IOTA is a cryptocurrency designed for transactions on the Internet of Things (IoT). It can be purchased, speculated on, or traded in several ways.
We’ll show you how to trade IOTA and where to find a broker in .
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Reasons to Trade in IOTA
Traders may have many reasons to trade in IOTA. Primary among them are:
- 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.
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 kind of 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.
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.
Reasons Not to Trade in IOTA
As with any cryptocurrency, there are also risks associated with trading IOTA.
- Security concerns
- Reliance upon the success of the Internet of Things
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 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 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.
How to Buy IOTA
If you’ve decided that trading in IOTA is the right decision, the next challenge is figuring out how to buy IOTA.
Acquiring IOTA isn’t as simple as acquiring Bitcoin, Litecoin or Ethereum. If you want to buy one of the “big three,” then it is possible to purchase them directly using fiat currency. Some exchanges will even let you use your credit or debit card.
However, IOTA, like most other altcoins, can only be obtained by trading it for other cryptocurrencies through an exchange. The simplest way of doing this is is to trade Bitcoin for IOTA.
Most users will opt to go through an exchange like Bitfinex. This involves using fiat currency to purchase cryptocurrency and storing your newly acquired tokens in a virtual wallet.
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
Even if you can’t purchase IOTA directly, you can speculate on its price movements with other trading instruments, including Contracts for Difference (CFDs). We’ve found the best brokers available to you below.
Online Crypto Brokers in
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 73.90%-89.00% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.