IOTA is one of those cryptocurrencies where it takes a bit of brainwork to get your head around. Once you do, you’ll understand the power and importance of the IOTA Foundation and its cryptocurrency mIOTA or IOTA.
If you’re here because you’ve already researched IOTA and you’re looking to get your hands on some, then this is the guide for you.
Or, if you’re here because you’ve only heard of IOTA in passing but want to gain a deeper understanding, then make yourself comfortable as you’re about to experience several eureka moments.
IOTA is a cryptocurrency that most should be aware of as it’s essential within the crypto ecosystem and the real-life Internet of Things (IoT).
Let’s dig deeper into some of the reasons you should buy IOTA.
Why Should You Buy IOTA?
Prepare yourself as there may be some terminologies that you’re not entirely used to, but I’ll try my best to include relevant examples and definitions along the way.
First, let’s ask ourselves, ‘What is IOTA?’ IOTA is a distributed ledger that executes and records transactions within the Internet of Things (IoT) ecosystem. Andddd stop!
Okay, let’s break that down for you:
What is a distributed ledger?
A distributed ledger is a database that is shared and synchronised across multiple geographies, institutions, websites and people. The reason for this is so all transactions have a public witness that is recorded on this distributed ledger.
What is the Internet of Things?
This isn’t a crypto term and is used to describe the network of physical objects connected and embedded with sensors, software and other technologies to exchange data with devices and systems on the internet. Yes! This can simply be a household item like your Amazon Echo or a heavy industrial tool with embedded internet output.
So, where does IOTA come into all of this? Well, IOTA’s claim to fame is its innovative “Tangle” system. What is this? It’s a system of nodes used to confirm transactions much faster than other blockchains such as Bitcoin’s.
What other reasons are there to buy IOTA?
IOTA is also known as one of the very few blockchains with zero fees on transfers of money or data. If you send $2, the recipient will receive $2, and if you send $1 million, they’ll also receive $1 million.
This means that people and machines will be able to make any transaction in a trustless, permissionless and decentralised environment. Compared to the retail banking sector, where we get charged left, right and centre, IOTA starts to sound very, very appealing.
Hopefully, all this information above has helped you understand the use of IOTA compared to other blockchains. Let’s get started on how to buy IOTA.
How To Buy IOTA?
Compared to other cryptocurrencies, IOTA isn’t the easiest to buy. There are a few additional steps involved, but that’s okay as I’m going to take you through it step-by-step.
The first question you’ll want to ask yourself is: “do I want my cryptocurrency to be safe and secure?”
If you answered yes to that, then you’re going to want to set up a cryptocurrency wallet.
Step 1: Get A Wallet That Supports IOTA
You’re making all the right decisions already as you’re thinking of setting up your cryptocurrency wallet.
But then you have to ask yourself: “Which wallet is the best wallet?”
I would consider the following factors when choosing a wallet:
- What level of security are you looking for?
- Are there any native cryptocurrency wallets for IOTA?
- How many different cryptocurrencies are you expecting to invest in?
If you’re looking for advanced security, you’re going to want to purchase a hardware wallet – you can’t get any safer than that! And, if you’re looking to buy loads of cryptocurrencies, then you’re best of acquiring a wallet that accepts the majority of crypto available.
Here are 3 popular options for storing your IOTA:
|Wallet Name||Type of Wallet||URL|
|IOTA Wallet||Software Wallet||https://trinity.iota.org/|
Tip: Every wallet comes with a private phrase (mnemonic phrase). This is incredibly important as it’s your ultimate backup to access your wallet. Do NOT give this out to any person or site that asks for it.
Step 2: Purchase another Major Cryptocurrency with a Credit/Debit Card
Unfortunately, you are not able to buy IOTA directly with a credit/debit card. So the first step is to buy another major cryptocurrency which you can purchase with a credit/debit card. Then you ‘trade’ that crypto for IOTA.
There’s actually quite a few that you can purchase directly, but let’s face it, you may as well get your hands dirty and purchase bitcoin!
There are loads of exchanges to choose from, but the one I would recommend is Binance. Some others include:
The Start To Finish Guide on How To Buy Bitcoin Cash Through Your Credit/Debit Card
You’ll want to gather up these items before you start:
- Your notes app on your computer or laptop
- A physical notebook and pen
- An internet connection
- Government-approved identification
Once you’ve got everything, let’s start:
- Step 1: Head to Binance and click the ‘Register Now’ button on the home screen.
- Step 2: How to verify your Binance Account? Once logged in, click the Profile icon in the top-right next to the ‘Bell’ icon. Then, click ‘Identity Verification.
- Step 3: Binance offers 3 types of identity verification, and I would just go ahead and commit to the advanced verification (this pretty much removes all limits).
- Step 4: Once you are verified, you’ll want to log in and head to the main menu, where it says Buy Crypto.
- Step 5: Hover over the menu button and click ‘Credit/Debit Card’
- Step 6: Keep the token as Bitcoin (BTC)
- Step 7: Change the fiat currency to the one you choose and input the amount you want to buy
- Step 8: Click confirm purchase and click confirm again!
Step 3: Trade Your Crypto For IOTA
You should have the amount of fiat you want to spend in total in another cryptocurrency, for example, Bitcoin. The next step is to trade this for IOTA now, but how do you do that?
Head back over to Binance and follow these instructions:
- Step 1: Hover over ‘Trade’ in the header menu
- Step 2: Click on ‘Classic’ in the drop-down menu
- Step 3: On the right, you’ll see a search bar with loads of trading pairs underneath
- Step 4: In the search bar, type in “IOTA”
- Step 5: Click on the IOTA/BTC pair
- Step 6: Scroll down until you see ‘BUY IOTA’
- Step 7: Buy the amount of IOTA you wish to with your Bitcoin.
Step 4: Send Your IOTA To Your Crypto Wallet
You may have already picked up on the fact that I would store my IOTA in my own crypto wallet, and hopefully, you’ve got your own by now.
Head over to the crypto wallet, type in IOTA and copy the IOTA wallet address. Ensure that you highlight and copy it rather than trying to type out the address by yourself.
Okay, so now you want to go back to your crypto exchange, go to your crypto holding and click withdraw on IOTA.
What To Do Next Now You Have IOTA
IOTA is a pretty niche crypto, but it does have a loyal following and a brilliant utility. As you’re interested in utility crypto, I would seriously recommend reading the following:
These cryptos are genuinely some of the best cryptocurrencies I can recommend, and there are loads more. After all, I am a firm believer in blockchain, and I hope to make you one, too.
Frequently Asked Questions when buying IOTA
Can You Stake IOTA?
At the moment, there is no staking with the IOTA foundation. However, other protocols accept IOTA as a staking crypto to earn other crypto coins, such as MANA.
There have been several insinuations that IOTA will soon start their own staking with several high profile members talking about “DeFi possibilities”.
Are There Any Benefits To Using an IOTA Wallet?
There is no real reason to keep your IOTA in their native wallets apart from the fact it’s been built specifically to hold IOTA – which many assume makes it safer.
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