How To Buy IOTA | Ultimate Guide To Buy MIOTA
IOTA is a decentralised and open-source distributed ledger that has been designed to be highly scalable to enable seamless transfer of data and value. The network is IoT-oriented that will ensure quick and secure data transfer between humans, machines, and computers without any hurdles. IOTA network offers low-resource demand, tamper-proof data, and zero-fee transactions to empower the Internet of Things (IoT) without requiring any institution or a company to heavily invest in building infrastructure.
Just like any other blockchain network, IOTA also has a native token that is denoted by MIOTA. At the time of writing this guide, the MIOTA token is trading at $0.25 per coin with a market capitalisation closing in on $700 million. The primary aim of IOTA is to play a pivotal role during the imminent industrial revolution that will require us to deal with machine economies and handle financial relationships between humans and machines.
5 Steps to Buy IOTA with eToro Now
Buying any cryptocurrency with eToro is easy, simply follow the steps below:
1Sign up for free with eToro, entering your details in the required fields.
2Fill out the questionnaire, this is both educational for you and eToro.
3Click 'Deposit', you'll then be asked how you want to fund your account.
4Choose your required payment method, follow the simple steps to link your payment.
5Enter the amount you want to deposit and you're good to go!
Our Recommended Platform to Buy MIOTA
If you are just a beginner who wants to learn the ins and outs of how to buy MIOTA, then you should simply keep reading the guide as we present all the basics of purchasing MIOTA in a step-by-step manner. However, if you are already aware of the fundamentals of how to purchase MIOTA tokens and simply want our recommendation about the best crypto exchanges and platforms, we have picked a few for you.
We have reviewed the following exchanges and platforms based on affordability, trustworthiness, security, convenience, and versatility.
Where to Buy MIOTA in 2021?
When a beginner thinks about purchasing MIOTA or any other cryptocurrency for that matter, they believe they are going to own the tokens, which is quite true. However, when buying the IOTA token, you need to keep in mind that there are more than one ways to invest. Although you have the option to outright purchase IOTA, you can also buy financial instruments like Contract for Differences (CFDs) and Futures of MIOTA which offer multiple benefits.
If your strategy is to make short to midterm gains, then you are better off going the financial instruments route. They are easy to purchase, and you won't have to deal with the entire process of purchasing, securing, and holding IOTA tokens. Instead, you will simply speculate on the price of MIOTA, and once you believe the currency has hit the top price, you can sell your financial instruments by closing your position.
That being said, if you have a long-term strategy in mind and you want to hold on to your MIOTA coins, then purchasing the tokens is more beneficial. Instead of heading to a trading platform, you will have to pick a cryptocurrency exchange where you can buy MIOTA tokens and store them securely in your wallet. This way, you can hold them for months and in some cases years to yield long-term profit.
Do not forget that cryptocurrency investment can be as risky as other conventional investments, especially since the prices of these tokens are quite volatile. That's why it is crucially important to ensure that you are diversifying your investment portfolio by investing in different cryptocurrencies and assets. It will help you manage your risk and optimise your profitability.
How to Buy MIOTA With a Broker
When you are looking to trade IOTA, you need to be very picky about the trading platform you choose. You want to invest through a platform that has a great reputation and is regulated. Apart from that, you should consider other investment experience related factors such as security of your personal information and funds along with user-friendliness, reliability, and affordability. Remember to check the online testimonials and reviews written by real users to ensure that you are putting your trust in the right trading platform.
Poor trading or investment experience can seriously hamper your earning prospects as you are more focussed on dealing with the technical issues than diverting all of your attention towards trading.
1. Register With the Broker
When it comes to registering your account with a crypto broker, all you need to do is provide basic information. For example, one of the leading trading platforms, eToro only requires your username, email ID, and a strong password. The password needs to contain at least one uppercase letter, a digit, and a special character and should be 6 to 20 characters long. Some of the trading platforms also give you the option to sign up by using your Facebook or Google account for further convenience.
2. Verify Your Identity (KYC Process)
Regulated brokers have to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations to ensure the safety of users. That's why your broker will ask you to provide documentation that personally identifies you, including your passport, a copy of your driving license, or any other form of ID. Although the broker is required by law to adhere to these guidelines, these regulations also protect your personal and financial information.
