How to Buy IOTA – A Beginner’s Guide

By: Ofir Beigel | Last updated: 11/13/19

IOTA is a cryptocurrency focused on supplying a currency for the machine economy (i.e.  machines that pay each other for services). In the following post I’ll give you a brief overview of the IOTA technology, its currency and also explain where to buy it online.

How to Buy IOTA Summary

Here’s how to buy IOTA:

  1. Get an IOTA wallet (Ledger, Trinity)
  2. Locate your IOTA address
  3. Find an IOTA exchange (Binance)
  4. Exchange Bitcoin for IOTA
  5. Withdraw your coins to your wallet

If Binance doesn’t work out for you here are some additional buying options:

eToro
Payment methods:
Credit, debit, wire transfer, PayPal, Skrill
Overall rating:
4.5 Star Rating
Binance
Payment methods:
Credit card (brokerage only), crypto
Overall rating:
4.5 Star Rating
Bitfinex
Payment methods:
Wire transfer, crypto (Tether only)
Overall rating:
4 Star Rating

That’s how to buy IOTA in a nutshell. If you want a more detailed explanation about what IOTA is and how to buy it keep on reading, here’s what I’ll cover:

  1. What is IOTA
  2. How to buy IOTA
  3. Conclusion

1. What is IOTA?

IOTA is a cryptocurrency that puts an emphasis on machine to machine payments. As such, it aims to be scalable, secure and lightweight to allow any type of IoT (Internet of Things) device to use it.

IOTA transactions are fast and feeless, thanks to a new model used by IOTA called “The Tangle”. IOTA uses node to node verification only, unlike Bitcoin’s traditional blockchain, where miners invest energy to solve math problems and add new blocks of transactions.

Each node that wants to send a transaction is required to validate two unconfirmed transactions as payment. The more nodes on the system, the faster transaction verification will occur.

Finally, IOTA uses quantum proof algorithms, making it secure against hacks from even the most powerful computers conceivable.

IOTA’s currency is measured in mega IOTAs (or MIOTA for short). Note that whenever you see IOTA’s price on an exchange or price ticker it will usually refer to MIOTA, even if the “M” isn’t present.

The total number of IOTAs in existence is 2,779,530,283,277,761,  all of them were created in the genesis block and sold to investors in the IOTA ICO.


2. How to Buy IOTA

Step 1 – Get an IOTA Wallet

Today there isn’t a wide selection of wallets that support IOTA, so many people are storing it on exchanges. Many newbies, who don’t have a solid understanding of the technical details, are opting to do this.

Nevertheless,  it doesn’t mean that storing IOTA on an exchange is a good idea. The best practice is to use a hardware or software wallet and not risk your IOTA getting lost or stolen.

Ledger
Type:
Hardware wallet
Overall rating:
5 Star Rating
Trinity
Type:
Software wallet
Overall rating:
4 Star Rating
IOTA GUI Client
Type:
Desktop wallet
Overall rating:
3.5 Star Rating

Ledger (hardware wallet)

The Ledger Nano X and Ledger Nano S are hardware devices that allow you to store IOTA safely and securely offline. The Nano X also supports the use of a mobile app to send and receive funds.

Both devices can hold a wide range of additional cryptocurrencies as well, so this might be a good choice if you’re looking to store additional other coins than IOTA. Here’s my complete review of the Ledger Nano X.

Trinity (software wallet)

Trinity is a dedicated IOTA only wallet, available for both desktop (Mac, Linux, Windows) and mobile (iOS, Android). This wallet is currently in public Beta meaning it’s probably not free from bugs but seems to be well supported and documented.

IOTA GUI Client (software wallet)

The IOTA GUI client is a desktop wallet that is available for Windows, Mac, and Linux. Setting up this wallet requires some work; When setting it up, choose “light node” and a host. Then generate an 81-character seed that contains only uppercase letters and the number 9.  Keep this seed in a safe spot.

Here are directions and comments from some users on Reddit who are discussing how hard this wallet is to set up.

IOTA Paper Wallet

The IOTA paper wallet is great for offline storage without the need to pay for a hardware wallet you can use a paper wallet. This wallet requires creating a seed comprised out of 81 characters with uppercase letters and the number 9 (just like the desktop wallet).

After generating the paper wallet, you can print it out and send IOTA to it. This paper wallet should be stored in a safe place for future use. Here’s a video explaining the process:

Step 2 – Find an IOTA exchange

Buy IOTA Through eToro

eToro is probably the easiest way to go if you’re only looking to invest in IOTA for speculation purposes (i.e. you don’t need access to the actual IOTA coins). eToro is a trading platform with a focus on cryptocurrencies. It allows you to easily buy and sell IOTA for fiat (dollars, euros, etc.) with a variety of payment options.

