How To Invest in IOTA

IOTA is a distributed ledger that adopts an approach different from the system used by conventional blockchains. The protocol focuses on providing super-fast transaction speeds and the expansion of the Internet of Things (IoT) ecosystem.

With the lofty mission set by the IOTA team, developers and investors in the market are interested in how the protocol will impact the IoT arena in the long run. We have prepared this guide to discuss all you need to know about how to invest in IOTA — inclusive of the best brokers to the risks involved.

#1 Broker to Invest in IOTA – eToro

How To Invest in IOTA – Choose a Broker

As a distributed ledger, IOTA seeks to offer great execution speeds, eliminating the congestion that comes with first-generation blockchains. This use case has contributed to the token’s growth in the market. So, you might find the coin listed on several investment platforms.

Below we have listed a selection of the best brokers that allow you to invest in IOTA safely.

  • eToro – Overall Best Broker to Invest in IOTA
  • Coinbase – Easy-to-Use Broker to Invest in IOTA
  • Binance – Great Place to Invest in IOTA for Asset Diversification
  • Capital.com – Trade IOTA with Leveraged CFDs
  • OKEx – Invest in IOTA by Depositing Crypto

These platforms have been extensively reviewed further down in this How to Invest in IOTA Guide


How to Invest in IOTA – A Quick Guide For 2021

Suppose you have a general understanding of the cryptocurrency industry. If so, you might just need a brief overview of how to invest in IOTA.

In that case, this quickfire guide takes you through the steps involved in buying the token in under five minutes!

  • Step 1: Create an Investment Account with eToro – To get started with eToro, you do not need any prior crypto investment knowledge. Instead, you simply need to visit the broker’s website and provide some personal information so that eToro knows who you are.
  • Step 2: Provide ID: eToro requires you to verify your identity before you can invest in IOTA. To complete this step, upload your ID.
  • Step 3: Deposit Funds: You can use your debit/credit card to add funds to your account. Other options include Paypal, Skrill, and a bank wire.
  • Step 4: Invest in IOTA: Search for the IOTA token select ‘Trade’ after the coin appears. Decide on the amount you wish to invest in IOTA, and click “Open Trade” to finalize the process.

With the steps discussed above, you’ve just learned the process required to invest in IOTA. All in all, eToro has a friendly design that makes it easy to complete the steps within just a few minutes.

Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.

Where to Buy IOTA – Full Broker Reviews

Smart investors will be concerned about the quality of their experience when investing in digital currencies. As such, when assessing different brokers that allow you to invest in IOTA, you’ll want to choose a platform that will offer you a safe and satisfactory service.

After all, there are numerous investment platforms in the cryptocurrency marketplace that should be avoided — as they might be unregulated or have a high-fee structure.

In this section, we discuss the features of the top IOTA brokers in the market, following our strict assessment of their services in terms of cost-effectiveness, user-friendliness, regulation, and more.

1. eToro – Overall Best Broker to Invest in IOTA

bitcoin today

With over 20 million users, eToro has grown to become a reputable investment platform through which you can buy, store, and sell digital tokens. Some of the listed markets on the broker include Chainlink, Cosmos, EOS, Ripple, Stellar, and of course, IOTA. To begin your investment journey with this broker, you don’t need to have prior experience – as the platform is designed with a user-friendly interface. Within five minutes, you can complete the end-to-end process of creating an account, making a deposit, and opening your IOTA investment.

Furthermore, a core feature that stands eToro out is that the broker is heavily regulated. The platform is licensed across different jurisdictions including the UK, US, Australia, and Cyprus. With more than four regulators behind the broker, eToro is mandated to operate with high levels of transparency, meaning the platform has no hidden fees. Since the broker is adequately regulated, you can invest in IOTA without worrying about safety – meaning that you will enjoy security over your funds.

etoro crypto

etoro crypto

Getting started on eToro also comes easy in terms of fees. eToro is a spread-only platform — which means that you won’t pay any variable commissions as opposed to brokers like Coinbase. On eToro, you simply need to cover the mark-up between the ‘ask’ and ‘bid’ price. Furthermore, the broker requires you to make a minimum deposit of just $200 ($50 for US clients), after which you can proceed to invest in IOTA from $25. In even better news, making a deposit on eToro costs a competitive 0.5% — and US investors incur no fee at all.

