Table of contents:
- 1 IOTA trade – where is the best place to buy Crypto Coin?
- 1.1 Trade IOTA Coin: Overview of the crypto currency IOTA
- 1.2 IOTA USES SO-CALLED GRAPHS INSTEAD OF THE BLOCKCHAIN
- 1.3 Where can I trade IOTA: Using digital marketplaces, crypto exchanges and CFD brokers
- 1.4 Act IOTA: Buy the crypto currency on a crypto stock exchange
- 1.5 Where IOTA trade: Using CFD Brokers to trade with Cryto Coins
- 1.6 WHEN TRADING WITH IOTA PAY ATTENTION TO FAVOURABLE TRADING CONDITIONS
- 1.7 Try out the IOTA trading on a free demo account
- 1.8 Conclusion: With IOTA the best way to trade CFDs with a broker
IOTA trade – where is the best place to buy Crypto Coin?
Where can IOTA be traded? We will answer this question in detail in the following article. We will also discuss how IOTA differs from other crypto currencies. Crypto Coin focuses very much on the Internet of Things. We will also briefly explain this term. To trade with IOTA, you can basically use three possibilities: Digital marketplaces, Crypto exchanges and CFD brokers. In this article we will show the respective advantages and disadvantages of these methods. Overall, crypto coins are still in a major correction phase, which is why you can currently enter the market at low prices.
- Where is the best place to buy IOTA?
- Trading IOTA on octopuses: Does the popular Crypto Exchange offer trading with IOTA?
- What are the advantages of trading Crypto CFDs?
- How does IOTA differ from other crypto coins like Bitcoin or Ethereum?
Trade IOTA Coin: Overview of the crypto currency IOTA
Before we talk about the trade with IOTA, we will first give a short overview of the Crypto Coin. As is well known, Bitcoin came onto the market in 2009 as the world’s first crypto currency. IOTA, on the other hand, was only developed in 2016 and can also be traded since 2017. If you look at the market capitalization of the Crypto Coin, you can see that the market capitalization of IOTA amounts to around 600 million US dollars. This makes IOTA one of the 20 largest crypto currencies. The name of the Crypto Coin comes from the smallest letter of the Greek alphabet, “Iota”. The name also contains the abbreviation for the Internet of Things: IoT (English “Internet of Things”).
With the Internet of Things one means the following: It shall be tried to represent real existing objects in virtual space. This term is often used in connection with Industry 4.0. For example, IOTA can be used to ensure that robots and machines in future factories can process payments with each other. This can be done completely autonomously and above all without the intervention of a bank. Overall, this is a market worth billions. It is therefore to be expected that the demand for IOTA will increase in the future.
IOTA USES SO-CALLED GRAPHS INSTEAD OF THE BLOCKCHAIN
As already indicated, IOTA is different from many other crypto currencies. For example, Bitcoin and Ethereum use block chain technology to store individual data. The block chain can be imagined in this context like a huge database. The information is stored in blocks, which are connected by cryptographic procedures. In this way it is possible to prevent that the data can be changed afterwards. Therefore the block chain is very well suited as a basis for digital currencies. However, this method also has a major disadvantage: The more transactions the block chain has to process, the slower the system becomes. One speaks therefore also of the fact that crypto currencies are only very badly scalable like the Bitcoin and Ethereum.
Therefore the developers of IOTA have taken a different approach: Instead of the block chain, they use so-called graphs (English “tangles”) to store the information. This also allows the information to be stored safely and securely, and also allows a large number of transactions to be processed. For this reason, IOTA is also very well suited as a digital currency for the Internet of Things. Since IOTA does not use block chain, mining is not possible. But this is not a tragedy, because IOTA can be traded with already existing coins. We will now go into this in more detail in the following.
Where can I trade IOTA: Using digital marketplaces, crypto exchanges and CFD brokers
Nowadays, fortunately, it is no longer difficult to trade crypto currencies like IOTA. So you can basically use the following three options for buying and selling Crypto Coins:
- Digital market places for crypto currencies
- Crypto exchanges
- Crypto Broker (Trading with Crypto CFD)
We already mentioned that Bitcoin was the first Crypto Coin to be launched in 2009. The first digital marketplaces developed shortly afterwards. On these, buyers and sellers can meet to trade their crypto currencies. In a digital marketplace, the platform operator only provides the necessary infrastructure. In contrast, the individual transactions take place directly between the buyers and sellers. As a result, transactions in this way are often quite slow. For example, after the purchase, the seller must first send the money for the crypto coins to the seller. This process alone can take several days.
For this reason, several digital marketplaces now offer their customers a so-called express trade. Here, the platform operator works together with a bank. As a customer, one can open a current account with this bank and then link it to the user account on the digital marketplace. This means that transactions will be faster in the future. However, this procedure also has a disadvantage: As a rule, you have to open a new checking account, which can have negative consequences for your own SCHUFA score.
Act IOTA: Buy the crypto currency on a crypto stock exchange
Due to the disadvantages described above, many investors nowadays prefer to use crypto exchanges to trade digital currencies. In contrast to a digital marketplace, all transactions on a crypto exchange are handled by the platform operator. The buyers and sellers therefore do not trade directly with each other in this case. To trade on a crypto exchange, it is necessary to create a trading account. In addition, you must deposit capital into this account in order to be able to buy crypto currencies such as IOTA at a later date. All in all, trading in this way is very fast.
