While the cryptocurrency market is the hot topic these days, you come across a number of cryptocurrencies springing out there and some just demand to grab your attention. Introducing Iota, the latest word on the tips of the tongue of various people out there in the digital currency market.
But you might be wondering what actually is Iota; is it something along the lines of bitcoin, the same concept based on the blockchain ledger?
Well, it’s pretty close to it but not exactly that. Nevertheless, hold your horses for we would explain every tiny bit you need to know about the Iota coin right here, so buckle up for some tangle infused transactions!!
Iota? Wasn’t it the old complex number?
Well, yeah it is, but the Iota coin is anything but complex. Iota; which stands for Internet of Things Application, is a new cryptocurrency, similar to Bitcoin. But it is different in many fundamental ways.
Iota is an innovative new distributed ledger technology which is build to function as the backbone of the Internet of Things. It came into being in 2014, it is the only technology of its kind since it is able function as the lightweight distributed ledger with scalability, decentralization andaquantum for various cases in the Internet of Things and even human applications.
As the Internet-of-Things keep expanding, the need for interoperability and sharing of resources become a necessity. Iota enables companies to explore new business-2-business models by making every technological resource a potential service to be traded on an open market in real time, with no fees.
So basically the fundamentals setting it apart from the regular cryptocurrency is that it’s:
- Fee Less
The art of Tangle is what produces magic
This stupendous technological breakthrough is possible due to The Tangle. Unlike Bitcoin which uses blockchain architecture for maintaining its ledger, Iota uses the ‘Tangle’. This is a Directed Acyclic Graph (DAG), due to which in the new autonomous Machine Economy, Iota will be the backbone.
The Tangle ledger is able to settle transactions with zero fees so devices can trade exact amounts of resources on-demand, as well as store data from sensors and data loggers securely and verified on the ledger.
In case of Bitcoin, one has to undergo the process of “mining”, which usually involves solving a coplex mathematicla problem and for each problem solved one block of Bitcoin is processed, which can then be used for transactions.
But Iota follows decentralization in a true sense, for it eliminates the need for mining by simply asking anyone submitting a transaction to verify two other random transactions.
Another added bonus is the utility of micro-transactions. For the first time, ever true micro and even nano-transactions are enabled due to the unique Iota Tangle architecture, providing developers with a brand new set of tools for their applications in both IoT and Web.
This gives rise to the new business opportunities especially for the companies that prohibitive fees have kept in the realm of the impossible until now.
Where and how to get this Iota
While in case of other cryptocurrency which you can buy using cash, Iota could not be bought in a similar way. It follows the process of crypto-exchange; you can get it in exchange for other cryptocurrency. That means if you want to get your hands on some Iota, you first need to acquire something like Bitcoin or Ethereum. Hence in order to get the tangle advantages go through a bit of blockchain initially.
Some of the most popular options for buying these are Coinbase and Xapo. You can then trade them on certain crypto exchanges for Iota. Bitfinex and Binance have significant trade volumes for Iota. However, it is recommended that you use Binance to buy Iota. We recommend this because Binance so far has been the most reliable and capable buying platform.
Steps to buy iota using Binance
All you have to do to buy Iota using Binance is to follow a couple of simple steps enlisted below:
- Head over to a registration page for Binance and enter your details. When done you click register and then you need to verify your email.
- Once you have verified your email address and you log back and hover your mouse over the Funds link in the navigation bar across the top of the page. It should then reveal a drop-down menu. Click Deposits Withdrawals.
- You need to find Bitcoin BTC and click the Deposit link at the end. This will then slide down and reveal your receiving address.
- Now you need to send some Bitcoins to Binance so you can trade them in. So sign up to a CryptoCurrency Wallet Provider, and purchase your Bitcoins using whatever currency you wish.
- Again, from your Coinbase account that you have just created and bought your bitcoins with you will need to send them to the address that you generated on Binance. You do this by going to Accounts and then clicking the Send button under the wallet of the currency you purchased.
- Once your bitcoins have been received by Binance, hover over the Exchange link at the top left of the page next to the Binance logo. This will show you a drop-down menu. Click Basic in the menu.
- Find and click your trading pair in the right-hand column. Because you want to buy Iota with bitcoin you are looking for Iota/BTC. Similarly, if you sent Ethereum over instead you would be looking for Iota/ETH.
- You will now be able to see the buying form. Fill this out with the amount of Iota you want to buy and then click the Buy Iota button.
And that’s it you are done buying Iota in the above-mentioned steps. So now you can make use of it and just like the Bitcoin market, raise it and expect greater returns. Nevertheless, in doing so, great care must be taken, for the value of cryptocurrency is very volatile, it may surge one second and completely plunge the next!