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Buying IOTA Guide
IOTA is a revolutionary public distributed ledger designed to develop, record and perform instant digital settlements between two or more computing devices within a distinct ecosystem or framework known as the Internet of Things (IoT). IOTA can basically be identified as the next generation program that uses a prominent invention known as Tangle technology – at its core.
Based on a Directed Acyclic Graph (DAG), Tangle is primarily a form of data structure. Unlike Bitcoin, and as a result of the DAG framework, IOTA does not generate blocks hence does not require miners or chains in its application. In relation to other Blockchains, IOTA presents a significantly different mechanism of operation, specifically due to its radically unique architecture.
Apart from the platforms difference, another major distinction that IOTA identifies with, from by other Blockchains, is the mechanism through which transactions are made, and more importantly, how consensus between participants in the network is achieved. Unlike in other Blockchains, participants in IOTA must be active in the network consensus and can only execute the process by approving two transactions.
IOTA envisions becoming the futuristic state-of-the-art method of performing currency transaction between devices through the internet. The founders sought to make IOTA as a standard and most reliable permission-less public IoT backbone – a service that will enhance profound interoperability between all devices.
How to buy IOTA?
Buying IOTA cryptocurrency isn’t as straightforward as buying BTC or other major coins. Despite being one of the rapidly growing cryptocurrencies in the market, IOTA is so far only listed in three major exchanges. In this case, buying MIOTA straight with FIAT money is not possible primarily because exchanges reserving dealership rights with fiat do not have IOTA listed in their exchanges.
As one of the paired cryptocurrencies on Binance, IOTA neither includes nor support trading or deposits of fiat currency. As such, in order to buy IOTA on Binance, only Bitcoin or Ethereum Cryptocurrencies can be used. Binance allows users from different parts of the world, including the United States, to open accounts free of charge. However, before one can be allowed to make a withdrawal of more than 2 Bitcoin within 24 hours, the verification of any given account is mandatory.
Relative to other Cryptocurrencies, the process of buying IOTA on Binance is significantly simple and straightforward. This owes to the fact that, as aforementioned, the process does not involve complex steps such as mining. In essence, IOTA’s DAG differs from Blockchain-based systems profoundly.
Step 1: Setting up an IOTA wallet
In setting up a wallet, the first step involved is downloading the IOTA wallet setup itself. Downloading the most current version of the setup is highly recommendable. This allows one to have all the features in their topmost stage of development.
According to the IOTA team, the most current version in the market is v2.5.4. Opening and installing the setup is the next step. This step is relatively simple and direct. IOTA features two major desktop-based types of wallet. These include the light node wallet and the full node wallet;
Light node wallet
A light node Wallet is a local graphics-based user interface that allows users accesses to full node from significantly different environments. For instance, a light node Wallet gives a user access to the IOTA node through a server or a desktop. The light node is highly secured in the sense that it does not allow users’ logins (seed) to leave the environment through which the IOTA node has been accessed from.
Full node wallet
A Full node wallet is an IOTA Reference Implementation (IRI) running that can be accessed locally through a graphics-based user interface. For the full node wallet to function, a static IP connection to neighbors must be established.
Basically, the Light Node wallet is the most commonly preferred for the general public specifically due to its capacity to conveniently allow the user to receive or send IOTA. More importantly, it has the ability to store a user‘s information in a highly secure manner. Being a little bit complex, Full Node is highly recommended for experts. This owes to the fact that the backbone of the Tangle is founded on the Full Nodes.
The next step is to select a host. IOTA facilitate a variety of Host. However, each is not necessarily advantageous that the other.
Generating Seed presents one of the most important steps in setting up an IOTA wallet. A seed also is known as “Private Key” is fundamentally a very complex key or password that is prompted every time a user tries to access his or her wallet.
Obviously, a user’s funds can be said to be more secure is a longer and more complex seed is used. Automatic seed generation is not featured during the writing of IOTA wallet program. The user is encouraged to use other external software, such as urandom, to generate their own cryptographically secure seeds. To read more about IOTA wallets, check our guide.
Step 2- get some BTC/ETH
Exchanges present the best approach through which one can acquire IOTA, specifically by exchanging with Bitcoin (BTC), or Ethereum (ETH). As such, this makes the acquisition of Bitcoin (BTC) or Ethereum (ETH) the first step in the exchange process.
There exist a variety of trustworthy exchanges today. Cex.io is one of the best exchanged that most people, especially starters, tend to use. One must first register with a valid email address in order to get an account through which the Bitcoin (BTC) or Ethereum (ETH) are purchased.
The exchange platform offers a variety of option through which one can deposit funds that in turn are used to purchase the Bitcoin (BTC) or Ethereum (ETH). Cex.io give the user a wide range of payment methods including bank transfer and credit/debit card linkage. In addition, Cex.io has the advantage of currency diversity. It supports a wide variety of currencies, including, but not limited to, Dollars, Pounds, Euros, and Rubles.
