Want to jump straight to the answer? You can buy MIOTA on eToro.
In 2010 Laszlo Hanyecz, a software programmer from Jacksonville, Florida paid for two Papa John’s pizzas with 10,000 bitcoins. The price paid for those two pizzas today is over million. After hearing stories like these, you may have caught the crypto fever and dabbled in bitcoin and Ethereum, but are looking to purchase IOTA. You’ve come to the right place.
Brief History of IOTA and Crypto
There are 1,969 cryptocurrencies trading today. October 31, 2018 will mark the ten-year anniversary of the Satoshi Nakamoto whitepaper that described “a version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.” Most cryptocurrencies are created with the distributed ledger technology called blockchain which secures each block of an encrypted transaction with the next.
Historic blockchain transactions become more secure with each successive verified block. So far, many bitcoin lost has been through human error, with people asking themselves “Where did I put the alphanumeric code for my bitcoin?” Ethereum created by 19-year-old Vitalik Buterin in a whitepaper published in November of 2013, took blockchain beyond its most primitive use as an online currency. Mr. Buterin invented smart contracts the ability to add prearranged terms to a transaction.
Many of the cryptocurrencies launched via initial coin offering (ICO) in the last year have been written using the ERC20 protocol that underpins Ethereum. Smart contracts can allow for the exchange of an item of tangible value—a car, a house, a pizza—for a set amount of a cryptocurrency on a certain date.
So, What’s IOTA?
Iota is number twelve in the coinmarketcap.com rank of 400 cryptocurrencies by market value, is not tied to the blockchain. Rather than a chain of transaction blocks, Iota uses a tree of transactions called a tangle. Iota takes its name from the Internet of Things (IoT) where it finds promise for multiple applications.
Iota confirms each individual transaction by linking with two other transactions in its tangle. No mining is necessary because validators of transactions are rewarded with the ability to process a new transaction.
Because Iota does not need to form blocks of transactions before validation, the Iota tangle is faster at processing individual transactions. The technical name for Iota’s mix of trunk, limbs, branches, and twigs is a directed acyclic graph (DAG).
Transactions with the longest and most often validated lengths to the root genesis transaction carry the most weight for validation of other transactions. Because Iota allows machine-to-machine communication, it holds promise for IoT applications like connecting washing machines to online repairmen or autonomous vehicles to computerized mechanics.
Buying IOTA: A 2 Step Process
Buying IOTA isn’t hard, but there are a couple of steps you need to take.
- Buy another cryptocurrency
Before the purchase of MIOTA, the buyer must already own another cryptocurrency like bitcoin or Ethereum. IOTA can only be purchased by exchanging another cryptocurrency for it. Coinbase is a convenient and reliable exchange for first acquisition of bitcoin or other cryptocurrency and will accept an initial fiat currency (dollars, Euros, etc.) deposit by debit or credit card, or direct transfer from a bank account. Many banks, however, no longer permit purchase of cryptocurrency with their credit cards.
Another option is to withdraw cash from a bank account and insert it into a cryptocurrency automated teller machine. The ATM will produce a receipt with an alphanumeric key to an online wallet.
- Buy another cryptocurrency for IOTA on an exchange
All exchanges accept bitcoin for a deposit, so bitcoin can be used as the source of funds in order to purchase MIOTA. Because the process of converting cryptocurrency back to fiat currency can take days, IOTA can also quickly be exchanged back to bitcoin, which may prove to be less volatile than other cryptocurrencies. The exchanges recommended by the Iota website are Binance, Bitfinex, Coinone, OKEx, and Exrates. Each of those recommended exchanges also trade bitcoin so the process of first acquiring bitcoin and using that for deposit will work.
Best Crypto Exchanges
Beware of Volatility
Fear of missing out can cause one to make a purely emotional investment, while fear, uncertainty, and doubt can stop one from taking advantage of an all but obvious opportunity. Bitcoin at $19,000 can look like a sure thing, while 10,000 bitcoin can look like a fair price for two pizzas. When making any investment for any period of time, it is important to have a strategy that anticipates all possible outcomes.
In stocks, an often used rule-of-thumb is to target a 20% gain and to beware of a 5% loss. But cryptocurrency is much more volatile than almost any other investment. Losing more than 100% is possible if an asset purchased with borrowed money becomes worthless. For real-time cryptocurrency prices, check out the table below.
Final Thoughts on IOTA
Outside factors may come into play after you invest. Even if Iota is making all the right moves to expand its acceptance as the common currency for the Internet of things, the cryptocurrency market can still have a negative impact on its price. An exchange could be hacked, a bitcoin “whale” could decide to sell or a gigantic ICO like EOS could fail. The world economy could enter a recession as it did in 1929 or 2009 and everyone, everywhere could decide to sell everything.
Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page.
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