Usually, a crypto stock exchange offers different ways to deposit money into the trading account. Examples are:
- Bank transfers
- Credit cards (for example MasterCard, Visa and American Express)
- Payment service provider (instant bank transfer)
- Online Wallets (especially PayPal, Neteller and Skrill)
Frequently, different fees are incurred for the respective payment method. Some crypto exchanges also waive fees for deposits and withdrawals completely, making them very customer-friendly.
Is it possible to trade with IOTA on Kraken? Kraken is a very popular exchange for crypto currencies. Therefore, the question is often asked whether it is possible to trade with IOTA at this provider. Unfortunately, in our experience this is not the case at the moment. However, there are exchanges that offer trading with IOTA. In addition, as an investor and trader you also have the possibility to use a CFD broker. We will go into this in more detail below.
Where IOTA trade: Using CFD Brokers to trade with Cryto Coins
Nowadays, crypto currencies can be traded not only on digital marketplaces and crypto exchanges. More and more CFD brokers offer trading with crypto coins like IOTA. Many traders already know trading with CFDs from trading with stock indices (for example DAX or Dow Jones Index) and currencies.
When trading with CFDs, the transactions are only between the broker and the customer. Therefore, one does not receive a “real” crypto currency. Nevertheless, you can trade with Crypto Coins in this way and profit from the sometimes very strong price fluctuations. Trading with CFD has many advantages. For example, it is possible to use leverage when trading. Leverage in trading determines how much capital you actually need to have at your disposal in order to trade a certain amount of Crypto Coins. We will explain this using the following example: We can see in the trading platform that IOTA is quoted at a price of 0.20 US dollars. If you invest 200 US dollars, you can trade with 1,000 coins. However, if you use a leverage of 1 : 2, you only need 100 US dollars for this trade. If you invest 200 US Dollars, you could even trade with 2,000 Crypto Coins. This way you could profit twice from the exchange rate fluctuations of IOTA. For this reason it is not really surprising that the Crypto trade with CFDs is becoming more and more popular among investors and traders.
WHEN TRADING WITH IOTA PAY ATTENTION TO FAVOURABLE TRADING CONDITIONS
Meanwhile there are many CFD brokers. However, not all of them offer trading with IOTA. Therefore, it is advisable to inform yourself in advance about whether you can also trade with the crypto currency with the broker. For this one can use for example also our large broker comparison. Often you can trade with a CFD broker with the following underlying assets:
- Share indices (for example DAX and Dow Jones Index)
- currency pairs (for example US Dollar / Japanese Yen)
- Individual shares (for example the shares of Daimler, Facebook and Apple)
- Precious metals (for example gold and silver)
- Raw materials (for example oil)
- Government Bonds
Furthermore, when choosing a broker, one should attach importance to favorable trading conditions. The costs and fees that can arise when trading with Crypto CFDs can be divided into the following three groups: Costs that you have to pay to the broker for each individual trade (usually through the spread), fees for deposits and withdrawals and other costs and fees.
The spread is the difference between the buy and sell price. The smaller this difference is, the better it is for the client. The individual brokers sometimes differ greatly in the size of the spread. Therefore our broker comparison is very helpful to find the best possible provider. In addition, as a trader you should also attach importance to a good customer support. For example, it speaks for a broker if you can reach him by phone (ideally with a free German hotline).
Try out the IOTA trading on a free demo account
To test trading with IOTA without risk, you can open a free demo account with most CFD brokers. Often you can get real prices already on the demo account. Thereby the trading with Crypto Coins can be simulated very well. However, the trading on the demo account does not take place with real money. Instead, the broker provides you with a virtual credit balance. This can be used to get to know trading with CFD. In our experience, this often involves an amount between 10,000 € and 100,000 €.
The demo account can also be used very well to get familiar with the trading platform of the broker. Often the broker helps you with more or less extensive training offers. The demo phase usually lasts one month, but if necessary this period can usually be extended without any problems. Overall, it is recommended that you first try out different strategies on the demo account. Once you have gained enough experience in trading with “play money”, there is no reason why you should not continue trading on an account with real money. It is advisable to risk only a small amount of capital at first. As soon as you get used to CFD trading, you can then increase the stakes. All in all, a demo account is a very good way to get to know a broker and also to compare different providers.
Conclusion: With IOTA the best way to trade CFDs with a broker
In the context of this article we have gone into the IOTA acting in great detail. All in all, IOTA is a very interesting crypto currency, which has a lot of potential. IOTA is especially suitable as a digital currency for the Internet of Things. Large investments are expected in this area in the future. This should then also be reflected in an increased demand for IOTA. In the medium to long term, investors should therefore assume that share prices will rise. Currently, however, the crypto currency can be bought at quite favorable valuations.
As shown, you can use either digital marketplaces, crypto stock exchanges or crypto brokers. Experience has shown that the entry hurdles are lowest with Crypto Brokers. There you can open a trading account for as little as 100 or 200 €. When trading CFDs, you have the advantage of using leverage. This way you need less capital for trading. In addition, most CFD brokers offer you the possibility to get to know Crypto Trading in advance on a free demo account without risk.