After purchasing your IOTA tokens, you don’t have to worry about getting a secure private wallet. This is because eToro offers personal wallet services, which you can leverage to store your tokens in a secure manner. This also makes it super easy to sell your IOTA tokens, as you can create an order for that purpose directly from within your portfolio. Therefore, as a beginner looking to invest in a stress-free manner, eToro is a top broker you might want to consider.

etoro copy trading

etoro copy trading

Finally, the broker provides you with tools and features you can leverage to have a seamless IOTA investment experience. For instance, you can choose to use the copy trading tool to invest in cryptocurrencies in a passive manner. Once you select an experienced investor, the broker will copy their positions and replicate them in your portfolio like-for-like. Additionally, eToro provides you with a social platform to interact with other investors. There is even a CryptoPortoflio – which gives you access to 16 digital currencies through a single trade.

Pros

  • Invest in cryptocurrencies on a spread-only basis
  • Minimum investment per trade from just $25
  • Supports debit/credit cards, e-wallets, and local bank transfers
  • Registered with FINRA/SEC and regulated by the FCA, CySEC, and ASIC
  • Minimum deposit of $50 and no transaction fees for US citizens
  • Used by over 20 million people
  • Perfect for beginners
  • Social and copy trading tools

Cons

  • Perhaps too basic for technical traders
  • No support for MT4 or MT5

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

2. Coinbase – Easy-to-Use Broker to Invest in IOTA

Buy MANA at Coinbase

Buy MANA at Coinbase

If you’re a newbie in the cryptocurrency industry, Coinbase is one of the best brokers you can use to invest in IOTA. Our research team found the broker to be super easy to use — as you need little knowledge to navigate the required steps while buying digital tokens on the platform. Notably, you’ll need to fulfill the KYC requirements of the platform – since it’s a regulated broker. For this purpose, you’ll be required to upload a selfie and your government-issued ID.

However, if you’re looking for a low-cost broker, Coinbase falls short in this regard. The pricing structure of the broker is a bit expensive — as you pay a transaction fee of 3.99% when you invest in IOTA using your debit or credit card. Therefore, as a beginner looking to invest on a budget, this will affect the potential returns on your investment. Nonetheless, Coinbase allows you to stay on top of the markets conveniently through the broker’s native mobile app, supported by both Android and iOS.

coinbase review

coinbase review

Another notable feature of the broker is its high priority for the security of users’ funds. You can elect to store your tokens in a vault for added safety – which comes with a 48-hour time-lock. Additionally, the broker has a two-factor authentication step to keep your account protected at all times. With this security feature, if you attempt to access your account from a different device, you’ll have to complete an extra verification step.

Pros

  • One of the most popular cryptocurrency exchanges
  • More than 68 million users
  • Supports instant debit card purchases
  • Dozens of digital currencies to choose from
  • Institutional-grade security practices

Cons

  • Debit card deposits are expensive at 3.99%
  • You will pay a standard trading commission of 1.49%

at eToro, #1 Broker in the Crypto Space

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

3. Binance – Great Place to Invest in IOTA for Asset Diversification

When you choose Binance as your online investment platform, you gain access to a wide range of cryptocurrency tokens that you can buy, sell, and trade. This includes Chainlink, Bitcoin, Litecoin, Stellar, IOTA, and hundreds more. However, to invest in IOTA through Binance, you’ll first have to buy a popular token like USDT. Then, you can exchange the USDT for IOTA, after which you can store your tokens safely.

