IOTA (MIOTA) Buying instructions | Paypal, Credit Card & SEPA
What is IOTA? If you like the idea of the Internet of Things, no transaction fees and a crypto currency that has abandoned the block chain for a completely new technology, then IOTA could be the crypto currency for you. Maybe the Blockchain is old hat and the new technology from IOTA will be the technology that really changes the world? We will find out in the following IOTA guide.
IOTA definition: What is behind the name?
IOTA is derived from a Greek word and means an extremely small amount of something. This refers to the ability of crypto currencies to process microtransactions both quickly and free of charge.
However, the IOTA team would say that this is part of the meaning behind the name and that it officially stands for "Internet Of Things Application". If "Internet of Things" is not yet a term to you, here is the definition.
IOTA also refers to the smallest unit in the crypto currency. A 'kilo of IOTA' would consist of 1,000 IOTA. This system of units reaches up to Peta IOTA. Look at the following visualization to understand the whole system of units in this crypto currency:
You should also note that the IOTA ticker symbol is MIOTA. This is important to find the right market on crypto currency exchanges.
What is IOTA?
It is important to understand what the "Internet of Things" actually is. In short, it connects different devices and allows you to talk to each other. Would you want to control your printer, lighting, entertainment system and home security system from a single device like your phone? We bet that most people would say that sounds amazing and want that kind of networking. The world is already moving towards the Internet of Things. We don't think it's a question of whether or not the Internet of Things will be expanded in the future, but whether IOTA will be the crypto currency for it.
Like Bitcoin, IOTA is a public ledger. However, it has no fees and does not use the block chain. Instead, it uses a new technology called "Tangle". This system actually gets better as the number of users increases and is designed to process microtransactions exceptionally well. The idea is that this efficient micropayment system will be used to run the Internet of Things.
The internet of things: Why IOTA?
There is little doubt that Blockchain has value. That is why so many large companies invest millions of Euros in research and development of Blockchain. However, block-chain-based crypto currencies have major disadvantages, such as relatively high minimum transaction fees. When it comes to the Internet of Things, most people agree that the fees must be exceptionally low. Microtransactions make no sense if the fees are higher than the actual payment amount. In this respect IOTA can add value.
With the Internet of Things, devices will communicate with each other and different devices will be required to perform functions. This requires a kind of basic currency between the devices. This is exactly the problem IOTA tries to solve. Thanks to Tangle technology, IOTA can process transactions free of charge and the network will become stronger as it grows. Therefore the crypto currency is well suited to be the solution to this problem.
The IOTA Tangle Technology
Tangle is able to both verify transactions and process them immediately. Incredibly, it can do this without the use of miners (unlike other crypto currencies like Bitcoin). This means that no rewards need to be paid to the miners and therefore there is no transaction fee. IOTA Tangle achieves this by creating a system in which a user, by processing a transaction, verifies the previous two transactions. This past transaction verification must take place before the user can send his payment. This means that the Tangle system becomes stronger as more users trade on the system.
The way IOTA Tangle checks transactions creates a web or 'tangle' of transactions (hence the name). This is illustrated in the following visualization:
IOTA was also developed with a view to future-proofing. In the field of crypto-currency, there is much talk about whether the Bitcoin network could be affected by quantum computing. Because of this threat, IOTA actually uses so-called Winternez Hash-based signatures. In short, these signatures allow transactions to be sent.
Researchers have classified Winternez hash-based signatures as resistant to quantum computers, which is why the team decided to use them. Although quantum computing does not currently pose a serious threat to crypto-currencies, it is generally considered a threat that could compromise the security of most crypto-currencies. Whether quantum computing will pose a threat to crypto currencies in the future remains to be seen. However, IOTA has seized the opportunity and created an already quantum-safe crypto currency.
