Time to Buy IOTA
The best time is the point at which the cost of IOTA coin cannot go any lower. Watching out for price outlines, how it moves, and understanding news and articles can assist you with building up a sharp eye for distinguishing the moment where putting up your money to buy IOTA tokens can be exceptionally beneficial.
What Drives the Coin's Price?
As IOTA is a decentralised network, it doesn't have any central association or authority that has an impact over its price. The main element that dictates the price of IOTA is the supply and demand factor which can be affected by many market influences including assessments of crypto critics, political turns of events, new regulations, and new advancements.
How to Sell IOTA
When you know that the price can't go any higher, you can sell your IOTA tokens to realise your profits. There are more than one ways to do such:
Cryptocurrency Exchange – For long IOTA traders who own tokens, they should depend on a cryptocurrency exchange to sell their coins. You can go back to the same exchange from where you purchased the tokens.
Trading/Broker Websites – For short-haul speculators or everyday traders who simply have the CFDs or other instruments, they can sell them on their favoured brokerage site.
Peer-to-Peer (P2P) Network – Those traders or investors who own IOTA tokens but don't have any desire to sell their coins on an exchange can use P2P networks which are impartial marketplaces that bring together crypto sellers and buyers. You can set and specify your terms on a P2P network.
Frequently Asked Questions
Absolutely not. It may not be a blockchain but IOTA is still a decentralised network of independent nodes that do not take any dictation from any central authority.
IOTA is an extension of the existing blockchain networks to facilitate easy and quick transactions, however, there are few websites where you can use it as a valid currency.
When you have put your capital in IOTA and have a dedicated hardware wallet, your assets will stay secure.
IOTA is a young project which has seen consistent growth not only in terms of price but strategic and technical growth as well. Since there is a lot to come, IOTA remains one of the hottest cryptocurrencies for investors.
It relies upon the financial know-how, the amount you are putting, and their investment strategy.
This is an inquiry you should answer yourself by taking a look at your regional tax laws. Most nations don't have any guidelines around digital currencies and their trading.
Just market influences, for example, supply and demand which are driven by social, legal, technical and political turns of events.
It's not possible for anyone to absolutely ensure that your investments will lead to sure shot profits. IOTA is probably not going to fizzle as it has a steadfast community of engineers, backers and financial supporters. However, prices of IOTA can be volatile and thorough research is necessary before investing in cryptocurrencies.