The cryptocurrencies market is becoming more popular each year. For this reason there are many digital currencies that we have available today to everybody. Since the launch of Bitcoin in 2009, a large number of cryptocurrencies has joined the list and now, we have a wide variety of virtual currencies in which we can operate.
One of the most innovative and also most recent is IOTA. It is a cryptocurrency that breaks with all the previous we knew about this market, because it is presented within a revolutionary system that could change the future in many aspects.
It is closely related to what is known as the Internet of Things (IoT) and has positioned itself as one of the best and safest cryptocurrencies with which we can work. Taking into account these characteristics, it is important that we know what services are provided by IOTA, as well as the advantages that we have if we work with it.
In this guide we will cover all the things that you need to know about IOTA to become masters of this cryptocurrency. Although IOTA is not the best known in the market, it has many possibilities for growth and everything we have seen so far has seemed to be a great success now and in the future.
- 1 What is Iota?
- 2 How does Iota work?
- 3 How to invest in Iota?
- 4 How to buy and sell Iota?
- 5 Iota Wallets available
- 6 How to mine Iota
- 7 Conclusions
What is Iota?
If we want to know perfectly what the IOTA cryptocurrency is, we have to put ourselves in a position and tell you that this digital currency appears once the Internet of Things begins to gain prominence, in fact, the name of this system comes from the initials IoT.
As we know, the Internet of Things is that technology that is used so that any service or object can connect to the Internet quickly and efficiently. In the world every time we have a greater number of elements that work with it, so experts say that in the future, the Internet of Things we will find it everywhere.
When has Iota born?
Well after this clarification, we can say that the IOTA project began in 2014, when it began to move this of the Internet of Things and digitization and the use of new technologies were more than evident.
It was then when the creator of this system, David Sonstebo, thought that the Internet of Things could also be present in the financial sector and thus, step by step, was giving form to IOTA, which has an official cryptocurrency known as MIOTA.
Precisely in that year, the founder, together with a team of experts, created a startup with a single goal, to develop a microprocessor to improve the Internet of Things.
The truth is that the startup was increasingly taking a leading role, since, among other things, the project would allow a new business model for companies, as these could base their strategies on the type of B2B model.
With B2B, different companies have the possibility to squeeze and optimize each of their technological resources to the maximum, to turn them into a potential service. Thus, companies can enter the real market, showing their business transparently and with the advantage that they will not have to face any additional charge.
Does not work with Blockchain
Although this project was quite accepted, it was not until June of 2017 when IOTA was launched to the market, presenting itself as an alternative system to what we already knew, since, the IOTA does not work with blockchain, as do the other cryptocurrencies, mainly Bitcoin. or Ethereum.
It is a totally revolutionary digital currency, but it has shown that the market can be improved without using the blockchain system. In fact, the idea presented by IOTA has penetrated deep into the financial sector and in less than a year, its market value has increased significantly.
At the time, IOTA was launched with a quote price of about $ 0.55, and today, has exceeded the amount of $ 4. In addition, at present, has managed to sneak into the best cryptocurrencies in the world and is located in the seventh position.
Fast transactions and security measures
Working with IOTA is very beneficial for users, since it has a series of very good advantages that make most of the operations carried out through its system very successful. Among other things that we can highlight IOTA, we have to say that the system allows us to make a large number of transactions quickly and also, without any additional cost.
It also, we must mention that this cryptocurrency has excellent security measures, among others we have to make reference to the data verification system, which is very complete since without it, we will not be able to carry out any type of operation.
It is evident that the services that IOTA offers us are quite innovative and that it allows us to make movements through its system for free, something that was not known until now in this market.
Taking into account all the characteristics of this cryptocurrency, we will see in the following section how it works, since, as we have already said, it is a unique system in the market.
How does Iota work?
Whenever we talk about cryptocurrencies, the first thing that comes to mind is the blockchain system, also known as blockchain. But this time, we will have to break with everything we know, since IOTA works with a totally different technology, although it has been shown to be very effective and offers very good results.
Tangle – IOTA System
In this case, we are referring to a technology that has been called Tangle. It is a kind of distributed book, whose tools allow us to carry out operations in this system, without any additional cost.
Due to the use of this innovative technology, IOTA is currently known as the “backbone” of the Internet, since experts say that, in the future, this system will be in charge of dominating digital commerce.
In any case, until that day arrives, Tangle technology will continue to function properly and will be updated to offer users the best services in this regard. Actually, this technology will allow us to adequately develop all the transactions that we want to carry out with this system, we will not focus on the verification of these operations or the creation of the blocks.
The technology Tangle what it does is to unite the users and the miners and thus, to be able to develop an effective program, through which, we can carry out all the operations that we need.
The future of the Cryptocurrency
If we do a bit of memory, the blockchain system is creating blocks from the grouping of several verified transactions, but the experts are clear that this system has been somewhat obsolete and also is not as effective as Tangle or so fast.
