Buying IOTA might hold your attention, because this cryptocurrency fits into the universe of the Internet of Things (or “IoT”, for “Internet of Things”), a sector with very big potential. One of the objectives of the project concerns micropayments via connected objects (from a cell phone to a watch, for example). Unlike other “classic” virtual currencies, the IOTA project is not based on a blockchain, but on a network called Tangle, which is an architecture based on an Acyclic Oriented Graph (DAG) approach for ever faster transactions. Let’s find out together first what the IOTA project consists of, and then how to get MIOTA tokens, the cryptocurrency of the project.
Presentation of IOTA
IOTA is a network project resulting from a company created in 2015 by David Sønstebø, Dominik Schiener, Serguei Popov and Sergey Ivancheglo. Namely that the latter is no longer part of the foundation following a dispute. Its principle is to serve as an exchange and storage network for connected objects.
IOTA is designed to revolutionize what is called “The Internet of Things”, an area set to develop. The name of the project is by the way not trivial, because it is an acronym meaning “Internet Of Things Application”. Put simply, where Bitcoin is a network peer-to-peer (P2P), IOTA is a network called machine-to-machine (M2M). Its final goal is to allow, for example, your connected fridge to order and pay for the purchase of a drink by exchanging with your supermarket computer.
Unlike other cryptocurrencies, IOTA technology is not based on blockchain, but on the Tangle. This Acyclic Oriented Graph (DAG) aims to set up free transactions, including the secure unlimited transfers. But how does it work?
If he wants to make a transaction, a user undertakes to make available to the network computing power of his device. Validating your transaction requires contributing to the validation of two other transactions. In other words : more transactions operate on the network, plus the number of transaction confirmations is.
It is this singularity of IOTA that solves the problem of scalability faced by other cryptocurrencies. Ditto for the transaction time. In addition, since everyone participates in the network with this validation method, there is no no charge. Thus, the IOTA system is able to manage an increase in load while maintaining a high degree of service in terms of functionality and performance.
Buying IOTA: limits and advantages of IOTA
The potential of connected objects is immense for the coming years. We are already talking about 20 billion units in 2020, which validates the positioning taken by the founders of IOTA.
The instant transactions without fees are among the conditions that attract a lot of developers, making the IOTA project very dynamic. This expansion is encouraged by partnerships with companies recognized as ElaadNL, Bosch or Fujitsu. Finally, there is no need to mine IOTA, which eliminates the risk of centralization and manipulation.
In summary, here is why some investors hold IOTA in their cryptocurrency wallet:
- Its shape scalable and modular ;
- Its inviolable character;
- Its total free ;
- Its energy-efficient side (IOTA requires much less than Bitcoin);
- The speed of its transactions thanks to technology Tangle.
However, buying IOTA is not without risk. Like all cryptocurrencies, volatility of its course can clearly erode your invested capital. In addition, some security holes have already arisen. Add to that the fact that the IOTA project is really geared towards connected objects, which is not always practical for individuals. Finally, you should know that the network is vulnerable to an attack of 34%.
Note: If you’re interested in learning more about IOTA, please read our review on the project.
Buy IOTA on platforms
Now that you know more about the IOTA project, maybe you want to know how do we buy it ? Don’t panic, we’ll tell you everything!
What is a buying platform?
There are multiple platforms dedicated to the purchase and exchange of cryptocurrencies, that is, websites where users can acquire, sell or trade their virtual currencies. In this jungle of supply, novice traders can quickly find themselves at a loss, especially since not all platforms meet the same expectations. If you are new to cryptocurrency, we advise you to read this guide on what you need to know.
In particular, you should know that not all platforms offer all virtual currencies. Obviously, the most famous cryptocurrencies are the most accessible. In the case of IOTA, its cryptocurrency with the acronym MIOTA is known, but not enough to be available on absolutely all platforms. So you must always check the list of cryptocurrencies which can be purchased on a platform before registering.
What types of platforms are there?
Typically, these platforms are categorized into two distinct groups: buying platforms and trading platforms.
A purchasing platform is called a site that allows you to buy a cryptocurrency with a Fiat money such as the euro or the dollar. Shopping platforms have their own way of doing things. Some allow you to buy your tokens directly with your blue card, while others will ask you to do a deposit of funds (to credit your account) before purchasing your virtual currency. In all cases, these platforms take a commission on the different actions that you can perform, whether a deposit, withdrawal, or even a transaction.
Also, note that some platforms allow you to buy a own cryptocurrency, that is, cryptocurrency you will belong once the transaction is completed, while others play on the investment where the CFD (“Contract For Difference”). For these last two cases, the cryptocurrency does not belong to you.
