How to Buy IOTA Before It Becomes the Next Big Thing

It’s the latter part of 2017 and the world of cryptocurrencies has exploded in value! Bitcoin is soaring to new heights every day, and new traders are looking for the next big thing. There are a number of coins which could make claim to being just that, but few are so convincing as IOTA.

IOTA is a cryptocurrency. No smart contracts. No Dapps. No fancy bells and whistles. Still its technology can run circles around Bitcoin and its price is much, much cheaper. We’ll give you a little primer on what it is and how to buy IOTA. Investing in IOTA is a hot topic as more traders try to get in before the price explodes. We’ll walk you through how to buy IOTA below.

What is IOTA?

Explaining what IOTA is can get really technical really fast, but we’ll try to make it as simple as possible. First of all, IOTA is a cryptocurrency. It’s not trying to be a new internet like Ethereum. It’s not trying to solve some new problem you’ve never heard of. IOTA just wants to be money. It’s how it accomplishes this task that is so remarkable.

IOTA is one of the few cryptocurrencies which has no blockchain. You heard right, that’s no blockchain. Instead, IOTA confirms network transactions via something known as a Tangle. A tangle is a bunch of users, each running IOTA on a device (IOTA is not demanding to operate. Your mom’s phone can handle it).

When a user node wants to send a transaction to another node, they have to confirm two other transactions. This sounds simple, but it’s a gamechanger.

Rather than having expensive computer pumping expensive resources into hashing out network security, every IOTA user splits the job with every other IOTA user. Oh, and did we mention that with IOTA there are no transaction fees? This brilliant model makes sending money totally free. It also means that IOTA has no scaling problems a la Bitcoin. The more users join the system, the faster everything works!

Even Bitcoin Cash, with its dirt cheap fees, still costs money. IOTA’s free transactions and the networks ability to operate on very simple devices is what makes possible IOTA’s next major goal: to fund the Internet of Things. In the near future, all of our devices will be connected to the internet. This will require machines to make purchases. A fast, free transaction currency for simple devices will bring financial transactions to every member of the internet of things. IOTA wants to be that currency. We think they might be able to pull it off.

We could go on and on about IOTA, but we’ll leave that for a more exhaustive guide we’re working on now. For now, let’s talk about how to buy the stuff. IOTA is still in its early days, so it’s not available on many exchanges. This is good for the early investor, though. As IOTA becomes easier to buy, the price will rise. The time to get in is now!

How to Buy IOTA

Now that you know what IOTA is, you’re probably marginally interested in buying some of your own. Fortunately, there are plenty of options in this regard, though not as many as there will be in the coming weeks or months. Early adopters like yourself have to do a little more research, but they get the biggest reward!

When buying IOTA, you can choose to go with CFDs or conventional ownership. Both options have their benefits, but CFDs tend to be the more accessible option to individual investors. We’ll do a short walkthrough of both tactics so you can decide which method works best for you, your finances, and your investment goals.

Investing in IOTA With CFDs

A CFD is a “contract for difference”. It allows you to profit on the changes in a currency’s value without actually buying the coins. Basically, you make an agreement with a broker or exchange that at the end of a certain period of time, you will pay or receive the difference in price that IOTA arrives at the end of the time period.

With CFDs you have the option to go “short” or “long”. Short options are for the times when you think IOTA’s price is going to fall. You’ll make a contract that says you’ll receive money or pay up at a certain time, the actual price movement of IOTA being the deciding factor. You go long when you expect IOTA’s price to rise over a period of time. 

The amount of money you receive is linked to the actual price movement of the asset. Depending on whether or not you anticipated the resulting price action correctly, you’ll unlock gains or losses in proportion to the amount you deposited at the start of your contract. It’s a pretty easy concept to understand, but one which takes a little practice to master. 
CFDs are great because they let you make full gains on cryptocurrency price increases, without having to spend a ton of money to actually buy them. On the other hand, the threat of losses is a real risk. All in all, however, we tend to think that new investors have an incredible opportunity with CFDs.
 (Note: CFDs are not available in the United States. To learn about how to buy IOTA, skip down in this IOTA review).