The real applications of the crypto
IOTA has established some impressive partnerships with leading industrial companies. These include partnerships with automobile manufacturers such as Volkswagen, the kitchenware manufacturer Bosch and the telecommunications provider Cisco. The crypto currency is making waves in traditional business. This interest is certainly the key to putting the crypto currency at the forefront of the Internet of Things revolution.
The fact that IOTA has been able to partner with some of the titans of the industry shows that the crypto currency has a real use case. If the concept had no value, would people like Cisco choose to work with the crypto currency?
In essence, IOTA is trying to be the glue that makes this new economy work. In fact, if the crypto currency and the Internet of Things are successful and widespread, then it's not a bad idea to own at least a few IOTA Coins.
The rise of the machines?
IOTA and the Internet of Things have the potential to change the world. It could be a change on a scale we have never seen before. For example, it would affect the way business is done, the way the legal system works and the acceleration of automation.
Let us consider the modest robot vacuum cleaner "Roomba". If you don't know him, you can just watch Youtube videos of him. Imagine that it is now connected to the Internet of Things. There is already a technology that allows the devices to know if they are faulty and which part of the device has a problem. A Roomba with a broken wheel can know that he needs a wheel change. If he is connected to the Internet of Things, the Roomba also has the option to contact a Roomba Wheel Repair Company, order a new wheel and pay for it with IOTA.
This technological change raises the question whether machines should be able to conclude legally binding contracts such as the purchase of a product. Imagine, for example, that someone had banned his Roomba and parked it somewhere in the wilderness of the USA, but still had many IOTA coins loaded on it. Would companies be able to accept payments with this device?
Technically, it would be owned by no one and any company that accepts Roomba's IOTA would make an agreement with a machine. It therefore seems very likely that the Internet of Things will usher in a new era in which machines actively participate in the economy. Exceptionally, this should lead to legal systems changing to take account of this growing phenomenon.
Maybe we do not want the Internet of Things to be too successful. In the short term, most would agree that IOTA has the potential to make our lives easier. But when we think of this technology in combination with artificial intelligence and machine learning, is the rise of machines perhaps a very real risk?
IOTA has positioned itself as one of the largest crypto currencies in the Internet of Things sector. In fact, the project is already among the top ten crypto currencies. Perhaps this is not surprising, since IOTA could be used to connect any device on the planet. If the solution that IOTA proposes actually works, then the crypto currency will be of incredible importance.
There is no doubt that this is an extremely ambitious project. It is not only about the technology behind IOTA, but also about the team. Without large corporate partnerships for mass adaptation and proper leadership, this project will not work. We have looked at the 50-person team at IOTA and we think it is exceptionally well balanced and filled with top performers. The team consists of members who specialize in areas ranging from engineering and research, partnership forging and ecosystem development to public relations and business development. In the following, however, we will only discuss the three members of the Executive Board.
Co-Chairman & founder - David Sønstebø
David is a serial entrepreneur whose mission is to develop technologies that can drive progress. Prior to founding the IOTA project, David was founder and CEO of Stealth. This was a company focused on developing a low-power processor for the Internet of Things.
Co-Chairman & founder - Dominik Schiener
The first company of Dominik "Fileyyy" specialized in connecting companies. Then he co-founded Bithaus GmbH, which was intended as a crypto currency for Fiat exchange in Switzerland. Unfortunately this project failed. Not deterred by this setback, Dominik then founded Finhaus, which concentrated on the application of Blockchain in the financial sector. Then he joined the IOTA project.
Board of Directors - Ralf Rottmann
Ralf has taken many different stations on his twenty-year entrepreneurial journey. Among other things he was head of IT strategy, editor for tech blogs, partner and investor in a tech incubator. Ralf brings a lot of experience and technical know-how to the IOTA team and we are sure that he is a very valuable member.
The future of IOTA
IOTA is certainly well positioned to operate the Internet of Things. The crypto currency already has some particularly impressive corporate partnerships. Even more exciting is the fact that Taipei in Taiwan has announced its intention to transform itself into a Smart City and has finally decided to partner with the crypto currency. Although Taipei is a relatively small city with a population of around three million, this project could pave the way for other cities and offer a replicable model of the Smart City. This has led some to speculate that MIOTA could be the crypto currency that powers the world.
