Risk Warning: Your Capital is at Risk.
In this guide to trading IOTA (MIOTA), we’ll explain how and where to buy this altcoin. We also list regulated brokers and cryptocurrency exchanges that allow you to buy IOTA coins outright or speculate on IOTA’s price.
In a hurry? If you want to get started trading IOTA here are brokers available in to consider:
Disclaimer: Availability subject to regulations.
Between 74-89% of retail investor accounts lose money when trading CFDs.
How to Buy IOTA
IOTA, like most other altcoins, can be obtained by trading it for other cryptocurrencies through an exchange. The simplest way of doing this is is to trade Bitcoin for IOTA.
Some exchanges that have IOTA listed as a tradable cryptocurrency are OKEx and Binance. You can find IOTA available to exchange on some of these popular platforms:
While this approach is common, it comes with some inherent risks. You need to make sure you do your research properly and choose a reputable exchange.
Where to Trade in IOTA
If you can’t, or don’t want to purchase IOTA directly, you can speculate on its price movements with other trading instruments, like Contracts-for-Difference (CFDs), options, and forex.
Start your research with reviews of these regulated crypto brokers available in .
IMPORTANT: CFDs are not available in the USA due to local regulation, and regulated brokers do not accept US citizens or US residents as clients.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74%-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Please Note: Availability subject to regulations. Cryptocurrency CFDs are not available to UK retail traders.
Reasons To Trade IOTA
Important: This is not investment advice. We present a number of common arguments for and against investing in this commodity. Please seek professional advice before making investment decisions.
Alongside others, traders may considers these two reasons to trade in IOTA:
- First mover advantage
- Dedicated community
First Mover Advantage
IOTA is the first major cryptocurrency to look at using a DAG in order to process transactions. If their experiment proves a success, they will gain the advantage of being the first in a new field.
As with Bitcoin, early traders will reap the greatest rewards for taking a risk on untested technology.
Despite the flaws in its security, IOTA is an interesting experiment and this alone makes trading even a small amount worth considering for some.
IOTA’s Dedicated Community
Most cryptocurrencies have their cheerleaders but the IOTA community can be downright fanatical. IOTA has a very active Slack channel where users are more than happy to extol the virtue of the cryptocurrency.
These users are in it for the long haul and will likely hold their assets no matter what. This could help mitigate any drops in IOTA’s value as the community resists the urge to engage in profit-taking.
Reasons Not to Trade IOTA
As with any cryptocurrency, there are also risks associated with trading IOTA.
- Security concerns over IOTA’s network
- Reliance on the success of the Internet-of-Things
Security Concerns Over IOTA’s Network
Learn more about IOTA’s network architecture in this IOTA Cryptocurrency Guide.
Despite the promise behind the technology IOTA has been plagued with concerns over the security of the Network. The most damning criticism stems from the fact that the team decided to roll their own crypto.
This is a very risky thing to do – most cryptography goes under months or even years of testing before it’s considered safe enough to be used in the wild.
Using untested cryptography in a network that will handle financial transactions could be a recipe for disaster.
Reliance On The Success Of Internet-of-Things
The success of IOTA is very much reliant on predictions about the IoT being correct.
While the IoT industry is expected to grow rapidly, there have been reports of slow adoption among business and home users, although there are signs that this is changing.
The IoT is filled with security risks, highlighted by a spate of attacks using poorly protected default passwords. Privacy concerns have also been raised and could slow down adoption.
If the predictions prove to be correct and the Internet of Things takes off, IOTA will have the perfect conditions to succeed. If, however, consumers hesitate to adopt IoT devices then IOTA may begin to struggle.
Trading in IOTA is essentially reliant upon the IoT being successful.
- Learn More About IOTA
- Getting Started With Cryptocurrencies
- Crypto Broker and Exchange Guide
- Learn to Trade Commodities
We also have several other altcoin guides to coins like Bitcoin Cash, Dash, Decred, Dogecoin, Ethereum, Litecoin, Monero, Ripple, and Verge.