Concerning storage facilities, Binance offers you numerous options in this regard. You can elect to store the tokens on the platform itself, meaning you don’t have to worry about looking after your private keys. Additionally, Binance stores the bulk of these tokens offline, which is a reputable method of keeping the coins super secure. However, if you don’t want to store your tokens on the platform, you can choose to move them to Trust Wallet, which is supported by Binance.

binance review

binance review

Notably, the markets you will be able to access and the amount of fees you’ll incur when using Binance are based on your location. For instance, Binance charges 0.5% for debit/credit card transactions if you’re from the US. Other regions, however, will typically pay more.  Additionally, American investors can access just over 50 markets through the Binance US platform. However, those in other regions have access to hundreds of cryptocurrency tokens, providing a wider option for investment diversification.

Pros

  • Facilitates billions of dollars in daily trading volume
  • Supports hundreds of digital asset pairs
  • Near-instant deposits via debit/credit card
  • Trading commission starts at just 0.1% per slide
  • Offers crypto savings accounts
  • Ideal for both beginners and experienced traders alike

Cons

  • Not all supported cryptocurrencies can be purchased with a debit/credit card
  • No e-wallet deposits or withdrawals

at eToro, #1 Broker in the Crypto Space

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

4. Capital.com – Trade IOTA with Leveraged CFDs

capital.com review

capital.com review

If you have a short-term trading plan for IOTA, eToro is a great broker for you to consider. With this platform, you can trade tokens without having to own them. Essentially, you trade cryptocurrencies based on their underlying value. This way, you don’t have to worry about getting a credible storage option for your IOTA tokens.

Although this appears sophisticated, Capital.com has a user-friendly interface that makes it seamless to use the platform. Additionally, if you’re looking to open trades with leverage, Capital.com also allows you to do just that. The broker provides varying leverage limits to investors based on their region. With leverage, you can open positions with more money than you have in your trading account.

capital.com review

capital.com review

Furthermore, the broker provides you access to over 200 digital tokens markets including IOTA. From our analysis of the broker in terms of its fee structure, Capital.com gets a superb score in this department. This is because you can trade IOTA – and all other supported markets, at 0% commission. Plus, the platform requires a minimum deposit of just $20 when using a debit/credit card. However, if you choose to add funds via a wire transfer, this minimum deposit requirement increases to $250.

Pros

  • Top-rated spread betting and CFD broker
  • Regulated by the FCA
  • Minimum deposit just $20 (debit/credit cards and e-wallets)
  • 0% commission on all markets
  • Tight spread and no deposit/withdrawal fees
  • Thousands of financial markets supported
  • Great for beginners

Cons

  • Advanced traders might find the platform too basic
  • Minimum deposit of $250 on bank transfers
  • Not available in the US

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.25% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.

5. OKEx – Invest in IOTA by Depositing Crypto

OKEx homepage

OKEx homepage

If you have some experience in the digital tokens industry, depositing cryptocurrency into an exchange should be an easy task. Suppose you hold some cryptocurrency tokens in an external wallet – you can exchange them for IOTA on OKEx. When you perform a crypto deposit, chances are that you’ll incur very low fees. Additionally, you likely won’t have to undertake an identity verification process.

In terms of the commission rates associated with exchanging digital tokens for IOTA, OKEx has a similar fee structure to Binance — as you’ll be charged just 0.10% on the transaction. To make the entire process convenient, OKEx has an easy-to-use buy/sell dashboard, which is suitable for newbies in the industry. The broker also provides educational resources that you can utilize to learn more about the markets.

Although unregulated, OKEx has been offering cryptocurrency trading services for more than 7 years. Over this period, the exchange has built a great reputation with approximately 20 million users globally. When you purchase your tokens through the exchange, you can decide to store them on the platform’s non-custodial wallet – which comes via a mobile app. This grants you complete control over your IOTA investment – since your private keys will only be accessible by you.