Although it is easy to get carried away by the potential of IOTA, the truth is that we are not far from IOTA acceptance. Yes, the crypto currency has great potential. However, it must first live up to its expectations. Until this happens, the crypto currency will be subject to significant speculation and is likely to be volatile in its price action.
It is also possible that something better or wider will replace the IOTA. Of course in this case it would be a disaster for the crypto currency and its investors. We have little doubt that the Internet of things is coming. The real question is whether IOTA will become the IoT currency or not.
The ICO of IOTA
The IOTA ICO took place in November 2015 and raised more than $400,000, proving that it does not require tens of millions of dollars in funding to be among the top ten crypto currencies.
In the summer of 2017 MIOTA was listed on the KuCoin stock exchange for the first time and it even went so far that the crypto currency was traded more strongly than Bitcoin.
ICO investors have paid fractions of a cent per token and even if the coin is only worth 98 cents, ICO investors still have a return of 226.182%. IOTA has currently been one of the most profitable ICO's in the history of the crypto currency.
Should you invest?
- The crypto currency is exceptionally well positioned to be the currency of the Internet of Things. It has already partnered with some of the largest companies in the world and Taipei has stated that they will use the crypto in their new Smart City.
- There are no transaction fees.
- The crypto currency is designed to be future-proof. The quantum resistance is proof of this.
- IOTA does not use block chain technology. In the future, tangle technology may become the new standard for distributed ledgers.
- Economically, the Internet of Things has the potential to be one of the largest markets we have ever seen. The potential is to connect every device on the planet through the Internet of Things (IoT). This revolution is likely to disrupt many traditional approaches and lead to significant efficiency gains worldwide.
- Although the project is well positioned to become the currency for the Internet of Things, it is by no means secure.
- The Internet of Things could just be a concept that will never be realized. This would greatly limit the potential of the crypto currency.
- The crypto currency must enter into significantly more partnerships with hardware manufacturers in order for it to be used on a large scale.
- A better solution than IOTA could prevail. This would make the crypto currency obsolete.
Are you too late to invest in IOTA?
IOTA has given its ICO investors the second highest return in the history of the crypto currency. If you had invested just one dollar in the ICO, you would now be sitting on a profit of $2.21. Since this kind of return has already been generated, does this mean that investors are now too late to buy IOTA coins?
The crypto currency was publicly traded on the stock exchanges in mid-June 2017. At that time the IOTA coin could be bought for 64 cents. The profit potential of the coin is still respectable. Keep in mind that the IOTA price already reached an all-time high of $5.23 per coin in December 2017 and can now be bought at a much lower price. This means that if the crypto market returns to its all-time high, investors would make a profit of 450% today.
The exciting thing about the Internet of Things is that it hasn't even started up properly yet. In the future, practically every device in the world could be connected via IoT. The vision is that IOTA would be the currency for this new economy, which consists of billions of different devices. Even if this is only partially true, there is no doubt that the IOTA coin would be far above its current all-time high.
In short, you are not too late to buy IOTA coins. The Internet of Things is just beginning and will probably take many years to develop properly. The Bitcoin-News team believes that the crypto currency is well positioned to play a key role in this new economy and should do well in the bull market.
How high could IOTA rise?
Although the Internet of Things is a new and emerging market, it is already estimated at $157 billion, according to Forbes. According to forecasts, the value of the IoT market is estimated at 457 billion dollars by 2020. The exciting thing about IoT is that its value will increase every year for the foreseeable future and is very likely to become one of the most valuable markets in the world.
If IOTA successfully becomes the currency of the Internet of Things, it would not be absurd to think that it will be used more than most major currencies. This would inevitably lead to a massive increase in the price of IOTA.
