3 Best Low-Cost IOTA Exchanges for November 2021 • Benzinga

If you’re new to cryptocurrency trading, you may be surprised to learn that there are other coins that you can buy and sell beyond Bitcoin, Litecoin and Ethereum. In fact, there are currently thousands of so-called “altcoins” (coins that aren’t Bitcoin and that don’t have a consistently stable price) available on the market. Savvy cryptocurrency traders constantly compare the values of each coin in an attempt to find the next coin.

One relatively new offering that began to gain attention in 2018 is IOTA. IOTA has consistently raised in price since its initial offering and how holds the 17th largest coin with over $1.1 billion market capitalization. There’s over 2.7 billion IOTA in circulating supply. This puts IOTA above the range of other coins, including longtime standbys like Ethereum Classic and Cosmos as well as new and up-and-coming coins like Chainlink and Basic Attention Token.

But what exactly makes IOTA special and how can you invest in it? Today, we’re going to take a look at the IOTA coin, learn more about its features and show you a few exchanges you can use to buy it.

Best IOTA Exchanges 

  • Best for Mobile: Voyager
  • Binance
  • Huobi Global

What is IOTA?

IOTA (sometimes listed on exchanges as “MIOTA”) is a type of digital currency postulated as money that you can use on the “Internet of Things” (IoT). The main principle behind IoT dictates that any type of electronic device can, in theory, be synced with any other electronic device. In other words, the idea behind using cryptocurrency in the IoT is to use a digital currency as a method of communicating with enabled electronic devices.

Why would you use a cryptocurrency for this instead of a credit card? Credit cards usually charge retailers high fees in order to process transactions. For example, if you use a credit card to buy a soda from a vending machine, your Visa or Mastercard would charge Coke or Pepsi a dollar or so to process the transaction.

Depending on the size of the purchase, this can completely wipe out any profit made by the merchant. Large corporations and chains might make enough money to cover the cost of credit card fees, but smaller mom-and-pop shops often can’t. These fees are why you might see a “$5 minimum credit card charge” when you visit your favorite deli or gas station.

IOTA bucks the traditional blockchain model of cryptocurrencies to lower fees by operating on its own network, called Tangle. Most cryptocurrencies like Bitcoin use a series of blocks and miner to verify and record transactions.

Unfortunately, the approvals needed to send a Bitcoin take some time and a percentage of the Bitcoin being sent is lost to transaction fees. This also means that, as more and more users send bitcoins, transactions take longer due to a lack of available blocks to verify the transactions.

Tangle uses a mathematical concept called “directed acyclic graphs” (DAG) to verify and complete its own transactions. By operating on its own nodes instead of outside miners owned by third parties, IOTA claims to have solved some of the most common problems associated with sending Bitcoin, like network delays and congestion. IOTA also claims to not charge any kind of fee to send or receive a transaction, which makes it much more affordable than both Bitcoin and credit card transactions.

Does this sound too sci-fi to be useful? Let’s look at a potential use case for IOTA. Say that you arrive at a bar and the venue owner tells you that you can’t bring your laptop inside. He offers you a locker enabled with IOTA technology that allows you to store your things for 10 IOTA per half an hour. The locker would be more secure (because it can only be accessed with your unique code) and fees would be eliminated for the merchant. This means that even tiny retailers can allow IOTA purchases without worrying about fees. 

How Do You Trade IOTA?

If you’ve spent any time learning how to trade cryptocurrency, you’ll have a very easy time buying and selling IOTA. IOTA trades like a standard cryptocurrency on exchanges. An exchange is a hub where you can buy, sell and trade cryptocurrencies. When you sign in on an exchange, you’ll need to provide a bit of personal information to open an account. This is to prevent fraud and keep your account secure.

To make a trade on an exchange, you need some kind of capital. The most common type of capital on exchanges is Bitcoin. Though some exchanges allow you to buy cryptocurrencies by linking your bank account or credit card, most of these exchanges aren’t yet hosting IOTA because it’s so new. Thus, you may need more than one exchange account if you want to buy IOTA.

The easiest way to do this is by opening an account on an exchange that allows you to buy major cryptocurrencies using a wire transfer or card (like Coinbase or Kraken) and buying a bit of Bitcoin. Then, transfer your Bitcoin from your exchange wallet to the wallet of an exchange that supports IOTA. Once you’ve exchanged your Bitcoin for IOTA, it’s a good idea to move your currencies into an exterior wallet. This is because international, large-scale exchanges are often the target of hackers and scammers. 

What Exchanges Trade IOTA?

Because IOTA is a relatively new offering, you won’t have as many options when it comes to choosing which exchange you want to use. Almost no U.S.-based exchanges host IOTA, which means that it’s virtually impossible to buy IOTA directly using a credit card or bank transfer.

When you choose an exchange, the first thing you need to look at is its coin offerings list. Make sure that the exchange supports both IOTA and your transition currency you’ll use to buy it. Most exchanges offer a list of every coin pairing that they support, so it’s not difficult to figure out if the exchange allows you to trade IOTA.

Next, look for security features. Due to the decentralized nature of cryptocurrency, it’s very important to make sure that your cryptos are held in a safe and secure exchange. Read each exchange’s list of security features and look for ones that offer things like two-factor authentication and multi-layer encryption to prevent hacks.

Finally, you need to choose an exchange that allows you to create an account in your area. The legality of cryptocurrencies is hotly contested and not every exchange is allowed to operate in every country. A few of the exchanges that host IOTA only operate in South Korea or require a Korean bank account. Be careful and make sure your exchange is region-specific before you create an account. 

Our Top Picks for the Best IOTA Exchanges

Now that you understand what you should look for in an exchange and how you can buy IOTA, it’s time to start trading. We’re giving you a crash course in a few of the most popular exchanges currently hosting the IOTA token.