Table of contents:
- 1 Investing in IOTA – how can you invest in IOTA with the Crypto Coin?
- 1.1 Invest in IOTA: Overview of Crypto Coin IOTA
- 1.2 INVEST IN IOTA: IOTA USES SO-CALLED GRAPHS INSTEAD OF THE BLOCKCHAIN TECHNOLOGY
- 1.3 How to invest in IOTA: Using digital marketplaces, crypto exchanges and CFD brokers
- 1.4 invest in IOTA on a crypto exchange
- 1.5 Invest in IOTA: Use CFD Brokers to trade Crypto Currencies
- 1.6 WHEN INVESTING WITH IOTA PAY ATTENTION TO THE BEST POSSIBLE SPREADS
- 1.7 Test the investment in IOTA on a free demo account
- 1.8 Conclusion: There are several ways to invest in IOTA
Investing in IOTA – how can you invest in IOTA with the Crypto Coin?
How can I invest in IOTA? We will discuss this question in more detail below. It also makes sense to talk about the special features of IOTA. Unlike Bitcoin or Ethereum, Crypto Coin, for example, does not rely on block chain technology. Overall, IOTA has a very interesting concept, which is why large companies such as Deutsche Telekom and Samsung are also interested in the Crypto Coin. As an investor and trader, you can currently profit from the rather low prices to invest in IOTA at a reasonable price.
- To invest in IOTA or not: How does IOTA differ from other crypto currencies?
- What is the Internet of Things?
- What is the best way to invest in IOTA?
- What is the difference between digital marketplaces, crypto exchanges and crypto brokers?
Invest in IOTA: Overview of Crypto Coin IOTA
As announced, we will briefly introduce the crypto currency IOTA below: The Crypto Coin was developed in 2016 and as an investor and trader you can also trade it since 2017. Thus, the Crypto Coin came on the market a few years later than the Bitcoin, because the Bitcoin was already released in 2009. Nevertheless, IOTA managed to prevail against many competitors within a short time. Today, the market capitalization of IOTA is about 600 million US dollars. Thus, Crypto Coin has succeeded in placing itself in the worldwide Top 20 “Crypto Charts”. At IOTA, the name already says it all: because the crypto currency wants to be “the” Crypto Coin for the Internet of Things (abbreviated as “IoT”). Furthermore, “Iota” is the smallest letter in the Greek alphabet.
The Internet of Things is a dazzling term. This is how it describes the attempt to make real objects visible on the Internet as well. The term is often used in connection with Industry 4.0. In future factories, for example, it should be possible for machines and robots to process payments independently. This should work without human intervention and, above all, without banks. Experts give IOTA forecasts that this is a growth market worth billions. Since IOTA is targeting exactly this area, it is already possible today to invest in the future with the help of the crypto currency.
INVEST IN IOTA: IOTA USES SO-CALLED GRAPHS INSTEAD OF THE BLOCKCHAIN TECHNOLOGY
Unlike Bitcoin or Ethereum, IOTA is not based on the block chain. In principle, the block chain is a gigantic database. The individual transactions are stored there in blocks. The special feature of this method is that all blocks are connected to each other by cryptography. This prevents that the information can be changed afterwards. Therefore the block chain can be used very well as a basis for digital currencies. However, this technology also has a major weak point: the more users use the block chain, the slower the individual transactions run. Therefore one says with Bitcoin and Ethereum meanwhile also that the largest problem of these crypto currencies consists in the lack of scalability.
For this reason, the developers at IOTA decided from the very beginning to go a different way. Instead of the block chain, IOTA uses so-called graphs (tangles) to store the data. This also prevents the information from being changed afterwards. However, IOTA has the decisive advantage that the system is very scalable. Therefore, the crypto currency can handle very many transactions without any problems. This is an important prerequisite to be able to serve as crypto currency for the Internet of Things.
Unlike many other crypto currencies, there is no IOTA mining (“mining”) possible. This is not really astonishing, since there are no blocks at all in IOTA which could be “mined”. To invest in IOTA, however, you can access already existing coins. In the following we will go into this in more detail.
How to invest in IOTA: Using digital marketplaces, crypto exchanges and CFD brokers
Fortunately, it is quite easy to buy crypto coins like IOTA these days. So there are basically three options available:
- Digital marketplaces for crypto currencies
- Crypto exchanges
- Crypto Broker (Trading with crypto currencies as CFD)
Digital marketplaces were created shortly after Bitcoin was launched as the first crypto currency in 2009. Such digital marketplaces can be imagined in principle like normal marketplaces where buyers and sellers meet. The trade with the crypto currencies takes place directly between the market participants. The platform operator, on the other hand, is only responsible for ensuring that the necessary infrastructure is provided. This system has however the disadvantage that the trade runs off partially quite ponderous. After the purchase, the buyer must first send the seller the money for the crypto coins. Sometimes this alone can take several days.
