Invest in IOTA in 2022
Today, many altcoins are clones of each other and offer virtually identical use cases. However, IOTA is one which is offering something truly unique. So much so that it doesn’t even run on a blockchain. Instead, it uses directed acrylic graph (DAG) technology which has very exciting potential.
In this guide, we’ll tell you exactly how it works, the best places to buy it, and some important considerations to keep in mind.
Read on to find out more.
Best Way to Invest in IOTA in 2022
Given the rise of cryptocurrencies, there are plenty of platforms to choose from when it comes to buying.
Picking the right one can be a daunting task and so to save you the time and effort, we’ve listed the top platforms you can use to get started today below:
What Is IOTA?
IOTA (MIOTA) is not like most other cryptos because it does not use blockchain technology. Instead, it uses something called a Tangle — a collection of nodes that validate transactions.
This means several things:
Transactions are much faster than those on regular blockchains.
The system creates an excellent foundation for the expanding Internet of Things (IoT) ecosystem.
Due to the lack of blockchain, there are no miners and, consequently, no fees either.
Some estimates show that there’ll be more than 20 billion IoT devices by 2024. IOTA aims to become the default transaction platform for these.
It’s worth noting that IOTA is one of the few cryptos worldwide that has managed to create several high-profile relationships, most notably with Volkswagen and the city of Taipei.
History of IOTA
IOTA was created in 2015 by four people — Dominik Schiener, David Sønstebø, Serguei Popov, and Sergey Ivancheglo. The development was funded by a crowd sale which raised around 1300 Bitcoin worth around half a million dollars at the time.
The network went live shortly after and was met with great excitement and support from the community.
Unfortunately, in the years that followed, users of the network were targeted in sophisticated phishing scams that led to bad publicity for the project.
That, alongside some wallet issues, resulted in the project falling out of flavour for a while.
However, the project has picked back up in 2022 with new developments on the horizon.
IOTA Key Facts
Let’s take a better look at some of the key MIOTA facts:
Name and symbol: IOTA (MIOTA)
Official site: https://www.iota.org/
2022 market cap: $3.6 billion
2022 price: Ranging from $0.28 to $2.60
Total coins in circulation: 2.78 billion
Prominent IOTA markets: IOTA/BTC, IOT/USD, IOT/EUR, IOTA/USDT, IOTA/ETH, IOTA/BNB, IOT/GBP
Pros and Cons of IOTA
Now let’s get a closer look at the pros and cons of the coin, as these are likely to help you decide if investing in IOTA is the right course of action for you.
How Does IOTA Work?
As stated earlier, IOTA does not use a blockchain as most other coins do. Instead, it uses a different, unique system called Tangle, through which it stores and manages numeric representations.
This effectively removes the problems with scalability that blockchain technology suffers from. In other words, transactions take just a few seconds to complete and cost virtually nothing. This is in stark contrast to Bitcoin and Ethereum where transaction fees range from anywhere between a few dollars to over $100.
The Tangle system is a network of non-sequential nodes where every node is connected to many other nodes, effectively creating a tangle, hence the name of the technology.
While this may sound complicated, it essentially allows the network to process transactions at the same time, treating all transactions simultaneously.
The more nodes that join the system, the faster and more efficient the network becomes.
IOTA enjoys a large following on social networks, making it one of the more popular coins out there. The official Twitter page has more than 220,000 followers, while the leading IOTA subreddit has more than 141,000 members.
Ways to Buy IOTA
If you’re ready to buy some IOTA coins, you’ll be glad to know that many platforms sell them. Mainly, you’ll get to buy MIOTA on various:
Additionally, you may be able to conduct a trade in person if you find someone who is willing to make that type of transaction with you.
However, if you want to go the easy route, you’ll have to use a trading platform as an exchange or brokerage.
You’ll have to create an account and verify your identity to start.
Luckily, these platforms are very user-friendly so you’ll be up and running in no time.
How to Invest in IOTA
Plenty of crypto brokers support MIOTA including eToro. Here you can deposit some money directly from your bank account and get investing almost immediately. Bear in mind that brokers generally set the prices of assets so there may be a markup involved.
Crypto exchanges are pretty similar to brokerages but prices are set by the market directly. Exchanges generally offer you many trading tools and a fine-tuned system that enables quick and easy transactions.
IOTA Debit Cards
You can also buy IOTA using your debit cards on several trading platforms. This is usually possible on both exchanges and broker sites.
Some crypto wallets allow you to exchange your cryptos for another. However, this may be harder to find for MIOTA as it runs on a different system.
Is It Safe to Invest in IOTA Right Now?
This is certainly something to keep in mind when it comes to investing in cryptos.
That said, many crypto enthusiasts believe that IOTA has a promising future, given its unique architecture, and the niche sector that it is targeting.
Billions of devices were added to the IoT network in the previous year and this trend is likely to continue to grow in the years to come.
If the IOTA platform gains is able to gain more adoption, this should reflect positively on the price of the tokens.
Of course, gains are not guaranteed and so you should only invest with money you can afford to lose.