Buying IOTA CFDs with AVATrade

AVATrade is a trusted source for CFDs and Forex trading. In addition to stocks and currencies, they allow users to trade on the price action of a variety of cryptocurrencies, including Monero, NEO, Bitcoin, Litecoin, etc. It’s pretty easy to set up an account, get it funded, and start trading away, but we’ll still walk you through it step by step right here.

If you don’t want to start a full fledged account just yet, just follow along and start a demo account when given the opportunity. This will allow you to use play money to see how the system works and to track the gains you would make from your real life trading instincts.

  • Simply start out by navigating to the homepage and click on Trade Bitcoin now. You may also select Practice Bitcoin Trading if you want the training wheels trading experience without the risk of losing any money.

  • Enter your details. You can also link your Google+ or Facebook, if you don’t mind Mark Zuckerberg being informed about yet another aspect of your personal life.

  • Voila! Your account is ready. Go ahead and click on Web Trading. Note that you can also download the AVAtrade software or get the same trading power from their iPhone and Android compatible app.

  • To get into the meat of the platform, input the login details you’re provided with.

  • Move your mouse over the the white space in the bottom left of the screen, right above the tab labeled “Symbols”. Right click and select “Symbols” from the resulting menu.

  • Click on “CFD-crypto” and choose MIOTAUSD. This is the symbol for MIOTA (IOTA sold by the million) paired with United States Dollars. That’s it! Once you’ve funded your account, you’ll be able to trade IOTA CFDs.

Funding Your AVATrade Account

Funding your AVATrading account so that you can start investing in IOTA is simple. Just use your VISA, Mastercard, or a wire transfer to deposit the necessary funds. With VISA and Mastercard, you can deposit as little as $100, but you won’t be able to trade until you’ve reached $250. The minimum wire transfer accepted is $500. Wire transfers take 3-4 business days to arrive, so don’t freak out if your funds don’t appear immediately.

Buying IOTA to Keep in Your Personal Wallet

CFDs don’t require ownership for profit. This makes them cheaper to start out with. CFD users also won’t have the hassle of managing funds, sending them from place to place, and working hard not to lose them! CFDs are great for all of those reasons, but some people still prefer ownership, and we don’t blame them. So, let’s talk about how IOTA can best be bought. Because our readers are so often split between the UK and the US, we’ll talk about methods that will work for both.

Note: IOTA is most heavily sold on the crypto exchange Bitfi#nex. However, due to changing regulatory environments and high costs of doing business, Bitfinex recently stopped accepting American users. Some Americans (we’re not endorsing this, by the way) use a VPN to start an account, then lie on the pop-up that asks about American residency. Bitfinex is a great exchange, but since we don’t want you to violate the law, we’ll focus on Binance, the second largest IOTA exchange by volume.

Buying IOTA on Binance

Binance is a Chinese crypto exchange with an international scope. Because Binance is based in Hong Kong, they were able to avoid closure when China banned Chinese crypto exchanges late summer 2017. They’ve been going strong ever since, adding many new currencies, and bringing in crypto investors from around the globe.

Note: It’s important here to point out that Binance has their own currency: BNB. Users who use BNB to buy their coins get generous discounts. BNB has value all its own, and gains value the more people around the world use Binance. It’s also a deflationary currency; Binance destroys millions of BNB on a set schedule, meaning that the coins you hold for a long time will likely grow in value because the basics of supply and demand. BNB can be used on Binance to buy all kinds of currencies, not just IOTA.

  • Input the ol’ information.

  • Carefully complete the CAPTCHA (Binance CAPTCHAs are the coolest).

  • Click on the big link in the verification email Binance sends you and login. 
  • You’ll be prompted to at 2-Factor Identification, which we always believe is a good idea, especially when money and personal information is involved as it is here. In this case it’s required. Download the Google Authenticator app, scan the QR code, and you’re good to go. This is your first step to verifying your account for full trading potential. Enable 2FA on the right side of the screen using the code that’s on your phone’s Google Authenticator App. This code changes every 30 seconds for security.

