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How to buy IOTA and how it works

Find out how and where to buy IOTA, and why you should and shouldn’t.

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Unlike many other cryptocurrencies, IOTA does not use the blockchain. Instead, it uses a new system of its own devising called the tangle.

Theoretically it offers three key features:

  • Zero transaction fees and instant transfers
  • Infinite scalability
  • Purpose-built for the Internet of Things (IoT)

A lot of people believe that tangle will be the blockchain’s successor.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.
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Quick guide: How to buy IOTA

  1. Register for an account with a cryptocurrency exchange like Swyftx.
  2. Verify your account.
  3. Go to the deposits section
  4. Select your preferred payment method and confirm.
  5. Go to the buy section and select the cryptocurrency you want to buy.
  6. Enter how much you want to buy, or how much you want to spend.
  7. Double check the details and confirm your purchase.
Go to Swyftx's site

This is our quick guide to just one way to buy IOTA. Compare some other options in the table below.

Buy IOTA on CoinSpot

CoinSpot is an Australian exchange that lets you easily buy, sell and trade more than 150 cryptos.

  • A local exchange headquartered in Australia
  • Allows users to buy directly in AUD
  • Low and no fee deposits and withdrawals
  • User-friendly interface
  • Wide selection of cryptocurrencies
  • Compliant with AML/CTF laws
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Where to buy IOTA

It’s still a new coin, so most exchanges don’t yet offer it. There are indications that this is likely to change in the future.

Currently, you can find IOTA at the following exchanges.

Name Product Deposit methods Fiat Currencies Cryptocurrencies
Bank transfer,POLi,Osko,PayID
AUD

177
cryptocurrencies

Buy and sell a wide range of cryptocurrencies at competitive rates on this Australian exchange.
Huobi Cryptocurrency Exchange
Cryptocurrency
GBP, USD, AUD, EUR, INR, BRL, KHR, CAD,CNY, NZD & 15+MORE

234
cryptocurrencies

Huobi is a digital currency exchange that allows its users to trade more than 190 cryptocurrency pairs.
Bitit Cryptocurrency Marketplace
Cash,Credit card,Debit card,Neosurf,Bank transfer (SEPA)
EUR, USD, JPY, DKK, GBP, SEK, NOK, TRY & 5+ more

50
cryptocurrencies

Buy cryptocurrency with cash or credit card and get express delivery in as little as 10 minutes.
Bittrex Digital Currency Exchange
Cryptocurrency,Wire transfer
USD

278
cryptocurrencies

Buy from one of the largest cryptocurrency exchanges with a selection of over 190+ cryptocurrencies and 3 USD pairings.
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Compare up to 4 providers

How to buy IOTA

You might see IOTA referred to in various ways, such as Mi, Ki, MIOTA, KIOTA and others. These simply refer to different amounts of IOTA.

The most common unit of trade on exchanges is MIOTA.

Trading units:

  • IOTA - A single IOTA
  • Ki, KIOTA - One thousand IOTA
  • Mi, MIOTA - One million IOTA
  • Gi, GIOTA - One thousand MIOTA
  • Ti, TIOTA - One thousand GIOTA
  • Pi, PIOTA - One thousand TIOTA

If you are considering purchasing units, you will also need an IOTA wallet. You can leave your IOTA on the exchange for some time, but it’s probably a good idea to withdraw it to your own secure wallet when possible.

Blockchain vs tangle

Both are what they sound like. A blockchain is like a chain of blocks, while the tangle is more like a web.

The problem with blockchains

Transactions on a blockchain are built in a chain and transacted as they come. In most cases these transactions are processed by miners who lend their computing power to the blockchain and get rewarded with the blockchain’s cryptocurrency for doing so.

This reward is partly from newly released coins, but mostly from transaction fees.

The blocks with the highest transaction fees get processed first because they’re the most valuable to miners. And if there are more transactions waiting than can currently be processed, they’re put in a backlog.

As such, when a blockchain gets busier and more popular, transactions on it get slower and more expensive. This can be seen to varying degrees in many popular blockchain-based cryptocurrencies.

This is known as the “scaling problem” because it might put a hard limit on how big and valuable a cryptocurrency can get before it becomes so slow and expensive that it’s not worth using.

Many people believe that the only way a cryptocurrency can truly become a useful global currency is by solving the scaling problem.

Read a guide to IOTA here.

What does the future of IOTA look like?

IOTA has set the ambitious goal of leapfrogging blockchain technology with a significantly better system. Plus, it won’t be minting any new coins. As it’s more widely adopted, the typically traded amounts might turn from MIOTA to KIOTA to IOTA.

A lot of different stakeholders are also taking an interest. IOTA has announced some high profile partnerships with various brands, including Microsoft, Samsung, Cisco and Volkswagen, while others are already building new technologies with the specific intention of migrating them to the IOTA network later on.

It’s also worth considering that the potential applications of a successful tangle network are almost infinite.

The following are some of the applications floated by various organisations:

  • Leasing anything in real time. If it can be powered and fitted with a computer chip, it can run on the network.
  • Sharing processing power. Seamlessly sharing processing power between computers, phones and other devices.
  • Permanently solving car problems. By giving new cars a digital twin on the tangle network, vehicles can be tracked in detail in every way. Car theft, odometer tampering, failing to disclose previous accidents and more would potentially be a thing of the past.
  • Locating and reuniting people. IOTA has already partnered with the non-profit organisation Refunite, testing its fee-free distributed ledger system with the organisation’s missing person database.
  • E governance. It could be a secure, low-cost and tamper-proof way for populations to vote and participate in government.
  • Communication. It presents a more secure and cost-effective way of communicating through phones, computers and anything else.

With almost limitless applications and ambitious technology that is rapidly improving, many people think that IOTA might be the way of the future.

However, it’s hard to predict the future role of the coin in the tangle network. It’s been described as an instrument to help machines speak with each other, rather than an investment to pass between human hands. Its uniqueness makes it hard to predict what IOTA “should” be valued at and how well it will store value in the long run.

It’s also worth considering the possibility of other tokens operating on the IOTA tangle network. The network itself might be the main attraction. The IOTA token, which isn’t necessarily meant for human hands, might end up being one of the least valuable coins on it.

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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