If you decide to use eToro you can skip steps 1 and 3 – you won’t be needing an IOTA wallet since you can’t send your coins outside of eToros. You can read my complete eToro review here.

Important – cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. So keep in mind that your capital is at risk.

Buy IOTA Through Binance

Binance allows you to purchase IOTA in exchange for Bitcoin. If you do require to access you coins, or don’t like the eToro solution for any other reason, this is probably the best possible choice Binance.

Strictly a cryptocurrency exchange, Binance offers only an IOTA/BTC trading pair. This means that you’ll either need to buy Bitcoin on Binance or deposit Bitcoins from somewhere else in order to trade them for IOTA. Binance also allows users to buy certain cryptos (but not IOTA) with a credit card, making them a very attractive solution.

You can read my complete Binance review here.

Buy IOTA Through Bitfinex

Bitfinex allows you to purchase IOTA with BTC, USD, GBP, EUR, JPY and ETH. However, Bitfinex is no longer verifying US users, so these individuals will have to look for another option.

If you are eligible to use Bitfinex this option will probably be the cheapest but also the slowest way to buy IOTA as you’ll be required to finish a complete identity verification process + wait for your bank transfer to arrive at Bifinex.

You can read my complete Bitfinex review here.

Step 3 – Withdraw your IOTA

Once you bought your IOTA coins it’s time to move them from the exchange into the wallet you’ve chosen in step 1. This will make sure that the coins are under your control only. Make sure to locate your IOTA address inside the chosen IOTA wallet in order to request a withdrawal from the exchange.

While theoretically IOTA confirmations should take 2 milliseconds, in reality they usually take a few minutes.


3. Conclusion – IOTA’s Future

With its grand vision, IOTA seeks to revolutionize the Internet of Things by bringing micro-transactions together with zero fees across all connected devices. Given its frictionless method of exchanging value, IOTA could very well have a bright future ahead of it.

Anyone who wants to take advantage of early adopter status still can, as this project is still in its infancy. The only real drawback to purchasing and storing IOTA is the lack of sufficient wallets to support the coin.

In addition, the web mobile wallets are in beta, making the IOTA paper wallet or the Ledger Nano wallets the best and easiest solution for long-term holders.

Have you had any experience with IOTA? I’d love to hear about it in the comment section below.

Bitcoin Video Crash Course 

Dummy-proof explainer videos enjoyed by over 100,000 students. One email a day for 7 days, short and educational, guaranteed.

We hate spam as much as you do. You can unsubscribe with one click.

26
Leave a Reply

avatar
10 Comment threads
16 Thread replies
11 Followers
 
Most reacted comment
Hottest comment thread
18 Comment authors
MaxDanSteven HayGeorgeBing Pinkerton Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Max
Guest
Max

Using bitfinex for purchase IOTA is not very convenient. You need a verified account, it takes a lot of time. It is much more convenient to use one of the exchangers. For example, changenow.io where I bought ADA and other coins without registration. VISA and Mastercard supported.

Dan
Guest
Dan

Dom Said either will be a trillion dollars project or a zero value one,
i hope its a trillion one 🙂

George
Guest
George

Hello, Can I use Ledger Nano S to as a wallet for IOTA?

Bing Pinkerton
Guest
Bing Pinkerton

These days you can get IOTA on eBay.

ben
Guest
ben

Hi Steven,

This is a really useful guide. I have added it to my Iota useful links!
**link removed**

Help
Guest
Help

@Steven Hay and Eric can you buy iota with money from bank account right now? In April 2018. And is iota not going to fail or go down? Thanks!

M_Crypto_Enthusiast
Guest
M_Crypto_Enthusiast

Hi Eric and all, Thanks for your post about buying IOTA, I just did it couple days ago, I used Binance for buying IOTA with BTC from Coinbase. The issue am having is the withdraw button in Binance is disabled for me, there is a message when you hover over that says “Network Congestion, Withdraw Suspended”, and it has been like since the time I bought. I sent an email to Binance support this morning, haven’t heard back, other than the automated reply confirming they got my issue and looking into it. Are these guys legit? Has anyone out there… Read more »

Dolores
Guest
Dolores

I’ve a problem with the IOTA wallet on my phone; IOTA Wallet (BETA) 0.9.1 APK, I can enter with the seed, but never see my coins, it keeps saying; ‘no data available’ in the transfers addresses part , the rest seems to work. Anyone any ideas??

Douglas Fleming
Member
Douglas Fleming

Thanks for the article Eric,

So where does a US citizen go to buy some IOTA?

Bertrand
Guest
Bertrand

The entire system was premined at genesis, so every IOTA sold is essentially being bought from the creators then?

Apologies if I’m getting this wrong. only halfway through the whitepaper.