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How to Buy IOTA Coin and Type Of Cryptocurrency?
IOTA coin is one of the largest cryptocurrencies by market capitalization.We are going to explain more in depth about how to buy Iota coin and what is this type of cryptocurrency.
The term IOTA coin is an abbreviation for Internet of Things Application.
This is also an introduction to a brand new technology in the world of cryptocurrency.
As the name indicates, this facilitates transactions on the Internet of Things.
The transactions take place between machines.
This has been created to specially address the scalability issue.
The idea is if you get rid of a block and a chain you can resolve blockchain issues.
You can submit a transaction to the IOTA coin ledger by verifying two other earlier ones.
So neither do you have a central ledger nor the need for miners to the power the network.
The technology is created in a manner that devices verify one another randomly.
The IOTA coin creators term this verification method as Tangle.
In the world of cryptocurrency, it is also called Directed Acyclic Graph.
The Tangle’s computing power is directly proportional to network growth.
This will mean customers will have free and relatively fast transactions.
So, it can go on to develop a complete chain of micro-economy.
This micro-economy will be sustained through the machine to machine interaction.
Needless to mention that this is a fairly new technology.
So, you have different opinions whether you need to invest in this.
Buy IOTA Coin: Technical Details
This cryptocurrency was launched in June 11, 2016.
The overall coin supply is nearly 2,779,530,283,277,761.
As we mentioned, there is no specific block in place.
You will have to verify transactions to authenticate this one.
1 IOTA coin equals 1.96 US Dollar, nearly 12.90% higher.
In terms of market cap, it ranks 11th among cryptocurrencies.
Volume wise, it is about $5.44 billion.
This cryptocurrency is powered by CoinMarketCap.
In fact, the Internet of Things is one of the most striking forces in the global economy.
In fact, a Gartner study indicates that the Internet of Things is growing at a fast pace.
It has risen to 8.4 billion devices in 2017, and the outlook for future is extremely bright.
This technology is likely to register phenomenal growth going forward.
IOTA coin aims to cash in on this technology growth and become a top-rated platform.
The fundamental pre-requisite for this technology is all devices have to share resources.
This will also make sure that resources are allocated efficiently as well.
So, this will mean that devices can buy additional resources as per their need.
They can also sell it off when they don’t need it.
As a result, this ensures optimum utilization of resources at all times.
You do not end up either wasting resources or under utilizing it.
So, even if you execute this concept on a smaller network, it will generate several transactions.
The result is a significantly higher number of transactions will happen at a much faster pace.
The concern is that a conventional blockchain may not be enough for this.
This is exactly where IOTA coin aims to make a difference.
Blockchain Scalability Issues
Given the rise of cryptocurrencies, the blockchain scalability is a key concern.
As popularity grows and more people access it, the concern is if blockchains support it?
You often see even relatively large blockchains suffering as a result.
The result is often there are talks about bitcoin forks.
Many times, miners need to pay additional fees to make space for additional transactions.
This is what IOTA coin intends to address.
It plans to solve both these problems.
The scalability and fees aspects are both addressed in this way.
IOTA coin plans to introduce a wide number of transaction nodes.
This is probable to address this key factor and take forward the trade.
It is so designed that the processing capability will grow with the growth in the network.
So it does not become a limiting factor as the network expands.
This is where the Tangle comes to play.
You can say that the Tangle, in many ways, helps in building consensus.
So when a device is submitting a transaction, it is verifying two earlier ones.
So, at every step, the users are adding to the overall chain.
In a way, every user links the next one and so on and so forth.
So just by a single step, you completely rein in one of the classic cryptocurrency problems.
I mean scalability issues and its many repercussions.
The network, in this case, does not have to rely on a centralized blockchain.
Needless to mention the Tangle then also increases the pace of transactions.
Every new device that participates chips in with its own capacity.
Additionally, every device that participates gets verified also.
The Tangle also completely resolves the block mining issues.
All the coins on the IOTA coin are created right at the genesis of the network.
No Transaction Fees, You Are Free to Use IOTA Coin
Whenever we discuss cryptocurrency, the transaction fees play a crucial role.