In order for the crypto currency to reach its full potential, it must continue to partner with IoT hardware manufacturers. The good news for IOTA investors is that the project has already entered into significant partnerships with Cisco, Bosch and Volkswagen. If the team can continue to convince these titans of the industry to support the IOTA Coin, this would underpin its claim to be the currency of the IoT economy.
Crypto currencies are speculative investments and nobody can predict 100% how a crypto currency will develop in the future. However, IOTA is perhaps the best positioned crypto currency to play a key role in the IoT economy. Therefore, we would not be surprised to see an IOTA price increase in the next crypto currency bull run.
Buying IOTA-Coins - Our top 2 options
Our first opportunity to buy IOTA crypto currency is perfect for investors who want to buy in conventional currencies such as the USD. You should be aware that it is difficult to buy IOTA directly from a single account at a stock exchange or broker. Instead, it is best to use Coinbase, where you can buy Bitcoin or Ethereum in regular currency. Once you have your Ethereum or Bitcoin, you can send it to another crypto currency exchange like Binance and trade against IOTA. We think that Coinbase is the easiest way to enter the crypto currency market because of its ease of use and first class mobile app.
Those of you who already have Bitcoin or Ethereum can skip the chapter on Coinbase and immediately read our guide to exchanging IOTA Coins on the Binance exchange.
Create a Coinbase account
- History: Coinbase was founded in 2012 and is the most popular crypto currency exchange worldwide
- Investors: Coinbase has strong investors like the venture capital companyIVP, the New York Stock Exchange and other companies
- Simple: Coinbase is known and loved for its easy to use interface
- Minimum deposit: You can already invest with amounts from 6€ in crypto currencies on Coinbase
- Regulated: Coinbase is one of the few crypto currency exchanges that's regulated
- Insurance: Client funds are insured and segregated
- Deposit methods: credit/debit card, bank transfer and PayPal for US customers
- Tradable crypto currency: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic. Litecoin, 0x and more coming
Do you need help with setting up a Coinbase account? Just read our guide.
Now the first step is done and you are ready for your first crypto currencies. But you might ask yourself, where do I find IOTA on Coinbase now? IOTA itself is not directly available at Coinbase. To get IOTA you first have to buy Bitcoin or Ethereum on Coinbase and then send these coins to a stock exchange to buy IOTA with BTC or ETH.
The fastest way to purchase BTC or ETH on Coinbase
- Go to the buy/sell page in your account.
- Add a payment method to your Coinbase account.
- You can now choose between different payment methods: credit card payment or bank transfer. One factor that is important when deciding is how urgently you need your coins. A bank transfer has lower deposit fees, but it takes between 2 and 5 days until your cryptocurrency is credited to your Coinbase account.
- Option 2: You can deposit money with a credit or debit card. You pay a fee of about 3%, but receive your coins directly.
Both methods are easy to use and ensure that your money lands safely on your Coinbase account. After the deposit you will receive an email informing you when your deposit was successful.
- Once your account is loaded, select Bitcoin or Ethereum in the "Buy/Sell" section.
- Enter the amount for which you would like to buy Bitcoin, for example.
- Choose the currency wallet you deposited in as your payment method (in this example we used EUR).
- Complete your order by clicking on "Confirm purchase".
Do you want to buy crypto currencies on Coinbase even cheaper?
Then take a look at our Coinbase Guide. Here we show you how you can send your funds to the subsidiary Coinbase Pro with a little more effort. On Coinbase Pro you can save money with every single purchase, trade or sending of Coins.
Once you have successfully purchased Ethereum or Bitcoin on Coinbase, you are ready for the next step.
Setting up an IOTA Wallet
Because IOTA does not use block chain and is based on its own unique tangle technology, you must use a wallet that has been specifically designed for IOTA storage. We recommend that you use the official GUI wallet. Do you need help with the setup? We have published a special article that shows you all the steps.
