IOTA

How to buy IOTA and how it works

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

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.

Buy IOTA on CoinSpot

CoinSpot is an Australian-based marketplace that allows you to easily buy, sell or trade more than 100 cryptocurrencies.

  • Buy with Australian dollars
  • Huge selection of altcoins available to buy/sell
  • Beginner-friendly interface
  • Fund your account with cash, BPAY and POLi
  • Compliant with AML/CTF laws
Promoted

Quick guide: How to buy IOTA (MIOTA)

  1. Register for an account with an exchange like CoinSpot.
  2. Enable 2-factor authentication.
  3. Verify your account.
  4. Click “Deposit AUD”.
  5. Transfer funds into your account.
  6. Click “Buy/Sell” at top of screen.
  7. Search for IOTA and click on “Buy IOTA”.
  8. Enter the amount of IOTA you want to buy or the amount of AUD you want to spend.
  9. Review transaction details.
  10. Click “Buy IOTA”.

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

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 Supported Cryptocurrencies
BPAY
Cash
Cryptocurrency
POLi
AUD
BTC, BCH, ETH, XRP, ADA, XEM, LTC, XLM, TRX, DASH, NEO, XMR, EOS, QTUM, BTG, LSK, ETC, XVG, SKY, NAS, LINK, GO & over 100+ more
CoinSpot is an Australian-based marketplace that allows you to easily buy, sell or trade more than 100 cryptocurrencies.
Credit card
Debit card
Neteller
PayPal
Yandex Money
USD
BTC, BCH, DASH, ETC, ETH, LTC, XRP, MIOTA, XLM, ADA, NEO, EOS, LCC, BNB
Copy the trades of leading cryptocurrency investors on this unique social investment platform.

Disclaimer: Highly volatile investment product. Your capital is at risk.
65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Cash
Cryptocurrency
Electronic Funds Transfer
POLi
AUD
BTC, ETH, BCH, EOS, ZRX, AE, AION, REP, DGD, ICX, IOST, OMG, PPT, SNT, TRX, VET, ZIL, ZEC, LSK, DCR, SC, STEEM, GNT, DGB, BAT, KMD, BTG, ADA, DASH, ETC, OIST, LTC, XMR, XEM, NEO, ONT, QTUM, XRP
Buy 30+ cryptocurrencies using POLi, cash or Electronic Funds Transfer.
Cryptocurrency
BTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, ICX, BNB, ZRX, APPC & 80+ more
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.
Cryptocurrency
Wire transfer
USD, EUR
BTC, BCH, BTG, IQ, TRX, GNT, AVT, DASH, DATA, EDO, EOS, ETC, ETH, LTC, MIOTA, NEO, OMG, QTUM, SAN, USDT, XMR, XRP, BAT, ZRX, FUN, MANA, SPANK, TNB, RLC, RCN, REP, ELF, AID, SNGLS, SNT, QASH, YOYO, MITH, ETP, ZEC, XTZ, CNN, BOX, GOT, TKN, UTN
Spot trade all of the major cryptos on this full-featured exchange and margin trading platform.
NB: A minimum opening deposit of US$10,000 or cryptocurrency equivalent applies.
Huobi Cryptocurrency Exchange
Cryptocurrency
-
BTC, ETH, HT, LTC, PAI, BCH, XRP, DASH, IOST, EOS, TRX, ETC, OCN, ONT, ELF, ABT, CMT, ELA, ZEC, XZC, OMG & 75+ more
Huobi is a digital currency exchange that allows its users to trade more than 190 cryptocurrency pairs.
BC Bitcoin Cryptocurrency Exchange
Cryptocurrency
Bank transfer (SEPA)
SWIFT
Wire transfer
GBP, EUR, USD
BTC, ETH, BCH, XRP, LTC, EOS, XLM, USDT, ADA, XMR, TRX and 50+ more
BC Bitcoin is a UK-based cryptocurrency brokerage that buys and sells more than 70 different cryptocurrencies.
Bit-Z Cryptocurrency Exchange
Bit-Z Cryptocurrency Exchange
Alipay
Bank transfer
Cash
Neteller
PayPal
WeChat
Western Union
None
TRX, ETH, BCH, LTC, EOS, EKT, QTUM, ETC, LSK, DASH, NULS, NKC, ZEC, MCO, PUT, OC, HSR, XAS, BTX, VIU, REBL, FCT, GXS, ETP, HWC, VOISE, PPC, ARK, SPHTX, OTN, ARN, OXY, BTC and 15+ more
Cobinhood Cryprocurrency Exchange
Cobinhood Cryprocurrency Exchange
Cryptocurrency
-
BTC, ETH, USDT

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.
Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy.
Ask a question
Go to site