IOTA is a cryptocurrency but it is totally different from Bitcoin, Ethereum, Ripple, Litecoin, etc. It is developed for the Internet Of Things (IoT), to use this cryptocurrency as a method of payment for the trading of services and resources in coming future. IOTA stands for Internet Of Things Application which is one of the different currencies making waves at the moment to reach the top of the digital currency market. So what exactly is IOTA? How does it work? How to buy IOTA? Here we will tell you everything about IOTA:
What is IOTA?
IOTA is a completely new cryptocurrency which is similar to Bitcoin and other cryptos in some aspect and almost fully different from them, from its core aspects.
IOTA was started in 2014 and since then it is growing and getting faster and better. The number of IOTA that will ever be created is fixed and even have already been created by using the Genesis transaction.
The total number of IOTA that is supplied is exactly 2,779,530,283,277,761.
Unlike Bitcoin and other cryptos, the main difference in IOTA is, it doesn’t use blockchain technology.
So, How it works?
It is based on a Directed Acyclic Graph (DAG) which is also referred as Tangle.
Traditionally Cryptocurrencies like Bitcoin used to be mined and miner used to get paid for mining, it means transactions were bundled in blockchain and then the miner used to verify each transaction for which they used to gain some Bitcoin.
But IOTA doesn’t work like them, there is no miner to be rewarded coins. And no need to pay for transactions as in different cryptocurrencies, the user needs to pay for transactions to carry out.
In IOTA, there’s no transactions cost as it is free to use and can be used for even micro and even nano amount of transaction.
The use of Tangle makes the transactions and verification go hand in hand but just to make a transaction in IOTA, the user needs to participate by validating only two past transactions in the network.
IOTA is also different in handling its users as normally other cryptocurrencies like Bitcoin gets slower with more number of the user using it but the IOTA gets faster with the more number of users using it.
Isn’t it amazing that it gets faster with more the number of people using it? Also, the transactions cost of Bitcoin gets higher making it almost impossible for the small amount of transaction as the transaction cost may be higher than the transacting amount of user.
Here IOTA gives benefits to user to use it without any transaction cost no matter of the high number of the user, it remains free and gets even faster.
Is IOTA good to invest?
IOTA is very much different from the popular cryptocurrencies and the use of Tangle technology instead of blockchain makes it completely different in the way it works.
It increases its transactions speed with the increase in the number of users and most importantly it is completely free to use.
So, these attraction of IOTA makes it popular among users and investors.
IOTA is mainly focused on the Internet of Things (IoT) but it also can be taken as profitable investment source for cryptocurrencies investor.
IOTA is currently at the top 15th position in Cryptocurrencies in terms of market cap with a market value around $1.87 and it is predicted to be around $11 in next one year.
This means in 5 years, it can be worthy of much more than now’s value. Investing few amount can be a good option to take the risk and if its market value rises it will be a beneficial investment.
So getting a huge amount with just a penny is not a bad investment. We won’t recommend investing your whole amount of money but investing few bucks won’t be a bad investment in IOTA cryptocurrency.
The gradual increase in investment and use of IOTA’s technology is making it popular.
IOTA has claimed to be most adopted cryptocurrency by most of the companies which are even more than Bitcoin. The IOTA has been partnered with big companies and government. It is believed to be most influential cryptocurrency among government and companies.
The big companies names like Volkswagen, ITIC, Bosch, etc and it is also helping the government to run smart cities with fully autonomous smart cities. Taipei is one of the smart cities to adopt this technology.
Is IOTA Secure?
Internet of Things (IoT) means a network of home appliances, physical devices and vehicles which have been connected to the internet, exchange data and are connected through network connectivity.
So basically, IOTA enables secure financial mode of the transaction between IOT. The IOTA uses directed acyclic graph technology instead of the traditional blockchain technology.
Differences of IOTA with other cryptocurrencies
Here we have provided what are the differences of IOTA with other Cryptos like Bitcoin, Ethereum, Litecoin, etc. :
- IOTA doesn’t depend upon blockchain but a new technology called Tangle which is Directed Acylic Graph (DAG) which makes it possible to do transactions per second.
- It does not have to be done mining, and no difficult maths equation to be solved as a miner to perform the transaction.
- It was developed as a machine to machine digital currency.
- It’s limited like blockchain and has been released already and completely an open source.
- It is completely free and no need to pay fees for transactions and equivalently fast.
- More the number of users, more the transactions will be fast which is extremely an opposite pole to other Cryptos like bitcoin which get slower with more users.
- Most importantly it can be used to do nano and micropayments.
How to Buy IOTA?
Buying the cryptocurrency IOTA is not simple as buying Bitcoin and Ethereum. You can not directly buy IOTA with credit or debit card or with cash like those other cryptocurrencies.
In order to buy IOTA, first you need to buy other cryptocurrencies like Bitcoin or Ethereum then only you will be able to buy IOTA. Here is a step by step procedure to take your hands on IOTA:
1. Buy Bitcoin or Ethereum:
First, buy a popular cryptocurrency like Bitcoin or Ethereum using your credit cards or debit card or with cash or PayPal as there is no direct method to buy IOTA.
2. Choose a crypto exchange:
You need to choose a crypto exchange from where you can exchange your existing cryptocurrency to IOTA. There are lots of crypto exchanges but you need to choose which support IOTA for exchange.
The popular exchanges that support IOTA are Binance and Bitfinex, these two only support IOTA exchange. Binance is popular in US and Bitfinex can be used by the non-US citizen and is based in Hongkong.
3. Transfer IOTA from exchanges to the safer place:
There is no dedicated wallet or an official wallet for IOTA so its quite difficult to keep it safer from hackers. So you need to be careful choosing to store these coins in safer place. You can have any wallet which can support IOTA.