How to Buy IOTA (MIOTA-USD)

Contributor, Benzinga

Want to jump straight to the answer? You can buy MIOTA on eToro.

Cryptocurrency is an industry still in its infancy. While this makes investing in the asset class higher risk than traditional investments, it also provides the opportunity for higher returns than what you’d find in traditional markets. In the world of digital assets, Bitcoin and Ethereum are deemed as “Blue-Chip” cryptocurrencies, as they are more established and less risky than altcoins. One altcoin that offers a good risk to reward, IOTA, may be a good addition to your portfolio –– here’s how to buy IOTA in a few simple steps.

Brief History of IOTA and Crypto

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There are 1,969 cryptocurrencies trading today. October 31, 2018 will mark the ten-year anniversary of the Satoshi Nakamoto whitepaper that described “a version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.” Most cryptocurrencies are created with the distributed ledger technology called blockchain which secures each block of an encrypted transaction with the next.

Historic blockchain transactions become more secure with each successive verified block. So far, many bitcoin lost has been through human error, with people asking themselves “Where did I put the alphanumeric code for my bitcoin?” Ethereum created by 19-year-old Vitalik Buterin in a whitepaper published in November of 2013, took blockchain beyond its most primitive use as an online currency. Mr. Buterin invented smart contracts the ability to add prearranged terms to a transaction.

Many of the cryptocurrencies launched via initial coin offering (ICO) in the last year have been written using the ERC20 protocol that underpins Ethereum. Smart contracts can allow for the exchange of an item of tangible value—a car, a house, a pizza—for a set amount of a cryptocurrency on a certain date.

So, What’s IOTA?

Iota is number twelve in the coinmarketcap.com rank of 400 cryptocurrencies by market value, is not tied to the blockchain. Rather than a chain of transaction blocks, Iota uses a tree of transactions called a tangle. Iota takes its name from the Internet of Things (IoT) where it finds promise for multiple applications. 

Iota confirms each individual transaction by linking with two other transactions in its tangle. No mining is necessary because validators of transactions are rewarded with the ability to process a new transaction.

Blockchain And Iota’s Tangle
A comparison of Blockchain and IOTA’s tangle. Source: Iota.org

IOTA’s Tangle

Because Iota does not need to form blocks of transactions before validation, the Iota tangle is faster at processing individual transactions. The technical name for Iota’s mix of trunk, limbs, branches, and twigs is a directed acyclic graph (DAG).

Transactions with the longest and most often validated lengths to the root genesis transaction carry the most weight for validation of other transactions. Because Iota allows machine-to-machine communication, it holds promise for IoT applications like connecting washing machines to online repairmen or autonomous vehicles to computerized mechanics.

How To Buy IOTA In 2 Steps

Buying IOTA isn’t hard, but there are a couple of steps you need to take.

  1. Open an online account.

    IOTA is a relatively small project, so not all exchanges have listed the digital asset for investors to buy and sell. The largest U.S based exchange that gives users access to IOTA is eToro. eToro has several great features and is a top crypto exchange for several types of investors. The platform also offers dozens of other cryptocurrencies, as well as unique features like CopyTrading large investors.

  2. Make your purchase.

    All exchanges accept bitcoin for a deposit, so bitcoin can be used as the source of funds in order to purchase MIOTA. You can also fund an eToro account with other altcoins or a bank transfer. Once your account is funded, simply move the funds into USD and then select the IOTA/USD pair. After selecting the pair, go ahead and choose the amount you’d like to purchase and set either a market or limit buy order.

Best Crypto Exchanges

Best For
Copy Trading
Overall Rating
Get started securely through eToro’s website
Commissions
0.75% – 2.90%
Account Min
$0
1 Minute Review

eToro is a broker that offers access to over 25 of the world’s most popular cryptocurrencies and 1600 stocks. They have a few unique education and useability tools. Traders can begin buying and selling in as little as 10 minutes.

eToro’s unique CopyTrader feature allows new investors to “copy” the buy orders of professional investors, while the company’s eToro Club feature provides investors with a range of additional education tools and resources. 

Best For
  • Traders looking for an easy-to-use platform
  • Traders who want to practice their trades using a virtual account before entering the market
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • High non-trading fees
Best For
Instant exchanges
Overall Rating
Get started securely through Changelly’s website
Commissions
Account Min
1 Minute Review

Changelly Crypto is a cryptocurrency exchange platform that allows users to swap, buy and sell more than 170 cryptocurrencies. 

With an intuitive and straightforward platform, tools that allow you to find the best exchange rate quickly and multiple forms of currencies and payment methods accepted, Changelly offers a wide range of benefits over its competitors. 

Though we’d love to see Changelly expand its educational offerings and consider adding phone support to its customer service repertoire, the platform is a solid choice for both new and experienced traders alike.

Best For
  • New cryptocurrency investors
  • Investors looking to invest in cryptocurrency using a non-major fiat currency
  • Investors who value high-level customer support options
Pros
  • Selection of more than 170 cryptocurrencies to buy, sell and exchange
  • Simple and straightforward platform is easy enough for beginners
  • Pro platform is ideal for advanced users
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Cons
  • Currently no option for phone support
Best For
Mobile Traders
Overall Rating
Get started securely through Voyager’s website
Commissions
FREE
Account Min
$10.00 USD
1 Minute Review

Voyager is a leading name in the sphere of cryptocurrency investing, giving you access to over 50 tokens and coins. Buy, sell and swap assets using Voyager Crypto’s simple mobile platform available as a free download for iOS and Android users. 

When you invest through Voyager, you’ll pay nothing in commissions, which is a major benefit when compared to other cryptocurrency brokers. Voyager is also one of the only brokers we’ve seen that allows users to earn interest on their crypto investments. 

Though the broker could do more to improve its customer service, it’s an excellent option for beginner investors and seasoned professionals alike.

Best For
  • Cryptocurrency investors looking for a wide selection of supported projects.
  • Investors who prefer mobile trading.
  • Anyone interested in earning interest on their crypto investments.
Pros
  • Simple, straightforward and intuitive mobile platform
  • Wealth of investment opportunities
  • Allows users to earn interest on select crypto investments
Cons
  • Only available for mobile users — no desktop platform
  • Limited routes to contact customer service team

Beware of Volatility

Fear of missing out can cause one to make a purely emotional investment, while fear, uncertainty, and doubt can stop one from taking advantage of an all but obvious opportunity. When making any investment for any period of time, it is important to have a strategy that anticipates all possible outcomes.

In stocks, an often used rule-of-thumb is to target a 20% gain and to beware of a 5% loss. But cryptocurrency is much more volatile than almost any other investment. Losing more than 100% is possible if an asset purchased with borrowed money becomes worthless. For real-time cryptocurrency prices, check out the table below.

Final Thoughts on IOTA

Outside factors may come into play after you invest. Even if Iota is making all the right moves to expand its acceptance as the common currency for the Internet of things, the cryptocurrency market can still have a negative impact on its price. An exchange could be hacked, a bitcoin “whale” could decide to sell or a gigantic ICO like EOS could fail. The world economy could enter a recession as it did in 1929 or 2009 and everyone, everywhere could decide to sell everything. 

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