Note : The purchasing platform eToro has a page explaining the CFD. If you would like to consult it, click here.
An exchange platform allows you to obtain IOTA in exchange for another cryptocurrency. Also called “Trading”, this allows you to get MIOTA tokens if you already have bitcoins or ethers for example.
Each platform offers its own “Markets”, that is, cryptocurrencies that serve as exchange currency to buy others. For example, Binance offers to buy IOTA for Bitcoin, BNB, Ethereum, Tron, Tether, etc.
Note, however, that a trading platform can also offer the services of a purchasing platform. This is particularly the case for Binance.
Platforms and regulations
The universe of cryptocurrencies is meant to be independent of traditional financial players. However, faced with the risk of money laundering and the fight against the financing of terrorism, regulatory authorities looked at how to better monitor cryptocurrency trading and buying platforms.
Thus, in France, the Sapin 2 law, relating to transparency, the fight against corruption and the modernization of economic life, delegates the competence for the regulation of various goods (rare earths, diamonds, crypto-assets, etc.) to the Autorité des Marchés Financiers (AMF). The latter authorizes or not the platforms of purchase and exchange to function.
The institution must monitor and verify that the platforms, as as intermediaries and operators, respect all guarantees for users. The AMF is also concerned with good publication of promotional materials. These must specify, in a legible and explicit manner, all cautionary information relative to risks associated with virtual currencies, in particular the fact that the invested capital is not guaranteed and that past performance does not in any way bode well for future performance.
If the cryptocurrency buying platforms respond favorably to this regulatory framework, they are officially registered by the AMF and receive a registration number. The same applies to brokers who are registered with Register of Financial Agents, in other words the Regafi.
Good to know : the AMF maintains a blacklist platforms to flee.
How do I choose the right buying or trading platform?
The choice of platform requires reflection. You must take into account your expectations, your trading goals and your budget, by making a comparison with the possibilities offered by the platforms. To build a sound opinion, you generally have to take several elements into account. Here are the most important.
The cryptocurrency industry is booming. Regularly, projects are born and others fall. The same goes for buying and trading platforms, hence the interest in paying attention to the reputation. Feel free to trade with more experienced traders, to read articles from specialized sites and to browse forums and social networks dedicated to the subject. It’s up to you to observe the feedback, positive and negative.
Besides the purchase of IOTA itself, your budget should include the fresh related to the procedures. Which ? First of all, the costs when you make a deposit of funds on some platforms. Then the transaction fees at the time of purchase. Also, the withdrawal fee for when you collect your stake.
Also take into account conversion fees. You should know that on some platforms, it is impossible to buy IOTA in euros. Thus, making a deposit in euros involves conversion fees to the currency accepted by the platform, which also leads to the question of exchange rate between currencies. This is an additional gymnastics which calls for increased vigilance to convert your euros at the most favorable time, that is to say when the report is the most favorable.
Note that all platforms pay differently. Be sure to decode their economic model to financially optimize your trading strategy.
As we have seen, some platforms only accept Fiat currencies, others only cryptocurrency trading, and some both. Take the time to see if the chosen platform allows you to buy MIOTA, and how. For example, at the time of writing this article, Coinbase (one of the biggest buying platforms at the moment) does not allow the purchase of MIOTA tokens, and Binance only allows cryptocurrency trading for IOTA.
Regarding the platforms allowing the purchase of MIOTA in Fiat, check the different means of payment authorized, but also fresh associated with it. Often, make a deposit in bank transfer involved less costs that the Bank card. But know that the validation time is longer, something that is also to be taken into account.
Identity verification requirements
Certainly, verifying your identity can be a drag on your user experience. However, it is a first guarantee related to seriousness of the platform. Either way, you must have the reflex to check if the site is registered correctly with the AMF. This is the advantage of well-known cryptocurrency buying platforms that are reassuring.
Note: Identity verification can be summed up in 2 terms that you will come across frequently: the KYC (“Know Your Customer”) and AML (“Anti-Money Laundering”). If you want to know more, click here.
What are the steps to buy IOTA on a platform?
The platforms all have their own way, but they all follow more or less the same protocol for purchasing your MIOTA tokens. Here are the different steps to buy IOTA on a buying or trading platform:
Once you have chosen your platform taking into account the criteria previously mentioned, you can start to to register. Platforms generally ask for classic information such as a username, a password to set and an mail address. It is also the opportunity to read the Terms of Service of the platform before accepting them.