Needless to say, the process may take a bit longer than you expect, but it's for your benefit. Once your account is verified by the broker, you will be ready to start trading.
3. Deposit Funds With Your Preferred Payment Method
After you have signed up and gone through the entire verification process, it is time for you to make the minimum deposit so you can start trading. Different platforms have different minimums so you will need to keep an eye on that as well. Brokers usually offer a wide variety of payment modes, including wire transfer, bank cards, and e-payment methods. You should consider the factors of convenience, accessibility, cost, and speed before you select your payment method.
For example, many investors would like to go with PayPal, but due to some regulatory complexities, the payment option isn't available on many platforms. Similarly, some IOTA investors use their credit or debit card to deposit their working capital which can be costly in terms of fees but is also quick and convenient. It depends on you what you prefer and how you'd like to trade.
4. Open a Position to Long/Short MIOTA
Before you open a position, whether it's short or long, you have to understand what both positions mean. A long position is opened by bulls or investors who think that the price of MIOTA will continue to go up, so they buy and hold the coins to reap the rewards. In contrast, short positions are opened by bears or traders who believe that the price of MIOTA will fall and they will be able to make money by capitalising on that reduction in price.
After you have understood the difference between short and long positions, you will be in a much better position to know whether you should short or long IOTA. Keep in mind that the top brokers such as eToro and Plus500 have risk management features in place, including stop loss and take profit.
5. Close Your Position
To minimise your risk, you should always define your stop loss and take profit limits as they allow you to automatically close your positions when a certain limit is reached. This helps you manage your risk while also giving you control over your trading matters.
Remember that these limits are in place to optimise your profit and minimise loss. You still control the trade, and if you believe that you want to close the position earlier than the set limit, you are allowed to do so. For instance, if you think that your open trade on MIOTA has made enough profit, and keeping it open will expose the trade to more risk, you can close the position and cash out.
It is recommended that you go through our guides and help material, especially related to the opening and closing trade positions before you start trading or buying MIOTA or any other tokens.
How to Buy MIOTA With an Exchange
If you are looking to hold your MIOTA tokens for long, then it is recommended that you use a cryptocurrency exchange instead of a broker. As mentioned earlier, this buying method is for those traders who are playing the long investment game or want to demonstrate their support for the blockchain by holding onto their native currency. Whatever the reason might be, you need to choose the exchange carefully to ensure you are getting the best deal.
Just like you'd consider a diverse range of factors when choosing a broker, you will have to take into account multiple factors before you select your crypto exchange. These may include regulatory compliance, reputation, cost of trading, the convenience of using the platform, reliability, security, and customer support. Do not forget that some cryptocurrency exchanges do not abide by the regulatory guidelines and may sound promising, but they also make your investment more vulnerable.
1. Set up a MIOTA Wallet
You simply cannot go out and buy MIOTA just like that, especially if you are looking to hold it for a while. You will need a dedicated software (mobile or desktop) or a cold wallet that will ensure the safety of your IOTA coins. It may seem like a hassle, but for the most part, it is quite a simple process. Depending on your investment strategy, you can choose different types of crypto wallets, including:
- Exchange / Web Wallets - These are the most accessible wallet but do not offer the best security for storing your MIOTA for longer periods. Some crypto exchanges offer extra security initiatives, but they still can't match the security of a dedicated wallet.
- Desktop / Mobile Wallets - You can get a desktop or mobile wallet for any platform, including Windows, macOS, Android, and iOS. They offer multiple convenience features and decent security for your MIOTA coins.
- Hardware Wallets - Also known as cold wallets, these are the best solution for holding IOTA tokens. They include the hardware to secure your cryptocurrencies, and they are completely disconnected from any network to limit vulnerabilities. These wallets often look like flash drives for secure storage and portability.
Apart from storing your cryptocurrency in a wallet, you also need to pay attention to keep your IOTA tokens secure. Use 2FA and passphrase to ensure there is no security breach that can enable unauthorised access to your IOTA tokens.
2. Choose and Join an Exchange that sells MIOTA
When it comes to crypto exchanges, there are many popular players in the market, including Coinmama, Coinbase, Binance, CEX.io, and more. Not only can you buy and sell MIOTA there, but also a wide range of other cryptocurrencies as well. Make sure that you evaluate the pros and cons of each before you make your selection.