The purchases of cryptocurrency through cex.io is instant. Cex.io has a well-customized interface that allows one to navigate through the process of purchasing cryptocurrency quite easily. After depositing funds in the Cex.io platforms, one can choose whether to buy or sell Bitcoin (BTC) or Ethereum (ETH) against a currency of one’s choice.
Step 3- Choose an IOTA exchange
One of the most profound exchange platforms is the Binance exchange. Here, Bitcoin (BTC) or Ethereum (ETH) are purchased in stage two can be exchanged with IOTA through the Binance exchange platform. One must once again register an account with Binance. After verifying the Binance account, one should log in to the account, from where he or she can access the deposit/withdrawal.
One a deposit is made, an address corresponding to either Bitcoin (BTC) or Ethereum (ETH), i.e., depending on which cryptocurrency one has used, is generated. This address is then used to transfer the ordered Bitcoin (BTC) or Ethereum (ETH) through Cex.io account. Once the balance has been loaded, the amount is indicated in the ‘available balance’ section. From here; one can now trade Bitcoins or Ethereums against IOTA. Once a trade is made, one can safely withdraw the IOTA into the light IOTA wallet created in the first step.
Apart from Binance, Coinbase presents another reputable exchange platform that offers different pairs of cryptocurrency for IOTA. Coinbase offers users with such trading pairs like IOTA/USD, IOTA/ Ethereum, and IOTA/ Bitcoin. Coinbase also allows users to link their accounts with their banks and credit cards. However, with Coinbase, during transfers, the platform holds the funds in limbo until the funds transacted are cleared.
Today, the cryptocurrency industry is becoming a significantly lucrative business opportunity. There are many cryptocurrency platforms and business that have rapidly established profound bases in this industry. Such platforms include Gate.io, Bitfinex, and HitBTC.
Binance is a Hong Kong-based digital currency exchange platform founded in 2017. It’s the largest cryptocurrency exchange based on daily trading volumes. Despite being new in the market, Binance has won the hearts of many crypto users and traders, courtesy of its relatively low trading fees compared with other exchanges.
Atop offering users low transaction fees and high liquidity for a significant number of cryptocurrencies, Binance has a user-friendly interface, offered in two options that include basic and advanced options. The latter offers a detailed technical analysis of statistics associated with the offered trading pairs over time. The platform imposes a fee of 0.1% on every successful trade which can be coupled up with a discount if transactions are made via the Binance token.
Gate.io is a new technological sited that invests in the cryptocurrency industry and functions as a real-time monitor of market supply, volume, current price, and more importantly, the dynamic fluctuations of exchange rates of cryptocurrencies. It also presents changes in price for each token in GUI that is easy to understand. The site facilitates this information to its readers and investor in the cryptocurrency market.
Bitfinex is basically an online cryptocurrency exchange company. Founded in 2012, the company is today considered the most advanced state-of-the-art cryptocurrency exchange in the world. It holds the largest record, by volume, in trading the US Dollar against Bitcoin. Bitfinex facilitates liquidity providers and digital currency traders with an advanced level of cryptocurrency related services.
HitBTC is a crypto exchange that offers its traders the opportunity to trade a significant number of cryptocurrencies. For every market trade made with HitBTC, a 0.1% fee is offered. The main advantage that identifies with HitBTC is that the platform features a wide range of cryptocurrencies that are less-known in its list of trading pairs.
Step 4- Storing IOTA safely
There are two ways or places where IOTA can be stored. One way is leaving the coins on the exchange platform. However, this type of storage is highly risky because the the IOTA are left vulnerable to theft, especially by hackers. It is thus recommended that you withdraw the IOTA to the IOTA wallet created in step 1. The wallets present a more secure way of storing the coins as access is only reserved to the user who possess the right seed to the account.
In summary, IOTA is becoming a top-notch cryptocurrency in the industry. Despite its limited application in the world business arena, the rate at which it is penetrating the cryptocurrency niche is predominantly overwhelming. The application of Tangle technology in IOTA has presented prominent solution towards both the transaction fee and scalability issues that uses of Bitcoin and other and Cryptocurrencies face.
The technology has eliminated the necessity of senders to prove some kind of effort and work before their transactions can be approved. In IOTA, the processing of a transaction is a function that has been inherently coupled with the transaction validation process itself. This aspect renders the system fully decentralized, specifically by eliminated the miners.
IOTA is evidently a futuristic giant in the sense that it will take advantage of these inevitable socio-economic prospects, and further drive them into a more efficient social and cultural domain – a framework where humanity will thrive in style.
We hope this guide has given you a comprehensive insight into buying IOTA. Feel welcomed to frequently visit our website for the latest updates on everything crypto.