For this reason, many digital marketplaces nowadays offer express trading. The whole thing is done in such a way that the platform operator works together with a certain bank. As a user of the marketplace, you can then open a current account with the bank, which is then linked to the user account. This makes future transactions run faster. However, the disadvantage is that you have to open a new current account. This in turn can have a negative effect on the SCHUFA score.
invest in IOTA on a crypto exchange
Meanwhile, due to the disadvantages mentioned above, crypto exchanges are more popular with many investors and traders than digital marketplaces. Unlike digital marketplaces, the market participants on a crypto exchange do not trade directly with each other. Instead, all transactions are handled by the platform operator. This has the great advantage that trading is much faster this way. However, it is necessary to register as a customer for a user account at the exchange. However, this usually only takes a few minutes. Then it is necessary to deposit capital into the account. This is then available afterwards for investing in IOTA. As a customer, you usually have several possibilities to infect your account at the Crypto Exchange. These include in particular:
- Bank transfers
- Credit cards (for example MasterCard, Visa and American Express)
- Payment service provider (“Immediately”)
- Online Wallets (especially PayPal, Skrill and Neteller)
Note: Depending on the Crypto Exchange, different fees can be charged for the different payment methods. However, with some providers you can make deposits and withdrawals free of charge.
Before you decide on a particular crypto exchange, you should also make sure that you can actually trade with IOTA there. Because due to the multiplicity of crypto currencies there is, according to our experience, almost no provider that allows you to invest in all available crypto coins.
Invest in IOTA: Use CFD Brokers to trade Crypto Currencies
For trading with IOTA, however, not only digital marketplaces or crypto exchanges can be used. Rather one has nowadays also with ever more brokers the possibility of trading with crypto currencies as CFD. CFD brokers are popular with many private investors especially for trading stock indices and currency pairs.
The special feature of CFD trading is that the transactions take place only between the trader and the broker. Therefore, if you buy for example IOTA CFD, you do not buy “real” Crypto Coins. Nevertheless, the Crypto CFDs are linked to the prices of the crypto currencies. Therefore CFDs can be used to profit very well from the price movements of the Crypto Coins. Trading with CFD offers a trader many advantages.
Because in trading you can use a lever in this way. We will explain this with an example: We want to trade with IOTA and recognize in the trading software that the Crypto Coin is currently at a price of 0.25 US Dollar. To trade with 1.000 Crypto Coins, you need in this case 250 US Dollar on the trading account. If you use a leverage of 1 : 2 with a CFD broker, the required capital is reduced to 125 US dollars. If you have 250 US dollars in your account, you can even trade with 2,000 IOTA CFDs. In this case, the price movements also have twice the effect. As you can see, trading CFDs actually offers many advantages.
WHEN INVESTING WITH IOTA PAY ATTENTION TO THE BEST POSSIBLE SPREADS
In order to find a good CFD broker, it is a good idea to use our broker comparison. Because there we test the individual providers very thoroughly and present the respective advantages and disadvantages clearly. In this way it is also easy to find a good broker. Also with a CFD broker you should pay attention to the fact that one of these offers trading with IOTA. In addition, you can usually also trade with the following underlying assets as a CFD:
- Share indices (for example DAX and Nasdaq)
- currency pairs (for example Euro / British Pound)
- Individual shares (for example, the shares of Adidas, Facebook and Microsoft)
- Precious metals (for example gold and silver)
- Raw materials (for example natural gas)
- Government Bonds
Overall, it is very important that one of the brokers offers the best possible trading conditions. Thus, the costs and fees that may arise when trading with Crypto CFD can be divided into three categories:
Costs that you have to pay to the broker for each trade (usually through the spread), fees for deposits and withdrawals and other costs and fees. The spread is the difference between the purchase price and the sale price. The bigger this difference is, the more expensive the broker is. Experience shows that the individual providers sometimes differ considerably in the spread amount. Also for this reason it is recommended to use our broker comparison to get a better overview.
Test the investment in IOTA on a free demo account
In order to test investing and trading with IOTA, it is advisable to open a free demo account with a CFD broker. With most providers, the registration for such an account takes only a few minutes. Often you can even use your existing Facebook or Google account to register. Already on the demo account you usually get real-time quotes. This is an excellent way to simulate trading with crypto currencies. However, you do not trade with real capital on this account, but rather the CFD broker provides you with virtual money. This can be used to test CFD trading without risk. In our experience, the virtual capital usually amounts to 10,000 €.
The demo phase is often limited to 30 days, but if necessary, this period can usually be extended without problems. In general, traders should take enough time to get familiar with the trading platform of the CFD broker. Many brokers support you with different training offers nowadays. These also differ in their quality, however, sometimes considerably from each other. We also pay attention to this in our broker comparison.
Overall, the demo account is also very well suited to try out different strategies for trading with IOTA. As soon as you feel comfortable with the demo account, you can continue trading on a real money account.
Conclusion: There are several ways to invest in IOTA
In the course of this article we have gone into great detail about investing in IOTA. As shown, IOTA is an extremely interesting crypto coin. Unlike Bitcoin, IOTA is very well scalable and therefore perfectly suited for the Internet of Things. This in turn is a future market worth billions. For this reason it is advisable to invest in IOTA now. As an investor and trader you can take advantage of the current low prices. Because the crypto currency is still in a major correction. But sooner or later this will end and then you can expect rising IOTA prices.
To trade with IOTA, you can either use digital marketplaces, crypto exchanges or CFD brokers. The easiest way is to invest with CFD brokers. Because there, most providers offer only 100 or 200 € to open a trading account. To find a good broker, it is advisable to use our broker comparison. In addition, it is advisable to first train trading with IOTA on a free demo account.