To give us an idea of how the system works, what happens is that, when a user sends a transaction that is correct, before validating it, he had to previously verify two others, so this system it is so linked to the Internet of Things, because through this technology, connections can be created between the different devices that are part of the process.
Another important aspect that we should highlight the IOTA system, is that when making transactions, we will not have time restrictions of any kind, with which, we can carry out a large number of operations in a short space or even, take a longer time to perform any of these movements.
In fact, the IOTA system is capable of processing some 500tps, while the Bitcoin system does not normally exceed 7. In addition, we must also comment that IOTA offers us the possibility of working in two systems, both the binary and the ternary.
Therefore, we can say that the operation of this system is complex, but at the same time very effective, because it allows us to carry out a large number of transactions in a very fast way and without time limitations, besides that we are not going to have to do Facing additional charges.
Finally, we have to comment, that another advantage of this system is that, thanks to the technology it uses, we can use IOTA from any device, as long as it has a good Internet connection.
In short, it is clear that the operation of IOTA is very good and with this system, we will be able to obtain a large number of benefits, but to better inform us of what we have to do to acquire those profits, we will see in the next section how we can make our investments in IOTA.
How to invest in Iota?
As with most cryptocurrencies, in the case of IOTA we will also be able to carry out investments to obtain profits. It is true that in other digital currencies that are more popular and have been in the market for a longer time, we have more investment possibilities, but for the moment, the only thing we can do is choose a good broker that offers us this type of services.
In this case, we have to say that currently, there are many supports that provide us with the right tools so that we can obtain a large number of profits by investing in IOTA, but since it is a very young cryptocurrency, we must be careful not to deceive ourselves in this matter.
For this reason, we have prepared a small list, where we will tell you which are the best brokers that you can use to make your investments with this cryptocurrency, in a fast, simple and safe way.
There is no doubt that Plus500 is one of the best brokers that we have found in the market. It has been in operation since 2009 and has always included new services and tools so that we can carry out our operations in the best possible way.
Plus500 puts at our disposal a large number of markets with multiple assets in which we can invest and that of cryptocurrencies is one of them. Although at first, the major digital currencies were the best known, as is the case of Bitcoin, Ethereum or Litecoin, among others, now we also have the possibility of investing in IOTA through this support.
Undoubtedly, one of the best choices we can make, considering that Plus500 is a legal broker, which offers worldwide coverage and the minimum deposit that we must make to invest in IOTA is 100 dollars.
One of the largest platforms of Social Trading that exists today is eToro, since it was the first that was launched to the market to offer users their services based on this type of trading.
One of the biggest advantages we have with eToro is that it is a broker fully regulated by the National Securities Market Commission (CNMV), so we know that all the investments that we carry out through this support, go to be 100% legal.
For some time now, the broker has included the cryptocurrencies as assets so that we can invest, and among the many that are available, IOTA is one of them. In this case, we will also have to make a minimum deposit of 100 dollars if we want to invest in this cryptocurrency, but we have to say that this broker allows us to perform our operations from the computer or also mobile devices.
IQ Option is another of the good options that we can choose to invest in IOTA, since it is a broker that has been in operation since 2013 and offers good services and tools for us to operate properly.
It is also a support that is worldwide regulated. This guarantees enough security to know that we will be working with a platform that complies with the regulations and the different rules of use. On this occasion, to be able to invest in IOTA, the minimum initial deposit that we must make is much lower, being 10 dollars.
The last platform to which we are going to make reference is Libertex, which, offers us very good tools if we want to invest in IOTA. Libertex is one of the supports that has been operating for longer, more than 20 years offering its financial services to users.
Step by step it has been renewed and that is why we now have the possibility of investing in cryptocurrencies, and in our case, in IOTA. Libertex has the backing of the National Commission of Securities Markets of Cyprus (CySEC) and to invest in IOTA, we will have to make an initial minimum deposit of 100 dollars.
As you have been able to realize, there are many brokers that we have available if we want to carry out our operations, but in all of them, we must emphasize that our investment in IOTA is always going to be made from Contracts for difference (CFDs).
These allow us to bet on any asset, without needing to acquire it physically, that is why they are so beneficial. Although CFDs have always been available for large markets, as is the case of stocks or commodities, at present cryptocurrencies have become very popular, hence they have also been added as an option. more investment for users.
How to buy and sell Iota?
The options that we have available to invest in IOTA are multiple, but we also have to talk about the purchase channels that exist in the market, through which we can acquire IOTAS easily.
In this matter, we have to say that this cryptocurrency is quite new and that is why all the purchase options that exist for the other digital currencies are not available, in any case, we can say that we have the opportunity to buy IOTAS, although for this, we will not be able to do a direct operation, but we will have to carry out several steps, until we can achieve our goal.
What steps is it?
First, we must choose an appropriate platform that allows us to carry out these movements and once we have chosen, we must be clear that through this support, we can not make the purchase, if not we will have to go to a specialized website.
