I can’t count how many of my friends have asked me to teach them how to buy IOTA.
Briefly said, you need to:
- Get a digital wallet that supports IOTA coin (Trinity wallet is recommended)
- Buy a mainstream cryptocurrency (BTC or ETH) on a trusted cryptocurrency exchange platform like Binance and Coindesk (see the list of recommended exchanges down below)
- Exchange BTC or ETH to IOTA.
It’s not hard when you follow the steps. To see a more detailed version of this guide, read more.
What is IOTA
IOTA is a cryptocurrency that many call a revolutionary foundation. Due to its’ superiority over current Blockchain designs, Tangle – IOTA’s distributed ledger can successfully put emphasize on M2M (machine to machine) payments.
Shortly said, IOTA is a data transfer system for the IoT (internet of things).
- IOTA has fast and feeless transactions.
- IOTA is secure from hackers by using quantum-proof algorithms.
- You might come around the name MIOTA (mega IOTA) – it’s a currency we measure IOTA with.
Can you imagine, household appliances, utilities and other machines having their own cryptocurrency wallets? That’s the idea behind IOTA project. Founders wanted to create a place where financial transactions would be more accessible for everyone and everything.
So it’s understandable why you’d like to buy this crypto. Since we started talking about buying IOTA, let’s dig in deeper.
If you want to be safe and protected, I recommend using Trinity wallet.
- Trinity is the official wallet for iOTA users
- It is available for both iOS and Android users.
- Windows, Mac and Linux users can benefit from the desktop version as well.
It makes the otherwise unhandy process of setting up and managing accounts and addresses extremely easy. Shortly, the wallet will also introduce the additional exchange module to sell and buy IOTA as users desire.
Setting up Trinity wallet is relatively easy.
- Download the app on your iOS or Android device or use the desktop version to sign up.
- Create a new seed (Seed is the account).
- Backup the seed in the encrypted file, as the Trinity wallet recommends.
Choosing an Exchange
It’s a common trend to buy mainstream currencies, such as BTC or ETH from an established platform and transfer to Binance to buy IOTA. However, Binance has also introduced a fiat on-ramp that allows for payments with credit and debit cards since January 2019 (but charging higher fees).
IOTA is also traded on a number of other exchanges, including such that offer direct fiat gateways via payment processors, although these tend to be mostly limited to EU customers. Such other exchanges include Bitfinex, Trade.io, Okex, Upbit, HitBTC (not recommended due to difficulty withdrawing funds) and more recently BitIt, Bitvavo and Bitpanda if you’d prefer buying crypto with US dollars or your local currency.
Omoku is a dedicated IOTA/EUR bridge soon to launch in alpha testing.
Iotaprices.com offers real-time prices across all available exchanges for comparison.
Below we’ll go through some of the common ways of knowing how to buy IOTA.
Binance and Coinbase are the largest cryptocurrency exchanges by volume. Binance offers IOTA pairs with Bitcoin, Ether, US Tether and Binance’s BNB. And you can buy Bitcoin on Binance with your credit card, it’s that easy!
Step 1: Register a Binance account
Go to the Binance registration page and enter your details. After clicking register you’ll need to verify your email.
After you click the link in the email sent to you from Binance, your account should be activated. Click the link to Login and proceed with setting up your account. Make sure to choose a strong alphanumeric password for your login.
Step 2: Verify your account
Once verified your email and have logged back in, go to Funds in the navigation bar on top of the page and click on Deposits Withdrawals in the drop-down menu.
Step 3: Buy Bitcoin or Ethereum with credit card
Go to the dashboard and find the yellow button that says Deposit. Click the button and you’ll be transferred to a new page where you’ll be able to press the button “Buy BTC and ETH with Credit Card Now.”
Make sure your credit card information and the amount of BTC or ETH is correct and proceed.
Step 3: Get a Binancehttps://www.binance.com/en/markets?ref=16863683 receiving address
If you prefer to buy BTC or ETH on Coinbase, here’s a method perfectly fitted for you.
A lot of cryptocurrencies will be listed on the page, so find Ethereum (ETH) or Bitcoin (BTC, if you have opted for that) and click on Deposit at the end of the row. This will reveal your Ethereum receiving address. (Ethereum is preferred due to faster confirmation times and usually cheaper transactions fees).
Take note of your Ethereum deposit address (BTC in the image below).
Step 4: Buy Ether or Bitcoin
Now we need to send some Ethereum to that Binance receiving address so we can trade them in. So sign up to a CryptoCurrency Wallet Provider, Again I recommend Coinbase and purchase your Ethereum using whatever currency you wish.