Often a particular network scores over another on the basis of this crucial fees.
Users have to pay the cost of using the network.
But the IOTA coin is set to change all of that for good.
The Tangle only needs you to verify two transactions.
Apart from that, all you need to invest is in the electricity or the charges for internet.
This means the IOTA coin operates without a fee.
This means that the distribution will be also at a much higher scale.
Every participating machine gets connected to the main network.
So in many ways, it is much better distributed compared to a conventional blockchain.
There is also a practical angle to the no fees policy.
The IOTA coin does not undertake transactions like a conventional blockchain.
This means that most times, the transactions take place in a fraction of time and money.
As a result, even if you levy a fee, it will be very small.
This type of micro-fees is extremely difficult to track.
It also creates unnecessary blockages in the overall economy.
The idea is to create a smooth and hassle-free economy.
This primary idea is serviced at every single point.
The idea is to create a permanent and efficient environment.
That alone is expected to enhance the overall function of the network.
Moreover, the no fees policy also goes on to attract price-sensitive customers as well.
IOTA Coin Uses Trinary vs. Binary Logic
IOTA coin has also garnered praise for the use of this unconventional technology.
It uses a proprietary innovation to add credibility to this novel concept.
In simple layman terms, IOTA coin uses the trinary logic.
This is very different from the binary logic that networks use.
Essentially then these processors use three states instead of two.
Needless to mention that this then enhances the overall efficiency.
It also adds to the speed of transactions.
The overall computing power of the network also increases manifold.
The hardware for Internet of Things is crucial here.
In this context, the IOTA coin is working closely with an organization JINN Labs.
This is likely to create hardware that is best suited for this technology.
It does not just create a superior sense of compatibility but performance too.
As a result, the pace of transactions also gets a huge fillip.
In compliance with this technology, users also experience a much-enhanced service.
How to Buy IOTA Coin
However, despite these huge positives, the biggest problem is availability.
Often you will notice that people are unaware of how to buy these.
Even for many who dabble in cryptocurrency quite often, it is not clear at all.
There are huge pockets of doubt and uncertainty.
As of now, you can buy IOTA coin only from two exchanges.
What further exacerbates the problem is that neither of the two accepts fiat currencies.
So, if you don’t have deposits in another cryptocurrency, you will not be able to access it.
So you have to first get Bitcoin or Ethereum deposits and then look for buying IOTA coin.
Both the exchanges that offer investors accept any of these cryptocurrencies.
In many ways, that has also limited access to this cryptocurrency.
It is needless to mention that this has also created a sense of mystery about this currency.
In fact, a quick search on the internet about IOTA coin, maximum queries are on buying.
Investors are confused about where to buy and how to buy.
Binance and Bitfinex are the main two exchanges.
You can buy IOTA coin from any of these two exchanges.
However, if you are a US based customer, your options reduce even further.
Bitfinex has stopped servicing US investors as of now.
Exchanges to Buy IOTA Coin
So, let us first examine the two exchanges where you can buy IOTA coin.
This exchange is based out of Hong Kong.
This exchange records one of the largest daily transactions.
The amount of cryptocurrency turnover also establishes this as a credible source.
However, as we mentioned, this exchange does not service US customers anymore.
But other investors from across the world can easily access this exchange.
They can use the conventional format to buy, sell and transact in IOTA coin.
This is a relatively new exchange that came into being.
But the company’s financials are worth taking note of.
They raised as much as $15 million through their Initial Coin Offering in flat 3 minutes.
It went live in less than two weeks after this, around July 14, 2017.
But Binance has not let its relative novelty get in the way of business.
Within this short period, it has created a huge user base.
Not just that, even in terms of daily trades, it has created a distinct mark for itself.
It ranks in the top 10 daily trade list consistently.
This list essentially ranks exchanges on the volume and turnover recorded every day.
This goes on to highlight the kind of popularity it has gained.
So if you own Bitcoin, Ethereum or any other cryptocurrency you can start trading.
You can also use these currencies to start buying IOTA coin.