  • Click on “Funds” and select “Deposits Withdrawals”. Click “deposit” by a coin that you own. Bitcoin is always a good choice because you can buy so many coins with it. Ethereum is another good option generally, but you can’t buy IOTA with Ethereum on Binance so Bitcoin is the only choice. The address that appears will be the one you put into your outside wallet. It’s your Binance address. Make sure to copy/paste it carefully. After you send the funds, it could take minutes or even hours for the funds to arrive, especially with Bitcoin. Be patient, they’ll show up.

  • Click on “Exchanges” and select “Basic”. Near the right side you’ll see a currency pair called “IOTA/BTC”.

  • Now you can buy IOTA. Note that you can choose a Limit order to select the price at which you would like to buy IOTA, if you’re willing to wait. You can also do a market order to buy IOTA at current market price. You can also select Stop-Limit to create a limit order with protections against wild price fluctuations. You can choose to use 25%-100% of your BTC, or you can simply select the number of coins you want to buy. Once you click “Buy IOTA”, you’ll see some confirmations. Follow the prompts and *boom* you’ve got IOTA. We recommend keeping your IOTA on the official IOTA wallet. It’s a good idea not to store coins on exchanges because plenty of people want to hack exchanges and steal funds. There could also be technical problems that bring down an exchange temporarily or for good. Better to keep your coins out of harm’s way where you can control them.

Can you Buy IOTA with Coinbase?

Unfortunately the answer is no, you cannot buy IOTA on Coinbase. Coinbase is like an exclusive club that only lets certain people in, in this case the only cryptocurrencies that they allow on their platform are; bitcoin, ethereum, litecoin and bitcoin cash. There is talk of them allowing ripple onto the platform but no such talk of IOTA any time soon.

There are plenty of other wallets and exchanges that allow you to buy and store IOTA but they only allow you to buy with cryptocurrencies rather than fiat currency. To own IOTA, you must follow the procedure highlighted above.

Purchase IOTA FAQ

By now you know how to invest in IOTA through CFDs and through conventional ownership. Now we’re going to quickly answer some of the most frequently asked questions we see around the web. Skip to the conclusion if you already know this stuff.

  • How to I buy IOTA from Coinbase? You can’t. Coinbase doesn’t sell it.
  • Where can I buy IOTA wallet? The wallet is free at the official IOTA Github page.
  • How can I buy IOTA Polniex/Buy IOTA Kraken/Buy IOTA with Paypal/Buy IOTA with GHP/Buy IOTA with Euro/Buy IOTA with Ether/buy IOTA with credit card/Buy IOTA with LTC/ buy IOTA on Bittrex/Buy IOTA directly? You can’t! The guide above maps the only way to do it (except through Bitfinex, outside of the US, with Bitcoin).
  • How can I buy IOTA in India? Buy IOTA in Australia? Buy IOTA in Canada? Buy IOTA in USA? Buy IOTA in Singapore? But IOTA in South Africa? Binance is probably your best option as it’s the most generally available worldwide. Bitfinex is also widely available. For CFDs, AVATrade is your best bet.

Conclusion

We’ve been through a lot of material, but we’ve finally found the end. By now you should know what IOTA is, why it’s awesome, and where and how to buy it. You’ll also have a pretty good idea about whether you want to trade IOTA with CFDs or to buy the actual coins.

Our thoughts on the matter are the CFDs work best for most of our readers, using AVATrade. CFDs are cheaper to get into, but they offer the same profit potential as ownership. CFDs are also more regulated than conventional crypto exchanges like Bittrex, meaning that your funds are more secure.
Of course, CFDs aren’t available in the United States, so US customers will have to settle for ownership (which isn’t a bad thing at all). Really, you can’t lose with IOTA, no matter what option you select. We believe that IOTA is likely to head for the moon, so get in while the price is still low. Good luck and happy trading!

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