As of writing this, there are 14 coins with a market cap of over US$1 billion. While many of these 14 coins are directly competing against each other, IOTA (crypto token MIOTA) offers a much more unique architecture and value proposition. As such, anyone looking to hold a varied portfolio, or just wanting to be in at the front of an exciting technological evolution, should consider buying into IOTA.
This guide is going to show you how to buy your first MIOTA coins on one of the world’s largest exchanges, Binance.
What is IOTA?
IOTA is a distributed ledger platform intending to power the Internet of Things (IoT) economy. Well… what is the IoT?
The Internet of Things is the network in which all kinds of devices communicate with each other, sharing data and performing automated actions. Smart TVs, smart homes and Amazon’s Alexa are just the beginning. Many believe the IoT has almost limitless potential to expand, and encompass everything in our everyday life.
One hurdle in place for the IoT’s advancement is the ability for devices to make transparent microtransactions between each other without significant fees to be paid for each transaction. This is the problem IOTA is looking to solve, with the MIOTA coin.
To enable instant microtransactions with zero fees, the issue of scalability with traditional blockchain platforms needs to be fixed. IOTA does this with a different architecture to the blockchain used by the likes of Bitcoin and Ethereum. Their Directed Acyclic Graph (DAG) structure (called the “Tangle”) allows transactions to run parallel to each other and theoretically scales to work faster with more activity on the network.
Now let’s see how you can buy IOTA tokens.
Step 1: Register for an account on Binance
Not many major Fiat exchanges offer the ability to buy IOTA tokens with Fiat currency (USD, EUR, JPY) yet. So this guide will focus on trading Bitcoin or Ethereum for IOTA.
If you haven’t already, register for an account on Binance. The exchange is open for people in almost every area of the world, and should not take long.
Step 2: Verify your account
Binance will require you to submit several verification documents before you can start trading. The approval process is usually quick, but in some cases may take up to a day.
Additionally, set up 2-Factor Authentication to protect your account.
Step 3: Send BTC or ETH to your Binance account
Once you have registered, you’ll need to send Bitcoin or Ethereum to your Binance wallet. If you don’t hold either of these coins, you can buy with a credit or debit card from sites like Coinmama or Changelly, or from a Fiat exchange like Coinbase.
To make a deposit, go to the menu at the top of the page, select “Funds”, then “Deposits”.
Search in the dropdown menu for the coin you wish to deposit. Binance will give you a wallet address to send your coins to. Make sure you only send the right type of coin (i.e. BTC to the BTC wallet). Any other coins sent here could be lost.
Step 4: Wait for confirmation
Transactions are often completed very quickly, but could take up to several hours in some cases depending on the network load at the time.
Make sure your transaction has been completed successfully before continuing.
Step 5: Find and select the BTC or ETH pair
Once your deposit has gone through, move to the exchange section of Binance. Click on “Exchange” from the menu at the top, then “Basic”.
From the exchange screen, find the box on the right hand side. In the search field, select the coin you deposited earlier, and search for IOTA. Click on the pair that comes up (IOTA/BTC or IOTA/ETH).
Optional: Use Binance’s advanced tools to buy at the right time
Binance offers a lot of data, such as real-time graphs and order history, to help you track a coin’s performance and buy at the best time.
The exchange will also let you set buy or sell limits. This means you can put at price (in BTC or ETH) at which you want to buy. Once the price hits that point, the exchange will automatically make your trade.
Step 6: Choose the amount of IOTA to buy
Put in the price you want to buy IOTA for, or select Market to buy at the current price (market price is fine for beginners).
Now select how much IOTA to buy. You can choose a specific amount in IOTA, or 25%, 50%, 75% or 100% of the BTC/ETH coins in your Binance wallet.
Step 7: Buy IOTA!
Click the big green button to complete your trade!
Step 8: Move your coins to a secure IOTA wallet
The best practice in crypto is to keep your coins in a secure wallet you control, not on an exchange. So when you are finished trading, always withdraw your coins.
To do this, you’ll need a wallet that supports IOTA. As IOTA is a newer project than many other high-value cryptocurrencies, there are not as many wallet options available yet. The Atomic Wallet and GUI IOTA Light Wallet are both solid options for Desktop, whereas the Trinity Wallet or the official IOTA Android Wallet are two mobile options for Android users.
To withdraw coins to your own wallet, click on “Funds” and then “Withdrawals”.
Select IOTA from the dropdown menu. Add the address from your IOTA wallet, double check it is correct, and hit submit. Check Binance for confirmation that your withdrawal has been successful.
…and that’s it! Now you know how to get your first IOTA tokens on Binance.