You will need to consider a wide range of factors such as transaction fees, deposit/withdrawal charges, customer service, user-friendliness, reliability, regulatory adherence, and more to ensure that you are making the right call.
3. Choose Your Payment Methods to Buy MIOTA
Crypto exchanges offer multiple ways to conduct transactions, and you need to assess all of them to ensure you are choosing the most affordable and convenient one. It also depends on what you value the most. For example, you can use a debit card to deposit funds which will be costlier but will also ensure immediate transactions.
Another method is to connect your bank account with the crypto exchange profile to make the most of seamless payments and withdrawals. You will be able to use your conventional money to buy MIOTA any time you want. Whatever payment method you are choosing, it is better to pick one that takes you through a verification process to keep your funds safe.
4. Place an Order to Buy MIOTA
To buy MIOTA, you might need to purchase a more popular currency like Bitcoin or Ethereum first on some crypto exchange. On the other hand, some exchanges will allow you to buy IOTA tokens directly with your fiat money.
To place an order, choose your fiat currency (don't forget to review exchange rates) and decide how much IOTA coins you want to buy. A calculator will let you know how much MIOTA you can purchase with the amount you've put up. Once you're satisfied, you can process your purchase request and the coins will show up in your account within minutes. If you have enabled two-factor authentication, you will need to provide the verification code before the transaction is processed.
5. Safely Storing Your MIOTA in a Wallet
If you have bought IOTA tokens for a few days, it is quite okay to hold it in your exchange's wallet as it will also save you a withdrawal fee. But, if you want to hold your IOTA tokens for long, you need to transfer them to your dedicated software or cold wallet to ensure better security. You will need to enter the public key in the recipient address field and put in the amount you desire to transfer to your wallet.
Again, if your 2FA is enabled, you will need to enter the verification code before your transfer transaction is executed. This might add an extra step, but it also ensures your funds' safety. You might also need to be aware of the fact that some exchanges such as Binance don't allow you to send your MIOTA tokens to your wallet or anywhere else only after 24-hours from the time of purchase.
Should You Buy or Trade MIOTA?
This is something that only you can decide. Simply remember that buying IOTA coins means that you will actually own the token and for that purpose, crypto exchange is a better choice. On the other hand, trading is mostly about price speculation done through financial instruments like CFDs for which trading platforms or brokers are a better fit.
What's the Difference Between an IOTA Exchange and a Broker?
An IOTA exchange is a platform that allows you to buy or exchange lesser-known cryptocurrencies or altcoins against more popular tokens such as Ethereum and Bitcoin. If you want to own and hold MIOTA and seek the best exchange rates, then a cryptocurrency exchange is the right platform for you.
On the other hand, if you simply want to make quick gains capitalising on the volatility of MIOTA prices, a broker has better tools and infrastructure to facilitate trading. This way, you don't need to deal with the issues related to crypto wallets and transferring tokens to and from your broker's account. Brokers also enable you to engage in leveraged trading, which means that for a $1, you can open a position of $10 or even more. However, it carries a lot of risks, and only senior traders who know what they are doing should engage in leveraged trading.
Long Vs Short Term Investment
The long term investment is made by the investors when they actually believe in the project and have faith in what the developers are doing. They think that in the long run, the price will continue to move upward, so they hold on to their IOTA tokens. For such types of investment purposes, cryptocurrency exchanges are a better choice.
The short term investment is made by the traders who simply want to use the volatility of the market to earn quick gains. They are not interested in the long term prospects of the currency. For such users, regulated and well-reputed brokers are an ideal choice.
Pros and Cons
Just like all great things in life, IOTA still has both advantages and disadvantages. We’ve outlined some of the core pros and cons below;
- Own technology: Most cryptocurrency networks depend on the blockchain. Hence, they have to charge the users a fee to make a transaction on their network. IOTA network, however, operates on its own transaction handling technology, Tangle. It makes a free transaction over the peer-to-peer network possible.
- No mining: Mining has three main effects on a coin. First, the power required to mine a block can make the currency environmentally unsustainable in the end. Second, the transaction fees increase to include the miners’ pay. Lastly, unrestricted mining leads to a drop in the value of a currency. IOTA developers avoided all these by mining all the coins before launching the network.
