How To Buy IOTA (MIOTA)

IOTA is a smart contract platform tailored for the Internet of Things (IoT), a vast network of devices connected online. It aspires to be the go-to cryptocurrency for these devices, facilitating instant micro-transactions and seamless interactions. The current unit of account for the cryptocurrency is MIOTA, which is equivalent to 1 million IOTA.

Even if you haven’t heard of the Internet of Things (IoT), chances are you already have IoT devices in your home, car or office. These can include the sensors in your car that indicate tyre pressure is low, or your internet television, smart refrigerator, or Nest thermostat.

As the name suggests, IoT devices are connected to the internet, typically via Wi-Fi or a mobile network. But despite their ubiquity, facilitating transactions and payments among IoT devices is challenging. IOTA is a ledger designed to power micro-transactions among IoT devices.

“We actually see the IOTA token as the connective tissue between the human economy and the machine economy, creating interoperability between the two,” notes Dan Simerman, head of financial relations at the IOTA Foundation.

Another way to describe IOTA is as a network that helps investors and companies monetise data feeds from the IoT. MIOTA is the crypto token used to facilitate transactions on the IOTA network and is also used as a reward for network participants and supporters.

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Unlike other cryptocurrencies such as Bitcoin, IOTA is built on a distributed ledger technology that’s somewhat different from blockchain. IOTA uses a proprietary technology called the Tangle, which is a consensus algorithm that requires users to validate two transactions to complete their own IOTA transactions.

Technically speaking, Tangle is a direct acyclic graph (DAG) consensus algorithm. With this method, there are no miners or validators, no blocks or transaction fees. This allows the crypto to “overcome cost and scalability issues of blockchain,” according to the IOTA website.

The DAG structure was designed to eliminate the scalability issues and costs related to blockchain by enabling no-fee payments, lower computing costs and the ability to connect to IoT devices.

IOTA’s structure is appealing for use in the IoT economy because it removes the friction of high transaction costs, which would require human monitoring and intervention—precisely what the IoT was designed to avoid.

This “smart contracts” platform is currently in the process of redesigning its ledger technology and its protocol for consensus. IOTA’s 2.0 version is fully decentralised.

• No transaction fees. With IOTA, there’s no need to pay for gas (like with Ethereum) or reward miners (like with Bitcoin) to complete transactions. Lacking miners or validators, IOTA is a fee-free data and value transfer protocol.
• Faster transactions. Conventional blockchains often experience bottlenecks due to the time it takes to create new blocks. The Bitcoin blockchain can handle roughly five transactions per second (TPS), although this may sometimes vary. For Ethereum, it’s typically around 15 TPS. For IOTA, it’s possible for its network to handle up to around 1,000 TPS.
• Energy efficient. IOTA is designed to accommodate devices such as sensors that operate in a low-energy environment. IoT devices with minimal computing power, like toasters, will have the ability to post data to IOTA’s Tangle.
• Adaptable to different use cases. Large corporations may adapt IOTA for individual use cases. With IOTA Access, an open-source framework that allows access to control systems, a car owner can allow someone access to their vehicle remotely, for instance.
• Decentralisation roadmap. IOTA’s 2.0 version is fully decentralised.

• Security Vulnerabilities. In February 2020, hackers stole millions of dollars’ worth of MIOTA. It’s reported that the hackers appeared to have targeted a few high-net-worth accounts, and IOTA’s founder David Sønstebø agreed to repay the victims of the hack with the network’s tokens. IOTA’s new and improved 2.0 version is aimed at improving security issues.
• Capacity for growth. The IOTA system is still in its infancy. Like many cryptos, success hinges on wider adoption of the network with increased numbers of participants.

It’s key to understand that IOTA is the overall platform, while MIOTA is the crypto token that powers the IOTA system. Listed under the ticker MIOTA, IOTA’s tokenis available on a range of cryptocurrency exchanges, including Coinspot and eToro.

Here’s how to buy IOTA, step by step:

1. Choose an Australian Cryptocurrency Exchange:

Start by selecting a trusted cryptocurrency exchange that offers IOTA in Australia. Some popular options include Coinspot or eToro. Once you’ve chosen, register for an account by providing your email address and setting a password.

2. Verify Your Identity:

Due to Australian regulatory requirements, verifying your identity is a necessary step before you can purchase any cryptocurrency. This often means uploading a photo ID, such as your passport or driver’s license. Some platforms might also request proof of address, like a recent utility bill.

3. Set Up a Secure Crypto Wallet:

It’s always a good idea to store your cryptocurrency assets in a dedicated wallet rather than keeping them on an exchange, to mitigate risks from potential security breaches. The IOTA Foundation provides a specialised wallet named Firefly. After downloading and setting it up, you’ll have a safe place to store your IOTA tokens.

There are other crypto wallet options available that support IOTA, so take some time to research and select the one that best fits your preferences.

4. Fund Your Exchange Account:

Once logged into your chosen exchange, head to the deposit section. From there, you can deposit Australian dollars (AUD) using bank transfers or other payment methods. Some exchanges might even accommodate BPAY or POLi payments. After the deposit, if your chosen exchange doesn’t directly offer AUD/IOTA pairs, you can exchange your AUD for a major cryptocurrency, like Bitcoin (BTC) or Ethereum (ETH), which can then be used to buy IOTA.

5. Purchase IOTA:

Make your way to the trading section of the exchange. Search for the correct trading pair, such as IOTA/BTC or IOTA/ETH. If you find an exchange that supports direct AUD/IOTA trades, that’s a bonus! Enter the amount of IOTA you wish to purchase and confirm the transaction. Once completed, the IOTA tokens will be reflected in your exchange wallet.

6. Transfer IOTA to Your Secure Wallet:

As a final step for enhanced security, consider transferring your newly acquired IOTA tokens from the exchange to your secure wallet. Locate the ‘withdraw’ or ‘transfer’ option on the exchange, input your wallet’s receiving address, and authenticate the transaction.

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While IOTA and the explosion of IoT technology look promising, there are no guarantees it will have as bright a future as current predictions might lead you to believe. Many unpredictable external events could influence IOTA’s direction, from an enormous cryptocurrency sell-off to a recession and subsequent market crash.

Although the long-term outlook appears to be IOTA positive, it’s important to recognise that fear of missing out (FOMO) can cloud an investor’s judgment. The current macroeconomic climate is not proving to be positive for risk assets like stocks and crypto. The broader climate may need to shift for IOTA to have a chance at performing. Cryptocurrency is a volatile investment, so remember that you could lose the money you invest.

But if you’re passionate about IoT technology and understand the underlying risks, IOTA may be an option worth looking at for a small portion of a crypto portfolio. Consider consulting a financial professional before investing.

This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency as an investment class.