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What is IOTA
IOTA is a new-generation cryptocurrency that was created in 2015 to serve the needs of the IoT (Internet of Things) industry (hence the name IOTA). It was designed to be less complex and lighter than other cryptocurrencies in order to make the micro-transactions that are generated by the tens of billions of IoT devices as frictionless as possible. IOTA blockchain has no “blocks”. Instead, it uses a system called Tangle which allows free and instantaneous transactions. Tangle can handle unlimited transactions and is overseen by the non-profit IOTA Foundation which maintains it as a license-free technology. IOTA is the token name of the cryptocurrency that fuels the platform, and it also represents the smallest unit of the token. IOTA applies the SI unit of measurement, with MIOTA representing the most traded unit of IOTA. One MIOTA (‘mega’) refers to one million IOTAs. There is also the KIOTA (‘kilo’), which refers to one thousand IOTA, and GIOTA which represents one billion IOTAs.
MT4 Symbol: IOTAUSD
Trading Hours: 24/7
Leverage: Typical spread: 0.8% over-market
IOTA in the Markets
The IOTA foundation was established in early 2015 by David Sønstebø, Dominik Schiener, Serguei Popov and Sergey Ivancheglo. These financially savvy Germans were one of the crypto space pioneers and the first to pinpoint the need to create a new type of transaction grid to better support the growing industry of IoT. IoT initially means that any device with a chip can be leased in real time. So why do these devices need a special e-coin? Because they generate tens of billions of micro-transactions (and even nano-transactions) and require a super-fast and scalable transaction technology.
In November 2015, IOTA raised 1,337 Bitcoins on a global crowdsale and at the end of 2016 more than 3 million transactions were processed on the IOTA platform. In November 2017, was valued at the modest price of $0.37. It then experienced a solid climb, exceeding a market capitalization of $1.5 billion on its first day of trading. In November 28, 2017 IOTA announced partnerships with mega IoT players such as Cisco, Microsoft, Samsung and Volkswagen. The trading volume surge that catapulted from this announcement was historic; in less than 24 hours, exchanges processed more than $800 million worth of trades (!), most of which were conducted on Bitfinex.
Some investors believe that IOTA is on the path to becoming No. 3 in market cap and beat the popular Bitcoin Cash, simply because it has a real technological edge over its peers:
- It’s scalable
- It’s modular – app development can be done on independent blockchains that are attached to the main chain, allowing for near infinite scalability
- It’s tamper-proof
- It’s 100% fee free
- Super energy efficient (almost 1 millionth the usage of Bitcoin)
- It guarantees faster transactions
All thanks to the technological breakthrough that is the backbone of IOTA: Tangle.
What is Tangle
Tangle is a blockchain with no blocks and no chains! It looks something like this:
Its ledger technology is based on a Directed Acylic Graph (DAG) that functions in a similar way to a blockchain but with a peer-to-peer network and a validation mechanism.
This means that:
- The users themselves are responsible for validating transactions; no need for approval from miners (decentralised and fee free).
- The transaction speed actually increases the more transactions are made (scalable).
The IOTA timeline – The birth of a non-blockchain crypto
2015 – IOTA is founded
2016 – IOTA main network goes live
- IOTA Development Roadmap is released
- IOTA is launched on exchanges
- IOTA tokens crowdsale closed
- English-Germany micropayments processor, SatoshiPay, announces that it will use IOTA instead of Bitcoin.
- IOTA market price soars by 606%
- IOTA announces partnerships with Cisco Systems Inc., Volkswagen AG and Samsung Group
- IOTA agrees to a working partnership with UNOP (United Nations Office for Project Services)
- IOTA and the European Smart City Consortium, +CityXChange, receive a green light from the EU Commission to develop and test various smart city solutions
- IOTA’s Tangle powers IAMPASS pioneering biometric palm vein authentication for digital identity
- IOTA signs working relations with Taiwan giant, SinoPac, to develop ‘iCertificate’; the future of notary certification
- Introduction of Trinity Desktop Wallet
2019 – MIOTA announces project ‘Q’, short for Qubic, a project that will enable Smart Contracts, Oracle and Outsourced Computing.
Why Trade IOTA with AvaTrade
- AvaTrade offers MIOTA (one million IOTA) CFD trades with leverage up to
- The cryptocurrency market is available to traders 24/7
- You can start trading with as little as
- The token’s high volatility makes it an excellent addition to a well-balanced trading portfolio
- You can sell (go short) and potentially profit even when the market price downtrends
- AvaTrade offers zero bank fees on transactions
- Enjoy world-class 24/5 customer service in your language
- Zero exposure to hacking or theft simply because you don’t actually buy or sell cryptos
- AvaTrade is regulated in 5 continents
- AvaTrade allows you to trade on the price changes of the cryptocurrency, relieving you from the complex purchasing process.
IOTA Trading FAQ
- How do I trade IOTA cryptocurrency?
The difficult, old fashioned way to trade IOTA cryptocurrency is to first find an exchange that has IOTA for trading. Then you’ll need to transfer some Bitcoin or other cryptocurrency to that exchange to trade for the IOTA since most exchanges won’t allow you to use your fiat currency to purchase. Hopefully during all this you haven’t lost or forgotten any of your private keys and there hasn’t been an attempt to hack your wallet and steal your coins. Or you can come to AvaTrade and trade on IOTA CFDs. It is much simpler, there’s no hacking risk, and you can still profit from the movements in IOTA’s price.
- Is IOTA cryptocurrency good for traders?
Like any other cryptocurrency IOTA’s price is pretty volatile, making it suitable for trading. However, the coin doesn’t appear to be the best for long-term investing as it has dropped to very low levels and other than a bounce following the March 2020 meltdown the coin hasn’t seen nearly the interest it once had. IOTA is quite an old project in cryptocurrency terms, but it seems like many have forgotten about and are leaving it behind. Of course, blockchain technology is quite new, and breakthrough developments happen all the time. A major upgrade to the protocol, or some ground-breaking news could certainly rocket the price of IOTA higher.
- Is IOTA cryptocurrency safe to buy?
If you’re going to trade MIOTA we recommend you do it via the CFD products offered at AvaTrade for the greatest safety. With our CFDs you can trade on the price action in IOTA without putting your capital in danger of theft from hackers. As recently as February 2020 IOTA had to shut down its entire network after hackers exploited a vulnerability in the official IOTA wallet app and stole millions of dollars worth of IOTA coins. With a network shutdown like that no one was able to move their coins, even those who weren’t part of the theft. There’s no threat like that if you trade IOTA via CFDs.