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 cryptocurrencies. IOTA 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 market places, Crypto Exchanges and CFD Brokers. In this article we will show the respective advantages and disadvantages of these methods. All in all, cryptocurrencies are still in a major correction phase, which is why you can currently enter the market at low prices. In our experience there is one major exchange that outshines all others: you can buy IOTA on eToro the social Trading plattform. We will explain why we think so in more detail below.
- 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?
Overview of the cryptocurrency 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 cryptocurrency. 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 IOTA amounts to about $600 million. This makes IOTA one of the 20 largest cryptocurrencies. 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.
With the Internet of Things one means the following. It is an attempt 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 will be able to process payments together. 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 and there are numerous IOTA forecasts on this subject that the demand for IOTA will increase in the future.
As already indicated, IOTA is different from many other cryptocurrencyies. For example, Bitcoin and Ethereum use block chain technology to store individual data. In this context, the blockchain can be imagined as a huge database. The information is stored in blocks, which are connected by cryptographic methods. In this way, it is possible to prevent the data from being 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. It is therefore also said that cryptocurrencyies such as Bitcoin and Ethereum are very difficult to scale.
As such, 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 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.
This article is sponsored Marcel Knobloch