One of the best in this sense is Coinbase, since it allows us to work with a large number of cryptocurrencies, online. In case you do not work well with Coinbase or it seems complicated, you also have the option of Cex.io.
2. Acquire the Cryptocurrency
Well, at this point, we will have to acquire Bitcoins or Ethereum, because they are the main cryptocurrencies that we will be able to use to exchange them for IOTAS.
Once we have made this step, we will go to an IOTA exchange, which allows us to carry out the corresponding exchange between the Bitcoins or Ethereum that we have acquired and the IOTAS that we need.
It is advisable to make the exchange in Ethereum, since this cryptocurrency is much cheaper than Bitcoin.
3. Choose correctly
Currently there are not many exchanges that allow us to carry out these operations, for this reason, we advise you to use Binance, since it is a support that is very complete and has the best tools to perform these movements.
When we enter Binance, we will open an account and in it, we will have to deposit the Bitcoins or Ethereum that we have acquired. Then, through its main panel, we will proceed to make the corresponding exchange, choosing the option to obtain the IOTAS.
After having carried out all this in an appropriate way, we will only have to wait for the system to verify the operation and soon we will see the final funds that we have in the account that we opened previously. The usual thing is that this process does not take more than 12 hours.
In addition to all this, you should know that the payments we have to make to get our final IOTAS, can be done using different channels. Thus, we can make use of our usual credit card or even use an online payment program, being the most popular PayPal.
Depending on the support we have chosen, we will also have the possibility of making all these payments with traditional currencies, mainly the euro or the US dollar.
Before moving on to the next section, you should know that, in order to buy IOTAS or any other cryptocurrency, we must have our own virtual wallet, in order to store them. Undoubtedly, digital wallets are essential elements to work with cryptocurrencies in the best possible way, for this reason, then we will tell you which is the best IOTA Wallet that exists in the market.
Iota Wallets available
If we are determined to work with cryptocurrencies, an essential element that can not be missing is a wallet, since these digital wallets are what will allow us to store all the cryptocurrencies that we accumulate.
In this matter, we will also have the possibility to save IOTAS, but the truth is that we do not have a wide range available as with other cryptocurrencies, in any case, in order to store our IOTAS, the best we can do is work with the exchange Bitfinex.
Bitfinex: As we all know, Bitfinex is not only a place of exchange, it also offers us the option of storage, so we will have a very complete desk purse, where we will have our funds safely stored. In this case, to work with Bitfinex we need a computer that has the Windows or Linux or Mac operating system installed, if we want our IOTA wallet to work correctly.
Cold storage and security
In order to store these cryptocurrencies, we will have to get a seed. When talking about seed we refer to a security code, which we create ourselves and which will be our password to be able to use this wallet.
In these cases, it is advisable that this seed be a combination of numbers and letters, both uppercase and lowercase, bearing in mind that there are some elements that can not be included as some letters or the number 9, to put two examples.
This seed can have a total of 81 characters and will be our hallmark to be able to store the IOTAS that we have been accumulating with our operations.
How to mine Iota
The last part of our guide is going to be devoted to talking about the IOTA mining process. Although this cryptocurrency is different from the digital currencies we know, the reality is that it can also be mined, although the process does not use the same elements as for the usual mining process.
To carry out IOTA mining, it is essential that, beforehand, we unload a wallet, since without this element, we will not be able to carry out the mining process. Once we have our wallet on the computer, we will go to a tab where you can read Seed Generator, you have to click on it so we can start mining through our digital portfolio.
After this, we will give the button that creates the address, so we will have the address of our wallet to be able to receive the IOTA that we obtain after carrying out the mining process. Thanks to all this, the system allows us to choose the number of microprocessor threads and also the percentage of the performance of our operations.
Once we have done all this, we can begin to undermine IOTAS, taking into account that these movements are automatic and that we can control at all times.
When we believe that we have obtained an adequate amount of IOTAS through mining, we will have to give the button that retires, so that the system sends us the cryptocurrencies that we have acquired and stores them in our wallet.
This last process does not usually take too long, although in some cases, it has been possible to slow down until 12 hours after having given the order to withdraw the IOTAS that corresponded to us.
After having made a thorough analysis of the IOTA cryptocurrency, we have to say that it is a digital currency that is giving a lot to talk about in the market, because it is presented with a totally innovative system, where new technologies are the main protagonists.
It is the cryptocurrency of the Internet of Things and has experienced great growth in the sector in recent months. Now, it has good value in the market and the uptrend continues its way. In addition, it offers us a completely alternative way of working with cryptocurrencies and therefore, it is a good investment option that we have available right now.
If you are interested in the world of digital currencies, this is a good opportunity to perform operations in a different way and obtain a large number of benefits. Remember to take into account the different elements that we have commented, the wallets and the analyzed concepts so that your premiere in Iota can be done with very positive results.