Pros

  • Trusted crypto exchange with over 20 million users
  • More than 400+ digital currency pairs
  • Buy and sell cryptocurrencies with a debit/credit card or bank transfer
  • Low commissions that start from 0.1%
  • Fully-fledged mobile app on Android and iOS
  • Great reputation and highly secure

Cons

  • Debit/credit card fees could be more competitive
  • Derivative products are too complex for beginners

at eToro, #1 Broker in the Crypto Space

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

How to Invest in IOTA – Detailed & Explained in Full

As an inexperienced investor, you will likely need an extensive discussion of the steps involved in using eToro to invest in IOTA. This detailed guide provides you with just that — as we have broken down each requirement to walk you through the IOTA investment process step-by-step.

Step 1: Create an IOTA Investment Account

eToro supports more than 30 cryptocurrencies including IOTA. However, to invest in any of these markets, you must first create an account.

how to join etoro

how to join etoro

This step will require you to provide some personal details such as your name, home address, contact information, and more. Then, choose a username/password for your account to complete the registration process. 

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify Your Identity

Once you create your account, eToro will require you to verify your identity before allowing you to invest on the platform. This verification process is a standard procedure and can be completed in under 2 minutes.

To complete this step, upload an ID issued by the government — which can be your passport, driver’s license, or any equivalent means of identification. Furthermore, you also need to provide a document that states your home address. eToro uses this as proof of residency.

Step 3: Make a Deposit

Brokers often have varying minimum deposit requirements. On eToro, the minimum amount you can add to your account is $200. However, if you’re a US client, that amount is just $50.

After making this deposit, you can invest in IOTA from $25 upwards. To add funds, you can use any of the options supported by the broker – which includes:

  • Debit Cards
  • Credit Cards
  • Bank Wire / ACH
  • E-wallets such as Paypal and Apple Pay

Notably, if you want to invest in IOTA quickly, consider a payment option other than a wire transfer — as this method is slow to deliver your funds.

Step 4: Search for IOTA

Next, go to your eToro dashboard and click on the search tab. Then, type ‘IOTA’ and pick the first option on the list.

iota etoro

iota etoro

Once you click ‘Trade,’ you’ll be taken to the final step of the IOTA investment process.

Step 5: Invest in IOTA

You are now on the IOTA order page. This is where you’ll input the amount of money you want to invest in IOTA. Since eToro’s minimum stake is $25, you can choose to open your investment an amount you are comfortable with, especially if you’re on a budget.

invest in iota etoro

invest in iota etoro

After entering the amount you wish to invest, confirm all relevant details, and click on “Open Trade.” Following that, you’ll be able to view your IOTA tokens from within your portfolio. Essentially, this means you’ve invested in the token and can hold on to your digital assets until you are ready to cash out!

How to Sell IOTA

You haven’t completely learned how to invest in IOTA until you know the required steps to cash out. After all, you’ll need to sell your tokens to realize the return on your IOTA investment.

Follow the steps below to get this done in under 2 minutes.

  • Create a ‘Sell’ order from your eToro portfolio.
  • Note that you’ll need to use a market order – since you want to sell the tokens at the next best price.
  • Within a few seconds, eToro will sell the tokens and update your balance with the proceeds.

This entire process is seamless on eToro – because your tokens are stored in the broker’s in-built wallet. As such, you can sell them from there directly — saving you the stress of transferring your coins over from an external wallet.

Ways to Invest in IOTA

The two prominent options through which you can invest in IOTA is either by using a broker and or a cryptocurrency exchange. We have discussed these two methods in the section below.

IOTA Broker

The first way to invest in IOTA is to use a broker. In most cases, brokers are regulated by leading financial institutions. For example, eToro is approved by the FCA, FINRA, SEC, and more.

  • A regulated broker like eToro allows you to invest safely — as the provider has a responsibility to be transparent.
  • Choosing a licensed broker means you can invest in IOTA with fiat money. This is a simple and fast way to invest and thus – will positively impact the quality of your trading experience.
  • Lastly, regulated brokers are often mandated to keep users’ funds in a separate bank account. This is an added form of security to ensure investors enjoy adequate protection over their capital.

On top of the features discussed above, a licensed broker like eToro will allow you to start investing in IOTA from just $25. This is highly suitable for you as a beginner looking to enter the IOTA market with minimal risks.

