What is IOTA (Cryptocurrency)? Beginners guide

Today, I heard the news that IOTA which was trading below $1 around 7 days ago at once jumped to $5.55 yesterday. This is a significant rise and with this IOTA became the 4th largest cryptocurrency in the world. Well, it compelled me to discuss IOTA with you guys.

what is IOTA?

IOTA is the cryptocurrency designed for Internet Of Things, which makes use of distributed ledgers.But if it like any other cryptocurrency why is it rising like anything?

Because it is not like any other cryptocurrency. Let me explain it in detail. Unlike most cryptos it does not use a blockchain, instead, it uses a technology known as “The Tangle” which is based on other mathematical concepts known as directed acyclic graphs. This was a purposeful move from the developers as within this design is what separates IOTA from every other cryptocurrency. Within the design, it has the removal of miners without sacrificing decentralization with the need for miners to be removed so what are the need for fees?

IOTA Tangle

Yes, Iota is completely free to use. This is because everyone plays an equal role in the network. Any time a transaction is made the issuer must help authenticate to previous and random transactions. It uses a series of cryptographic algorithms along with many other sophisticated techniques to do this work. This work is done behind the scenes on such a small scale that any device could manage it without efforts. Ultimately a network like this allows for 2 important features :

  1. Microtransaction – Microtransactions are the transactions that can be worth fraction of a cent. And cryptos like bitcoin faced many issues with this largely due to the necessity of miners. In short, you couldn’t buy a burger with most blockchain based cryptos.

2. Speed–  In cryptocurrency speed is measured by TPS (transactions per second). In simple words, none of us want to wait               for hours for a transaction. Ultimately with IOTA more people that use the network the faster it becomes.

Overcoming the issues blockchain based cryptocurrency faced today, It is these two features which give rise to IOTA’s purpose which is to be implemented to be underlying protocol behind the Internet Of Things. And these two things also make IOTA better than any other cryptocurrency then whether it is bitcoin or any other altcoin. It would take time to grow but the rate expected would be much higher than that was of Bitcoin.

  HOW CAN YOU BUY IOTA?

To purchase IOTA coins, you need to have  Ethereum, Bitcoins, or any other top altcoins. It is better to buy Bitcoins or Ethereum in the market and then you can easily use it in Binance.com to purchase IOTA crypto coins.

  • The first thing you need to do is you need to buy Bitcoins from websites like CoinBase, ZebPay, BlockChain (UnoCoin). All these websites would ask you to verify your account with your real identity. So signup and immediately upload your verification documents. I personally use Coinbase as it is very easy to use and it is widely recognized wallet.
  • Once you received your bitcoins, signup on Binance.com which is an Official crypto exchange website. This is one of the most popular websites for crypto trading. IOTA is only available on Binance and Bitfinex websites as this is a new cryptocurrency. Click here to signup on Binance to buy IOTA cryptocurrency at the best price.
  • Now go to the “Deposit Withdrawal” section and click on the Bitcoin (BTC). It will show you a unique BTC address. You need copy this and go back to your wallet where you bought bitcoins/etherium. Now, send an amount of BTC you would like to transfer to Binance.
  • Once you have completed the transaction, Added BTC will show up in your Binance account within an hour. Yes, it takes some time to complete the transaction.
  • Check your account after around an hour and you will see your BTC in your Binance account. Now click on the Exchange “Basic” and search for IOTA/BTC exchange. There are hundreds of other cryptocurrencies also listed over there.

 

buy IOTA on Binance

  • Enter the amount of IOTA coins you want to purchase and it will show the total amount of BTC in the column below. Once you click on the Buy button, amount of IOTA will instantly get exchanged from your Bitcoins and you can check this on Funds –> Deposit Withdrawal option again to make sure you have received the IOTA coins.

Well, this was all from my side, hope you guys enjoyed reading this article and have started thinking of investing in IOTA cryptocurrency. Share this article with your friends and if you any comments and suggestions feel free to write them in the comment section.

Cheers.

you can also read my previous post: How to choose best cryptocurrency wallet.

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