IOTA is a distributed ledger that differs from other networks in web3: it isn’t actually a blockchain. Instead, this Internet of Things (IoT) ecosystem offers faster speeds and a unique native coin in MIOTA via Tangle technology. But what does all this mean? Should you buy IOTA? Here’s what you need to know.
Our methodology for choosing the top platforms to buy and hold IOTA
Buying and holding IOTA as a trading instrument or as a long-term asset requires familiarity with notable exchanges and wallets. This guide discusses five such exchanges or IOTA trading platforms and five IOTA wallets tested for over eight months across several parameters. Here is what was inferred:
Bitfinex, Huobi, and KuCoin are widely respected for their user-friendly interfaces, support for a wide variety of crypto assets, and their commitment to secure user transactions through comprehensive security measures. They implement two-factor authentication, advanced verification tools, and withdrawal protections to ensure user safety. Moreover, their competitive trading fees, ranging between 0.1% and 0.2%, establish these platforms as industry leaders. This fee structure allows traders to retain more of their funds while engaging with these platforms.
Note: Bittrex Global was on the list but taken out as they closed curtains on operations as of December 2023.
Huobi for buying IOTA
Huobi, now rebranded as HTX, boasts the liquid IOTA/USDT pair with a CoinMarketCap score of 317. HTX’s IOTA pair makes almost 4.5% of the global IOTA trading volume. Besides that, HTX charges a competitive spot trading fee of 0.2%, which can go as low as 0.05% for IOTA perps.
IOTA holdings on Bitfinex
Bitfinex has one of the more liquid IOTA trading pairs around — IOTA/USD. The same makes 1.28% of the total IOTA volume. For IOTA traders, the spot fee starts at 0.1%, which can be further reduced with increased trading volume. There is also LEO, a Bitfinex native token, offering further rebates on the trading fees.
KuCoin for you IOTA tokens
KuCoin’s IOTA/USDT pair enjoys a liquidity score of 402 to date, resulting in quick order executions. The pair itself makes 1.16% of the global IOTA volume. Spot trading fees start at 0.1%, but there are additional discounts for KCS native coin holders. KuCoin also offers other IOTA pairs like IOTA/BTC, but the USDT variant is the most liquid.
Buying and holding IOTA on CEX.IO
With a CoinMarketCap liquidity score of 425, CEX.IO is one of the notable IOTA exchanges. Also, its IOTA/USDT pair has a high trading confidence score, making order executions fast and transparent. This platform even supports seamless IOTA purchases via credit/debit cards and bank transfers.
For Cex.io, the focus was on evaluating the reduced trading fee offer available on Exchange Plus during weekends. The testing involved conducting transactions from Saturday 00:00:00 UTC to Sunday 23:59:59 UTC, where the fee was set to 0.15%. This allowed for an assessment of the actual cost reduction from the standard 0.25% fee, quantifying a 40% decrease for trades executed in this time frame.
Next in line are the IOTA-compatible wallets:
Firefly wallet for holding IOTA tokens
The Firefly wallet comes with robust security traits, including integration with hardware wallets. Plus, it’s directly linked to IOTA’s Chrysalis upgrade, making direct IOTA swaps and purchases possible. The wallet structure is modular and features the Stronghold for further safeguarding user data.
IOTA and TanglePay
Besides a seamless user interface, TanglePay also excels when it comes to the community focus on continual improvements and web3.0 integration. This wallet brings cross-app messaging into the mix and is compatible with IOTA and the EVM chains.
Ledger wallets for IOTA
Long-term IOTA holders can rely on Ledger hardware wallets like the Nano X and Nano S. The wallets support 18 to 100 apps to ensure the tokens can be integrated with a host of DApps. Besides IOTA, Ledger wallets can support other 5500+ assets. Security-wise, there is PIN-based access, two-factor authentication, and other traits.
Why choose SafePal for IOTA?
Wallets like the SafePal S1 can work with 10,000 tokens and also support NFTs. Security concerns are handled by the secure element chipset. Cross-chain IOTA trading, direct purchases via Moonpay, and portfolio checking are some of the other supported traits.
Holding IOTA on Exodus
Exodus features the innovative ShapeShift technology, allowing traders to swap IOTA and other tokens from within the app. Exodus even links with numerous exchanges. Plus, in-app staking is also supported. Finally, Exodus can also connect with hardware wallets like Trezor and act as a non-custodial option.
BeInCrypto’s choice of these platforms resulted from meticulous consideration, focusing on their overall effectiveness, particularly in offering competitive trading fees and extensive security measures, among other features. Consequently, each of these platforms and wallets stands out as an excellent option for users to purchase IOTA securely and with confidence.