IOTA Exchange

Alternatively, you can choose to use a cryptocurrency exchange. For some investors, this is an attractive option since certain cryptocurrency exchanges have a low-fee structure. Additionally, you can often trade on these platforms anonymously since you’re not required to upload your ID.

invest in iota etoro

invest in iota etoro

In fact, some cryptocurrency exchanges now have millions of users trading on their platforms. For instance, OKEx has more than 20 million user accounts. Nonetheless, these exchanges are unsafe for your IOTA investment journey – since there’s no regulatory body behind them. Therefore, you cannot completely ascertain the safety of your capital.

Should I Invest in IOTA?

When learning how to invest in IOTA, you must first consider whether the token should be included in your portfolio. Since digital tokens are volatile, you need to understand the distinguishing features of IOTA that might impact the token’s performance in the market.

In this regard, we suggest that you do your own research. When you read extensively about the project, you’ll be able to conclude whether the token is indeed worthy of investment. The following sections have been written to help you through the decision-making process.

Highly Scalable

An important feature to note about IOTA is the protocol’s scalability. The network leverages a new approach to address some of the key challenges associated with first-generation blockchains – such as slow transaction speeds. IOTA utilizes a technological component referred to as ‘Tangle,’ which is a group of nodes that validate transactions.

Invest in iota etoro

Invest in iota etoro

This proprietary technology is highly scalable because the more devices or nodes added to the network, the better the protocol’s performance. The scalability of IOTA offers investors two notable advantages; decreased transaction times and low-cost transfers. These benefits have the potential of impacting the IOTA token’s value, as more developers and investors are drawn to the protocol.

Data Marketplace

Another impressive feature that comes with the IOTA protocol is its data marketplace.

  • This marketplace provides an avenue for developers in the IOTA ecosystem to gain access to active data streams.
  • This way, relevant data is made accessible to all compensating parties at every point in time.

The importance of this data stream cannot be overemphasized. For instance, programmers can leverage these data streams to develop high-end applications. This is a use case that might create a buzz around the IOTA token in the very near future.

Established Project

IOTA is an established project that has gone through numerous phases ever since it was launched. What originally started as the ‘Jinn’ project in 2014 rebranded to IOTA in 2015 – subsequently raising over $500,000 in token sales. In comparison, most of the 12,000+ tokens listed by CoinMarketCap were created within the past 2 years.

  • However, IOTA has been operative since 2014, making it an established project when compared to the wider cryptocurrency market.
  • This implies that the token has a sufficient track record that you can assess to further understand the coin’s market performance.

Essentially, IOTA has witnessed numerous highs and lows, which you can study to understand if there’s a pattern to the token’s price movements.

Community Support

IOTA enjoys impressive community support from investors and developers who have taken an interest in the protocol. Due to the benefits of the network, especially in terms of fees and speed, developers can leverage the protocol for numerous purposes. For instance, IOTA allows developers to program MEMS sensor technology and various software packages.

iota etoro

iota etoro

Consequently, the protocol receives support from its community, which is an important element to consider when researching the token. After all, the quality of a token’s community often impacts the coin’s growth and expansion in the market.

What are the Risks of Investing in IOTA?

As you learn about the right brokers and steps associated with investing in IOTA, you have to understand that buying the token comes with certain risks. While some of these risks are peculiar to the token, others are common to all cryptocurrencies.

Below are some of the risks you should know about when learning how to invest in IOTA.

Hacking Incidences

Perhaps the most notable thing to discuss in terms of the risks associated with IOTA is that the protocol has been a victim of hacking twice.

  • The first incidence took place in 2018 when IOTA lost $10 million worth of tokens to hackers.
  • In 2019, a similar incidence occurred — as hackers made it into the network by taking advantage of a vulnerability in the Trinity wallets managed by IOTA.
  • Consequently, the hackers made away with nearly $2 million worth of IOTA tokens.
  • Following the hacking incident, the protocol shut down for about 10 days before reopening for operations.

