An up-close look at IOTA cryptocurrency

After a decade of innovation, cryptocurrency now stands as one of the ideal payment methods due to cheaper and faster transactions that banking institutions can’t do. One cryptocurrency takes these features to the next level with its zero fees and the almost limitless transaction validation of the Tangle technology. 

Established in 2016, IOTA aims to untangle the rifts/flaws of earlier cryptocurrencies by offering transparency through its Tangle ecosystem. 

Find out what IOTA brings to the table and how it can revolutionize the already flourishing world of cryptocurrency here at BTC Post!

What’s IOTA all about?

IOTA cryptocurrency is designed by the non-profit organization IOTA Foundation. It’s an open-source ledger built to record transactions on the Internet of Things (IoT) which is a network of physical things that have technologies like sensors and software to exchange data with other devices that are also connected to the internet.  

IOTA was created by Sergey Ivancheglo, Serguei Popov, David Sønstebø and Dominik Schiener. Before IOTA was established, the founders had their first venture called the Jinn project which also focused on having a low-cost structure. By 2014, the project had its token sale and roughly 100,000 coins were sold, earning the project $250,000. In 2015, Jinn became the IOTA cryptocurrency that people know today.     

Since IOTA is powered by the Internet of Things, the cryptocurrency has zero fees regardless of the size of transactions between machines. Additionally, IOTA doesn’t use miners to validate the transactions. Instead, Tangle is used to approve two previous transactions before a new one can be validated, allowing each node to be connected with other nodes in the network.

Apart from the scalability prowess of Tangle, a transaction needs to go through Proof-of-Work (PoW) where an algorithm will be solved to validate the transaction. However, compared to most PoW that requires a difficult puzzle to be solved, there’s no complex algorithm to go through in IOTA.

Benefits of using IOTA cryptocurrency

Like other cryptocurrencies, IOTA also has tons of benefits that users can take advantage of. Check out the benefits of IOTA to know more:

Zero fees and expenses

Since IOTA uses a decentralised distributed ledger and has no miners in the network, no maintenance is needed for IOTA. With this, Tangle doesn’t need resources to validate transactions, allowing it to be free and easily accessible by anyone. 

Apart from solving the scalability issues that other cryptocurrencies face, the network remains zero transaction fees while having a fast transaction process. 

Quantum-proof 

IOTA is quantum-proof, which means that it uses hash-based signatures to generate faster processing of transactions and reduce the complex design of Tangle where previously needed to be approved first before another one can be validated. This also prevents potential hacking incidents from happening even when using quantum computers.

Energy and resource-efficient

Cryptocurrencies that utilise miners tend to use enormous amounts of energy. Mining computers are also regularly replaced as mining becomes more complex which only wastes resources. This is not the case with IOTA. Since there are no miners in the network, there’s no energy or resources to waste. 

How to buy IOTA coins

Buying cryptocurrency is exciting especially if you’re willing to invest in them. Moreover, buying IOTA coins is fast and easy. You just need to follow a few steps to get your hands on the coins. Here’s how you can buy IOTA coins:

1. Choose a platform to buy the coins

There’s a wide range of available platforms that offer IOTA coins and each one has its own features that separate them from one another. If this is your first time investing in crypto, do your research before choosing the right platform for you. 

Here are some of the most popular exchange sites that offer IOTA coins:

• Coinbase 

Coinbase is one of the leading crypto exchange sites in the world. It’s a US-based platform that offers an extensive selection of cryptocurrencies including Ether (ETH), Bitcoin (BTC), Cardano (ADA), Dogecoin (DOGE), Tether (USDT) and a lot more. 

Apart from cryptocurrencies, the platform also has many features such as crypto investing, advanced trading and a wallet for coins. This exchange site is regulated across all states in the US except Hawaii. 

• Kraken 

Another trusted exchange site you can choose is Kraken which is also a US-based platform that allows crypto users to trade between cryptocurrencies and fiat currencies. Kraken supports various cryptocurrencies such as Litecoin (LTC), Bitcoin (BTC), Polkadot (DOT), Cardano (ADA) and more. 

2. Sign up and create an account 

Typically, you’ll need to provide an email address and password to create an account on an exchange site. You might also need to verify your email address and use Two-factor Authenticator (2FA) to access your account, but it will depend on the platform you’re using. 

Additionally, some exchange sites require you to go through the Know Your Customer (KYC) protocol where you have to provide important details such as your address and contact number. 

3. Deposit funds and purchase 

You’ll need to deposit funds to buy IOTA coins. Transfer enough money that can support the number of IOTA coins you want to buy. 

4. Store coins in a wallet

A lot of experienced investors and traders always recommend storing cryptocurrencies in wallets because they will keep the coins safe. Exchange sites are online applications, making them vulnerable to hacking. However, if you decide to keep your IOTA coins in a wallet, you can prevent this from happening. 

There are various types of wallets to choose from which can cater to a wide range of crypto users. Here are the wallets to choose from:

• Hardware wallets – These are flash drive-type devices that you can bring wherever you go allowing you to access your tokens anytime. Some popular hardware wallets include Ledger Nano S and Trezor.
• Software wallets – This type of wallet is connected to the internet. As long as you have a WiFi connection, you can access this wallet. Some popular software wallets include Exodus and Coinomi.
  

Invest in IOTA today!

While IOTA is still on its way to becoming a well-known cryptocurrency, it has already provided some major shifts in the technology of cryptocurrency and how people can utilise it. It also eliminated some of the biggest shortcomings in the world of cryptocurrency including high transaction fees and scalability. The technology of IOTA shows its difference from other cryptocurrencies and how it contributed to changing the cryptosphere we know today.