To know more about BeInCrypto’s methodology verification, check out this link.
Do you want to buy MIOTA? Use and test these exchanges
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- Our methodology for choosing the top platforms to buy and hold IOTA
- What is IOTA?
- How does IOTA work?
- IOTA vs. other cryptocurrencies
- IOTA ecosystem
- IOTA wallets
- IOTA staking
- Where to buy IOTA
- Huobi Global
- Bitfinex
- KuCoin
- Bittrex
- CEX.io
- How to buy IOTA from crypto exchanges
- How to buy IOTA with a credit card
- IOTA: Should you buy into the hype?
- IOTA price prediction
- Technology born out of its time
- Frequently asked questions
What is IOTA?
IOTA is a distributed ledger technology (DLT) and cryptocurrency designed for the Internet of Things (IoT). It was created in 2015 by David Sønstebø, Sergey Ivancheglo, Dominik Schiener, and Serguei Popov.
IOTA is unique among cryptocurrencies because, as previously alluded to, it doesn’t use a traditional blockchain like Bitcoin or Ethereum. Instead, it utilizes a data structure called the Tangle.
How does IOTA work?
IOTA uses the Tangle. The Tangle is a directed acyclic graph (DAG) that is utilized on the IOTA network to validate and record transactions. Unlike typical blockchains, which aggregate transactions into blocks and add them to a chain, each Tangle transaction must confirm two prior transactions, resulting in a web-like structure.
Theoretically, this approach provides higher scalability and eliminates the need for miners or validators, potentially lowering transaction fees.
Why is IOTA popular?
IOTA became popular not only because it did not use a blockchain but because it strongly focused on the Internet of Things. It promised fee-less transactions, which is important for devices that need to transact data and value efficiently.
“Think of $IOTA as the rising phoenix, working its way back up to being one of the major L1s next to Ethereum and not stopping until the objective is achieved.”
@DomSchiener, co-founder of IOTA: X (Twitter)
IOTA vs. other cryptocurrencies
Compared to other cryptocurrencies, IOTA is number 77 in terms of largest market caps, sitting at $386 million. As far as 24-hour trading volume, IOTA currently sits at 97.
IOTA vs. Ethereum: An ultimate comparison
When compared to Ethereum, IOTA has many advantages and opportunities. Firstly, fees on IOTA are much lower than Ethereum, because IOTA does not have any fees at all.
However, Ethereum sits at the top in terms of trading volume, out of all cryptocurrencies no less. Moreover, IOTA can handle 1,000 transactions per second (tps), while Ethereum typically handles about 12 tps.
IOTA ecosystem
While many crypto projects tend to appeal to more financial applications, IOTA has chosen to take another direction. Here is a list of applications and businesses that are using IOTA.
- Tusker Partner App: Transportation
- SkyPark: Transportation
- Future Farm: Agriculture
- Skaly: Healthtech
- SmartOptz: Healthtech
IOTA wallets
A number of wallets store MIOTA, IOTA’s native cryptocurrency. Here are a few leading IOTA wallets:
- Firefly Wallet: Designed with a focus on security and a user-friendly interface for the seamless management of digital assets.
- TanglePay: A wallet solution that offers smooth transaction experiences.
- Ledger: A hardware wallet providing top-tier security by keeping users’ private keys offline, compatible with a variety of digital currencies.
- SafePal: A versatile wallet supporting a diverse range of cryptocurrencies, prioritizing secure and user-friendly asset management.
- Exodus: Multi-currency wallet renowned for its intuitive design, enabling easy handling and exchange of various digital currencies.
IOTA staking
IOTA does not use traditional staking mechanisms like some other blockchain networks. Instead, IOTA’s consensus mechanism relies on the Coordinator, a node operated by the IOTA Foundation.
Where to buy IOTA
As we explore the digital currency landscape, the next topic zeroes in on the top five platforms for purchasing IOTA. These exchanges stand out for their reliability and ease of use, offering investors a secure pathway to join the IOTA movement.
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Huobi Global
Trading IOTA on Huobi was a balanced experience, combining solid security, a variety of trading pairs, and a user-friendly interface. This mix made it appealing to us — it caters to both novice users and those with more trading experience. Huobi’s reputation for robust security measures and a wide array of trading options provided us with the flexibility and confidence needed for smooth and hassle-free IOTA transactions.
Bitfinex
Our dealings with Bitfinex, especially for trading IOTA, were tailored more toward high-volume trading and sophisticated strategies. The platform’s advanced features and liquidity in IOTA markets allowed us to execute large-scale trades effectively, which makes for an ideal choice for more complex and ambitious trading plans.