These two incidences have affected investors’ confidence in the protocol. This is a crucial incidence worthy of contemplation before concluding on whether to buy the token or otherwise.

Market Volatility

The cryptocurrency market is volatile, meaning prices will fluctuate across the day. Therefore, IOTA never has a stable price. So, if you invest in the token, you’ll hope that the coin’s price increases so you can secure a profit.

However, if the market moves unfavorably, you might incur huge losses.

  • Therefore, do your own personal research before you invest in IOTA. This will ensure you learn all the relevant risks associated with the token.
  • Invest small amounts but at regular intervals. This strategy allows you to manage your risk adequately — since you won’t be investing all your funds at once.
  • Use a regulated broker. Since the cryptocurrency market is highly volatile, a smart investor will choose a regulated broker to buy digital tokens. This way, you can enjoy security over your funds.

Ultimately, you have to stay updated with the markets after investing in IOTA. This will ensure you know when prices increase so you don’t miss out on opportunities to cash out your investment.

How Much Does it Cost to Invest in IOTA?

When deciding on the broker to choose for your IOTA investment, the fee structure is an important consideration. This is because the costs you’ll incur when you invest in IOTA are determined by the broker you elect to use.

  • On some brokers, you can add funds on a fee-free basis if you utilize the wire transfer option. However, this option processes transactions very slowly.
  • Depending on your broker, the cost of investing in IOTA may range from 0.5% to 5%.
  • For instance, eToro will only charge you 0.5% when you use your debit or credit card to fund your IOTA investment. With that said, US clients pay no deposit fees at all when using eToro – irrespective of the payment method.
  • However, for the same service, you’ll incur a 3.99% fee when using Coinbase. Similarly, on Binance, you can incur a commission of up to 4% when using your MasterCard or Visa. This will, however, depend on your location – as fees vary.

In summary, the cost of investing in IOTA is largely dependent on the broker you decide to use. Therefore, you should research adequately for brokers that offer an affordable service. For instance, when you use eToro, you only need to worry about the spread you’ll incur after opening your investment.

How to Invest in IOTA – Conclusion

This How to invest in IOTA Guide has shown you that buying and selling the token is straightforward. Once you follow the discussed steps carefully, you’ll be able to invest in IOTA within just a few minutes.

Notably, selecting an IOTA broker is a highly delicate decision – as your choice will determine your investment experience. Therefore, we suggest considering eToro – because the low-cost broker is heavily regulated and easy to use for both beginners and experts alike.

FAQs

How to invest in IOTA?

The best place to invest in IOTA is with a regulated broker, not least because the platform will be licensed by reputable financial bodies. In this regard, eToro is a topheavily regulated broker in the digital tokens industry that has a minimum investment stake of just $25. On the broker’s website, you’ll find ‘Join Now.’ Click on the button, after which you should fill in all the required details. Then, fund your account and proceed to open your IOTA investment.   

Where to invest in IOTA?

In terms of fees, regulation, supported markets, and user-friendliness, eToro is a broker that stands out among others. On this platform, you won’t pay variable commissions – which is commonplace with other brokers in this space. Instead, you only need to pay the spread when you invest in IOTA through eToro. 

Should I buy IOTA?

You cannot decide whether a token is a worthy buy or otherwise by simply looking at the coin’s price Instead, you must thoroughly research the token and the protocol itself to have an understanding of the project’s objectives. Then, you can decide whether or not the token is a good fit for your investment portfolio.

How can I safely invest in IOTA?

A regulated broker has the responsibility to operate within the established scope of operations. eToro, for instance, is audited by numerous regulators, meaning the broker has to operate with complete transparency. This includes the SEC, FCA, CySEC, and the FCA. Using such a broker for your IOTA investment is a safe way to buy the token.

How can I cash out my IOTA?

When you choose a broker that offers personal wallet services, you can cash out your investment easily. Since the tokens will remain in the broker’s in-built wallet, all you have to do is to create a sell order. After that, a broker like eToro will sell your tokens in real-time and make your funds available for withdrawal.   

 

About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters – including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.


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