Create a Binance account
By now you should have Ethereum or Bitcoin set up on Coinbase and your IOTA wallet. Now is the time to set up your crypto currency exchange account so that you can trade Bitcoin or Ethereum against IOTA coins. The most popular crypto currency exchange in the world and for IOTA is Binance. We do not believe that you can do anything wrong with Binance and therefore recommend the exchange.
- The largest stock exchange in the world: Binance has the highest crypto trading volume in the world.
- The One-Stop-Shop: Over 100 different crypto currencies are available on the exchange.
- Easy to operate: The exchange has received much praise for being simple and straightforward.
- Customer Support: Binance has invested in multilingual support.
Do you need help setting up a Binance account? Just take a look at our Binance Guide.
From Coinbase to Binance - Guide
You can get started as soon as your Binance account is fully set up. No matter if you have your Bitcoin or Ethereum on Coinbase or in another wallet, you have to send your coins to Binance to trade them for IOTA.
- Log in to your Binance account.
- Select "Funds" and click on "Deposit".
- Make sure that you select the crypto currency that you have bought on Coinbase. If you choose the wrong crypto currency, you can lose your money!
- You will now see your Binance inpayment address. This address is your new individual wallet address to which you send your coins. Copy this address and go back to Coinbase. We have used Bitcoin in the example.
- Log in to Coinbase and go to the "Accounts" tab.
- Click on "Send" for the crypto currency from which you have just copied the wallet address (Binance).
- Enter your Binance inpayment address in the "Recipient" address field and enter the amount you wish to send.
- Click on "Next" and complete the transaction. Your coins should appear on Binance shortly.
Do you have crypto in another wallet?
- Simply send your crypto to your Binance payment address.
Trade Bitcoin & Ethereum for IOTA on Binance
- Make sure that you are registered with Binance and go to the homepage. You will then see a list of markets and various crypto currencies. First you have to select the right market. Select "BTC Markets" for Bitcoin or "ETH Markets" for Ethereum. Then enter 'IOTA' in the search field.
- The "Binance Trading" screen appears. Select the "Market" button to buy the IOTA coin at the current market price. Then enter the quantity you wish to buy. Binance also gives you the option to use a percentage of your balance to purchase cryptos.
- After you click on the "Buy IOTA" button, your purchase will be confirmed and your IOTA Coins will appear in your account.
How do I send IOTA to my wallet?
If you do not want to continue trading with IOTA immediately, we recommend that you keep IOTA coins in a wallet. Binance is a natural target for hacker attacks and even if the exchange has first class security, you should not take any risks.
To transfer your IOTA coins to your IOTA GUI wallet, simply follow the steps below
- Copy your public address from your GUI wallet.
- Make sure that you are logged in to your Binance account.
- Click on "Funds" in the upper navigation bar and then on "Withdrawals".
- Select "IOTA" from the drop-down list. Then add your public address for the wallet in the "IOTA Payout Address" field. Once you have entered the number of coins you wish to withdraw, click "Send" and your coins will be sent to your wallet.
Important: Binance charges a fee for processing withdrawals. The fees change regularly. However, you can view the current payout fee for IOTA coins here.
There you have our top 2 possibilities to buy IOTA. We at Bitcoin-News.one are extremely excited to see how the Internet of Things will grow in the coming years. IOTA is certainly in pole position to be the crypto of IoT. However, we believe that IOTA must continue to expand its extensive list of partnerships with IoT hardware manufacturers. If the project succeeds in working with the dominant companies in the new Internet of Things economy, we have no doubt that IOTA will play a key role in this new market.
We believe that the Internet of Things could be the largest market on the planet and the potential is almost unlimited. It is easy to get carried away by the possibilities of IOTA. It is likely, however, that the adoption of cryptography will be either all or nothing. This means that investors in this crypto currency should be prepared to lose their entire investment. On the other hand, IOTA also has this enormous potential. This would of course be good news for everyone who has invested in this project. Whether IOTA will actually become the currency of IoT, we will see in the future.