KuCoin
KuCoin proved to be an excellent platform for buying IOTA, thanks to its interactive and intuitive interface. We particularly appreciated the low transaction fees, which was a big plus for keeping costs down without compromising on the trading experience. KuCoin’s blend of user-friendliness and cost-effectiveness made it a go-to option for our IOTA investments.
Bittrex
Bittrex offered a reliable environment for trading IOTA, underscored by its swift transaction processing and straightforward verification process. We found these features invaluable for a seamless trading experience, especially for those of us prioritizing security and efficiency in our crypto transactions. Furthermore, the platform’s solid infrastructure and consistent uptime ensured that we had reliable access to the IOTA market whenever needed
CEX.io
Trading IOTA on CEX.io was a harmonious blend of accessibility and security. The platform’s multiple payment options, including bank transfers and credit cards, alongside its support for various fiat currencies, greatly facilitated our international transactions. CEX.io’s global reach makes it a versatile platform for users worldwide to diversify their portfolio with IOTA.
How to buy IOTA from crypto exchanges
KuCoin presents a user-friendly platform that prioritizes security and legitimacy in digital asset trading. We’ll be using KuCoin as an example for buying IOTA. Firstly, you’ll have to sign up, and then you can add your payment method to buy IOTA.
Visit the official website and sign up for an account.
Check your email for a verification code from KuCoin and enter it on the sign-up page to confirm your email address.
If you have an individual account, select Identity Verification and then Individual Verification, then click Verify Now to fill in your information and verify KYC.
Upload required identity documents such as a passport, National ID, or driver’s license, along with a live portrait, as prompted by your region’s verification process.
After finalizing your details, the system promptly sends them for evaluation. Subsequently, upon a successful assessment, you’ll have completed the standard Identity Verification procedure. You can then add your preferred payment method, be it a debit card, credit card, or even your bank account. Finally, you can choose various payment options to buy IOTA on KuCoin. Moreover, the KuCoin spot market is one of the most popular places to buy IOTA.
How to buy IOTA with a credit card
Follow these steps to buy IOTA with a credit card on KuCoin:
- Access buy crypto menu: Go to the “Buy crypto” menu located in the top left corner of the KuCoin platform and select “Credit/Debit Card”.
- Select amount and IOTA: Choose the amount you wish to purchase and the cryptocurrency. Select your currency (e.g., Euros), choose the payment method (Visa/Mastercard), and pick the best available provider (such as “Banxa”). Then click on “Confirm”.
- Enter phone number for KYC: Enter your phone number as part of the Know Your Customer (KYC) process, which is required for identity verification, and then click on “Confirm”.
- Provide personal details for verification: Fill in your personal details, including your name, address, and country of residence, and submit them for verification.
- Upload ID for verification: You will be asked to upload a photo of your ID (passport, ID card, or driving license). In some cases, you might also need to upload a selfie with your ID.
- Proceed to payment: Enter your credit card details (number, expiry date, etc.) and click on “Make Payment.” Depending on your bank, you may need to validate the payment with an SMS or a verification code from your bank’s app.
- Payment validation: After making the payment, it may take a few hours for it to be validated. You will receive an email notification once this process is complete.
- Confirmation and fund availability: Once the transfer is complete, you will receive a confirmation email, and the funds will be available in your KuCoin account.
IOTA: Should you buy into the hype?
Clearly, IOTA is an innovative technology. But is it good enough to make a significant investment? Investors must consider the balance between IOTA’s pioneering technology and the current market dynamics. Moreover, here are a few pros and cons:
Pros
- Zero transaction fees
- Ecosystem-based around the Internet of Things
- High transaction throughput
- Innovative technology
Cons
- Has yet to implement Coordicide to promote decentralization
- Competition for large-scale adoption
Is IOTA a good investment for you?
Whether or not IOTA is a good investment entirely depends on your personal financial goals. For traders, MIOTA reached an all-time high of $5.69 back in 2017. However, investors may be interested in the IOTA technology for its Internet of Things utility.
IOTA price prediction
If you are interested in the future price of IOTA, you can refer to our comprehensive IOTA price prediction. Our experts predict MIOTA could be worth up to $0.4179 in 2023, $0.6853 in 2025, and $1.39 in 2030. Note that the crypto market is volatile and dynamic, and technical, fundamental, and social sentiment analysis — while useful tools — cannot always be entirely accurate. Market forces, events and the news cycle are likely to all play a part in the future price of IOTA, as is future adoption of the network.
Technology born out of its time
IOTA is perhaps a technology that was born out of its time. It is daring and attempts to take a separate approach to solve some of the same problems as other projects. However, it has yet to gain enough adoption to reach the mainstream. Its future hinges on its ability to innovate and convince the market of its unique value proposition.
Frequently asked questions
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