For a fiat on-ramp for the purpose, Coinbase’s custodial services are recommended. IOTA is exchangeable with either Bitcoin or Ethereum, but ETH is preferable, as already mentioned. After acquiring an amount of Ether is must be transferred to Binance.
Step 5: Transfer Ether to Binance
In Coinbase, go to Accounts and click on the Send button under the wallet of the currency purchased (Bitcoin or Ethereum).
Step 7: Choose a trading pair
Locate your trading pair in the column on the right and click on it. In this case, look for IOTA/ETH (or IOTA/BTC if having sent BTC instead).
Step 8: Initiate the trade and buy the crypto.
The buy order form will now appear. Fill it out with the amount of IOTA to buy and click on the Buy button.
The order might take a while to go through (even though IOTA itself is really fast, the exchanges usually showcase some delays). From here on, you can either leave your IOTA on Binance if you intend to trade, but it’s recommended that if you don’t you should withdraw your funds off the exchange and into your Trinity wallet.
Recommended exchange platforms
As I promised, here’s a list of recommended exchange platforms to try besides Coindesk and Binance.
- Exchange platform for the European crypto market (IOTA/EUR pair)
- Well-integrated with IOTA
- Availability to buy crypto with credit or debit card.
One can easily buy IOTA on Bitpanda, a platform with the only downside of the higher fees.
Bitvavo: Dutch-based Broker
Bitvavo is another fiat on-ramp available to users within the Eurozone.
- Dutch cryptocurrency broker
- Does not charge fees for Euro deposits
BitIt.io: Compliant Eurozone Exchange
- Possibility to buy crypto with credit or debit card
- SEPA/EUR pairing and cash vouchers (Cashlib and Neosurf) are available
- No verification needed for a transaction of €25 to €250 (while using a credit/debit card).
Security and compliance is provided via their certified partners and it’s available in more than 50 countries.
The trading price of IOTA is currently about 6% over the average market and there’s a 4% fee for credit card purchases (around 10% total fee compared to going through the hops of purchasing other cryptocurrency through Coinbase and transferring to Binance to buy IOTA with).
IOTA can be easily purchased on BitIt – one just has to register, verify the account and is ready to go. The following currencies are accepted:
There have however been occasion user complaints with BitIt.
Trade.io: Suitable for US Customers
- Hong Kong-based exchange platform
- Credit and debit card accessibility, plus wire transfers
- Supports BTC, ETH and US dollar pairs
- 24/7 support
It also has a decentralized Liquidity Pool, a Consulting Service and an Incubator.
However, when it comes to IOTA the volume is rather low compared to other exchanges.
Coinex: US Oriented
- Customer-favorite choice in th3e US.
- Only available exchange option for IOTA is with Bitcoin Cash (BCH).
- Exchange has its’ native token OKB.
Coinex launched in December 2017 and has been up and running since. Registered in the United Kingdom, but operating from Hong Kong, the exchange offers a large array of trading pairs.
Upbit: South Korea Oriented
- South Korean exchange platform
- Partners with Bittrex
- Lists over 180 crypto assets
- Security on Upbit is monitored 24/7 and the exchange uses a firewall.
- It offers an IOTA/KRW trading pair.
Omoku: First Direct IOTA-to-EUR Bridge
- The platform is dedicated to IOTA-EUR pair
Based in Switzerland and granted license by regulators, Omoku aims to connect the IOTA-based machine economy with SEPA, connecting bank accounts with IOTA wallets without any detours and minimal friction in providing a real-time gateway to the Tangle.
Withdraw Funds to Wallet
To summarise your actions, store your bought IOTA in your wallet.
Click Receive in Trinity interface and copy the generated address.
Use that receiving address to transfer IOTA balance to off the exchange.
A more detailed explanation of the process is found here.
IOTA is a fairly different cryptocurrency from what we’ve known. It’s a revolutionary finding, and I believe that every crypto enthusiast should learn more about its’ possibilities. Since it’s impossible to scope the full image of what IOTA actually means in one article, I’d advise learning more from additional sources.
“Before buying IOTA it is pivotal to take the time to understand the various nuances about the unique IOTA protocol, including the unique digital signature scheme, the difference between seeds and private keys, and so on.“
It’s notable to say that IOTA community is avoiding the money chasing stereotype and forced hype around the coin. Furthermore, they focus on institutional investors who will help them achieve the general goal of the project. They are actively fighting to achieve maximum engagement from the community and crypto enthusiasts.
In summary, as they say in 4chan‘s /biz — DYOR (“Do Your Own Research”). And this perhaps goes for IOTA more so than other circulating crypto-assets.