Given the huge trade volumes on both these exchanges, you are sure to gain value.
The idea is to garner as much possible value from these positions.
An exchange with high turnover also helps in creating a credible trade.
How to Buy IOTA Coin on Binance
So, let us first understand ways to buy IOTA coin on Binance.
This is a fairly easy procedure.
In many ways, it is similar to buying cryptocurrency on any exchange.
Needless to mention, you have to first register yourself on the exchange.
Once you fill up the registration form, you have to give your email ID and password.
It is always better to create a strong alpha-numeric password.
Also, avoid common dates like birthday or anniversary.
Once you verify your email account, you will get a prompt to log-in.
Clicking on this helps to activate your account.
This exchange also helps you enable 2-factor authentication.
This introduces even better security measures.
The Google Authenticator is one of the simplest and safest alternatives.
This helps reduce the vulnerability of your account.
The initial withdrawal limit is set at 2 BTC every 24 hours.
But once you complete the identity authentication, you can raise this limit.
The next step is, of course, depositing the money.
You can deposit any kind of cryptocurrencies like Bitcoin, Ethereum and Tether.
Now you can buy IOTA coin using this fund.
You can then continue trading in any Bitcoin or Ethereum markets.
On an average, Binance charges about 0.1% fee per trade.
Traders can decide how much percentage of cryptocurrency they want to use.
So once you place the market order, the exchange will buy maximum possible IOTA coin.
Additionally, the exchange also looks for the cheapest possible option to deliver value.
Once you have the requisite balance, you can then transfer this amount to a wallet.
Traders normally choose a wallet they like.
How to Buy IOTA Coin on Bitfinex
More or less, all exchanges function in the same way.
So buying IOTA coin on Bitfinex is not very different from Binance.
So you create a login and activate it by verifying the email.
After that, you can enable a 2-factor verification.
You can easily click on the deposit tabs and choose the cryptocurrency you like.
So you can now use the fund to buy IOTA coin.
You can create a variety of market order.
Depending on your requirements, you can easily choose the amount of IOTA coin.
Bitfinex also allows users to store the IOTA coin in a wallet of your choice.
Though most times buying IOTA coin is very simple, the availability becomes an issue.
Concerns About IOTA Coin
Despite the obvious advantages, there are some concerns with IOTA coin.
It is almost impossible to consider that there is no weakness at all.
You have to remember that you are dealing with multiple technologies.
As a result, there are some obvious implementation issues.
In fact, security concerns are the biggest issues with IOTA coin.
There are major concerns about the cryptography principles in use.
As a result, the pricing is fairly unstable in this case.
You can factor in these as initial technical hurdles and teething troubles.
But the security concerns are of primary importance.
On an average, blockchains are vulnerable if one party controls 34% or more.
Therefore it is not impossible to launch this against the Tangle either.
Unlike a conventional blockchain, this one has myriad nodes.
In the early days, this network is still in a controlled atmosphere.
It is much simpler for an attacker to gather 34% or more of this computing power.
But IOTA coin already factored in this concern.
It created a Coordinator within the system early on.
This is supposed to make sure that the security is not compromised.
IOTA Has Huge Potential
Therefore, we can conclude that this cryptocurrency has huge potential.
Therefore, if the makers are able to get past these initial hiccups, the future looks promising.
It can even give the conventional blockchain a run for its money.
There is no stopping the internet of things or microtransactions.
But the fact is this strategy is fairly new.
It still needs a significant amount of testing.
The creators need to invest a significant amount of resource into research.
For the present, though you have to agree that this is still early days.
It is, therefore, a risky investment as of now.
Though it is one of the largest cryptocurrencies in terms of market cap, the risk profile is high.
So, it does not make sense to put all your eggs in this basket.
The concept is novel and has potential to grow.
But at the same time, it is not wise to take a big bet on this.
As the demand for cryptocurrency grows, IOTA coin has strong growth potential.
Right now most investors are deterred by the availability issue.
One of the most searched options is how to buy IOTA coin.
That needs to be addressed first with respect to IOTA coin.