Verification of your identity
Before allowing you to make your first deposit in order to buy your first MIOTA tokens, the platform may ask you to verify your identity. Thus, Further information as well as vouchers (as the copy of an identity document or a proof of address) will be required to verify your identity. How to transmit them? You just need to scan them and then import them to the site.
Note that identity verification is not required by all platforms. It depends on the head office position of the platform in question. But generally, having one’s identity verified allows more features.
Make a deposit on the platform
For the purchase of MIOTA tokens, most platforms will ask you to make a deposit. Whether it is a buying platform or trading platform, you will be brought to deposit your euros or your cryptocurrency to then buy IOTA.
For a buying platform, pay attention to the accepted currency by the platform. Obviously you can always convert your euros into a valid currency, but this will generate conversion fees. Moreover, several payment methods are possible, the most common being the bank transfer and the Bank card.
To know : There are platforms that allow the purchase of cryptocurrency without having to make a deposit.
The purchase of MIOTA tokens is therefore the purpose of the process. Take the time to check the Classes cryptocurrency before you buy, to see if the time is right.
Some platforms to buy IOTA
Below is a table showing you 2 well-known platforms that allow you to buy IOTA, with their means of payment, as well as their main advantages and disadvantages. You will notice that one is a buying platform while the other is a trading platform:
|Platform||Means of payment||Benefits||Disadvantages|
|eToro||Purchase with Fiat currency||– Easy to use|
– Social trading
Possibility of copy the investment strategy of other users
– Lots of payment methods, including PayPal (which is rarely offered by platforms)
– CFD trading with leverage
– Possibility to create a demo account
– The platform appears in the Regafi
|– Transactions can only be carried out in US dollar (USD). Thus, a deposit in euros involves conversion costs.|
– First deposit of a minimum of $ 200, is around € 190
– Does not allow owning the cryptocurrency
|Binance||Cryptocurrency exchange only||– Transaction fees interesting, especially using Binance Coin, the platform’s cryptocurrency|
– Leader in cryptocurrency trading
– Advanced features for experienced traders
– Allows you to own the cryptocurrency own
|– IOTA is not one of the cryptocurrencies that can be purchased with Fiat currency on the platform|
– Trading pages can be complicated for beginners to understand
How to secure your IOTA? In an IOTA Wallet!
Be aware that IOTA’s buying and trading platforms are not neither wallets nor safes. Why ? Because they are likely to undergo computer attacks, not to mention the risk of permanent closure. In both cases, you can say “goodbye” to your cryptocurrencies. So, where to store your IOTA ? In one wallet outside the platform.
To put it simply, a wallet is a storage system who takes care of encrypt and keep your private key, that is to say in a way the password giving you access to your MIOTA tokens. It is therefore a security to keep your investment.
What are the types of portfolios?
Several options exist in terms of portfolios dedicated to storage of your IOTA. These wallets fall into two main categories: hot wallets and the cold wallets.
Hot wallets are wallets that are directly connected to the web. They allow several advantages like immediacy of transactions, but are all the same vulnerable to attacks. These wallets are therefore recommended for storing small amounts. Hot wallets are divided into several subcategories, whose :
- Desktop wallets (desktop wallet), which are software that you download to your computer;
- App wallets, wallets in the form of applications to download to your smartphone. They are generally compatible with Android and iOS;
- Web wallets, which are generally the wallets associated with the purchase and exchange platforms. But there are others that are unrelated to platforms.
Cold wallets store private keys off the internet, which considerably reduces the possibilities of attack. These wallets are therefore recommended for storing big sums on the long term. Here again, two main sub-categories stand out:
- The hardware wallets (hardware wallets) which are physical devices that you can connect to your computer to allow transactions to be signed. The two main companies hardware wallets, Ledger and Trezor, which come in the form of a USB key.
- The paper wallets (paper wallets) are simply leaves on which the private keys are written. It is possible to create these paper wallets from a web page like Cashadress.org.
How do I choose my IOTA wallet?
Although it is necessary for the protection of your private key, security is not the only criterion to be taken into account when choosing your IOTA wallet. Indeed, the choice of its IOTA wallet takes into account several other elements such as:
- Your trading activity. The wallet can facilitate your IOTA purchases, but also crypto sales and trading;
- Comfort for everyday use, in particular the ease to be transported and connected;
- The relevance of functionalities ;
- The simplicity of the interface if you are a beginner.
You now have all the information to buy IOTA, from the criteria to take into account when choosing the platform to the procedure to follow to buy your tokens. Once the purchase is made, the priority is to store your cryptocurrencies in a safe place and to never forget that investing in IOTA does not guarantee your capital. Regarding the protection of your tokens, IOTA has even decided to launch his own wallet.