How to buy IOTA - 2020 Guide

Blockchain technology has changed the way we view currencies. But is it already perfect? Can we still improve it? Many people have tried to find ways to advance blockchain technology and overcome its flaws. One of the inventions they have developed is IOTA, which is the cryptocurrency for the Internet-of-Things (IoT) industry.

Open source cryptocurrency and managed by a non-profit organization, IOTA is a third generation crypto. Scalable and decentralized, IOTA promises to carry out instant microtransactions at no cost. What make more than one dream!

IOTA cryptocurrency in detail

Who is behind IOTA crypto? It was created by David Sønstebø, Sergey Ivancheglo, Dominik Schiener and Sergei Popov. IOTA is now under the supervision of the IOTA Foundation , a German non-profit organization.

IOTA is an open-source cryptocurrency, which therefore allows it to be exploited by developers. In addition to the source code, many resources are made available to them, including various tutorials.

You should know that, unlike cryptocurrencies using the blockchain, IOTA is not based on minors. In fact, when it was created in 2015, a fixed stock of 2,779,530,283,277,761 IOTA was issued. On exchange platforms, you will see the Mi or MIOTA unit appear, corresponding to a MegaIOTIA, or one million IOTA.

Fully decentralized, each member of the IOTA network, called the Tangle , participates in the validation of transactions, so there is no reward system or transaction fees. Decentralization is therefore total!

IOTA's Tangle technology

Infinitely scalable, the IOTA cryptocurrency has serious advantages compared to Bitcoin and other currencies based on the Blockchain, which too often suffer from major slowdown problems during network load ups.
How does IOTA work? As we have seen, IOTA does not use a blockchain, it is based on the use of an acyclic directed graph (DAG), a structure called the Tangle. There are no blocks but nodes, all forming a tangled and self-regulating peer-to-peer network .

The principle of the Tangle is that each transaction validates two other transactions via a basic proof-of-work system . This validation method generates a very low energy consumption, which is far from being the case for Bitcoin. Thanks to this, we are able to integrate the Tangle into very simple connected objects, such as light bulbs.

Unlike blockchain-based cryptocurrencies, IOTA has no scalability issues, quite the contrary. The more its network grows, the more its performance improves! We are therefore on the reverse of the blockchain, whose ramp-up can prove to be very problematic and create strong slowdowns.

For what uses can I buy IOTA?

On a large scale, IOTA promises impressive functionalities: rapid transaction checks, zero fees, increased security, etc. But the network is not yet operating on a large scale.In order to maintain a certain balance in its development, IOTA relies on what is called a coordinator. The coordinator is intended to protect the network when the transaction volume is low. The plan is to deactivate this system when the network reaches a transaction volume high enough to be self-sufficient.

This leads to one of the main criticisms of Iota. It has been argued that, because Iota transactions are subject to this Coordinator, and the specific details on the functionality of the Coordinator are not public, Iota in its current state is effectively "centralized".

We cannot access the coordinator source code, so we cannot be completely sure what it does. However, without it, it would appear that the network is exposed to certain vulnerabilities. This suggests that the coordinator retains some influence on the factors related to these vulnerabilities.
According to Sergey Ivancheglo, a co-founder of Iota, the coordinator is currently used to guard against a 34% attack. The 34% attack refers to a scenario in which an attacker can contribute more than a third of the total processing power of the network, which allows him to produce conflicting transactions.

Any Iota user can independently operate a complete node. By doing so, you are contributing to the processing power to maintain the validity of the blockchain. Now, without a mining reward, there is no economic incentive to exploit any of these nodes. But a node can benefit a user if it already processes a large number of transactions, if it operates an application or a system that benefits from a reliable connection to tangle or a reduction in transaction times.

It should be noted that the 34% referenced here do not refer to a mere 34% of the network. Iota Tangle-related devices are only exposed to a subset of the entire network.So even if you were able to generate enough processing power to quickly take control of 34% of the network, you should also find the entire network.

Should I buy IOTA?

The Iota project is very exciting. If the team is able to deliver even some of what they promised, the effects could be incredible. But it is still too early to make plans for the comet. We therefore recommend that you be patient and follow rigorously the developments of the team that takes care of the IOTA project.

Buy IOTA

Currently, it is not possible to buy IOTA with euros. You must first go through the purchase of Bitcoins or Ethers on one platform, then convert them to IOTA on another platform. This will therefore require that you open an account on two separate platforms, the first allowing you to buy ETH or BTC, and a second allowing you to use these ETH / BTC to buy IOTA.

1. Buy BTC

The first platform would be COINBASE where you can buy some BTC or ETH. If you don’t have COINBASE account, you could sign-up by the link below and receive $10 credit for your first transactions.

LINK SIGN-UP COINBASE

2. Transfer your BTC / ETH to another platform.

Then you need to transfer these BTC / ETH to another platform which will allow you to buy other cryptocurrencies, including IOTA. Several cryptocurrency exchange platforms offer these pairs, including Binance which we will therefore use as an example. If you don’t have BINANCE accounts, you could sign-up HERE

To transfer your cryptocurrency which will be used to buy IOTA, you will first have to extract your BTC / ETH from the COINBASE platform, then send your BTC/ETH into your BINANCE Accounts. Make sure you write the address correctly.

3. Transform your BTC/ETH into IOTA

When your Binance account is credited in Bitcoin and / or Ether, you can use these to buy IOTA (and, similarly, you can use IOTA to buy Bitcoin and Ether)
To buy IOTA, go to the interface for managing your currencies, via the " Funds / Balances " tab, which generally looks like this:

Then simply select the desired crypto, here IOTA, and click on "Trade": a small drop-down menu will appear, offering you the different purchase options for available: IOTA / BNB, IOTA / BTC, IOTA / ETH.

Select the one that suits you, for the example we will take the IOTA / BTC pair. You are then redirected to the trading interface. (Note that this interface is also accessible via the "Market" tab at the top left. But to trade, you will then have to correctly select the currency pair in the right column.)

On this screen, you can now purchase IOTA. Add the amount you want to buy in the " Buy IOTA " box. The amount you enter automatically gives you the price in BTC.

Validate and you will then be in possession of an account funded with IOTA.

Disclaimer: as this type of investment is highly speculative, the various content published here does not constitute an incentive to invest, nor a guarantee of success. So be careful. And if you do decide to get started, only do so with amounts you can afford to lose.