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.
Quick guide: How to buy IOTA
- Register for an account with a cryptocurrency exchange like CoinSpot.
- Enable 2-factor authentication.
- Verify your account.
- Click “Deposit AUD”.
- Transfer funds into your account.
- Click “Buy/Sell” at the top of the screen.
- Search for the cryptocurrency you want and click “Buy”.
- Enter the amount you want to buy, or the amount of AUD you want to spend.
- Review the transaction details.
- Click “Buy”.
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 250 cryptos.
- Buy 250+ cryptos
- Range of payment methods
- 0.1% market order fee
- 1% instant buy fee
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.
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.
- 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.
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.
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