- Scalability: IOTA network is highly scalable. The more the number of users, the more the number of transactions that the system can verify since each user has to verify two operations for every transaction.
- Untested technology: The main argument against the viability of IOTA network is its new technology, Tangle. Most experts and pundits have written against it. While this is true, it is not a conclusive reason to discredit the crypto. Bitcoin and Ethereum have gone through technological hitches too. They survived Mt. Gox scandal and the DAO hack, respectively. IOTA might pull through also.
What Are the Fees Involved in Buying IOTA?
- Transaction fees: While there are no fees for transactions on the IOTA network, you will pay a fee when buying them from an exchange. The amount varies from one exchange to another.
- Deposit fees: Some exchanges charge a fee for every deposit you make on the platform irrespective of the currency or payment method. It can be constant or vary based on the type of depositing source.
- Withdrawal fees: Besides the transaction fees, you will also pay a percentage when you withdraw IOTA coins from an exchange to your coin wallet or another exchange.
- Spreads and commissions: The charges are common in trading platforms. Spread is the difference between buying and selling prices. It is smaller on exchanges and varies widely on trading platforms.
You should remember that fees should not be the only standard for choosing an appropriate exchange. Platforms with low deposit charges make up for the same with high transaction or withdrawal fees and vice versa.
3 Tips to Buy MIOTA
At this point, you must have understood the basics of buying MIOTA and how it can be purchased in different ways for different purposes. We are going to share some useful and insightful pointers here with you.
Choose the Right Time and Do Your Own Research on MIOTA
Do not rely on hearsay or a simple source of information. Read different articles from different analysts and make up your mind about the price movements. This way, you will be in a better position to craft successful trading strategies.
Comparing Costs to Buy MIOTA
New investors often aren't vigilant enough to look into the pricing and fee structures that end up cannibalising their profits. Always compare the costs across different exchanges and brokers, including commissions, spreaders, transaction charges, and deposit/withdrawal fees.
Safety & Security When Buying IOTA
As an investor, you are liable for ensuring the security of your IOTA tokens. Ensure that you have the best wallet, and you are minimising your risk through a diverse portfolio. Do not disable features like 2FA and passphrase protection.
What is the Best Payment Method for Buying MIOTA?
Buy MIOTA with Cash - You are required to buy Bitcoin first with cash via ATM, and then you can exchange it for MIOTA.
Buy MIOTA with Credit/Debit Card - One of the most user-friendly and swift methods to buy MIOTA although a bit costly.
Buy MIOTA with Bank Transfer - Easy and economical but can be slower than other payment methods.
Buy MIOTA with Bitcoin - Just exchange Bitcoin for IOTA.
Buy MIOTA with PayPal - Swift and affordable but limited and region-dependent accessibility.
Other Ways to Buy MIOTA
You can buy IOTA tokens using the aforementioned methods, but there are other lesser-known sources that you can use to purchase MIOTA. Although these may not be as convenient as other options, these are still viable methods that you can rely on.
Peer-to-Peer (P2P) Exchanges - These are websites that give a platform to buyers and sellers of cryptocurrencies. Instead of buying through the platform, you deal with the individual sellers. The advantage is that you can specify your buying conditions until you find the right deal. Ensure you check the reputation of the seller before you make your purchase.
All MIOTA tokens are currently in circulation so you cannot mine them as of now.
Now that we have covered all the aspects of purchasing IOTA tokens, you are ready to start your MIOTA journey. Keep in mind that we have already conducted reviews of a multitude of platforms including exchanges and brokers recommending the top of the line services that offer the best of reliability, affordability, and regulatory compliance.
Frequently Asked Questions
That's possible. Many exchanges we have recommended don't take any commission on your purchase of MIOTA.
Buying is for when you want to own the IOTA coin for long-term investment. Trading is when you speculate on the price to make a quick profit, and you don't need to own the token itself, so you do it through financial instruments like CFDs.
It is a decision that you will have to make on your own after going through all the guidance material, news, latest developments, and watching price movements.
IOTA token is recently priced quite low that doesn't mirror its potential. You can purchase 40 IOTA tokens for $10.
With the exception of the countries that have banned cryptocurrencies and their trading, MIOTA can be purchased and traded legally.